• Surcharge rates

    Before the superannuation contributions surcharge was abolished for the 2005-06 and later financial years, the maximum surcharge rate was gradually reduced to:

    • 15% for the financial years 1997-2003
    • 14.5% in 2003-04
    • 12.5% in 2004-05.

    The maximum surcharge rate applies to surchargeable contributions if a person's adjusted taxable income exceeds the higher income amount.

    No superannuation contributions surcharge will apply if a person's adjusted taxable income is equal to or below the lower income amount.

    Table: Lower income and higher income amounts

    Income year

    Lower income amount

    Higher income amount

    A
    (divisor used in
    rate formula)

    2005-06 onward

    Surcharge has been abolished

     

    2004-05

    $99,710

    $121,075

    1,709.20000

    2003-04

    $94,691

    $114,981

    1,399.31034

    2002-03

    $90,527

    $109,924

    1,295

    2001-02

    $85,242

    $103,507

    1,219

    2000-01

    $81,493

    $98,955

    1,165

    1999-2000

    $78,208

    $94,966

    1,118

    1998-99

    $75,856

    $92,111

    1,084

    1997-98

    $73,220

    $88,910

    1,046

    1996-97

    $70,000

    $85,000

    1,000

    If the adjusted taxable income is between the lower income amount and higher income amount, the surcharge rate will be calculated using the following formula:

    Surcharge rate

    =

    Adjusted taxable income - lower income amount
    A

    Example

    Robert's adjusted taxable income for the 2003-04 financial year was $103,762. For the same financial year, his accumulation super fund reported that he only received contributions of $9,000 and that these were employer contributions.

    According to the formula above, his surcharge rate will be calculated as follows:

    Rate

    =

    $103,762 - $94,691
    1,399.31034

     

    =

    6.48248%

    This surcharge rate is applied to Robert's surchargeable contributions to calculate his liability as follows:

    Liability

    =

    $9,000 x 6.48248%

     

    =

    $583.40

    Therefore a surcharge assessment for $583.40 will be issued to Robert's super fund.

      Last modified: 25 May 2015QC 18957