Commonwealth Numbered Acts

SUPERANNUATION CONTRIBUTIONS TAX (MEMBERS OF CONSTITUTIONALLY PROTECTED SUPERANNUATION FUNDS) ASSESSMENT AND COLLECTION ACT 1997 No. 185, 1997 - SECT 9

(1) This section explains what are a member's surchargeable contributions for a financial year.

* In the case of members of accumulated benefits schemes, the surchargeable contributions are calculated by reference to amounts actually paid to the superannuation providers.

* In the case of members of defined benefits schemes, the surchargeable contributions are based on their respective annual salaries multiplied by a notional factor to equate the effective increase in the values of the benefits under the schemes in the financial year to the level of contributions to equivalent accumulated benefits schemes.

When amounts are paid to superannuation (accumulated benefits) provider

(2) If:

(a) either of the following applies:

(i) any amounts are paid for or by a member to a superannuation (accumulated benefits) provider for a financial year;

(ii) there is an allocated surplus amount in relation to a member in respect of a financial year after the 1996-97 financial year; and

(b) the constitutionally protected superannuation fund is a complying superannuation fund for the purposes of the year of income comprising the financial year.

(c) so much of the amounts referred to in subparagraph (a)(i) as:

(i) would be taxable contributions under subparagraph 274(1)(a)(i) or (b)(ii) or paragraph 274(1)(e) of the Income Tax Assessment Act if the fund were not a constitutionally protected superannuation fund; or

(ii) are allowed as deductions to the member under section 82AAT of that Act; or

(iii) subject to subsection (3), are specified roll-over amounts that constitute amounts accrued after 20 August 1996 that are eligible termination payments under paragraph (a) of the definition of eligible termination payment in subsection 27A(1) of that Act and are rolled over on or after 1 July 1997; and

(d) any allocated surplus amounts referred to in subparagraph (a)(ii).

where:

post-20 August 1996 period means the number of days in the period of the taxpayer's employment for which the eligible termination payment was made that occurred after 20 August 1996.

total period means the number of days in the period of the taxpayer's employment for which the eligible termination payment was made.

Defined benefits superannuation scheme

(4) The surchargeable contributions for a financial year of a member of a defined benefits superannuation scheme are taken to be the amount worked out using the formula:

where:

annual salary means:

(a) if paragraph (b) does not apply--the amount that is the member's annual salary for the financial year; or

(b) if another amount is taken to be the member's annual salary for the purposes of the scheme as it applies to the member for the financial year--that other amount.

Transitional provision for 1996-97 financial year

(5) For the 1996-97 financial year, a member's surchargeable contributions are:

(a) if any amounts were paid for or by the member to a superannuation (accumulated benefits) provider for the financial year or there is an allocated surplus amount in relation to the member in respect of the financial year--the part of so much of those amounts that would otherwise be the member's surchargeable contributions as was paid to the provider or allocated for the member's benefit after 7.30 pm by legal time in the Australian Capital Territory on 20 August 1996; or

(b) if the member is a member of a defined benefits superannuation scheme--so much of the amounts that would otherwise be the member's surchargeable contributions as is certified by an eligible actuary, according to Australian actuarial practice, to relate to the part of the financial year that started immediately after 7.30 pm by legal time in the Australian Capital Territory on 20 August 1996.