6Simplified outline of Act

#### 6 Simplified outline of Act The following is a simplified outline of this Act. (a) If there are surchargeable contributions for a member for the 1996‑97 financial year or a later financial year (being a financial year that ends before 1 July 2005), the Commissioner will calculate the member’s adjusted taxable income for the financial year. (b) If the amount calculated is greater than the surcharge threshold amount, the Commissioner will calculate the rate of surcharge and the amount of the surcharge payable on the surchargeable contributions. Only surchargeable contributions calculated for a period after 7.30 pm on 20 August 1996 are subject to surcharge. (c) For a defined benefits superannuation scheme, the surcharge is payable on an amount calculated to be the actuarial value of the benefits that accrued to, and the value of the administration expenses and risk benefits provided in respect of, the member for the financial year. (d) If, 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. (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. (f) If liability for surcharge is increased as a result of an amendment of an assessment, interest is payable on the additional surcharge. (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. (h) A late payment penalty applies if surcharge is not paid on time.