ATO Interpretative Decision
ATO ID 2002/727 (Withdrawn)
Superannuation
Superannuation contributions tax: Adjusted taxable incomeFOI status: may be released
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This ATO ID is withdrawn because superannuation contributions surcharge is not payable on surchargeable contributions for financial years after the 2004-2005 financial year. Despite its withdrawal, this ATO ID is still a precedential view for decisions in respect of superannuation contributions surcharge for financial years from 1996-1997 up to and including 2004-2005.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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
For the purposes of calculating a member's 'adjusted taxable income' (ATI) under section 7A or section 7B of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 (SCT Act), is the member's service pension income amount which formed part of their taxable income for the financial year correctly included in ATI?
Decision
Yes. The member's service pension income amount is correctly included for the purposes of calculating their ATI under section 7A or section 7B of the SCT Act.
Facts
The member's taxable income for the financial year included service pension income. As the member's ATI for superannuation contributions surcharge purposes was greater than the surcharge threshold for the financial year, surcharge was payable on the member's surchargeable contributions.
Reasons for Decision
A member's ATI for a financial year is determined under section 7A or section 7B of the SCT Act (formerly section 43 of the SCT Act). A member's ATI is generally their taxable income for the financial year plus their total surchargeable contributions.
When calculating ATI, specific amounts are excluded from a member's taxable income such as lump sum superannuation fund payments. Under section 43 of the SCT Act, 'taxable income' of a member for a year of income means the member's taxable income as assessed under the Income Tax Assessment Act 1936.
As service pension income amounts form part of taxable income but is not specifically excluded from taxable income for the purposes of calculating ATI, the member's service pension income amount is correctly included in the calculation of their ATI for the financial year.
Date of decision: 17 May 1999
Legislative References:
Superannuation Contributions Tax (Assessment and Collection) Act 1997
section 7A
section 7B
section 43
Other References:
Previously released as CDS10368
Keywords
Superannuation contributions surcharge
Adjusted taxable income
ISSN: 1445-2782
| Date: | Version: | |
| 17 May 1999 | Original statement | |
| You are here | 27 November 2009 | Archived |