35Payment of amounts in excess of surcharge deduction cap—the Act, s 14AA(6) and (7)

35 Payment of amounts in excess of surcharge deduction cap—the Act, s 14AA(6) and (7)

35 Payment of amounts in excess of surcharge deduction cap—the Act, s 14AA(6) and (7)

(1) If a former contributor pays a total surcharge amount to the Commissioner of Taxation that is greater than the surcharge deduction cap, STC may reimburse the former contributor by paying the former contributor an amount equal to the amount calculated in accordance with subsection (3).

(2) If a former contributor receives a post-payment surcharge assessment notice in relation to an additional surcharge amount that results in the total surcharge amount being greater than the surcharge deduction cap, STC may, at the request of the former contributor, pay the Commissioner of Taxation on behalf of the former contributor an amount equal to the amount calculated in accordance with subsection (3).

(3) The amount payable must be calculated as follows—

where—

R is the amount payable.

A is the amount by which the total surcharge amount is greater than the surcharge deduction cap.

B is the amount previously reimbursed to or paid in relation to the former contributor by STC under this section or the Act for the purposes of superannuation contributions surcharge.

(4) This section does not authorise STC to pay an amount of general interest charged in relation to an additional surcharge amount payable under a post-payment surcharge assessment notice unless the request for payment is made—

(a) by the former contributor, and

(b) within a reasonable period after receiving the notice, as determined by STC.

Note—

Section 17 provides for further reduction of certain benefits resulting from the liability of a former contributor for superannuation contributions surcharge.