SUPERANNUATION CONTRIBUTIONS TAX (ASSESSMENT AND COLLECTION) ACT 1997 - SECT 43 Definitions
SUPERANNUATION CONTRIBUTIONS TAX (ASSESSMENT AND COLLECTION) ACT 1997 - SECT 43
DefinitionsIn this Act, unless the contrary intention applies:
"adjusted taxable income" has the meaning given by section 7A or 7B, whichever is applicable.
"advance instalment" has the meaning given by section 11.
"allocated surplus amount" , in relation to a member of a superannuation fund in relation to a financial year, means an amount that is allocated by the relevant superannuation (accumulated benefits) provider for the benefit of the member in respect of the financial year (other than an amount paid for or by the member to the provider) to the extent to which the allocated amount exceeds an amount that, in the opinion of an eligible actuary according to Australian actuarial practice, is reasonable having regard to:
(a) the amounts paid by or for the member to the provider; and
(b) the fund's investment earnings relating to the member's interest in the fund; and
(c) any other relevant matters.
"annuity" has the same meaning as in section 10 of the Superannuation Industry (Supervision) Act 1993 and includes such an annuity that is not presently payable.
"approved deposit fund" has the same meaning as in section 10 of the Superannuation Industry (Supervision) Act 1993 .
"assessment" means an assessment made under subsection 15(1).
"class" : a single member may constitute a class of members and a single superannuation scheme may constitute a class of superannuation schemes.
"Commissioner" means the Commissioner of Taxation.
"complying approved deposit fund" has the meaning given by section 47 of the Superannuation Industry (Supervision) Act 1993 .
"complying superannuation fund" has the meaning given by section 45 of the Superannuation Industry (Supervision) Act 1993 .
(a) in relation to a member (other than a member of a defined benefits superannuation scheme) for a financial year, means:
(i) any amounts paid for or by the member to, or otherwise credited or attributed to an account for the member by, a superannuation provider for the financial year other than amounts to which subparagraph (ii) or (iii) applies, less any part of such an amount that is, under the regulations, to be regarded as reasonably attributable to interest; and
(ii) if there are any regulations in force for the purposes of this subparagraph in respect of the financial year--any amounts referred to in the regulations that are credited, allocated or attributable to the member for the financial year less any part of such an amount that is, under the regulations, to be regarded as reasonably attributable to interest; and
(iii) if there are no regulations in force for the purposes of subparagraph (ii) and the financial year is later than the 1996 - 97 financial year--any allocated surplus amount in relation to the member in respect of the financial year; or
(b) in relation to a member of a defined benefits superannuation scheme for a financial year:
(i) means the surchargeable contributions of the member for the financial year; and
(ii) includes any other amount that may be reasonably regarded as attributable to the member under the scheme for the financial year.
"defined benefit member" means a member entitled, on retirement or termination of his or her employment, to be paid a benefit defined, wholly or in part, by reference to either or both of the following:
(i) the member's salary at a particular date, being the date of the termination of the member's employment or of the member's retirement or an earlier date; or
(ii) the member's salary averaged over a period before retirement;
"defined benefits superannuation scheme" means:
(a) a public sector superannuation scheme that:
(i) is a regulated superannuation fund or an exempt public sector superannuation scheme; and
(ii) has at least 1 defined benefit member; or
(b) a regulated superannuation fund (other than a public sector superannuation scheme):
(i) that has at least 1 defined benefit member; and
(ii) some or all of the contributions to which are not allocated to any individual member but are paid into and accumulated in a fund in the form of an aggregate amount.
"Deputy Commissioner" means the Deputy Commissioner of Taxation.
"determination" means a determination made under subsection 15(2).
"eligible actuary" means a Fellow or Accredited Member of the Institute of Actuaries of Australia.
"eligible termination payment" has the same meaning as in Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act.
"excessive component" of an eligible termination payment has the meaning given by subsection 27A(1) of the Income Tax Assessment Act.
