ATO Interpretative Decision
ATO ID 2001/455
Superannuation
Superannuation contributions surcharge: lump sum payment in arrearsFOI status: may be released
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This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Whether the lump sum payment in arrears is included in the calculation of the member's adjusted taxable income (ATI) for superannuation contributions surcharge purposes?
Decision
Yes. The lump sum payment in arrears is included in the calculation of the member's ATI for superannuation contributions surcharge purposes under section 43 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 (SCTA).
Facts
The member, who was a holder of surchargeable contributions, received a superannuation contributions tax assessment for the financial year.
The member's taxable income for the financial year included a lump sum payment that related to the previous financial year (lump sum in arrears).
The Commissioner calculated the member's ATI to include the lump sum payment in arrears.
Reasons for Decision
Section 43 of the SCTA defines a member's ATI for a financial year. ATI includes the member's taxable income less any amounts that were eligible termination payments (ETP) within the meaning of subsection 27A(1) of the Income Tax Assessment Act 1936 (except payments made under paragraph (a) of the definition of ETP). It also excludes lump sum payments for unused annual leave and long service leave paid on termination of employment because of bona fide redundancy, early retirement or invalidity.
The definition of ATI in section 43 of the SCTA does not exclude lump sum payments in arrears.
The lump sum payment in arrears received by the member in the financial year formed a part of the member's taxable income for the year. Accordingly, the whole amount of the payment in arrears is included in the calculation of the member's ATI for the superannuation contributions surcharge purposes.
Date of decision: 22 August 2001Year of income: Year ended 30 June 2000
Legislative References:
Income Tax Assessment Act 1936
subsection 27A(1)
paragraph 27A(1)(a)
section 43
Keywords
Eligible termination payments
Lump sum payments in arrears
Adjusted taxable income
Superannuation contributions surcharge
Surchargeable contributions
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 22 August 2001 | Original statement |
| 1 May 2009 | Archived |