Superannuation Legislation Amendment (Simplification) Act 2007 (15 of 2007)

Schedule 1   Consequential amendments etc.

Part 2   Other consequential amendments etc.

Taxation Administration Act 1953

388   After section 280-102 in Schedule 1

Insert:

280-102A Liability to shortfall interest charge - excess contributions tax

(1) You are liable to pay *shortfall interest charge on an additional amount of *excess contributions tax that you are liable to pay because the Commissioner amends your *excess contributions tax assessment for a financial year.

(2) The liability is for each day in the period:

(a) beginning at the start of the day on which *excess contributions tax under your first *excess contributions tax assessment for that year was due to be paid; and

(b) ending at the end of the day before the day on which the Commissioner gave you notice of the amended assessment.

(3) However, if an amended assessment reinstates all or part of a liability in relation to a particular that had been reduced by an earlier amended assessment, the period for the reinstated liability begins at the start of the day on which *excess contributions tax under the earlier amended assessment was due to be paid.

Note: See section 292-385 of the Income Tax Assessment Act 1997 for when the amount of excess contributions tax and shortfall interest charge becomes due and payable. Section 292-390 of that Act provides for general interest charge on any part of the additional amount (plus any shortfall interest charge) that remains unpaid after the additional amount is due and payable.