SUPERANNUATION CONTRIBUTIONS TAX IMPOSITION ACT 1997
SECTION 1
SHORT TITLE
1
This Act may be cited as the Superannuation Contributions
Tax Imposition Act 1997.
SECTION 2
COMMENCEMENT
2
This Act commences on the day on which it receives the Royal Assent.
SECTION 3
INTERPRETATION
3
Expressions used in this Act that are defined by the
Superannuation Contributions Tax (Assessment and
Collection) Act 1997 have the same meanings as in that Act.
SECTION 4
IMPOSITION OF SUPERANNUATION CONTRIBUTIONS SURCHARGE
4
The superannuation contributions surcharge that is payable on a member's surchargeable contributions for a financial year under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 is imposed by this Act.
SECTION 5
RATE OF SUPERANNUATION CONTRIBUTIONS SURCHARGE
5(1AA)
[Interpretation]
In this section:
higher income amount
means:
(a)
for the 2003-2004 financial year - $114,981; and
(b)
for the 2004-2005 financial year - that amount as indexed under section 7.
lower income amount
means:
(a)
for the 2003-2004 financial year - $94,691; and
(b)
for the 2004-2005 financial year - that amount as indexed under section 7.
maximum surcharge percentage
means:
(a)
for the 2003-2004 financial year - 14.5%; and
(b)
for the 2004-2005 financial year - 12.5%.
(c)
(Repealed by No 102 of 2005)
5(1)
[Calculation formula]
Unless subsection (3) applies, if the member's adjusted taxable income for a financial year (
relevant adjusted taxable income
) is not less than the lower income amount but is less than the higher income amount, the rate of the superannuation contributions surcharge that applies to the member for that year is the percentage (calculated to 5 decimal places) of the member's surchargeable contributions for that year worked out using the formula:
5(1A)
[Decimal places]
If the percentage calculated under subsection (1) for a financial year would, if it were worked out to 6 decimal places, end with a number greater than 4, the number so calculated is increased by 0.00001.
5(2)
If the member's adjusted taxable income for a financial year is equal to, or greater than, the higher income amount, the rate of the superannuation contributions surcharge that applies to the member for that year is the maximum surcharge percentage of the member's surchargeable contributions for that year.
5(3)
[Where TFN not quoted]
If:
(a)
the member has not quoted his or her tax file number in connection with the operation or the possible future operation of the Superannuation Contributions Tax (Collection
and Assessment) Act 1997 to the superannuation provider, or one of the superannuation providers, who, at the end of a financial year, held any of the member's surchargeable contributions for that year; and
(b)
the Commissioner has not, after taking all reasonable steps, found out the member's tax file number; and
(c)
the Commissioner has written a letter to the member at the member's last-known address telling the member that, if the member does not quote his or her tax file number, the rate of surcharge that will apply to the member for a financial year (the
relevant financial year
) may be the maximum surcharge percentage of the member's surchargeable contributions for the relevant financial year;
the following provisions have effect:
(d)
if contributed amounts in respect of contributions began to be paid for or by the member to a superannuation provider before 7 May 1997 and the member's surchargeable contributions for the relevant financial year exceed the surchargeable contributions threshold - the rate of surcharge that applies in respect of the member's surchargeable contributions for the relevant financial year is the maximum surcharge percentage of those contributions;
(e)
if contributed amounts in respect of contributions began to be paid for or by the member to a superannuation provider before 7 May 1997 and the member's surchargeable contributions for the relevant financial year do not exceed the surchargeable contributions threshold - the rate of surcharge that applies in respect of the member's surchargeable contributions for the relevant financial year is nil;
(f)
subject to subsection (4), if no contributed amounts in respect of contributions began to be paid for or by the member to a superannuation provider before 7 May 1997 - the rate of surcharge that applies in respect of the member's surchargeable contributions for the relevant financial year is the maximum surcharge percentage of those contributions.
5(4)
[Second written notice]
If:
(a)
the Commissioner has written a letter to a member as mentioned in paragraph (3)(c); and
(b)
the member has not quoted his or her tax file number as mentioned in paragraph (3)(a) within 3 months after the letter was sent;
paragraph (3)(f) does not apply in respect of the member unless the Commissioner has, after that period, written a further letter to the member:
(c)
to an address determined by the Commissioner as most appropriate for the letter to reach the member; and
(d)
in the same terms as the earlier letter.
SECTION 6
SURCHARGEABLE CONTRIBUTIONS THRESHOLD
6(1)
Surchargeable contributions threshold for the 1996-97 financial year.
The
surchargeable contributions threshold
for the 1996-97 financial year is $2,000.
6(2)
Surchargeable contributions for a later financial year.