"exempt public sector superannuation scheme" has the same meaning as in section 10 of the Superannuation Industry (Supervision) Act 1993 .
"funded defined benefits superannuation scheme" means a defined benefits superannuation scheme that is not an unfunded defined benefits superannuation scheme.
"general interest charge" means the charge worked out under Part IIA of the Taxation Administration Act 1953 .
"holder" of the surchargeable contributions of a member for a financial year has the meaning given by sections 8A and 10A.
" Income Tax Assessment Act" means the Income Tax Assessment Act 1936 .
"interest" (except in the definition in this section of contributed amounts ) means the general interest charge payable under section 21 or 22.
"late payment penalty" means general interest charge payable under section 25 or 25A.
"life assurance company" has the same meaning as in subsection 6(1) of the Income Tax Assessment Act.
"member" means a member of a superannuation fund or of an approved deposit fund and includes:
(a) the holder of an RSA; and
(b) the purchaser of an annuity from a life assurance company;
and includes a person who has been such a member.
(a) for the 1996 - 97 financial year--15 December 1997; or
(b) for the 1997 - 98 financial year--31 October following the financial year; or
(c) for a later financial year:
(i) if the relevant superannuation provider is a self - assessing superannuation provider for the financial year--the date determined by the Commissioner in relation to the provider for the financial year under section 15A; or
(ii) otherwise--31 October following the financial year.
"post-June 83 component" of an eligible termination payment has the meaning given by section 27AA of the Income Tax Assessment Act.
"public sector superannuation scheme" means a scheme for the payment of superannuation, retirement or death benefits, where the scheme is established:
(a) by or under a law of the Commonwealth, a law of a State or a law of a Territory; or
(i) the Commonwealth or the government of a State or Territory; or
(ii) a municipal corporation, another local governing body or a public authority constituted by or under a law of the Commonwealth, a law of a State or a law of a Territory.
"regulated superannuation fund" has the same meaning as in the Superannuation Industry (Supervision) Act 1993 .
"retained amount" of the post - June 83 component of an eligible termination payment has the meaning given by section 27AC of the Income Tax Assessment Act.
"rolled-over" has the meaning given by paragraph 27A(13)(a) of the Income Tax Assessment Act.
"RSA" has the same meaning as in the Retirement Savings Accounts Act 1997 .
"RSA provider" has the same meaning as in the Retirement Savings Accounts Act 1997 .
"Second Commissioner" means a Second Commissioner of Taxation.
"self-assessing superannuation provider" , in relation to a financial year, means a superannuation provider specified, or included in a class of superannuation providers specified, in a determination in force under paragraph 15A(1)(a) in respect of that financial year.
"superannuation (accumulated benefits) provider" means a superannuation provider that is not a superannuation (defined benefits) provider.
"Superannuation Contributions Ruling SCR 97/1" means:
(a) the instrument known as Superannuation Contributions Ruling SCR 97/1 that was made available by the Commissioner before the commencement of this definition as that instrument existed immediately before that commencement; or
(b) if that instrument has been modified by the regulations after that commencement--that instrument as so modified.
"superannuation contributions surcharge" or surcharge means the tax imposed by the Superannuation Contributions Tax Imposition Act 1997 .
"superannuation (defined benefits) provider" means a superannuation (funded defined benefits) provider or a superannuation (unfunded defined benefits) provider.
(i) is an indefinitely continuing fund; and
(ii) is a provident, benefit, superannuation or retirement fund; or
(b) a public sector superannuation scheme.
"superannuation (funded defined benefits) provider" means a superannuation provider that is the trustee of a superannuation fund established for the purposes of a funded defined benefits superannuation scheme.
"superannuation provider" means:
(a) the trustee of a superannuation fund or of an approved deposit fund; or
(b) an RSA provider; or
(c) a life assurance company.
"superannuation (unfunded defined benefits) provider" means a superannuation provider that is the trustee of a superannuation fund established for the purposes of a superannuation scheme that is an unfunded defined benefits superannuation scheme.
"surchargeable contributions" has the meaning given by section 8.
