Member deductible amount included as surchargeable contributions

Whether an amount of a superannuation contribution (the contributed amount) that a member of an accumulated benefits provider has claimed as an income tax deduction in a financial year is a surchargeable contribution as defined in subparagraph 8(2)(c)(ii) of the Superannuation Contributions Tax(Assessment and Collection) Act 1997 (SCTA).

Yes. Subparagraph 8(2)(c)(ii) of the SCTA specifies that a member's surchargeable contributions for a financial year include the contributed amount that has been allowed as a deduction to the member under section 82AAT of the Income Tax Assessment Act 1936 (ITAA 1936).

The accumulated benefits provider lodged superannuation surcharge member contributions statements (MCS) in respect of the member for the financial year. The MCS included details of the total contributed amounts for the year including employer and personal contributions.

The member claimed an income tax deduction for personal superannuation contributions for the year in respect of the membership (referred to as the member deductible amount). Under self-assessment, the amount was allowed as a deduction under section 82 AAT of the ITAA 1936.

The member's adjusted taxable income exceeded the surcharge threshold for the financial year and a surcharge assessment issued to the provider as holder of the member's surchargeable contributions.

The surchargeable contributions for the assessment were the employer contributions and the member deductible amount that was claimed by the member for the financial year and allowed as a deduction to the member under section 82AAT of the ITAA 1936.

Subparagraph 8(2)(c)(ii) of the SCTA specifies that a contributed amount is included as the member's surchargeable contributions for a financial year, where the contributed amount as defined in section 43 of the SCTA, has been allowed as a deduction to the member under section 82AAT of the ITAA 1936.

As the member was allowed a deduction under section 82AAT of the ITAA 1936 for the amount claimed as a member deductible amount for the financial year, the amount is included as a surchargeable contribution in accordance with subparagraph 8(2)(c)(ii) of the SCTA.