Commonwealth Numbered Acts

SUPERANNUATION CONTRIBUTIONS TAX (MEMBERS OF CONSTITUTIONALLY PROTECTED SUPERANNUATION FUNDS) ASSESSMENT AND COLLECTION ACT 1997 No. 185, 1997 - SECT 15

(1) This section makes provision for the deferment of the liability of a member of a constitutionally protected superannuation fund to pay surcharge, and for interest to accrue on the deferred amount.

Accounts to be kept

(2) The Commissioner is to keep a surcharge debt account for each member of a constitutionally protected superannuation fund.

Account to be debited for surcharge

(3) The Commissioner is to debit the account for surcharge assessed to be payable on the member's surchargeable contributions.

Interest to be debited

(4) If the member's account is in debit at the end of a financial year, the Commissioner is to debit the account for interest on the amount by which the account is in debit, calculated at the Treasury bond rate for the last day of the financial year for bonds with a 10 year term.

Rate of interest

(5) The Treasury bond rate for the last day of a financial year for bonds with a 10 year term is:

(a) if any Treasury bonds with that term were issued on that day--the annual yield on those bonds; or

(b) otherwise--the annual yield on Treasury bonds with that term, as published by the Reserve Bank of Australia for that day.

(6) When a lump sum, or a pension, becomes payable by a superannuation provider for the benefit of a member whose surcharge debt account is in debit, the member is liable to pay to the Commissioner the lesser of:

(a) the amount by which the account is in debit; or

(b) 15% of the employer-financed component of that part of the benefits payable to the member that accrued after 20 August 1996.

(8) The amount is payable within 3 months after the date of issue of the notice or within such further period as the Commissioner allows and the notice is to state that the amount is so payable. Payment of the amount results in a nil balance in the account.

Surcharge debt may be reduced

(9) The member may make payments to the Commissioner for the purpose of reducing the amount by which the surcharge debt account is in debit.

What happens if debt reduced

(10) If a member makes a payment under subsection (9), the Commissioner is to:

(a) acknowledge receipt of the payment to the member; and

(b) credit the payment to the surcharge debt account; and

(c) notify the member of the revised balance of the surcharge debt account.