Tax Laws Amendment (Simplified Superannuation) Act 2007 (9 of 2007)

Schedule 1   Main superannuation amendments

Part 4   TFN consequentials for Division 295

Taxation (Interest on Overpayments and Early Payments) Act 1983

36   After Part IIF


Part IIG - Interest on certain amounts of tax on no-TFN contributions income of superannuation providers

8ZC Interpretation

Expressions used in this Part that are defined in the Income Tax Assessment Act 1997 have the same meanings as in that Act.

8ZD Entitlement to interest

(1) Interest is payable by the Commissioner to a superannuation provider in accordance with this Part on the amount set out in subsection (2) if:

(a) an individual quoted his or her tax file number to his or her employer at a time before the end of an income year (the past year ); and

(b) the employer was required by section 299C of the Superannuation Industry (Supervision) Act 1993 to inform the superannuation provider of the individual’s tax file number by the end of the past year, but did not; and

(c) as a result, a contribution was an amount of no-TFN contributions income of the superannuation provider of the past year; and

(d) an amount of tax (the interest-bearing tax ) payable in respect of that no-TFN contributions income counts towards the tax offset under Subdivision 295-J of the Income Tax Assessment Act 1997 for an income year (the current year ) for the superannuation provider; and

(e) the tax offset under that Subdivision is applied in making an assessment in respect of the superannuation provider for the current year.

(2) The interest is payable on each amount of interest-bearing tax.

8ZE Period of interest

The interest is payable for the period that:

(a) started on the later of the following days:

(i) the day on which the amount of interest-bearing tax was paid;

(ii) the day by which the amount of interest-bearing tax was required to be paid; and

(b) ends on the day on which the assessment is made.

8ZF Rate of interest

Interest under this Part is payable at the base interest rate (within the meaning of the Tax Act).

Note: For the meaning of base interest rate see section 8AAD of the Taxation Administration Act 1953.