SUPERANNUATION CONTRIBUTIONS TAX IMPOSITION ACT 1997

SECTION 5  RATE OF SUPERANNUATION CONTRIBUTIONS SURCHARGE  

5(1AA)  [Interpretation]  

In this section:

higher income amount means:

(a)  for the 2003-2004 financial year - $114,981; and

(b)  for the 2004-2005 financial year - that amount as indexed under section 7.

lower income amount means:

(a)  for the 2003-2004 financial year - $94,691; and

(b)  for the 2004-2005 financial year - that amount as indexed under section 7.

maximum surcharge percentage means:

(a)  for the 2003-2004 financial year - 14.5%; and

(b)  for the 2004-2005 financial year - 12.5%.

(c)  (Repealed by No 102 of 2005)

5(1)  [Calculation formula]  

Unless subsection (3) applies, if the member's adjusted taxable income for a financial year ( relevant adjusted taxable income ) is not less than the lower income amount but is less than the higher income amount, the rate of the superannuation contributions surcharge that applies to the member for that year is the percentage (calculated to 5 decimal places) of the member's surchargeable contributions for that year worked out using the formula:

Relevant adjusted taxable income - Lower income amount
------------------------------------------------------
                           A                          
          

where:

A is:
Higher income amount - Lower income amount
------------------------------------------
    Maximum surcharge percentage x 100    
          

5(1A)  [Decimal places]  

If the percentage calculated under subsection (1) for a financial year would, if it were worked out to 6 decimal places, end with a number greater than 4, the number so calculated is increased by 0.00001.

5(2) 

If the member's adjusted taxable income for a financial year is equal to, or greater than, the higher income amount, the rate of the superannuation contributions surcharge that applies to the member for that year is the maximum surcharge percentage of the member's surchargeable contributions for that year.

5(3)  [Where TFN not quoted]  

If:

(a)  the member has not quoted his or her tax file number in connection with the operation or the possible future operation of the Superannuation Contributions Tax (Collection and Assessment) Act 1997 to the superannuation provider, or one of the superannuation providers, who, at the end of a financial year, held any of the member's surchargeable contributions for that year; and

(b)  the Commissioner has not, after taking all reasonable steps, found out the member's tax file number; and

(c)  the Commissioner has written a letter to the member at the member's last-known address telling the member that, if the member does not quote his or her tax file number, the rate of surcharge that will apply to the member for a financial year (the relevant financial year ) may be the maximum surcharge percentage of the member's surchargeable contributions for the relevant financial year;

the following provisions have effect:

(d)  if contributed amounts in respect of contributions began to be paid for or by the member to a superannuation provider before 7 May 1997 and the member's surchargeable contributions for the relevant financial year exceed the surchargeable contributions threshold - the rate of surcharge that applies in respect of the member's surchargeable contributions for the relevant financial year is the maximum surcharge percentage of those contributions;

(e)  if contributed amounts in respect of contributions began to be paid for or by the member to a superannuation provider before 7 May 1997 and the member's surchargeable contributions for the relevant financial year do not exceed the surchargeable contributions threshold - the rate of surcharge that applies in respect of the member's surchargeable contributions for the relevant financial year is nil;

(f)  subject to subsection (4), if no contributed amounts in respect of contributions began to be paid for or by the member to a superannuation provider before 7 May 1997 - the rate of surcharge that applies in respect of the member's surchargeable contributions for the relevant financial year is the maximum surcharge percentage of those contributions.

5(4)  [Second written notice]  

If:

(a)  the Commissioner has written a letter to a member as mentioned in paragraph (3)(c); and

(b)  the member has not quoted his or her tax file number as mentioned in paragraph (3)(a) within 3 months after the letter was sent;

paragraph (3)(f) does not apply in respect of the member unless the Commissioner has, after that period, written a further letter to the member:

(c)  to an address determined by the Commissioner as most appropriate for the letter to reach the member; and

(d)  in the same terms as the earlier letter.




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