R3 No-TFN-quoted contributions

Show at R3 all contributions received that were for a member who has not quoted a TFN, unless the member's account was opened before 1 July 2007 and the member's total assessable contributions for the income year are $1,000 or less. If this exception applies, report employer contributions for the member at R1 even though the member has not quoted their TFN to the fund.

R3 is mandatory. You must include an amount at R3 even if it is zero (if zero write 0).

The fund will be liable for additional tax on no-TFN-quoted contributions. For a complying superannuation fund, the additional tax is 34% (that is, in addition to 15%). For a non-complying superannuation fund, the additional tax is 2% (that is, in addition to the 47% tax). The effect of the additional tax is that the no-TFN-quoted contribution is subject to an overall tax rate of 49%.This additional tax must be paid regardless of any tax offsets or amounts the fund may have transferred to a life insurance company or PST; see R6 Transfer of liability to life insurance company or PST.

See example 4 for an illustration of how this additional tax is applied.

R3 is used to determine R Assessable contributions.

Show additional tax payable as a result of a member not quoting a TFN at J Tax on no-TFN-quoted contributions item 12.

If a member quotes their TFN to the fund in 2015–16 for the first time, and the fund paid additional tax on no-TFN-quoted contributions in one of the most recent three income years ending before 2015–16, in relation to that member not having quoted, then a tax offset can be claimed at E2 No-TFN tax offset item 12 for that additional tax.

Last modified: 15 Jul 2016QC 48112