"surcharge threshold" has the meaning given by section 9.
"taxable income" of a member for a year of income means the member's taxable income of that year of income as assessed under the Income Tax Assessment Act.
"taxed element" of the retained amount of the post - June 83 component of an eligible termination payment has the meaning given by section 27AC of the Income Tax Assessment Act.
"the 1996-97 financial year" means the financial year starting on 1 July 1996.
"the 1997-98 financial year" means the financial year starting on 1 July 1997.
"the 1998-99 financial year" means the financial year starting on 1 July 1998.
"the 1999-2000 financial year" means the financial year starting on 1 July 1999.
"trustee" , in relation to a superannuation fund, means:
(a) if there is a trustee (within the ordinary meaning of that expression) of the fund--the trustee; or
(b) otherwise--the person who manages the fund.
"unfunded defined benefits superannuation scheme" means a superannuation scheme that is declared by the regulations to be an unfunded defined benefits superannuation scheme.
"year of income" means a year of income for the purposes of the Income Tax Assessment Act as that Act applies to individuals.
(a) If there are surchargeable contributions for a member for the 1996 - 97 financial year or a later financial year (being a financial year that ends before 1 July 2005), the Commissioner will calculate the member's adjusted taxable income for the financial year.
(b) If the amount calculated is greater than the surcharge threshold amount, the Commissioner will calculate the rate of surcharge and the amount of the surcharge payable on the surchargeable contributions. Only surchargeable contributions calculated for a period after 7.30 pm on 20 August 1996 are subject to surcharge.
(c) For a defined benefits superannuation scheme, the surcharge is payable on an amount calculated to be the actuarial value of the benefits that accrued to, and the value of the administration expenses and risk benefits provided in respect of, the member for the financial year.
(d) If surcharge is payable for a member for a financial year under an assessment made before 23 March 1999, an advance instalment of one - half of the surcharge is payable on account of surcharge payable for the member for the next financial year. However, no instalment is payable if the contributions for the next financial year are held under an unfunded defined benefits superannuation scheme.
(e) If, after the assessment of surcharge, the member's adjusted taxable income is found to be different from the amount that was previously calculated or the surchargeable contributions are found to be different from the amount on which the assessment was based:
(i) if the person who was liable to pay the assessed surcharge is still the holder of the contributions--the Commissioner may amend the assessment; or
(ii) otherwise--the Commissioner may make a further assessment of surcharge.
(f) The holder of a member's surchargeable contributions for a financial year is liable to pay:
(i) the surcharge on those contributions; and
(ii) if the liability to pay the surcharge arose under an assessment made before 23 March 1999--any advance instalment on the member's surchargeable contributions for the next financial year;
within prescribed periods.
(g) However, if the holder is a superannuation (unfunded defined benefits) provider, the surcharge is not payable until benefits become payable.
(h) If liability for surcharge is increased as a result of an amendment of an assessment or the making of a further assessment, interest is payable on the additional surcharge.
(i) Either a superannuation provider or a member may object against an assessment of surcharge in the way set out in Part IVC of the Taxation Administration Act 1953 for objecting against assessments of income tax.
(j) A late payment penalty applies if surcharge or an advance instalment is not paid on time.
Amount of the reduction
Step 1. Work out the amount that would have been the taxed element of the retained amount of the post - June 83 component of the eligible termination payment if the amount of the excessive component of the eligible termination payment had been nil.
Step 2. Work out the taxed element of the retained amount of the post - June 83 component of the eligible termination payment.
Step 3. Subtract the result of step 2 from the result of step 1.
Step 4. Divide the result of step 3 by 0.85.
Step 5. Subtract the result of step 3 from the result of step 4.
Step 6. Add the result of step 5 to the excessive component of the eligible termination payment.
Step 7. Identify the amount of the surchargeable contributions (apart from subsection (8)) of the member reported for the financial year by the entity that paid the eligible termination payment.
Step 8. Identify the lesser of the results of steps 6 and 7 (or either
result if they are the same).