Example 5a: Complying superannuation fund
The Natalie Superannuation Fund is a complying fund. However, it has income that must be taxed at more than 15%.
The fund received $10,000 in assessable contributions (shown at R item 10), all of which are employer contributions. Of that amount, $8,000 is shown at R1 item 10 for members who quoted their TFN, but $2,000 is shown at R3 item 10 for members who have not quoted their TFN and whose account was opened either:
- on or after 1 July 2007, or
- prior to 1 July 2007 but the assessable contributions made for the member in the year exceeded $1,000.
The fund has also incurred $1,000 in administration expenses (J item 11). The superannuation fund's taxable income is $9,000.
Calculation element |
Amount |
Rate |
Tax |
|---|---|---|---|
No-TFN-quoted contributions, Assessable income |
$2,000 |
31.5% |
$630 |
Employer contributions |
$10,000 |
- |
- |
Total assessable income |
$10,000 |
- |
- |
less Deductions: Administration expenses |
$1,000 |
- |
- |
Taxable income |
$9,000 |
15% |
$1,350 |
Gross tax |
- |
- |
$1,980 |
See appendix 3 for more information on the applicable tax rates.
End of example
Example 5b: Non-complying superannuation fund
Most of the income of non-complying funds is taxed at 45%, but a tax rate of 46.5% applies to no-TFN-quoted contributions.
If the Natalie Superannuation Fund was a non-complying fund, you would calculate its gross tax as follows:
Calculation element |
Amount |
Rate |
Tax |
|---|---|---|---|
No-TFN-quoted contributions |
$2,000 |
1.5% |
$30 |
Assessable income: Employer contributions |
$10,000 |
- |
- |
Total assessable income |
$10,000 |
- |
- |
less Deductions: Administration expenses |
$1,000 |
- |
- |
Taxable income |
$9,000 |
45% |
$4,050 |
Gross tax |
- |
- |
$4,080 |
See appendix 3 for more information on the applicable tax rates.
End of example