{"id":"C2004A05279","name":"Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997","slug":"superannuation-contributions-tax-members-of-constitutionally-protected-superannuation-funds-assessme","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"185 of 1997","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":51826,"registerId":"commonwealth-C2004A05279-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n  This Act may be cited as the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  This Act commences on the day on which it receives the Royal Assent.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Act to bind Crown","content":"#### 3 Act to bind Crown\n\n  (1) This Act binds the Crown in right of the Commonwealth, of each of the States, of the Australian Capital Territory and of the Northern Territory.\n  (2) Nothing in this Act permits the Crown to be prosecuted for an offence.","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Extension to Norfolk Island","content":"#### 4 Extension to Norfolk Island\n\n  This Act extends to Norfolk Island.","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Object of Act","content":"#### 5 Object of Act\n\n  The object of this Act is to provide for the assessment and collection of the superannuation contributions surcharge payable on surchargeable contributions for high‑income members of constitutionally protected superannuation funds.","sortOrder":5},{"sectionNumber":"6","sectionType":"section","heading":"Simplified outline of Act","content":"#### 6 Simplified outline of Act\n\n  The following is a simplified outline of this Act.\n\n(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.\n\n(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.\n\n(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.\n\n(d) 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, the Commissioner may amend the assessment.\n\n(e) The member is liable to pay the surcharge on the member’s surchargeable contributions for a financial year, but the surcharge is not payable before benefits become payable.\n\n(f) If liability for surcharge is increased as a result of an amendment of an assessment, interest is payable on the additional surcharge.\n\n(g) 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.\n\n(h) A late payment penalty applies if surcharge is not paid on time.","sortOrder":6},{"sectionNumber":"7","sectionType":"section","heading":"Exclusion of certain members","content":"#### 7 Exclusion of certain members\n\n  This Act does not apply to a person who is a member because he or she is a judge of a court of a State at the commencement of this Act.","sortOrder":7},{"sectionNumber":"Part 2","sectionType":"part","heading":"Liability to surcharge","content":"## Part 2—Liability to surcharge","sortOrder":8},{"sectionNumber":"8","sectionType":"section","heading":"Superannuation contributions surcharge","content":"#### 8 Superannuation contributions surcharge\n\n  Financial years to which surcharge applies\n  (1) Superannuation contributions surcharge is payable on a member’s surchargeable contributions for the financial year that began on 1 July 1996 or a later financial year that ends before 1 July 2005.\n  No surcharge is payable unless adjusted taxable income is greater than surcharge threshold\n  (2) Surcharge is not payable for a financial year unless the member’s adjusted taxable income for the financial year is greater than the surcharge threshold for the financial year.\n  No surcharge is payable by residents of external Territories\n  (3) Surcharge is not payable for a financial year if the person who would be liable to pay the surcharge is a Territory resident for the purposes of Division 1A of Part III of the Income Tax Assessment Act as it applies to the year of income that comprises that financial year.","sortOrder":9},{"sectionNumber":"9","sectionType":"section","heading":"Surchargeable contributions","content":"#### 9 Surchargeable contributions\n\n  Application\n  (1) This section explains what are the surchargeable contributions of a member for a financial year and how they are to be worked out.\n  Member other than a member of a defined benefits superannuation scheme\n  (2) If:\n    (a) there are any contributed amounts for a financial year in relation to a member other than a member of a defined benefits superannuation scheme; and\n    (b) the constitutionally protected superannuation fund is a complying superannuation fund for the purposes of the year of income comprising the financial year;\n  the surchargeable contributions of the member for the financial year are the sum of:\n    (c) so much of the amounts referred to in subparagraph (a)(i) of the definition of contributed amounts in section 38 as:\n    (i) are taxable contributions under subparagraph 274(1)(a)(i), (b)(ii), (ba)(i) or (ba)(iv) or paragraph 274(1)(d) or (e) of the Income Tax Assessment Act; or\n    (ii) are allowed as deductions to the member under section 82AAT of that Act; or\n    (iii) subject to subsection (3), 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\n    (d) any amounts referred to in subparagraph (a)(ii) or (iii) of the definition of contributed amount in section 38.\n  (3) If an eligible termination payment within the meaning of subparagraph (2)(c)(iii) has been made or is made to or for a taxpayer after 20 August 1996, surcharge is payable only on the part of the reduced amount of the eligible termination payment that is worked out using the formula:\n  ![Start formula start fraction Post-20 August 1996 period over Total period end fraction times Eligible termination payment end formula](image.002.png)\n  where:\n\n> 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.\n\n> reduced amount of an eligible termination payment is the amount remaining after deducting from the amount of the payment any post‑June 1994 invalidity component or CGT exempt component of the payment or any part of the payment that was made from an employee share acquisition scheme.\n\n> total period means the number of days in the period of the taxpayer’s employment for which the eligible termination payment was made.\n\n  Member of defined benefits superannuation scheme\n  (4) The surchargeable contributions for a financial year of a member of a defined benefits superannuation scheme are the amounts that constitute 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.\n  Value of benefits and expenses—financial year earlier than 1999‑2000 financial year\n  (5) The actuarial value of the benefits that accrued to, and the value of the administration expenses and risk benefits provided in respect of, a member of a defined benefits superannuation scheme for the 1996‑97 financial year or for either of the next 2 financial years is the amount worked out using the formula:\n  ![Start formula Annual salary times Notional surchargeable contributions factor end formula](image.003.png)\n  where:\n\n> annual salary means:\n\n    (a) if paragraph (b) does not apply—the amount that is the member’s annual salary for the financial year; or\n    (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.\n\n> notional surchargeable contributions factor means the factor applying to the member for the financial year worked out by an eligible actuary in accordance with:\n\n    (a) the method set out in Superannuation Contributions Ruling SCR 97/1; or\n    (b) if the Commissioner approves in writing another method as being appropriate in relation to the member for the financial year, being a method that excludes contributions made by the member for which the member is not entitled to an income tax deduction under the Income Tax Assessment Act or under the Income Tax Assessment Act 1997—the method so approved.\n  Value of benefits and expenses—1999‑2000 financial year or a later financial year\n  (6) The actuarial value of the benefits that accrued to, and the value of the administration expenses and risk benefits provided in respect of, a member of a defined benefits superannuation scheme for the 1999‑2000 financial year or a later financial year is an amount worked out using:\n    (a) the method set out in the regulations, being a method that excludes Government co‑contributions made under the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003 and contributions made by the member for which the member is not entitled to an income tax deduction under the Income Tax Assessment Act or under the Income Tax Assessment Act 1997; or\n    (b) if the Commissioner approves in writing another method as being appropriate in relation to the member for the financial year, being a method that excludes Government co‑contributions made under the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003 and contributions made by the member for which the member is not entitled to an income tax deduction under the Income Tax Assessment Act or under the Income Tax Assessment Act 1997—the method so approved.\n  Regulations\n  (7) Regulations made for the purposes of paragraph (6)(a) may specify, or make provision for the Commissioner to specify in writing, different methods in relation to different superannuation schemes, different classes of superannuation schemes or different classes of members of a superannuation scheme.\n  Transitional provision for 1996‑97 financial year\n  (8) For the 1996‑97 financial year, a member’s surchargeable contributions are to be worked out only for the part of that financial year that started immediately after 7.30 pm by legal time in the Australian Capital Territory on 20 August 1996.\n  Reduced surchargeable contributions\n  (9) The amount of the surchargeable contributions of a member for a financial year is the amount worked out under subsection (2) or (4) (as appropriate), reduced by the amount worked out under subsection (10), if:\n    (a) an eligible termination payment is made to the member in the financial year from the constitutionally protected superannuation fund; and\n    (b) the eligible termination payment has an excessive component.\n  (10) The amount of the reduction is worked out as follows:\n\nAmount of the reduction\n\nStep 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.\n\nStep 2. Work out the taxed element of the retained amount of the post‑June 83 component of the eligible termination payment.\n\nStep 3. Subtract the result of step 2 from the result of step 1.\n\nStep 4. Divide the result of step 3 by 0.85.\n\nStep 5. Subtract the result of step 3 from the result of step 4.\n\nStep 6. Add the result of step 5 to the excessive component of the eligible termination payment.\n\nStep 7. Identify the amount of the surchargeable contributions (apart from subsection (9)) of the member reported for the financial year by the entity that paid the eligible termination payment.\n\nStep 8. Identify the lesser of the results of steps 6 and 7 (or either result if they are the same).","sortOrder":10},{"sectionNumber":"10","sectionType":"section","heading":"Surcharge threshold","content":"#### 10 Surcharge threshold\n\n  Surcharge threshold for 1996‑97 financial year\n  (1) The surcharge threshold for the 1996‑97 financial year is $70,000.\n  Surcharge threshold for later financial year\n  (2) The surcharge threshold for a later financial year is the amount calculated using the formula:\n  ![Start formula Previous surcharge threshold times Indexation factor end formula](image.004.png)\n  where:\n\n> previous surcharge threshold means the surcharge threshold for the financial year immediately before the financial year for which the surcharge threshold is being calculated.