Issue
Is the taxpayer's adjusted taxable income for a financial year calculated based on the total surchargeable contributions as reported by their superannuation providers in accordance with section 13 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 (SCTA)?
Decision
Yes. The taxpayer's adjusted taxable income for a financial year is calculated based on the total surchargeable contributions as reported by their superannuation providers in accordance with section 13 of the SCTA.
Facts
The Commissioner received two superannuation surcharge member contributions statements from the taxpayer's superannuation (accumulated benefits) providers for the financial year.
Each superannuation provider reported surchargeable contributions in respect of the taxpayer's membership for the financial year.
The Commissioner calculated the taxpayer's adjusted taxable income for the financial year based on the total surchargeable contributions as reported by each superannuation provider.
Reasons for Decision
Section 13 of the SCTA requires a superannuation provider to report to the Commissioner details of a member's total contributed amounts for each financial year including the member's surchargeable contributions.
In the case of a member of a superannuation (accumulated benefits) provider (provider), surchargeable contributions are calculated by reference to the amounts actually paid to the provider including any amounts otherwise credited or attributed to an account for the member by the provider for a financial year.
For each financial year in which a member has surchargeable contributions, section 15 of the SCTA requires the Commissioner to calculate the member's adjusted taxable income. Under section 43 of the SCTA, a member's adjusted taxable income includes the member's taxable income plus their surchargeable contributions for the financial year. If the adjusted taxable income exceeds the surcharge threshold, the Commissioner must make an assessment of surcharge.
The Commissioner received reports from two providers in respect of the taxpayer for the financial year. Each provider reported surchargeable contributions in respect of the taxpayer's memberships. The total surchargeable contributions as reported by each provider was used by the Commissioner to calculate the taxpayer's adjusted taxable income for the financial year in accordance with sections 15 and 43 of the SCTA.
The surcharge assessments issued to the taxpayer's providers were based on the surchargeable contributions as reported to the Commissioner under section 13 of the SCTA.
If the providers report a change to the surchargeable contributions previously reported, the Commissioner will re-calculate the taxpayer's adjusted taxable income. Under section 19 of the SCTA the Commissioner may amend the assessments to take into account the change to the surchargeable contributions that was used to calculate the taxpayer's adjusted taxable income.
If a member is dissatisfied with an assessment in so far as it relates to the amount of surchargeable contributions as reported by a provider to the Commissioner under section 13 of the SCTA, the member may make a complaint to the Superannuation Complaints Tribunal under section 15CA of the Superannuation (Resolution of Complaints) Act 1993 .