ATO Interpretative Decision

ATO ID 2002/725

Superannuation

Superannuation contributions tax: Advance Instalment Determination
FOI status: may be released

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Issue

Can the advance instalment determination for superannuation contributions surcharge be varied to nil under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 (the SCT Act) if the member is no longer contributing to the superannuation provider in the year for which the advance instalment is payable?

Decision

No. There are no provisions under the SCT Act to vary an advance instalment determination.

Facts

The member receives a 'Member Superannuation Contributions Surcharge Advice' in respect of a surcharge assessment issued to the member's provider for the year ended 30 June 1997. The member is also advised that an advance instalment determination is due and payable by the provider on account of surcharge payable for the year ending 30 June 1998.

The member subsequently advised the Commissioner of Taxation that no contributions had been made to the provider since May 1997, and that no further contributions would be made.

Reasons for Decision

Section 11 of the SCT Act states that if superannuation contributions surcharge is payable for a member for a financial year under an assessment made before 23 March 1999, an advance instalment equal to one-half of the amount of the surcharge is payable on account of the surcharge payable for the member for the following financial year.

There are no provisions in the SCT Act to vary an advance instalment determination. Accordingly, the advance instalment was correctly determined under section 11 of the SCT Act notwithstanding there were no contributions made to the provider for the year ending 30 June 1998.

[Note: section 11 of the SCT Act has been amended by the Superannuation Contributions and Termination Payments Taxes Legislation Amendment Act 1999. The effect of the amendment is that advance instalments are not payable on assessments made after 22 March 1999. The assessment in this case was made prior to 23 March 1999 and is therefore not affected by the amendment.]

Date of decision:  10 May 1999

Legislative References:
Superannuation Contributions Tax (Assessment & Collection) Act 1997
   section 11

Other References:
Previously released as CDS10363

Keywords
Superannuation contributions surcharge
Advance instalment payment.
Superannuation contributions tax

Business Line:  Superannuation

Date of publication:  31 July 2002

ISSN: 1445-2782

history
  Date: Version:
You are here 10 May 1999 Original statement
  15 December 2006 Archived

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