\n\n> indexation factor means the number calculated under subsections (4) and (5) for the financial year for which the surcharge threshold is being calculated.\n\n  Rounding off of amount of surcharge threshold\n  (3) If an amount worked out for the purposes of subsection (2) is an amount of dollars and cents:\n    (a) if the number of cents is less than 50—the amount is to be rounded down to the nearest whole dollar; or\n    (b) otherwise—the amount is to be rounded up to the nearest whole dollar.\n  Indexation factor\n  (4) The indexation factor for a financial year is the number, calculated to 3 decimal places, using the formula:\n  ![Start formula start fraction Index number for last quarter in current March year over Index number for last quarter in previous March year end fraction end formula](image.005.png)\n  where:\n\n> 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.\n\n> current March year means the period of 12 months ending on 31 March immediately before the financial year for which the surcharge threshold is being calculated.\n\n> previous March year means the period of 12 months immediately before the current March year.\n\n  Rounding up of indexation factor\n  (5) If the number calculated under subsection (4) 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.\n  Change in index numbers\n  (6) 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.\n  Surcharge threshold to be published\n  (7) The Commissioner must publish before, or as soon as practicable after, the start of the 1997‑98 financial year, and before the start of each later financial year (being a financial year that ends before 1 July 2005), the surcharge threshold for the financial year.\n\n> Note: For the purposes of this section, Australian Statistician means the Australian Statistician referred to in subsection 5(2) of the Australian Bureau of Statistics Act 1975.","sortOrder":11},{"sectionNumber":"11","sectionType":"section","heading":"Member liable to pay surcharge","content":"#### 11 Member liable to pay surcharge\n\n  (1) The superannuation contributions surcharge on a member’s surchargeable contributions for a financial year is payable by the member.\n  No surcharge payable if member dies\n  (2) However, surcharge is not payable on surchargeable contributions for a member for a financial year in which the member dies or a later financial year.","sortOrder":12},{"sectionNumber":"Part 3","sectionType":"part","heading":"Assessment and collection of surcharge","content":"## Part 3—Assessment and collection of surcharge","sortOrder":13},{"sectionNumber":"12","sectionType":"section","heading":"Superannuation providers to give statements","content":"#### 12 Superannuation providers to give statements\n\n  Application\n  (1) This section applies in respect of every member.\n  Superannuation provider to give statement to Commissioner at end of financial year\n  (2) Each superannuation provider must, after the end of each financial year (being a financial year that ends before 1 July 2005) but not later than the notification date for the financial year or such later date (if any) as the Commissioner allows, give the Commissioner, in respect of each person who, at the end of the financial year, was a member of the constitutionally protected superannuation fund of which the provider was the trustee, a statement setting out:\n    (a) the member’s name, the address of the member’s place of residence or place of business or employment, the date of the member’s birth and, if given to the provider in connection with the operation or the possible future operation of this Act, the member’s tax file number; and\n    (b) the particulars referred to in subsection (5); and\n    (c) any other matters required by the regulations.\n  Superannuation provider that pays out contributed amounts\n  (3) If, after 7.30 pm by legal time in the Australian Capital Territory on 20 August 1996 and before 1 July 2005, any of the contributed amounts in relation to the member were or are paid by a superannuation provider:\n    (a) to the member; or\n    (b) to the member, or to a person other than a member, under a payment split;\n  then the provider must, not later than the notification date for the financial year in which the payment was or is made or such later date (if any) as the Commissioner allows, give the Commissioner a statement setting out:\n    (c) the member’s name, the address of the member’s place of residence or place of business or employment, the date of the member’s birth and, if given to the provider in connection with the operation or the possible future operation of this Act, the member’s tax file number; and\n    (d) the particulars referred to in subsection (5); and\n    (e) the date of the payment; and\n    (f) any other information required by the regulations.\n  Information to be given to member\n  (4) A superannuation provider who is required to give a statement to the Commissioner under subsection (2) or (3) for a financial year earlier than the 1998‑99 financial year must, not later than 12 months after the statement is given, give to the member the particulars referred to in subsection (5) that are required to be included in the statement.\n  Member may request provider to give particulars\n  (4A) If a member requests a superannuation provider who has given a statement to the Commissioner under this section for the 1998‑99 financial year or a later financial year to give to the member the particulars referred to in subsection (7) relating to the member that are included in the statement (other than particulars that the provider has previously given to the member), the provider must comply with the request within 30 days after receiving it.\n  How particulars are to be given\n  (4B) The particulars to be given to a member under subsection (4A) are to be given:\n    (a) if the request asked for them to be given in writing—in writing; or\n    (b) otherwise—in such manner as the superannuation provider considers appropriate.\n  Particulars to be included in statements\n  (5) The particulars that are required to be given in a statement under this section are the total of the contributed amounts (if any) in relation to the member for the financial year and:\n    (a) if the statement is given by a superannuation (accumulated benefits) provider:\n    (i) if any of those amounts are amounts referred to in subparagraph (a)(i) of the definition of contributed amounts in section 38—the total of so much of those amounts as are taxable contributions referred to in subparagraph 9(2)(c)(i); and\n    (ii) the total of any of those amounts that are amounts referred to in subparagraph (a)(ii) or (iii) of that definition; and\n    (b) if the statement is given by a superannuation (defined benefits) provider—the amount of the surchargeable contributions of the member for the financial year.\n  (6) If:\n    (a) a superannuation benefit (within the meaning of the Income Tax Assessment Act 1997) becomes payable by a superannuation provider for the benefit of a member; or\n    (b) a payment split applies to a splittable payment in respect of an interest that a person has as a member;\n  (being a member who was a member at any time after 7.30 pm by legal time in the Australian Capital Territory on 20 August 1996 and before 1 July 2005), then the provider must give the Commissioner a statement setting out:\n    (c) the member’s name, the address of the member’s place of residence or place of business or employment, the date of the member’s birth and, if given to the provider in connection with the operation or the possible future operation of this Act, the member’s tax file number; and\n    (d) the date on which the superannuation benefit became payable; and\n    (e) the particulars in relation to the benefits referred to in paragraph 15(6)(b) or (6AA)(d) (as the case requires); and\n    (f) any other information required by the regulations.\n  Particulars to be included in statement under subsection (6)\n  (7) The statement required to be given by a superannuation provider to the Commissioner under subsection (6) is to be given before:\n    (a) if the provider is informed by the member, on or before the tenth day of the month after the month (the payment month) in which the lump sum was paid or the pension began to be paid, that:\n    (i) the member had applied to the Commissioner for the issue of a tax file number; and\n    (ii) the Commissioner had neither granted nor refused the application;\n    the end of the 14th day of the second month after the payment month; or\n    (b) otherwise—the end of the 14th day of the month after the payment month;\n  or before the end of such further period as the Commissioner allows.\n  Definitions\n  (8) In this section:\n\n> payment split means a payment split within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975.\n\n> splittable payment means a splittable payment within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975.","sortOrder":14},{"sectionNumber":"13","sectionType":"section","heading":"Giving of information in certain form","content":"#### 13 Giving of information in certain form\n\n  Notice stating how information to be given\n  (1) The Commissioner may, by notice published in the Gazette, set out the way in which information to be contained in a statement under section 12 is to be given.\n  Date of effect of notice\n  (2) The notice has effect on and after the day stated in the notice.\n  Superannuation provider to comply with notice\n  (3) If any of the information that a superannuation provider is required to give under section 12 is kept by or on behalf of the provider by a data processing device, the provider must give the information in a way set out in the notice.\n  Exemption\n  (4) The Commissioner may, by legislative instrument, exempt a superannuation provider from subsection (3).","sortOrder":15},{"sectionNumber":"14","sectionType":"section","heading":"Assessment of liability to pay surcharge","content":"#### 14 Assessment of liability to pay surcharge\n\n  Commissioner to assess surcharge\n  (1) For each financial year (being a financial year that ends before 1 July 2005) for which there are surchargeable contributions for a member, the Commissioner must make an assessment that:\n    (a) calculates the member’s adjusted taxable income; and\n    (b) if the adjusted taxable income is greater than the surcharge threshold:\n    (i) calculates the surchargeable contributions; and\n    (ii) calculates the rate of surcharge that applies to the member; and\n    (iii) specifies the amount of the surcharge payable or, if no surcharge is payable, states that a nil amount of surcharge is payable; and\n    (c) if the adjusted taxable income is equal to or less than the surcharge threshold—states that a nil amount of surcharge is payable.\n  What happens if member dies\n  (2) If:\n    (a) a member has died, whether before or after the commencement of this subsection; and\n    (b) after the death an assessment was or is made of surcharge on the member’s surchargeable contributions for the financial year in which the member died or a later financial year;\n  the assessment is taken not to have been made.\n  Notice of assessment\n  (3) When an assessment (including an amended assessment) is made, the Commissioner must, subject to subsection (4), give notice of the assessment:\n    (a) if paragraph (b) does not apply—to the member; or\n    (b) if the assessment:\n    (i) relates to the period when the relevant superannuation fund was a constitutionally protected superannuation fund; and\n    (ii) is made after that superannuation fund ceases to be a constitutionally protected superannuation fund;\n    to the superannuation provider.