The
surchargeable contributions threshold
for a financial year (the
relevant financial year
) after the 1996-97 financial year is the amount worked out using the formula:
SECTION 7
INDEXATION
7(1)
Indexation of certain amounts for 2004-05 financial year.
Section 5 applies in relation to an indexing financial year as if each indexable amount were replaced by the amount worked out using the formula:
7(7)
Definitions.
In this section:
indexable amount
means:
(a)
an amount stated in section 5; or
(b)
if that amount has previously been altered under this section - the altered amount.
indexing financial year
means the 2004-05 financial year.
index number
, for a quarter, means the estimate of full-time adult average weekly ordinary time earnings for the middle month of the quarter published by the Australian Statistician.
•
Note:
Surcharge is not payable for the financial year that began on 1 July 2005 or a later financial year - see subsection 7(1) of the Superannuation Contributions Tax (Assessment and Collection) Act 1997.
View history note
Hide history note
Relevant adjusted taxable income - Lower income amount
------------------------------------------------------
A
where:
A
is:
Higher income amount - Lower income amount
------------------------------------------
Maximum surcharge percentage x 100
Previous Indexation Current charge percentage
threshold x factor x --------------------------
Previous charge percentage
where:
CMPT
previous threshold
means the surchargeable contributions threshold for the financial year immediately before the relevant financial year.
CMPT
indexation factor
means the number worked out under subsections 9(4) and (5) of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 for the relevant financial year.
CMPT
current charge percentage
means the number that is specified in subsection 19(2) of the Superannuation Guarantee (Administration) Act 1992 for the quarter beginning on 1 July of the relevant financial year.
CMPT
previous charge percentage
means the number that is specified in subsection 19(2) of the Superannuation Guarantee (Administration) Act 1992 for the quarter beginning on 1 July of the financial year immediately before the relevant financial year.
CCH Note:
From 1997/98, the
surchargeable contributions threshold
is:
Year $
1997/98 2,092
1998/99 2,529
1999/2000 2,607
2000/01 3,105
2001/02 3,248
2002/03 3,880
2003/04 4,058
2004/05 4,273
Note: If the Superannuation Laws Amendment (Abolition of Surcharge) Bill 2005 which is currently before parliament is passed without amendment, there will be no surcharge on superannuation contributions and termination payments made on or after 1 July 2005. This will mean that thresholds and indexable amounts will not apply for 2005/06 and will also not be published for subsequent financial years.
Previous indexable amount X Relevant indexation factor
where:
CMPT
previous indexable amount
means the indexable amount for the financial year immediately before the indexing financial year.
CMPT
relevant indexation factor
means the indexation factor for the indexing financial year.
CCH Note:
From 1997/98 the
indexable amounts
are:
7(2)
Rounding off of indexed amounts.
If an amount worked out under subsection (1) is an amount of dollars and cents:
(a)
if the number of cents is less than 50 - the amount is to be rounded down to the nearest whole dollar; or
(b)
otherwise - the amount is to be rounded up to the nearest whole dollar.
7(3)
Indexation factor.
The
indexation factor
for an indexing financial year is the number calculated, to 3 decimal places, using the formula:
Financial year $ $ $
1997/98 1,046 73,220 88,910
1998/99 1,084 75,856 92,111
1999/2000 1,118 78,208 94,966
2000/01 1,165 81,493 98,955
2001/02 1,219 85,242 103,507
2002/03 1,295 90,527 109,924
2003/04 1,355 94,691 114,981
2004/05 1,709.20 99,710 121,075]
Note: The Superannuation Laws Amendment (Abolition of Surcharge) Act 2005 (No 102 of 2005) abolishes the surcharge for superannuation contributions and termination payments made on or after 1 July 2005. This means that thresholds and indexable amounts will not be published for subsequent financial years.
Index number for last quarter in current March year
---------------------------------------------------
Index number for last quarter in previous March year
where:
CMPT
current March year
means the period of 12 months ending on 31 March immediately before the indexing financial year.
CMPT
previous March year
means the period of 12 months immediately before the current March year.
7(4)
Rounding up of indexation factor.
If the number calculated under subsection (3) for a financial year would, if it were worked out to 4 decimal places, end with a number greater than 4, the number so calculated is increased by 0.001.
7(5)
Change in index numbers.
If, at any time, whether before or after the commencement of this Act, the Australian Statistician has published or publishes an index number for a quarter in substitution for an index number previously published for the quarter, the publication of the later index number is to be disregarded.
7(6)
Indexable amounts to be published.
The Commissioner must publish before, or as soon as practicable after, the start of the 2004-05 financial year the indexable amounts as replaced under subsection (1) for that year.