Example 5: Superannuation fund showing income at R3 No-TFN quoted contributions item 10

Warning:

This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

Example 5a: Complying superannuation fund

The Natalie Superannuation Fund is a complying fund. However, it has income that must be taxed at more than 15%.

The fund received $10,000 in assessable contributions (shown at R item 10), all of which are employer contributions. Of that amount, $8,000 is shown at R1 item 10 for members who quoted their TFN, but $2,000 is shown at R3 item 10 for members who have not quoted their TFN and whose account was opened either:

on or after 1 July 2007, or
prior to 1 July 2007 but the assessable contributions made for the member in the year exceeded $1,000.

The fund has also incurred $1,000 in administration expenses (J item 11). The superannuation fund's taxable income is $9,000.

Calculation element	Amount	Rate	Tax
No-TFN-quoted contributions, Assessable income	$2,000	31.5%	$630
Employer contributions	$10,000	-	-
Total assessable income	$10,000	-	-
less Deductions: Administration expenses	$1,000	-	-
Taxable income	$9,000	15%	$1,350
Gross tax	-	-	$1,980

See appendix 3 for more information on the applicable tax rates.

End of example

Example 5b: Non-complying superannuation fund

Most of the income of non-complying funds is taxed at 45%, but a tax rate of 46.5% applies to no-TFN-quoted contributions.

If the Natalie Superannuation Fund was a non-complying fund, you would calculate its gross tax as follows:

Calculation element	Amount	Rate	Tax
No-TFN-quoted contributions	$2,000	1.5%	$30
Assessable income: Employer contributions	$10,000	-	-
Total assessable income	$10,000	-	-
less Deductions: Administration expenses	$1,000	-	-
Taxable income	$9,000	45%	$4,050
Gross tax	-	-	$4,080

See appendix 3 for more information on the applicable tax rates.

End of example

Last modified: 29 Jul 2020QC 21714