Superannuation Contributions Tax (Assessment and Collection) Act 1997

OUTLINE OF ACT  
6
The following is a simplified outline of this Act.

• If there are surchargeable contributions for a member for the 1996-97 financial year or a later financial year, the Commissioner will calculate the member's adjusted taxable income for the financial year.

• If the amount calculated is greater than the surcharge threshold amount, the Commissioner will calculate the rate of surcharge and make an assessment, directed to the holder of the contributions, of surcharge payable on the contributions. Only contributions paid, or relating to a time, after 7.30 pm on 20 August 1996 are subject to surcharge.

• If the contributions are held under a defined benefits superannuation scheme, the surcharge is payable on an amount calculated by reference to a notional surchargeable contributions factor determined for the member and the member's annual salary for the purposes of the scheme.

• If surcharge is payable for a member for a financial year, an advance instalment of one-half of the surcharge is payable on account of surcharge payable for the member for the following financial year. However, no instalment is payable if the contributions for the following year are held under an unfunded defined benefits superannuation scheme.

• If, after the assessment of surcharge, the member's adjusted taxable income is found to be different from the amount that was previously calculated or the surchargeable contributions are found to be different from the amount on which the assessment was based:

(a) if the person assessed is still the holder of the contributions - the Commissioner may amend the assessment; or

(b) otherwise - the Commissioner may make a further assessment of surcharge directed to the new holder of the contributions.

• The holder of a member's surchargeable contributions for a financial year is liable to pay the surcharge on those contributions, and to pay any advance instalment of surcharge on the member's contributions for the next financial year, within stated periods.

• However, if the contributions are held under an unfunded defined benefits superannuation scheme, the surcharge is not payable until benefits become payable.

• If liability for surcharge is increased as a result of an amendment of an assessment or the making of a further assessment, the general interest charge is payable on the additional surcharge.

• The provisions in the Taxation Administration Act 1953 for objecting against assessments of income tax apply to assessments of surcharge in so far as the assessments relate to the calculation of a member's adjusted taxable income.

• A late payment penalty applies if surcharge or advance payment is not paid on time.

Transitional - superannuation providers to give corrective statements  
43(1)
If a superannuation provider has, before the commencement of this item, given a statement to the Commissioner under section 13 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 that did not comply with the requirements that would have applied if the amendments made by items of this Schedule that are taken to have commenced on 5 June 1997 had been in force, the provider must give to the Commissioner not later than a date fixed by the Minister by notice published in the Gazette , in substitution for the first-mentioned statement, a further statement that complies with those requirements.

43(2)
A superannuation provider who contravenes subsection (1) is guilty of an offence punishable on conviction by a fine of not more than 60 penalty units.

Note 1:

Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2:

The amount of a penalty unit is stated in section 4AA of the Crimes Act 1914 . If a body corporate is convicted of an offence, subsection 4B(3) of that Act allows a court to impose a fine that is not greater than 5 times the maximum fine that could be imposed by the court on an individual convicted of the same offence.

43(3)
Chapter 2 of the Criminal Code applies to offences against subsection (2).
Transitional - retrospective objections  
44
If a notice of assessment was given to a member or a superannuation provider before the day on which this Act received the Royal Assent:

(a) if the member or provider did not object against the assessment before that day, then, for the purpose of calculating under section 14ZW of the Taxation Administration Act 1953 the period within which the member or provider may object against the assessment, the notice is taken to have been served on that day; and

(b) if the member or provider objected against the assessment before the day on which this Act received the Royal Assent, the member or provider may make a further objection against the assessment and, for the purpose of calculating under section 14ZW of the Taxation Administration Act 1953 the period within which the member or provider may make the further objection against the assessment, the notice is taken to have been served on that day. Transitional - amendments of assessments  
45
Nothing in section 17A of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 prevents the amendment of an assessment for the purpose of giving effect:

(a) to any amendment made by this Schedule or to item 43 or 44; or

(b) to anything done under a provision of that Act as amended by this Schedule or under item 43 or 44.