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

Last updated 28 July 2020

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

 

Start 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

QC21714