The Treasury Legislation Amendment (Repeal Day 2015) Bill 2016 was on Wed 16.3.2016, passed by the House of Reps with 2 Opposition amendments. The amendments removed Sch 1 from the Bill. The Bill now proceeds to the Senate.
Schedule 1 had proposed to simplify the superannuation guarantee (SG) charge and make the SG charge and penalty more proportionate to the non-compliance.
- The SG charge was to be simplified by aligning the earnings base for calculating the SG charge (currently salary or wages) with the earnings base for calculating SG contributions (ordinary time earnings).
- The changes would have also aligned the interest component on any SG shortfall with the period over which the contributions are actually outstanding.
- In addition, these changes had also proposed to remove the additional penalties under the Superannuation Guarantee (Administration) Act 1992, which can be significant and align them with administrative penalties under the Taxation Administration Act 1953.
The changes were to have applied from 1 July 2016.
[APH website] [LTN 51, 16/3/16]