\n  No notice if nil amount assessed\n  (4) The Commissioner is not required under subsection (3) to give a notice of an assessment if the assessment states that a nil amount of surcharge is payable.\n  Particulars in notice of assessment\n  (5) A notice of assessment must include particulars of the matters contained in the assessment under subsection (1).\n  How a notice is to be given\n  (6) A notice of assessment may be given in any manner prescribed by the regulations.\n  Non‑compliance not to affect validity of assessment\n  (7) The validity of any assessment is not affected by any non‑compliance with a provision of this Act.","sortOrder":16},{"sectionNumber":"15","sectionType":"section","heading":"When surcharge will become payable","content":"#### 15 When surcharge will become payable\n\n  Explanation of section\n  (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.\n  Accounts to be kept\n  (2) The Commissioner is to keep a surcharge debt account for each member of a constitutionally protected superannuation fund.\n  Account to be debited for surcharge\n  (3) The Commissioner is to debit the account for surcharge assessed to be payable on the member’s surchargeable contributions.\n  Interest to be debited\n  (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.\n  Rate of interest\n  (5) The Treasury bond rate for the last day of a financial year for bonds with a 10 year term is:\n    (a) if any Treasury bonds with that term were issued on that day—the annual yield on those bonds; or\n    (b) otherwise—the annual yield on Treasury bonds with that term, as published by the Reserve Bank of Australia for that day.\n  Payment to be made when benefit becomes payable\n  (6) Subject to subsection (6AA), when a superannuation benefit (within the meaning of the Income Tax Assessment Act 1997) 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:\n    (a) the amount by which the account is in debit; or\n    (b) the total of the following amounts:\n    (i) 15% of the employer‑financed component of any part of the benefits payable to the member that accrued between 20 August 1996 and 1 July 2003;\n    (ii) 14.5% of the employer‑financed component of any part of the benefits payable to the member that accrued in the 2003‑2004 financial year;\n    (iii) 12.5% of the employer‑financed component of any part of the benefits payable to the member that accrued in the 2004‑2005 financial year.\n  (6AA) If:\n    (a) a payment split applies to a splittable payment in respect of an interest that a person has as a member; and\n    (b) the splittable payment becomes payable in circumstances where the member’s surcharge account is in debit;\n  then the member is liable to pay to the Commissioner the lesser of:\n    (c) the amount by which the account is in debit; and\n    (d) the total of the following amounts:\n    (i) 15% of the employer‑financed component of any part of the benefits that would have been payable to the member but for the payment split and that accrued between 20 August 1996 and 1 July 2003;\n    (ii) 14.5% of the employer‑financed component of any part of the benefits that would have been payable to the member but for the payment split and that accrued in the 2003‑2004 financial year;\n    (iii) 12.5% of the employer‑financed component of any part of the benefits that would have been payable to the member but for the payment split and that accrued in the 2004‑2005 financial year.\n  Payment to be made if fund ceases to be a constitutionally protected superannuation fund\n  (6A) If a superannuation fund ceases to be a constitutionally protected superannuation fund at a time when a member’s surcharge debt account is in debit, the member is liable to pay to the Commissioner the lesser of:\n    (a) the amount by which the account is in debit; or\n    (b) the total of the following amounts:\n    (i) 15% of the employer‑financed component of any part of the value of the age retirement benefits of the member when the fund ceased to be a constitutionally protected superannuation fund that accrued between 20 August 1996 and 1 July 2003;\n    (ii) 14.5% of the employer‑financed component of any part of the value of the age retirement benefits of the member when the fund ceased to be a constitutionally protected superannuation fund that accrued in the 2003‑2004 financial year;\n    (iii) 12.5% of the employer‑financed component of any part of the value of the age retirement benefits of the member when the fund ceased to be a constitutionally protected superannuation fund that accrued in the 2004‑2005 financial year.\n  (7) If a member becomes liable to pay an amount to the Commissioner under subsection (6), (6AA) or (6A), the Commissioner must give the member a notice stating that the member is liable to pay the amount. The notice must contain the date on which it is issued.\n  (8) The amount is payable within 3 months after the date of issue of the notice and the notice is to state that the amount is so payable. Payment of the amount results in a nil balance in the account.\n\n> Note: For provisions about collection and recovery of superannuation contributions surcharge and other related amounts, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.\n\n  Person may direct superannuation provider to pay amount to Commissioner\n  (8A) If:\n    (a) a person is liable to pay an amount to the Commissioner under subsection (6) or (6AA); and\n    (b) a superannuation benefit (within the meaning of the Income Tax Assessment Act 1997) is not payable by the superannuation provider for the benefit of the person because the person has become:\n    (i) a member of another superannuation fund; or\n    (ii) a member of an approved deposit fund; or\n    (iii) the holder of an RSA; or\n    (iv) the purchaser of an annuity from a life assurance company or from a registered organisation;\n  the person may direct the trustee of the other superannuation fund or the approved deposit fund, the RSA provider, the life assurance company or the registered organisation to pay to the Commissioner the whole or a part of the amount referred to in paragraph (a) and to make any necessary reductions in the benefits to which the person would otherwise be entitled from the other superannuation fund, the approved deposit fund, or the RSA or to the amount of the annuity to which the person would otherwise be entitled.\n  Member of former constitutionally protected superannuation fund may direct superannuation provider to pay amount to Commissioner\n  (8AA) If a person is liable to pay an amount to the Commissioner under subsection (6A), the person may direct the superannuation provider to pay to the Commissioner the whole or a part of that amount and to make any necessary reductions in the benefits to which the person would otherwise be entitled.\n  Superannuation provider to comply with direction\n  (8B) A superannuation provider to whom a direction is given under subsection (8A) or (8AA) must comply with the direction.\n  Surcharge debt may be reduced\n  (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.\n  What happens if debt reduced\n  (10) If a member makes a payment under subsection (9), the Commissioner is to:\n    (a) acknowledge receipt of the payment to the member; and\n    (b) credit the payment to the surcharge debt account; and\n    (c) notify the member of the revised balance of the surcharge debt account.\n  Definitions\n  (11) In this section:\n\n> payment split means a payment split within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975.\n\n> splittable payment means a splittable payment within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975.","sortOrder":17},{"sectionNumber":"15A","sectionType":"section","heading":"Periods within which assessments may be amended","content":"#### 15A Periods within which assessments may be amended\n\n  General provision\n  (1) The Commissioner may, subject to this section, at any time amend an assessment of surcharge on a member’s surchargeable contributions by making such alterations or additions as the Commissioner thinks necessary, even though surcharge has been paid in respect of the assessment. Such an amendment may be made on the Commissioner’s own initiative or at the request of the member.\n  Period for making further amendment\n  (2) If:\n    (a) an assessment has been amended in any particular in a way that effected a reduction in the amount of surcharge payable; and\n    (b) for the purposes of making the amendment, the Commissioner accepted a statement made by or on behalf of a member;\n  the Commissioner may, within 4 years from the date of service of the notice of the amended assessment, further amend the assessment in, or in respect of, that particular in a way that increases the amount of the surcharge payable to the extent that the Commissioner considers necessary.\n  Period where avoidance of surcharge\n  (3) Subject to this section, if there has been an avoidance of surcharge, the Commissioner may:\n    (a) if the Commissioner is of the opinion that the avoidance of surcharge is due to fraud or evasion—at any time; or\n    (b) in any other case—within 4 years from the date upon which the surcharge became due and payable under the assessment;\n  amend the assessment by making such alterations or additions as the Commissioner thinks necessary to correct the assessment.\n  Period where amendment reduces surcharge\n  (4) An amendment effecting a reduction in the amount of surcharge payable under an assessment is not to be made after the end of 4 years from the date upon which the surcharge became due and payable under the assessment.\n  Application or request for extension of period\n  (5) If:\n    (a) the Commissioner has begun an examination of the affairs of a member; and\n    (b) the examination was not completed within the period within which the Commissioner may amend an assessment to which the examination relates under subsection (3) or, if that period has been extended by any previous order or orders of the Federal Court of Australia made under subsection (6), or by any previous consent or consents of the member given under subsection (7), within that period as so extended;\n  the Commissioner may, before the end of the period referred to in paragraph (b) of this subsection, apply to the Federal Court for an order extending, or request the member to consent to the extension of, the period within which the Commissioner may amend the assessment under paragraph (3)(b).\n  Court may extend period\n  (6) If, on application made to the Federal Court of Australia in accordance with subsection (5), the Court is satisfied that it was not reasonably practicable, or it was inappropriate, for the Commissioner to complete the examination within the period referred to in paragraph (5)(b) because of any action taken by the member or any failure of the member to take action that it would have been reasonable for the member to take, the Court may make an order extending the period within which the Commissioner may amend the assessment under paragraph (3)(b) for such period as the Court considers appropriate.\n  Member or provider may extend period\n  (7) If a request is made to the member in accordance with subsection (5), the member may, by writing, consent to the extension of the period within which the Commissioner may amend the assessment under paragraph (3)(b) for such period as is specified in the instrument of consent.\n  Meaning of take action\n  (8) In subsection (6), a reference to action taken by a member includes a reference to the institution by the member of a proceeding before a court or tribunal.