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.
History
Definition of ``higher income amount'' amended by No 102 of 2005, s 3 and Sch 1 item 17, by substituting ``for the 2004-2005 financial year'' for ``for each later financial year'' in para (b), effective 12 August 2005.
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.
History
Definition of ``lower income amount'' amended by No 102 of 2005, s 3 and Sch 1 item 18, by substituting ``for the 2004-2005 financial year'' for ``for each later financial year'' in para (b), effective 12 August 2005.
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(Repealed by No 102 of 2005)
History
Definition of ``maximum surcharge penalty'' amended by No 102 of 2005, s 3 and Sch 1 items 19 and 20, by substituting ``12.5%.'' for ``12.5%; and'' in para (b) and repealing para (c), effective 12 August 2005. Para (c) formerly read:
(c)
for the 2005-2006 financial year and later financial years - 10%.
Definition of ``maximum surcharge percentage'' substituted by No 106 of 2004, s 3 and Sch 2 item 1, applicable in relation to liability to surcharge in respect of the 2004-05 financial year and later financial years. The definition formerly read:
maximum surcharge percentage
means:
(a)
for the 2003-2004 financial year - 14.5%; and
(b)
for the 2004-2005 financial year - 13.5%; and
(c)
for the 2005-2006 financial year and later financial years - 12.5%.
S 5(1AA) inserted by No 112 of 2003, s 3 and Sch 1 item 1, effective 1 July 2003. Act No 112 of 2003 contains the following application provision:
Application of amendments made by Part 1
32
The amendments made by Part 1 apply in relation to liability to surcharge in respect of the 2003-2004 financial year and later financial years.
Note: The Acts amended by Part 1 continue to apply in relation to liability to surcharge in respect of financial years that ended before 1 July 2003 as if the amendments made by Part 1 had not been made.
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:
Relevant adjusted taxable income - Lower income amount
------------------------------------------------------
A
where:
A
is:
Higher income amount - Lower income amount
------------------------------------------
Maximum surcharge percentage x 100
History
S 5(1) amended by No 112 of 2003, s 3 and Sch 1 items 2 and 3, by substituting ``the lower income amount but is less than the higher income amount'' for ``$70,000 but is less than $85,000'' and substituting the formula, effective 1 July 2003. For application provision, see note under s 5(1AA). The formula formerly read:
``Relevant adjusted taxable income - $70,000
--------------------------------------------
$1,000''
S 5(1) amended by No 186 of 1997.
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.
History
S 5(1A) inserted by No 186 of 1997.
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.
History
S 5(2) amended by No 112 of 2003, s 3 and Sch 1 items 4 and 5, by substituting ``equal to, or greater than, the higher income amount'' for ``$85,000 or a higher amount'' and substituting ``the maximum surcharge percentage'' for ``15%'', effective 1 July 2003. For application provision, see note under s 5(1AA).
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.
History
S 5(3) amended by No 112 of 2003, s 3 and Sch 1 item 6, by substituting ``the maximum surcharge percentage'' for ``15%'' in paras (c), (d) and (f), effective 1 July 2003. For application provision, see note under s 5(1AA).
S 5(3) amended by No 186 of 1997.
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.
History
S 5(4) substituted by No 186 of 1997.
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