ATO Interpretative Decision

ATO ID 2002/606 (Withdrawn)

Superannuation

Superannuation Contributions Tax: employer contract payment and the calculation of adjusted taxable income
FOI status: may be released

This ATO ID is withdrawn because superannuation contributions surcharge is not payable on surchargeable contributions for financial years after the 2004-2005 financial year.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.

Status of this decision: Decision Withdrawn 11 September 2009

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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

Is a contract payout amount from an employer included in the calculation of the member's adjusted taxable income (ATI) for superannuation contributions surcharge purposes under the provisions of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 (SCTA)?

Decision

Yes. A contract payout amount from an employer is included in the calculation of the member's ATI for superannuation contributions surcharge purposes under section 43 of the SCTA.

Facts

The member received a gross contract payout from their employer. The member's taxable income for the financial year included that employer payout amount.

The member received a superannuation contributions surcharge assessment in respect of surchargeable contributions made to the member's superannuation provider.

In calculating the member's ATI, the amount representing the employer payout was included in the calculation.

Reasons for Decision

Section 43 of the SCTA defines a member's ATI for a financial year. Paragraph (a) of the definition of 'adjusted taxable income' in section 43 of the SCTA includes in ATI the member's taxable income, with some adjustments made according to subparagraphs (a)(i) and (a)(ii) of the definition (which relate to employer eligible termination payments and lump sum payments made in certain circumstances).

A contract payout from an employer formed part of the member's taxable income. Neither of the above mentioned subparagraphs exclude an employer contract payout amount from being included in the calculation of ATI. As such, the employer payout forms part of the member's ATI.

Note: Since the above decision was made, amendments to the Superannuation Contributions Tax (Assessment and Collection Act) 1997 have resulted in the definition of 'adjusted taxable income' (ATI) no longer being contained within section 43. The calculation of ATI is now determined with reference to section 7A or 7B of that Act (depending on the circumstances of each particular case).

These amendments, effective from 5 June 1997, do not affect the above decision.

Date of decision: 07 August 2001

Year of income: Year ended 30 June 2000

Legislative References:
Superannuation Contributions Tax (Assessment and Collection) Act 1997
section 43

Keywords
Superannuation contributions tax
Adjusted taxable income - superannuation contributions surcharge
Adjusted taxable income

Business Line: Superannuation

Date of publication: 31 May 2002

ISSN: 1445-2782

history

	Date:	Version:
	7 August 2001	Original statement
You are here →	11 September 2009	Archived

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