\n  Period for further amendment reducing surcharge\n  (9) If an assessment has, under this section, been amended in any particular, the Commissioner may, within 4 years from the date upon which surcharge became due under the amended assessment, make, in or in respect of that particular, such further amendment of the assessment as, in the Commissioner’s opinion, is necessary to effect such reduction in the amount of surcharge payable under the assessment as is just.\n  Case when subsection (9) does not apply\n  (10) Subsection (9) does not authorise the further amendment of an earlier further amendment of an assessment made under subsection (2).\n  Assessment following application by member\n  (11) If:\n    (a) an application for an amendment of an assessment is made by a member within 4 years from the date upon which surcharge became due and payable under the assessment; and\n    (b) the member has given to the Commissioner within that period all information needed by the Commissioner for the purpose of deciding the application;\n  the Commissioner may amend the assessment when he or she decides the application even though that period has elapsed.\n  How application for amendment is to be made\n  (12) An application for amendment must be made in writing, on a data processing device or by way of electronic transmission and must be signed in accordance with the regulations.\n  Information to be contained in application\n  (13) An application for amendment must be given in the prescribed manner and contain the prescribed information.\n  Certain other powers of amendment not affected\n  (14) Nothing in this section prevents:\n    (a) the amendment of an assessment in order to give effect to the decision upon any appeal or review; or\n    (b) the amendment of an assessment by way of reduction in the amount of surcharge payable pursuant to an objection made against the assessment or pending any appeal or review; or\n    (c) the amendment of an assessment under section 16.","sortOrder":18},{"sectionNumber":"16","sectionType":"section","heading":"Amendment of assessment if tax file number quoted or found out after assessment","content":"#### 16 Amendment of assessment if tax file number quoted or found out after assessment\n\n  Application\n  (1) This section applies if:\n    (a) an assessment of surcharge on the surchargeable contributions of a member for a financial year has been made; and\n    (b) the member did not, before the assessment was made, quote his or her tax file number to the Commissioner in connection with the operation or the possible future operation of this Act and the Commissioner did not know the tax file number when the assessment was made; and\n    (c) the assessed amount was more than it would have been if the member had quoted the tax file number to the Commissioner; and\n    (d) after the assessment was made:\n    (i) the member quoted the tax file number to the Commissioner in connection with the operation or the possible future operation of this Act; or\n    (ii) the Commissioner found out the tax file number.\n  Amendment of assessment\n  (2) The Commissioner must amend the assessment to reduce the amount of surcharge to the amount that would have been payable if the Commissioner had known the tax file number when the assessment was made.","sortOrder":19},{"sectionNumber":"17","sectionType":"section","heading":"Amendment of assessments","content":"#### 17 Amendment of assessments\n\n  Application\n  (1) This section applies if, after the making of an assessment of surcharge on a member’s surchargeable contributions for a financial year:\n    (a) the member’s adjusted taxable income for the financial year is increased or reduced and the increase or reduction affects the member’s liability to pay the surcharge; or\n    (b) the amount of the contributions is greater or less than the amount that was taken to be the amount of the contributions for the purposes of the assessment; or\n    (c) the Commissioner is required or permitted under any other provision of this Act to amend the assessment.\n  Additional application\n  (2) This section also applies if:\n    (a) under an assessment of surcharge on a member’s surchargeable contributions for a financial year, the rate of surcharge that applies to the member on particular surchargeable contributions for the financial year was assessed to be nil because paragraph 5(4)(e) of the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Imposition Act 1997 applied to the member; and\n    (b) the rate of surcharge that applies to the member on those contributions for that financial year is afterwards determined to be greater than nil.\n  Commissioner may amend assessment\n  (3) The Commissioner may amend the assessment to take account of any matter referred to in paragraph (1)(a), (b) or (c) or the matters referred to in subsection (2).\n  Amendment increasing surcharge\n  (4) If, as a result of the amendment of the assessment, the amount of surcharge is increased:\n    (a) the Commissioner must debit the member’s surcharge debt account for the amount of the increase if none of the following has become payable by the relevant superannuation provider for the benefit of the member:\n    (i) a lump sum;\n    (ii) a pension;\n    (iii) a superannuation benefit (within the meaning of the Income Tax Assessment Act 1997); or\n    (b) if paragraph (a) does not apply—the amount of the increase is payable by the member within 3 months after the day on which the assessment is amended or within such further period as the Commissioner allows.\n  Amendment reducing surcharge\n  (5) If, as a result of the amendment of the assessment, the amount of surcharge is reduced:\n    (a) the Commissioner must credit the account with the amount by which the surcharge is reduced if none of the following has become payable by the relevant superannuation provider for the benefit of the member and the member’s surcharge debt account is in debit:\n    (i) a lump sum;\n    (ii) a pension;\n    (iii) a superannuation benefit (within the meaning of the Income Tax Assessment Act 1997); or\n    (b) if paragraph (a) does not apply:\n    (i) the amount by which the surcharge is reduced is to be applied in reduction of any liability of the member under this Act; and\n    (ii) any amount remaining is to be repaid to the member.\n  Section subject to section 15A\n  (6) This section is subject to section 15A.","sortOrder":20},{"sectionNumber":"18","sectionType":"section","heading":"Liability to pay the general interest charge if liability increased by an amendment of an assessment","content":"#### 18 Liability to pay the general interest charge if liability increased by an amendment of an assessment\n\n  Liability to pay general interest charge\n  (1) If an amendment of an assessment increasing a member’s liability to pay surcharge for a financial year is made, the member is liable to pay the general interest charge on the amount of the increase for each day in the period that:\n    (a) started at the beginning of 15 June in the financial year; and\n    (b) finishes at the end of the day before the amended assessment is made.\n\n> Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.\n\n  Amendment of nil assessment\n  (3) If:\n    (a) the Commissioner has calculated that no surcharge is payable by a member on the member’s surchargeable contributions for a financial year; and\n    (b) the Commissioner afterwards makes an assessment of surcharge payable by the member on those contributions for the financial year;\n  the assessment referred to in paragraph (b) is taken to be an amended assessment.","sortOrder":21},{"sectionNumber":"19","sectionType":"section","heading":"Tax file numbers","content":"#### 19 Tax file numbers\n\n  Commissioner may use any tax file numbers for purposes of this Act\n  The Commissioner may use for the purposes of this Act a tax file number that has been provided for any other purpose under a law relating to taxation or superannuation.","sortOrder":22},{"sectionNumber":"20","sectionType":"section","heading":"Objections against assessments","content":"#### 20 Objections against assessments\n\n  Member may object against assessment\n  (1) If:\n    (a) an assessment of surcharge on a member’s surchargeable contributions is made; and\n    (b) the member is dissatisfied with the assessment;\n  the member may object against the assessment in the way set out in Part IVC of the Taxation Administration Act 1953.\n  Matters on which Commissioner may rely in deciding an objection\n  (2) In making a decision on the objection in so far as the objection relates to the calculation of the member’s adjusted taxable income, the Commissioner is entitled to rely on:\n    (a) the latest assessment of the member’s taxable income under the Income Tax Assessment Act; and\n    (b) the latest statement of the member’s surchargeable contributions given to the Commissioner by the superannuation provider.","sortOrder":23},{"sectionNumber":"Part 4","sectionType":"part","heading":"Recovery of unpaid surcharge, general interest charge or late payment penalty","content":"## Part 4—Recovery of unpaid surcharge, general interest charge or late payment penalty","sortOrder":24},{"sectionNumber":"21","sectionType":"section","heading":"Penalty for non‑payment of surcharge","content":"#### 21 Penalty for non‑payment of surcharge\n\n  Liability to pay general interest charge\n  (1) If an amount of surcharge that a person is liable to pay remains unpaid after the time by which it is due to be paid, the person is liable to pay the general interest charge on the unpaid amount.\n\n> Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953.\n\n  General interest charge period\n  (2) The person is liable to pay the general interest charge on the unpaid amount for each day in the period that:\n    (a) started at the beginning of the day by which the surcharge was due to be paid; and\n    (b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:\n    (i) the surcharge;\n    (ii) general interest charge on any of the surcharge.\n  Commissioner’s right to sue not affected\n  (5) This section does not prevent the Commissioner from suing for the recovery of any unpaid surcharge or late payment penalty at any time after it becomes due and payable.","sortOrder":25},{"sectionNumber":"Part 5","sectionType":"part","heading":"Administration","content":"## Part 5—Administration","sortOrder":26},{"sectionNumber":"26","sectionType":"section","heading":"General administration of Act","content":"#### 26 General administration of Act\n\n  The Commissioner has the general administration of this Act.\n\n> Note: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953.","sortOrder":27},{"sectionNumber":"27","sectionType":"section","heading":"Annual report","content":"#### 27 Annual report\n\n  After the end of each financial year, the Commissioner must give the Treasurer a report on the working of this Act during the year for presentation to the Parliament.","sortOrder":28},{"sectionNumber":"Part 6","sectionType":"part","heading":"Miscellaneous","content":"## Part 6—Miscellaneous","sortOrder":29},{"sectionNumber":"30","sectionType":"section","heading":"Prohibition of avoidance schemes","content":"#### 30 Prohibition of avoidance schemes\n\n  A superannuation provider or fund trustee must not enter into, commence to carry out, or carry out, a scheme if the superannuation provider or fund trustee entered into, commenced to carry out, or carried out, the scheme or any part of the scheme with the intention that the scheme would result, or be likely to result, in the avoidance of the surcharge, including through the use of allocated surplus amounts.","sortOrder":30},{"sectionNumber":"34","sectionType":"section","heading":"Records to be kept and retained by superannuation provider","content":"#### 34 Records to be kept and retained by superannuation provider\n\n  Superannuation provider to keep records\n  (1) A superannuation provider must keep records that record and explain all transactions and other acts engaged in by the provider, or required to be engaged in by the provider, under this Act.