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ATO Interpretative Decision

ATO ID 2002/720 (Withdrawn)

Superannuation

Superannuation contributions tax: calculation of adjusted taxable income
FOI status: may be released
  • This ATO ID is withdrawn as it is a straight application of the law and does not contain an interpretative decision.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.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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

Can the 'superannuation contributions surcharge' that is payable under an assessment made under subsection 15(1) of Superannuation Contributions Tax (Assessment and Collection) Act 1997 (the SCT Act), be reduced to nil following a change to the member's adjusted taxable income (ATI) for the financial year?

Decision

Yes. The surcharge payable is reduced to nil when the original assessment is amended under subsection 19(3) of the SCT Act after amended surchargeable contributions details are reported by the superannuation provider and the member's ATI when recalculated, is less than the surcharge threshold for the financial year.

Facts

Two providers reported surchargeable contributions in respect of the member for the financial year. Based on the total surchargeable contributions as reported, the Commissioner calculated the member's ATI to be above the surcharge threshold and issued assessments to the providers as holders of the member's surchargeable contributions for the financial year. Following the making of the assessments, one of the providers subsequently sent amended contributions details to advise that they had over-stated the amount of surchargeable contributions for the member for the financial year.

Reasons for Decision

The assessments were amended under subsection 19(3)of the SCT Act to take into account the change in the member's contributions details as advised by the provider. As the member's ATI when recalculated was below the surcharge threshold for the financial year, no surcharge was payable in accordance with subsection 7(2) of the SCT Act and the surcharge payable under the original assessments reduced to nil.

Date of decision:  10 November 1998

Legislative References:
Superannuation Contributions Tax (Assessment and Collection) Act 1997
   subsection 7(2)
   subsection 15(1)
   subsection 19(3)

Other References:
Previously released as CDS10196

Keywords
Adjusted taxable income
Superannuation contributions surcharge
Indexation of surcharge thresholds

Business Line:  Superannuation

Date of publication:  31 July 2002

ISSN: 1445-2782

history
  Date: Version:
  10 November 1998 Original statement
You are here 15 December 2006 Archived

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