Show at F6 the total calculated interest amount of 50 cents or more that is attributable to the no-TFN tax offset claimed at F5.
Interest on the no-TFN tax offset is only payable if all the following conditions are met:
- a member of the fund provided their TFN to their employer before the end of an income year (the past year)
- the employer was required by section 299C of the SISA to inform the fund of the individual's TFN by the end of the past year, but did not provide the TFN to the fund
- as a result, the contributions made in respect of that member were no-TFN-quoted contributions in that past year
- an amount of additional tax (which is the interest-bearing tax) that was payable in respect of the no-TFN-quoted contributions counts towards the no-TFN tax offset under Subdivision 295-J of the ITAA 1997 for an income year (the current year) for the fund
- the no-TFN tax offset under that subdivision is applied when assessing the fund for the current year.
The interest is payable on each amount of interest-bearing tax.
Interest on tax that counts towards the no-TFN tax offset is calculated for the period between the later of
- the day on which the amount of interest-bearing tax was paid, or
- the day by which the amount of interest-bearing tax was required to be paid
and
- the date on which the fund lodges its tax return for the current year (which is deemed to be the date on which the current year assessment is made).
The date of payment of the interest-bearing tax is either:
- the date shown on the receipt; or
- the date payment is mailed to us plus three business days.
If the relevant interest period extends over two or more quarters, calculate the interest for the number of days in each quarter. Example 7 provides further information on how to calculate the amount of interest in such circumstances.
The rate of interest payable on the interest-bearing tax is the base interest rate determined under section 8AAD of the TAA 1953. Table 7 in Section D of these instructions provides the applicable interest rates up to 30 June 2009.
For information on interest rates after that date and on calculating the interest to be applied on tax that counts towards the no-TFN tax offset, and for a calculator to help you work out the amount of interest, see Super.
Keep a record of the amount of interest claimed on tax that counts towards the no-TFN tax offset. This interest is assessable income of the fund in the income year in which it is claimed and should be shown at C Gross interest.
Example 8: Superannuation fund showing a credit at F6 Credit: interest on no-TFN tax offset
The Caron Superannuation Fund is a complying super fund and included $10,000 no-TFN-quoted contributions in its 2008 tax return. An additional 31.5% tax amounting to $3,150 was paid on these contributions. The fund's due date for lodgment of its 2008 tax return and payment of tax was 31 March 2009. The fund was slightly overdue lodging its return and in paying its tax. It paid the full amount of tax owing including the $3,150 tax on the no-TFN-quoted contributions on 7 April 2009.
During 2008-09, Ian, a member of the fund, provided his TFN to the fund after he noticed that his account had been debited with $1,000 which was the amount of tax paid on his no-TFN-quoted contributions. Ian made a statement to the fund saying he gave his TFN to his employer Adrian Pty Ltd when he completed a TFN declaration on 10 September 2007.
Caron Superannuation Fund prepares its 2009 tax return in March 2010 and anticipates that the return will be lodged on 31 March 2010.
At F5 on the fund's 2009 tax return, Caron Superannuation Fund claims as a no-TFN tax offset the $1,000 tax that was attributable to Ian's no-TFN-quoted contributions. (Ian's no-TFN-quoted contributions formed part of the $10,000 reported in the fund's 2008 tax return on which the Fund paid $3,150 tax).
Interest on the $1,000 is calculated for the period from 7 April 2009 (the day on which the fund paid the tax) until 31 March 2010 (the day on which the fund lodges its 2009 tax return and the day on which the assessment is deemed to be made).
Quarter |
Number of days and interest rate calculation |
Total |
|---|---|---|
Apr-Jun 2009 |
$1,000.00 × (85 ÷ 365) × (3.16 ÷ 100)
|
$7.358 |
Jul-Sep 2009 |
$1,000.00 × (92 ÷ 365) × (3.16 [Note 2] ÷ 100)
|
$7.964 |
Oct-Dec 2009 |
$1,000.00 × (92 ÷ 365) × (3.16 [Note 2] ÷ 100)
|
$7.964 |
Jan-Mar 2010 |
$1,000.00 × (90 ÷ 365) × (3.16 [Note 2] ÷ 100)
|
$7.791 |
Total interest - rounded to the nearest cent |
$7.358 + $7.964 + $7.964 + $7.791 = $31.077 |
$31.08 |
Note 1: The total for each quarter is rounded to three decimal places.
Note 2: The base interest rate applied for each of the quarters above was not available when going to print. Consequently, the rate for the period Apr-Jun 2009, 3.16%, is used for the purpose of this example.
The fund is entitled to claim $31.08 interest at F6.
End of example