\n  How records to be kept\n  (2) The records must be kept:\n    (a) in writing in the English language or so as to enable the records to be readily accessible and convertible into writing in the English language; and\n    (b) so that any liability under this Act of a member of a constitutionally protected superannuation fund of which the provider is the trustee can be readily worked out.\n  Period for retention of records\n  (3) A superannuation provider who has possession of any records kept or obtained under or for the purposes of this Act must retain them until the end of 5 years after they were prepared or obtained, or the completion of the transactions or acts to which those records relate, whichever is the later.\n  When records need not be kept\n  (4) This section does not require a superannuation provider to retain records if the Commissioner has notified the provider that the retention of the records is not required.","sortOrder":31},{"sectionNumber":"36","sectionType":"section","heading":"Application of the Criminal Code","content":"#### 36 Application of the Criminal Code\n\n  Chapter 2 of the Criminal Code applies to all offences against this Act.","sortOrder":32},{"sectionNumber":"37","sectionType":"section","heading":"Regulations","content":"#### 37 Regulations\n\n  The Governor‑General may make regulations prescribing matters:\n    (a) required or permitted by this Act to be prescribed; or\n    (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act;\n  and, in particular, prescribing:\n    (c) how statements are to be given to the Commissioner; and\n    (d) penalties not exceeding a fine of 5 penalty units, for offences against the regulations.","sortOrder":33},{"sectionNumber":"Part 7","sectionType":"part","heading":"Interpretation","content":"## Part 7—Interpretation","sortOrder":34},{"sectionNumber":"38","sectionType":"section","heading":"Definitions","content":"#### 38 Definitions\n\n  In this Act, unless the contrary intention applies:\n\n> adjusted taxable income has the same meaning as in the Superannuation Contributions Tax (Assessment and Collection) Act 1997.\n\n> allocated surplus amount, in relation to a member 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:\n\n    (a) the amounts paid by or for the member to the provider; and\n    (b) the relevant constitutionally protected superannuation fund’s investment earnings relating to the member’s interest in the fund; and\n    (c) any other relevant matters.\n\n> assessment means an assessment made under subsection 14(1).\n\n> class: a single member may constitute a class of members and a single superannuation scheme may constitute a class of superannuation schemes.\n\n> Commissioner means the Commissioner of Taxation.\n\n> complying superannuation fund has the meaning given by section 45 of the Superannuation Industry (Supervision) Act 1993.\n\n> constitutionally protected superannuation fund has the same meaning as constitutionally protected fund has in the Income Tax Assessment Act 1997.\n\n> contributed amounts:\n\n    (a) in relation to a member (other than a member of a defined benefits superannuation scheme) for a financial year, means:\n    (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\n    (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\n    (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\n    (b) in relation to a member of a defined benefits superannuation scheme for a financial year:\n    (i) means the surchargeable contributions of the member for the financial year; and\n    (ii) includes any other amount that may be reasonably regarded as attributable to the member under the scheme for the financial year.\n\n> 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:\n\n    (a) the amount of:\n    (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\n    (ii) the member’s salary averaged over a period before retirement;\n    (b) a stated amount.\n\n> defined benefits superannuation scheme means:\n\n    (a) a public sector superannuation scheme that:\n    (i) is a regulated superannuation fund or an exempt public sector superannuation scheme; and\n    (ii) has at least one defined benefit member; or\n    (b) a regulated superannuation fund (other than a public sector superannuation scheme):\n    (i) that has at least one defined benefit member; and\n    (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.\n\n> Deputy Commissioner means the Deputy Commissioner of Taxation.\n\n> eligible actuary means a Fellow or Accredited Member of the Institute of Actuaries of Australia.\n\n> eligible termination payment has the same meaning as in Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act.\n\n> excessive component of an eligible termination payment has the meaning given by subsection 27A(1) of the Income Tax Assessment Act.\n\n> exempt public sector superannuation scheme has the same meaning as in section 10 of the Superannuation Industry (Supervision) Act 1993.\n\n> funded defined benefits superannuation scheme means a defined benefits superannuation scheme that is not an unfunded defined benefits superannuation scheme.\n\n> general interest charge means the charge worked out under Part IIA of the Taxation Administration Act 1953.\n\n> Income Tax Assessment Act means the Income Tax Assessment Act 1936.\n\n> late payment penalty means general interest charge payable under section 21.\n\n> member means a member of a constitutionally protected superannuation fund and includes a person who has been a member of such a fund.\n\n> notification date means:\n\n    (a) for the 1996‑97 financial year—15 December 1997; or\n    (b) for a later financial year—31 October following the financial year.\n\n> post‑June 83 component of an eligible termination payment has the meaning given by section 27AA of the Income Tax Assessment Act.\n\n> public sector superannuation scheme means a scheme for the payment of superannuation, retirement or death benefits, where the scheme is established:\n\n    (a) by or under a law of a State; or\n    (b) under the authority of:\n    (i) the government of a State; or\n    (ii) a municipal corporation, another local governing body, or a public authority, constituted by or under a law of a State.\n\n> regulated superannuation fund has the same meaning as in the Superannuation Industry (Supervision) Act 1993.\n\n> 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.\n\n> rolled‑over has the meaning given by paragraph 27A(13)(a) of the Income Tax Assessment Act.\n\n> Second Commissioner means a Second Commissioner of Taxation.\n\n> superannuation (accumulated benefits) provider means a superannuation provider that is not a superannuation (defined benefits) provider.\n\n> Superannuation Contributions Ruling SCR 97/1 has the same meaning as in the Superannuation Contributions Tax (Assessment and Collection) Act 1997.\n\n> superannuation contributions surcharge or surcharge means the tax imposed by the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Imposition Act 1997.\n\n> superannuation contributions surcharge threshold or surcharge threshold has the meaning given by section 10.\n\n> superannuation (defined benefits) provider means a superannuation (funded defined benefits) provider or a superannuation (unfunded defined benefits) provider.\n\n> superannuation fund means a public sector superannuation scheme.\n\n> superannuation (funded defined benefits) provider means a superannuation provider who is the trustee of a constitutionally protected superannuation fund established for the purposes of a funded defined benefits superannuation scheme.\n\n> superannuation provider means a trustee of a constitutionally protected superannuation fund.\n\n> superannuation (unfunded defined benefits) provider means a superannuation provider who is the trustee of a constitutionally protected superannuation fund established for the purposes of a superannuation scheme that is an unfunded defined benefits superannuation scheme.\n\n> surcharge: see superannuation contributions surcharge.\n\n> surchargeable contributions has the meaning given by section 9.\n\n> surcharge threshold: see superannuation contributions surcharge threshold.\n\n> 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.\n\n> 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.\n\n> the 1996‑97 financial year means the financial year starting on 1 July 1996.\n\n> the 1997‑98 financial year means the financial year starting on 1 July 1997.\n\n> the 1998‑99 financial year means the financial year starting on 1 July 1998.\n\n> the 1999‑2000 financial year means the financial year starting on 1 July 1999.\n\n> trustee, in relation to a constitutionally protected superannuation fund, means:\n\n    (a) if there is a trustee (within the ordinary meaning of that expression) of the fund—the trustee; or\n    (b) otherwise—the person who manages the fund.\n\n> unfunded defined benefits superannuation scheme has the same meaning as in the Superannuation Contributions Tax (Assessment and Collection) Act 1997.\n\n> year of income means a year of income for the purposes of the Income Tax Assessment Act as that Act applies to individuals.","sortOrder":35}],"analysis":{"issue_detection":{"absurdities":[{"type":"other","section":"s 8(3)","severity":"medium","reasoning":"The surcharge is framed as a tax on contributions, not on residence. Exempting Territory residents from liability while imposing it on State residents creates an internal inconsistency: the surcharge threshold and rate apply uniformly, but the geographic residence of the taxpayer nullifies the entire liability. This is especially anomalous given the Act's explicit extension to Norfolk Island under s 4, yet Norfolk Island residents may be Territory residents for income tax purposes and thus exempt — the extension may be largely operative nullity.","confidence":0.72,"description":"Surcharge exemption for Territory residents creates a geographic anomaly: a member of a constitutionally protected superannuation fund who is a Territory resident pays no surcharge, while an identical member resident in a State pays surcharge, despite the Act binding the Crown in all jurisdictions under s 3(1) and extending to Norfolk Island under s 4."},{"type":"self_contradicting","section":"s 11(2)","severity":"low","reasoning":"The interplay between the death exemption (s 11(2)), the deemed non-assessment (s 14(2)), and the unlimited amendment power (s 15A(1)) creates a logical loop: the Commissioner may amend an assessment at any time, but any assessment for the year of death or later is void ab initio. The amendment power is thus rendered meaningless for those periods without any explicit carve-out in s 15A.","confidence":0.65,"description":"Surcharge is not payable for the financial year in which a member dies or any later year, yet s 14(2) provides that any assessment made after death for those years 'is taken not to have been made.' However, s 15A(1) permits amendment of assessments 'at any time' even after surcharge has been paid, creating a perpetual amendment power that is then nullified for deceased members — leaving the Commissioner with an ongoing power that can never produce a valid outcome for a deceased member's death-year or later assessments."