ATO Interpretative Decision
ATO ID 2002/718 (Withdrawn)
Superannuation
Superannuation contributions tax: Surchargeable contributionsFOI status: may be released
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This ATO ID is withdrawn as it is a straight application of the law and does not contain an interpretative decision.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Are employer contributions that are in respect of an employment period prior to 20 August 1996 but paid to a superannuation provider after 20 August 1996, included as surchargeable contributions under paragraph 8(2)(c) of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 (SCT Act)?
Decision
Yes. The employer contributions are included as surchargeable contributions under paragraph 8(2)(c) of the SCT Act notwithstanding the contributions relate to a period of the member's employment prior to 20 August 1996.
Facts
The member had a salary package agreement with their employer backdated to 1 January 1996. In September 1996 the employer made contributions to a superannuation (accumulated benefits) provider for the member under a salary sacrifice arrangement. The member's provider reported surchargeable contributions in respect of the membership for the 1997 financial year.
Reasons for Decision
Subsection 13(2) requires a provider to report to the Commissioner of Taxation, details of a member's total contributed amounts for a financial year.
Paragraph 8(2)(c) of the SCT Act includes as surchargeable contributions, amounts that are contributed amounts paid by an employer to a provider for a member for a financial year.
The surchargeable contributions for a member of an accumulated benefits provider are calculated by reference to the contributed amounts referred to in section 43 of the SCT Act. The term contributed amounts in relation to a member for a financial year means any amounts paid for or by the member to, or otherwise credited or attributed to an account for the member, by a provider for the financial year. This is the case even where contributed amounts reported by a provider for a particular financial year relate to a period of employment prior to 20 August 1996.
Subsection 8(4) of the SCT (A&C) Act 1997 is a transitional provision designed to ensure that for the 1996-1997 financial year,'surchargeable contributions' are to be worked out only for the part of that financial year that started after 7.30pm by legal time in the ACT on 20 August 1996. There is no discretion under the SCT Act to allow the Commissioner to exclude any employer contributed amount from being a surchargeable contribution where the amount is reported by a provider for a particular financial year as relating to the period after 20 August 1996.
Date of decision: 12 October 1998
Legislative References:
Superannuation Contributions Tax (Assessment and Collection) Act 1997
paragraph 8(2)(c)
subsection 8(7)
subsection 13(2)
section 43
Other References:
Previously released as CDS10153
Keywords
Superannuation contributions tax
Employer superannuation contributions
Superannuation contributions surcharge
Salary sacrifice
Superannuation provider - accumulation benefits
Surchargeable contributions
ISSN: 1445-2782
| Date: | Version: | |
| 12 October 1998 | Original statement | |
| You are here | 15 December 2006 | Archived |