What it does
The Superannuation Contributions Tax Imposition Act 1997 is a short but technically dense imposition statute whose sole operative function is to levy the superannuation contributions surcharge that has already been rendered payable by the companion Superannuation Contributions Tax (Assessment and Collection) Act 1997. Section 4 is the heart of the statute: it states that “the superannuation contributions surcharge that is payable on a member’s surchargeable contributions for a financial year under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 is imposed by this Act.” The note immediately following s.4 makes clear that the imposition has a temporal ceiling—surcharge is not payable for the financial year beginning 1 July 2005 or any later year by virtue of subsection 7(1) of the Assessment and Collection Act.
The rate at which that imposed surcharge is calculated is prescribed in s.5. Three distinct bands are created. First, if the member’s “adjusted taxable income” (a term defined in the Assessment and Collection Act and imported by s.3) falls between the “lower income amount” and the “higher income amount” (expressly set for 2003-04 at $94,691 and $114,981 respectively, and indexed for 2004-05 under s.7), the rate is a precisely calibrated sliding-scale percentage. The formula in s.5(1) is:
[ \left( \frac{\text{relevant adjusted taxable income} - \text{lower income amount}}{\text{higher income amount} - \text{lower income amount}} \right) \times \text{maximum surcharge percentage} ]
This figure is to be calculated to five decimal places; s.5(1A) then applies a further rounding rule—if the sixth decimal would have been greater than 4, the five-decimal figure is increased by 0.00001. Where adjusted taxable income equals or exceeds the higher income amount, s.5(2) simply applies the “maximum surcharge percentage” (14.5% for 2003-04, 12.5% for 2004-05).