},{"type":"self_contradicting","section":"s 15(8)","severity":"high","reasoning":"Section 15(6) makes the member liable to pay the lesser of (a) the full debit balance or (b) a capped percentage amount. Where (b) is lesser, the member pays less than the full debit. Yet s 15(8) provides that payment of that lesser amount 'results in a nil balance in the account.' This is arithmetically impossible — paying less than the debit balance cannot produce a nil balance — unless the provision is interpreted as a statutory discharge, but that contradicts the debit/credit accounting framework throughout s 15.","confidence":0.82,"description":"Section 15(8) states that payment of the amount stated in the notice 'results in a nil balance in the account,' but the member's surcharge debt account may contain debits from multiple financial years with ongoing interest accruing under s 15(4). If the member pays only the lesser amount calculated under s 15(6)(b) (the capped percentage of employer-financed benefits), the account is not necessarily in nil balance — yet the section purports to produce a nil balance regardless."},{"type":"other","section":"s 15A(10)","severity":"low","reasoning":"The interplay produces an anomaly: if the Commissioner reduces surcharge under s 15A(2) based on a member's false statement, the Commissioner can further amend within 4 years of that notice under s 15A(2). But s 15A(9)'s corrective mechanism — which allows reduction amendments — is blocked by s 15A(10) from operating on s 15A(2) amendments, meaning a member who was over-reduced by an s 15A(2) amendment may be locked into that position with no corrective reduction available under s 15A(9).","confidence":0.58,"description":"Subsection 15A(10) provides that s 15A(9) does not authorise 'the further amendment of an earlier further amendment of an assessment made under subsection (2).' However, subsection (2) concerns amendments that reduce surcharge accepted on the basis of a member's statement, while subsection (9) concerns further amendments within 4 years of an amended assessment. The prohibition in (10) creates an asymmetric regime where a particular chain of amendments is frozen regardless of subsequent discovery of error, with no equivalent restriction on fraudulent avoidance amendments under s 15A(3)(a) which has no time limit."},{"type":"impossible_compliance","section":"s 9(8)","severity":"medium","reasoning":"The formula in s 9(5) uses 'annual salary' (a full-year figure) multiplied by the notional surchargeable contributions factor. Section 9(8) requires the contributions to be calculated only for the portion of the year after 20 August 1996 (approximately 10.5 months). There is no mechanism in s 9(5) or elsewhere to adjust the annual salary input to reflect only that partial period, meaning the formula cannot produce the result s 9(8) requires without external adjustment not provided for in the legislation.","confidence":0.75,"description":"Section 9(8) provides that for the 1996-97 financial year, surchargeable contributions are worked out only for the part of the year starting immediately after 7:30 pm ACT legal time on 20 August 1996. However, s 9(5) uses 'annual salary' multiplied by a notional surchargeable contributions factor for that same year for defined benefit members, with no mechanism to pro-rate the annual salary figure to the post-7:30 pm period. The full annual salary is used as the base, producing an overstatement of the surchargeable contributions for that partial period."},{"type":"other","section":"s 7","severity":"medium","reasoning":"The exclusion is temporally fixed to commencement and causally linked to judicial office. The Act provides no guidance on whether the exclusion is permanent for that individual or dissolves if they cease to be a judge. Given that 'member' in s 38 includes former members, and the surcharge applies to past contributions, a judge who retired after commencement would have contributions from both pre- and post-commencement periods, creating an unresolved boundary.","confidence":0.68,"description":"Section 7 excludes persons who are judges of a State court 'at the commencement of this Act.' This creates a frozen class: judges appointed before commencement are permanently excluded, while judges appointed one day after commencement are fully subject to the Act. More absurdly, a person who was a State judge at commencement but subsequently resigned and became a member of a constitutionally protected fund in a different capacity may argue they remain excluded by virtue of s 7, since the exclusion attaches to being 'a member because he or she is a judge' — but whether the causal nexus survives their departure from judicial office is undefined."},{"type":"circular_definition","section":"s 38 (definition of 'superannuation fund')","severity":"medium","reasoning":"The definition of 'superannuation fund' = 'public sector superannuation scheme' while 'constitutionally protected superannuation fund' is imported from the ITAA 1997. The Act's object and operative provisions are framed around constitutionally protected funds, but the internal definition of 'superannuation fund' captures only public sector schemes. Several definitions (e.g., 'superannuation (funded defined benefits) provider') reference a 'constitutionally protected superannuation fund established for the purposes of a funded defined benefits superannuation scheme,' which must be a public sector scheme by the definition chain, potentially excluding any private constitutionally protected fund from the provider definitions.","confidence":0.7,"description":"The definition of 'superannuation fund' in s 38 is defined to mean only 'a public sector superannuation scheme.' This is a drastically narrower meaning than the ordinary legal or common meaning of superannuation fund, yet the Act's operative provisions (including s 9, s 12, s 15) use 'constitutionally protected superannuation fund' which is defined by reference to the Income Tax Assessment Act 1997. The narrow s 38 definition of 'superannuation fund' creates internal confusion as it appears to exclude private constitutionally protected funds from the definition while the Act's object (s 5) covers 'members of constitutionally protected superannuation funds' generally."},{"type":"retroactive_impossibility","section":"s 18(1) and s 18(3)","severity":"high","reasoning":"Interest is a statutory charge for late payment of a known liability. Where the Commissioner had previously calculated nil surcharge (not merely failed to assess), treating the subsequent first assessment as an 'amended assessment' back-dates a liability to 15 June of a year when the member had no legal obligation to pay anything. This is a retroactive impossibility: the member could not have paid on time because no amount was due at 15 June, yet interest runs as if it was.","confidence":0.8,"description":"Section 18(1) imposes general interest charge on the amount of an increase in surcharge liability from an amended assessment, with the charge running from 15 June in the relevant financial year. Section 18(3) deems a first-ever assessment (where nil was previously calculated) to be an 'amended assessment' for these purposes. This means a member against whom no prior assessment was made is nonetheless charged interest from 15 June of the financial year — a year in which no liability had been formally assessed and no surcharge was due — effectively imposing interest on an obligation that did not yet legally exist."}],"contradictions":[{"severity":"low","section_a":"s 11(2)","section_b":"s 15A(1)","confidence":0.63,"description":"Section 11(2) provides that surcharge is not payable for the financial year in which a member dies or any later year. Section 15A(1) provides the Commissioner may amend an assessment 'at any time' even after surcharge has been paid, with no carve-out for deceased members. Read together, the Commissioner retains an unlimited power to amend assessments for years in which no surcharge is payable, and s 14(2) deems any such assessment never to have been made, creating a perpetual but legally sterile amendment power for deceased members' post-death periods."},{"severity":"high","section_a":"s 15(6)","section_b":"s 15(8)","confidence":0.85,"description":"Section 15(6) caps the member's liability at the lesser of the full debit balance or a percentage of employer-financed benefits, meaning in many cases the member pays less than the full debit. Section 15(8) states payment of that amount 'results in a nil balance in the account.' These provisions directly contradict each other: payment of an amount less than the debit balance cannot arithmetically produce a nil balance, yet the Act asserts it does."},{"severity":"medium","section_a":"s 12(2)","section_b":"s 12(6)","confidence":0.72,"description":"Section 12(2) requires superannuation providers to give statements to the Commissioner after each financial year ending before 1 July 2005, in respect of persons who were members 'at the end of the financial year.' Section 12(6) requires a statement when a superannuation benefit becomes payable for a member who was a member 'at any time after 7:30 pm on 20 August 1996 and before 1 July 2005.' A member who ceased membership before the end of a financial year would not trigger s 12(2) but may trigger s 12(6). However, s 12(1) states the section applies 'in respect of every member,' which by the s 38 definition of 'member' includes former members — yet s 12(2) is explicitly limited to persons who were members 'at the end of the financial year,' excluding former members from the annual statement obligation despite s 12(1)'s universal application."},{"severity":"medium","section_a":"s 9(5)","section_b":"s 9(8)","confidence":0.78,"description":"Section 9(5) calculates surchargeable contributions for defined benefit members for the 1996-97 financial year using a full 'annual salary' figure with no pro-ration mechanism. Section 9(8) expressly requires that for the 1996-97 financial year, surchargeable contributions be worked out only for the part of the year commencing after 7:30 pm on 20 August 1996 (approximately 10.5 of 12 months). The formula in s 9(5) produces a full-year figure that cannot be directly applied to the partial period mandated by s 9(8) without adjustment the Act does not provide."},{"severity":"high","section_a":"s 3(2)","section_b":"s 30","confidence":0.88,"description":"Section 3(2) provides that nothing in the Act permits the Crown to be prosecuted for an offence. Section 30 prohibits superannuation providers and fund trustees from entering into avoidance schemes. Where the trustee of a constitutionally protected superannuation fund is the Crown (as is common for public sector superannuation schemes given the definition of 'public sector superannuation scheme' in s 38), s 30 imposes an obligation but s 3(2) immunises the Crown from prosecution for breach of that obligation. The prohibition in s 30 is therefore unenforceable against the most common category of trustee subject to the Act."},{"severity":"medium","section_a":"s 14(4)","section_b":"s 14(5)","confidence":0.7,"description":"Section 14(4) provides the Commissioner is not required to give notice of a nil assessment. Section 14(5) requires a notice of assessment to include particulars of all matters in the assessment. Read with s 20(1), a member can only object against an assessment they have received notice of. A member who receives no notice of a nil assessment (because of s 14(4)) cannot object against it under s 20(1), yet the nil assessment remains on foot and may be used as the base for subsequent amended assessments under s 17. A member has no formal opportunity to contest the nil finding before it becomes the foundation for future assessments."