15Assessment of liability to pay surcharge and determination of advance instalment

#### 15 Assessment of liability to pay surcharge and determination of advance instalment Commissioner to assess surcharge (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: (a) calculates the member’s adjusted taxable income; and (b) if the adjusted taxable income is greater than the surcharge threshold: (i) calculates the surchargeable contributions; and (ii) calculates the rate of surcharge that applies to the member; and (iii) specifies the amount of the surcharge payable or, if no surcharge is payable, states that a nil amount of surcharge is payable; and (c) if the adjusted taxable income is equal to or less than the surcharge threshold—states that a nil amount of surcharge is payable. Commissioner to determine advance instalment in certain cases (2) If, under an assessment of superannuation contributions surcharge for a financial year made before 23 March 1999, an amount (other than a nil amount) of surcharge is payable, the Commissioner must make a determination specifying: (a) the amount of the member’s surchargeable contributions for that financial year; and (b) the amount of the advance instalment payable in respect of the surcharge on the member’s surchargeable contributions for the next financial year; and (c) the day by which the instalment is payable. When surcharge is payable (3) Unless section 16 applies, surcharge assessed under subsection (1) is payable within 1 month after the day on which the assessment is made. When advance instalment is payable (4) An advance instalment determined under subsection (2) of surcharge for a financial year is payable not later than 15 June in that financial year. > 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. Assessment taken not to have been made (5) An assessment of surcharge on a member’s surchargeable contributions is taken not to have been made if: (a) after the assessment was made the superannuation provider who held the contributions ceased to hold the contributions or began to pay a pension or annuity based on the contributions; and (b) notice of the assessment was not given to the provider before it ceased to hold the contributions or began to pay the pension or annuity. Determination taken not to have been made (6) A determination of an advance instalment of surcharge on a member’s surchargeable contributions for a financial year is taken not to have been made if the superannuation provider who would, apart from this subsection, be liable to pay the instalment is not liable because of subsection (5) to pay the surcharge on the member’s surchargeable contributions for the preceding financial year. What happens if member dies (7) If: (a) a member has died, whether before or after the commencement of this subsection; and (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; the assessment is taken not to have been made. Notice of assessment or determination (8) When an assessment (including an amended assessment) or a determination is made, the Commissioner must, subject to subsection (9): (a) give notice of the assessment or determination to the person who is liable to pay the surcharge or instalment, as the case may be, being a notice stating that the person is liable to pay the surcharge or instalment and specifying the day by which it is required to be paid; and (b) if that person is the superannuation provider—also give notice of the assessment or determination to the member. No notice if nil amount assessed (9) The Commissioner is not required under subsection (8) to give a notice of an assessment if the assessment states that a nil amount of surcharge is payable. Particulars in notice of assessment (10) A notice of assessment must include particulars of the matters contained in the assessment under subsection (1). However, if the notice is given to a superannuation provider, the notice is not to include the calculation of the member’s adjusted taxable income. Particulars in notice of determination (11) A notice of determination must include particulars of the matters contained in the determination under subsection (2). How a notice is to be given (12) A notice of assessment or notice of determination may be given in any manner prescribed by the regulations. Non‑compliance not to affect validity of assessment (13) The validity of any assessment or determination is not affected by any non‑compliance with a provision of this Act.