ATO Interpretative Decision

ATO ID 2001/537 (Withdrawn)

Superannuation

Superannuation contributions surcharge - holder of surchargeable contributions
FOI status: may be released

This ATO ID is withdrawn as it is a duplicate of ATO ID 2001/518.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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

Has the superannuation contributions surcharge assessment for the year correctly issued to the member, after they became the holder of the surchargeable contributions?

Decision

Yes. After the member became the holder of the surchargeable contributions, they are liable for the superannuation contributions surcharge. Under section 10 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 (SCTA) the surcharge liability rests with holder of the surchargeable contributions.

Facts

The superannuation provider, which was a superannuation (accumulation benefits) provider, reported surchargeable contributions (employer contributions) received for the member in the financial year.

The Commissioner issued a surcharge assessment to the superannuation provider in respect of the reported surchargeable contributions for the member.

The superannuation provider advised the Commissioner that they no longer held the surchargeable contributions. They advised that a portion of the surchargeable contributions previously reported for the member had been paid to the member as an eligible termination payment (ETP). The remainder of the surchargeable contributions had been rolled over to another superannuation provider.

The Commissioner cancelled the surcharge assessment issued to the superannuation provider and removed the provider's liability to surcharge on the contributions it previously reported for the financial year.

The Commissioner issued a superannuation contributions surcharge assessment to the member in respect of the surchargeable contributions which were included in the ETP paid to the member.

Reasons for Decision

Section 13 of the SCTA requires the superannuation provider to report to the Commissioner details of a member's total contributed amounts for each financial year including the member's surchargeable contributions. In addition, the superannuation provider is also required to report details of that part of the total contributed amounts transferred by the provider to the member or to another provider.

Under subsection 10(4) of the SCTA, where the contributions are paid to the member as an ETP, the member is liable to pay the surcharge.

The Commissioner issued a superannuation contributions surcharge assessment (the notice of assessment) to the superannuation provider for the financial year in respect of the member's surchargeable contributions reported by the provider. However, prior to the receipt of the notice of assessment, the provider made two payments, which included the surchargeable contributions. One payment of the surchargeable contributions was rolled-over to another superannuation provider and the other was made to the member.

In respect of the payment made to the member by the superannuation provider, the Commissioner issued a superannuation contributions surcharge assessment to the member. The assessment recognised that the member was the holder of the surchargeable contributions and was liable to pay the surcharge.

Date of decision: 8 August 2001

Year of income: Year ended 30 June 2000

Legislative References:
Superannuation Contributions Tax (Assessment And Collection) Act 1997
   section 10
   section 13
   subsection 10(4)

Keywords
Superannuation contributions surcharge
Surchargeable contributions
Adjusted taxable income
Superannuation contributions tax
Holder of the contributions

Business Line: Superannuation

Date of publication: 26 October 2001

ISSN: 1445-2782

history

	Date:	Version:
	8 August 2001	Original statement
You are here	15 December 2006	Archived

Copyright notice

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).