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Is a net capital gain included in the calculation of the member's adjusted taxable income (ATI) for superannuation contributions surcharge purposes?

Yes. A net capital gain is included in the calculation of the member's ATI for superannuation contributions surcharge purposes under section 43 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 (SCTA).

The member's taxable income for the financial year included a net capital gain.

The member received superannuation contributions surcharge assessments in respect of surchargeable contributions made to the member's superannuation providers.

In calculating the member's ATI, an amount representing a net capital gain was included in the calculation.

Section 43 of the SCTA defines a member's ATI for a financial year. Paragraph (a) of the definition of 'adjusted taxable income' includes in ATI the member's taxable income, with some adjustments made according to subparagraphs (a)(i) and (a)(ii) of the definition (which relate to employer eligible termination payments and lump sum payments made in certain circumstances).

A net capital gain formed part of the member's taxable income. Neither of the above mentioned subparagraphs exclude a net capital gain from being included in the calculation of ATI. As such, the net capital gain forms part of the member's ATI.