ATO Interpretative Decision
ATO ID 2001/516 (Withdrawn)
Superannuation
Superannuation contributions surcharge assessment - calculation of a member's surchargeable contributions and 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This ATO ID is withdrawn because superannuation contributions surcharge is not payable on surchargeable contributions for financial years after the 2004-2005 financial year.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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Does the member's adjusted taxable income include all of the member's surchargeable contributions reported by the superannuation providers under section 13 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 (SCTA)?
Decision
Yes. The member's adjusted taxable income correctly includes all of the member's surchargeable contributions which have been reported by the superannuation providers under section 13 of the SCTA.
Facts
The person was a member of two superannuation funds for the financial year.
The first superannuation provider is a superannuation (accumulated benefits) provider.
The second superannuation provider's is a superannuation (defined benefits) provider.
Each superannuation provider reported surchargeable contributions for the member for the financial year.
The Commissioner calculated the taxpayer's adjusted taxable income for the financial year to include the total surchargeable contributions reported by each superannuation provider for the financial year.
Reasons for Decision
Section 13 of the (SCTA) requires the superannuation provider (provider) to report to the Commissioner details of the member's total contributed amounts for each financial year including the member's surchargeable contributions.
In the case of a superannuation (accumulated benefits) provider, surchargeable contributions are calculated by reference to the amounts actually paid to the provider including any amounts otherwise credited or attributed to an account for the member by the provider for a financial year.
For each financial year in which the member has surchargeable contributions, section 15 of the SCTA requires the Commissioner to calculate the member's adjusted taxable income. Under section 43 of the SCTA, a member's adjusted taxable income includes the member's taxable income plus their surchargeable contributions for the financial year.
If the adjusted taxable income exceeds the surcharge threshold, the Commissioner must make an assessment of surcharge.
The Commissioner received reports from two providers in respect of the person for the financial year. Each provider reported surchargeable contributions in respect of the person's fund membership. The total surchargeable contributions as reported by each provider was used by the Commissioner to calculate the taxpayer's adjusted taxable income for the financial year in accordance with section 15 and 43 of the SCTA.
The surcharge assessments issued to the taxpayer's providers were based on the surchargeable contributions as reported to the Commissioner under section 13 of the SCTA.
The surcharge assessments are raised based on the surchargeable contributions reported by the providers. Section 19 of the SCTA allows the Commissioner to amend a surcharge assessment if the provider reports a change in the member's surchargeable contributions as previously reported.
In the absence of any amended contribution details by the providers, the surcharge liability notified to the providers has been correctly assessed to reflect the amount of surcharge payable on the amount of surchargeable contributions reported.
If a member is dissatisfied with an assessment in so far as it relates to the amount of surchargeable contributions as reported by a provider tot he Commissioner under section 13, the member may make a complaint to the Superannuation Complaints Tribunal under section 15CA of the Superannuation (Resolution of Complaints) Act 1993.
Date of decision: 6 June 2001
Legislative References:
Superannuation Contributions Tax (Assessment And Collection) Act 1997
section 8
section 10
section 13
section 15
section 19
section 43
section 15CA
Keywords
Employer superannuation contributions
Surchargeable contributions
Superannuation provider - accumulation benefits
Superannuation provider - defined benefits
Superannuation contributions surcharge
Adjusted taxable income - superannuation contributions surcharge
ISSN: 1445-2782
| Date: | Version: | |
| 6 June 2001 | Original statement | |
| You are here | 11 September 2009 | Archived |