},{"severity":"low","section_a":"s 15A(3)(a)","section_b":"s 15A(4)","confidence":0.55,"description":"Section 15A(3)(a) permits the Commissioner to amend an assessment 'at any time' in cases of fraud or evasion. Section 15A(4) prohibits amendments reducing surcharge after 4 years from the date surcharge became due and payable. These provisions create an asymmetry but not a direct contradiction in the increase direction. However, if the Commissioner's unlimited fraud-based amendment power under s 15A(3)(a) increases surcharge, and the member then seeks a further reduction under s 15A(9), the 4-year clock runs from the amended assessment — but s 15A(4)'s 4-year bar on reduction amendments may have long expired from the original assessment date, producing uncertainty about whether s 15A(9)'s reduction power survives the s 15A(4) bar in fraud scenarios."}]},"kimi_summary":{"_metrics":{"model":"kimi-k2.6","source":"moonshot-batch-reanalyse","citationCount":10,"completionTokens":5600},"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"The Act remains tightly focused on its original purpose of assessing and collecting the superannuation contributions surcharge for high-income members of constitutionally protected superannuation funds. While amendments have introduced refinements — such as accommodating family law payment splits, updating references to modern tax legislation, and extending the financial years covered — these operate within the original framework and do not expand the Act into unrelated policy areas."},"complexity_factors":["38 defined terms in section 38, many circular or referencing external legislation such as the Income Tax Assessment Act 1936 and the Superannuation Industry (Supervision) Act 1993","Separate calculation regimes for accumulated benefits and defined benefits schemes, the latter requiring actuarial valuations","Mathematical formulas for annual indexation of the surcharge threshold and apportionment of eligible termination payments","Cross-references to at least five other Commonwealth Acts including the Taxation Administration Act 1953 and the Family Law Act 1975","Deferred liability mechanism with multiple conditional triggers for payment (benefit becoming payable, fund ceasing to be constitutionally protected, death, family law payment splits)","Nested multi-step arithmetic for reducing surchargeable contributions where eligible termination payments contain an excessive component"],"plain_english_summary":"This Act creates a system for the Australian Taxation Office (ATO) to calculate and collect an extra tax — called the **superannuation contributions surcharge** — on superannuation contributions made for high-income members of **constitutionally protected superannuation funds**. These are mainly government-run public sector funds that are shielded from normal superannuation taxes because of constitutional protections.\n\n**Who it affects**\n- Members of constitutionally protected super funds, typically public servants.\n- The trustees (superannuation providers) who run those funds.\n- It only applies to financial years from 1996–97 up to those ending before 1 July 2005.\n\n**How it works**\n- **Income test:** The ATO works out the member’s **adjusted taxable income** (broadly, taxable income plus certain other amounts). If it exceeds a set threshold — starting at $70,000 and rising each year with average wages — the surcharge kicks in.\n- **Calculating contributions:** The ATO identifies the member’s **surchargeable contributions**. The method depends on the type of fund:\n  - For **accumulated benefits** funds, this is generally the total of employer and certain personal contributions, minus some adjustments.\n  - For **defined benefits** funds (where retirement pay is based on a formula, usually tied to salary), an **eligible actuary** (a qualified professional) must calculate the value of benefits and expenses that accrued to the member.\n- **Deferred payment:** Instead of paying the tax straight away, the debt is recorded in a **surcharge debt account** with the ATO. Interest is added each year at the long-term government bond rate.\n- **When payment is due:** The member pays the debt when they actually receive their super benefit, when the fund stops being constitutionally protected, or upon death (when the debt is cancelled). If a family law **payment split** applies, special rules ensure the debt is still accounted for.\n- **Rate of surcharge:** The amount payable is generally the lesser of the total debt or a percentage of the employer-financed part of the benefit, with different rates for different periods.\n\n**Administration and rights**\n- Fund trustees must give annual statements to the ATO detailing contributions and member details.\n- Members can **object** against an ATO assessment using the same process as for income tax disputes.\n- If an assessment is amended and more tax is owed, **interest** applies to the extra amount. Late payment also incurs interest penalties.\n- The Act prohibits schemes designed to dodge the surcharge.\n\n**Why it matters**\nThis law ensured that high-income earners in constitutionally protected public sector funds paid a comparable amount of tax on their super as high-income earners in ordinary private funds, preventing a significant tax advantage. Because these funds could not pay the tax directly, the Act placed the liability on the individual member and deferred collection until the benefit was actually paid out."},"summary":{"complexity_score":9,"scope_assessment":{"changed":false,"description":"The Act remains tightly scoped to its original purpose: assessing and collecting the superannuation contributions surcharge from high-income members of constitutionally protected superannuation funds for financial years ending before 1 July 2005. No evidence of scope creep; the Act's coverage was intentionally time-limited from enactment and has not been expanded beyond its original constitutional and policy rationale."},"complexity_factors":["Applies to a narrow, technically defined category of fund ('constitutionally protected superannuation fund') requiring cross-referencing with the Income Tax Assessment Act 1997","Separate calculation methodologies for accumulated benefits funds versus defined benefits funds, with the latter requiring actuarial valuation","Multiple layered cross-references to other legislation including ITAA 1936, ITAA 1997, Superannuation Industry (Supervision) Act 1993, Taxation Administration Act 1953, and Family Law Act 1975","Deferred payment mechanism with a running interest-bearing debt account adds complexity not present in standard tax assessments","Historically specific — applies only to financial years 1996-97 to 2004-05, but residual obligations persist, requiring understanding of a now-inactive regime","Indexed surcharge threshold requiring annual recalculation using ABS wage data and specific rounding rules","Complex formula for calculating surchargeable contributions from eligible termination payments involving multiple reduction and apportionment steps","Different surcharge rate caps (15%, 14.5%, 12.5%) apply depending on the period in which benefits accrued","Anti-avoidance provisions referencing 'allocated surplus amounts' defined by reference to actuarial opinion","Assessment amendment regime with multiple time limits, extension mechanisms involving Federal Court applications, and interaction with objection and appeal rights","Payment split provisions under Family Law Act add an additional layer of complexity for relationship breakdowns"],"plain_english_summary":"## What This Law Does\n\nThis Act sets up the rules for **calculating and collecting a tax surcharge** on superannuation (retirement savings) contributions made by **high-income earners** who are members of a special type of fund called a **\"constitutionally protected superannuation fund\"** (CPF). These are essentially certain **State government public sector superannuation schemes** that enjoy constitutional protection, meaning the Commonwealth cannot directly tax the fund itself — so this law instead taxes the *member* directly.\n\n## Who Is Affected?\n\n- **High-income members** of constitutionally protected (State government) superannuation funds whose annual income exceeded the \"surcharge threshold\" (starting at $70,000 in 1996-97, indexed annually)\n- **Trustees/administrators** of those funds, who have reporting obligations to the Tax Commissioner\n- This law **only applies to financial years from 1 July 1996 up to 30 June 2005** — it no longer creates new surcharge liabilities, but legacy debts may still be outstanding\n\n## How Does the Surcharge Work?\n\n1. **The Tax Office calculates** your income for the year. If it exceeds the surcharge threshold (~$70,000, adjusted for inflation each year), a surcharge applies to your \"surchargeable contributions\" (the employer and eligible personal contributions to your fund)\n2. **The surcharge rate** depended on how far your income exceeded the threshold, up to a maximum of 15%\n3. **You don't pay straight away** — the Tax Office keeps a running \"debt account\" for you, and the debt accumulates interest over time at the 10-year Treasury bond rate\n4. **You pay when you retire** (or when your benefits become payable), but only up to a capped percentage of your employer-funded benefits\n5. **Defined benefit funds** (where your payout is based on your final salary, not your account balance) use actuarial calculations to work out what your contributions are worth each year\n\n## Key Points to Know\n\n- **No surcharge if you die** — liability disappears on death\n- **You can pay down your debt early** voluntarily to reduce the interest accumulating\n- **Amendments to assessments** are possible in both directions — you can challenge an assessment, and the Tax Office can reassess if your income figure changes\n- **Interest (general interest charge)** applies if you don't pay when required\n- **Anti-avoidance rules** prevent fund trustees from structuring things to dodge the surcharge\n- **State judges** who were judges when the Act commenced are excluded\n\n## Why Does It Matter Now?\n\nAlthough the surcharge stopped applying after 30 June 2005, **existing debt accounts with accumulated interest may still need to be paid** when affected members retire and access their benefits. If you were a high-income State public servant before 2005, you may still owe money under this Act."},"flash_summary":{"complexity_score":8,"scope_assessment":{"changed":false,"description":"The Act's scope, as set out in section 5 (object) and operationalised throughout the text, is confined to the assessment and collection of the superannuation contributions surcharge for members of constitutionally protected superannuation funds for financial years starting 1 July 1996 and ending before 1 July 2005. The text consistently limits coverage (see section 8(1)), specifies excluded categories (judges, section 7; Territory residents, section 8(3)), and prescribes the precise mechanics, thresholds, reporting and collection processes. The provisions implement that narrowly defined assessment‑and‑collection function and do not expand the Act’s stated object beyond those mechanics."},"complexity_factors":["Extensive cross‑references to other statutes and instruments (Income Tax Assessment Acts, Taxation Administration Act 1953, Superannuation Industry (Supervision) Act 1993, Family Law Act, Superannuation Contributions Ruling) (see sections 9, 10, 12, 15, 20, 38).","Different calculation regimes for accumulation vs defined benefit members, including actuarial valuation methods and Commissioner approval (sections 9(2)–(7), 38 definitions).","Indexation and rounding rules for the surcharge threshold with specified statistical inputs and rounding conventions (section 10(2)–(5)).","Complex special‑case arithmetic for eligible termination payments and reductions (section 9(3), (9)–(10)).","Multiple amendment windows, open‑ended fraud/evasion exceptions, court extension mechanisms, and procedural conditions for amendment and review (sections 15A, 17).","Timing and collection mechanics that defer payment until benefits are payable, create surcharge debt accounts, and apply different percentage collection caps by accrual period (section 15).","Reporting, notification and data‑format rules for trustees and the Commissioner’s powers to set form and grant exemptions (sections 12, 13, 37).","Anti‑avoidance provision aimed at trustee/provider conduct and record retention obligations that create compliance and enforcement considerations (sections 30, 34)."],"plain_english_summary":"## What this law does, who it affects, and how it works (plain English)\n\n- What it is for: The Act sets out how the \"superannuation contributions surcharge\" is assessed and collected for members of constitutionally protected superannuation funds. Its stated purpose is assessment and collection of that surcharge for high‑income members (section 5).\n\n- Who it affects: The primary legal obligations fall on:\n  - Members of constitutionally protected superannuation funds who have \"surchargeable contributions\" in specified financial years (a member is liable to pay the surcharge) (sections 8, 11, 14);\n  - Trustees / superannuation providers, who must supply information to the Commissioner and keep records (sections 12, 34);\n  - The Commissioner of Taxation, who administers the Act, makes assessments, keeps surcharge debt accounts, and publishes thresholds (sections 14, 15, 26, 10(7)).\n  The Act does not apply to people who are members solely because they are a State judge at commencement (section 7). It extends to Norfolk Island (section 4) and binds the Crown (section 3).\n\n- Time window covered: The surcharge applies only to financial years beginning 1 July 1996 or later but ending before 1 July 2005 (section 8(1)). For the 1996–97 year only, only contributions after 7:30 pm A.C.T. on 20 August 1996 are in scope (section 9(8)).\n\n- How the surcharge is calculated (mechanics):\n  - The Commissioner must calculate a member’s adjusted taxable income for each relevant financial year and compare it with the surcharge threshold (sections 6(a), 14(1)(a), 10).\n  - If adjusted taxable income exceeds the threshold, the Commissioner calculates the applicable surcharge rate and the surcharge payable on the member’s surchargeable contributions (sections 6(b), 14(1)(b)).\n  - \"Surchargeable contributions\" differ by fund type:\n    - For accumulation (non‑defined benefit) members: certain contributed amounts, deductible amounts and some eligible termination payment components rolled over (section 9(2)–(3), definition of contributed amounts in section 38).\n    - For defined benefit members: an actuarial value of benefits accrued during the year plus administration and risk benefit values; actuarial methods are specified or must follow a ruling or Commissioner approval (sections 9(4)–(7), 38 definitions).\n  - The initial surcharge threshold is $70,000 for 1996–97 and is indexed each year by an earnings indexation formula; the Commissioner must publish each year’s threshold (section 10).\n\n- When the surcharge is payable and how collection works:\n  - The legal liability to pay is on the member (section 11(1)), but the surcharge is not required to be paid until benefits become payable or other triggering events set out in section 15 (section 15(6)–(6A)).\n  - The Commissioner keeps a surcharge debt account for each member, debits assessed surcharge and interest on year‑end debit balances using a Treasury bond rate (section 15(2)–(5)).\n  - When a benefit becomes payable (or when a fund ceases to be constitutionally protected), the member must pay either the account debit or a percentage of the employer‑financed component of relevant accrued benefits (percentages differ by accrual period) — the lesser of those two amounts (section 15(6), (6A)).\n  - Members can direct another provider or fund to pay amounts to the Commissioner and trustees must comply with such directions (sections 15(8A)–(8B), 15(8AA)).\n\n- Reporting, assessment, amendment and dispute processes:\n  - Trustees / providers must give annual statements to the Commissioner and certain payment statements when contributed amounts are paid out (section 12). Providers must give members particular information on request or within set time limits (sections 12(4), 12(4A)–(4B)).\n  - The Commissioner must make an assessment for each financial year with surchargeable contributions and notify the member or, in certain cases, the provider (section 14). A notice must include particulars of the assessment (section 14(3), (5)).\n  - The Commissioner may amend assessments (broad powers) under time limits set out in the Act; there are special rules where fraud/evasion (no time limit) or where earlier amendments reduced liability (4‑year windows) apply (sections 15A, 17). The Commissioner may also amend an assessment if a tax file number is supplied after the assessment and the assessed amount would have been smaller (section 16).\n  - Members may object to assessments following the objection procedure in Part IVC of the Taxation Administration Act 1953 (section 20). In deciding objections on adjusted taxable income, the Commissioner may rely on the member’s latest taxable income assessment and provider statements (section 20(2)).\n\n- Compliance costs, enforcement and penalties:\n  - Providers face record‑keeping and reporting obligations (section 12, section 34: keep records in English, retain for 5 years unless Commissioner releases them).\n  - Interest and late payment charges apply: interest accrues on surcharge debt at a Treasury bond rate while deferred (section 15(4)–(5)); the general interest charge applies to unpaid surcharge or increases arising from amended assessments (sections 18, 21). Criminal sanctions apply where offences under the Act are committed (application of Chapter 2 of the Criminal Code — section 36).\n  - An anti‑avoidance rule prohibits trustees/providers from entering schemes intended to avoid the surcharge, including via \"allocated surplus amounts\" (section 30).\n\n- Who pays, who decides, and behavioural effects (source‑grounded):\n  - Who pays: the member is legally liable for the surcharge on his or her surchargeable contributions (section 11(1)). When a fund benefit becomes payable the member must pay the Commissioner directly or the amount can be taken from payable benefits under the direction/comply rules (sections 15(6), 15(8B)).\n  - Who decides: the Commissioner of Taxation calculates adjusted taxable income, surchargeable contributions (subject to actuarial inputs for defined benefit members), sets and publishes thresholds (sections 10, 14, 26). The Commissioner may set formal notice rules for how statements are given (section 13) and may approve alternative actuarial methods (section 9(5)–(6)). Regulations can specify methods and procedures (section 37).\n  - Behavioural and incentive effects implied by the mechanics: reporting and record obligations (section 12, 34) create compliance cost for trustees/providers. Anti‑avoidance and the prohibition on surcharge‑avoidance schemes (section 30) create a legal risk for trustees who design benefit allocations or surplus allocations that aim to reduce members’ surcharge exposure. For defined benefit members, actuarial valuation choices (section 9(5)–(7)) affect the measured surchargeable contribution and therefore the surcharge payable; the Commissioner’s power to approve methods concentrates decision‑making authority in the Commissioner and eligible actuaries. The timing rule (surcharge not payable until benefits are payable — section 15) defers cash collection and causes interest to be added to surcharge debt.\n\n- Interactions and cross‑references (areas requiring coordination):\n  - The Act cross‑references several other laws and instruments for definitions, calculation methods and dispute procedures: the Income Tax Assessment Acts (1936 and 1997), the Taxation Administration Act 1953 (objections, general interest charge, confidentiality), the Superannuation Industry (Supervision) Act 1993 (definition of complying funds), the Family Law Act (payment splits), Superannuation Contributions Ruling SCR 97/1 for actuarial method guidance, and Treasury / RBA publications used for indexation (sections 9, 10, 12, 15, 20, 38). These cross‑references allocate technical tasks (tax assessment, actuarial methods, index numbers) to other statutory instruments or agencies and increase implementation complexity.\n\n- Trade‑offs and implementation risks (source‑grounded):\n  - Trade‑off: deferral of cash collection until benefit payment reduces immediate cash flow for the revenue arm but shifts collection risk onto future events and creates interest accrual on outstanding surcharge debt (section 15).\n  - Compliance burden: trustees must provide timely, specified data to the Commissioner and keep records for multiple years (sections 12, 34). The need for actuarial valuation for defined benefit schemes (sections 9(5)–(7)) increases professional costs for schemes with defined benefits.\n  - Discretion and administrative reliance: the Commissioner has several discretions (approving actuarial methods, allowing later reporting dates, allowing information to be supplied in other forms, amending assessments) that concentrate practical decision‑making in the ATO (sections 9(5)–(6), 12(2), 13, 15A, 17).\n\n- Final practical points:\n  - The Act is limited in time (financial years ending before 1 July 2005) and applies only to constitutionally protected superannuation funds as defined and to particular contributions and actuarial valuations for defined benefits (section 8(1), section 38 definitions).\n  - Members, trustees and actuaries will engage with the Commissioner’s assessment process, reporting requirements and potential amendment/objection processes if surchargeable contributions and adjusted taxable income produce a liability (sections 12, 14, 15A, 20)."}},"importantCases":[],"_links":{"self":"/api/acts/superannuation-contributions-tax-members-of-constitutionally-protected-superannuation-funds-assessme","history":"/api/acts/superannuation-contributions-tax-members-of-constitutionally-protected-superannuation-funds-assessme/history","analysis":"/api/acts/superannuation-contributions-tax-members-of-constitutionally-protected-superannuation-funds-assessme/analysis","conflicts":"/api/acts/superannuation-contributions-tax-members-of-constitutionally-protected-superannuation-funds-assessme/conflicts","importantCases":"/api/acts/superannuation-contributions-tax-members-of-constitutionally-protected-superannuation-funds-assessme/important-cases","documents":"/api/acts/superannuation-contributions-tax-members-of-constitutionally-protected-superannuation-funds-assessme/documents"}}