Issue
Is the superannuation provider's objection request valid under subsection 24(1) of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 (SCT Act) where the Commissioner of Taxation has not made an assessment of surcharge at the time the objection is lodged?
Decision
No. Where the Commissioner has not made an assessment of surcharge at the time the objection is lodged, the objection is not a valid objection under subsection 24(1) of the SCT Act.
Facts
The provider lodged superannuation surcharge member contributions statements (MCS) for the 1997 financial year with the Commissioner. Subsequent to the MCS lodgment, the provider also lodged an objection against the superannuation contributions surcharge. No surcharge assessments had issued to the provider up to the date of lodgement of the objection request.
Reasons for Decision
In accordance with subsection 24(1) of the SCT Act, if an assessment of surcharge on a member's surchargeable contributions is made, the member or provider may lodge an objection against the assessment in the way set out in Part IVC of the Taxation Administration Act 1953 if they are dissatisfied with the assessment.
The definition of "assessment" under section 43 of the SCT Act means an assessment made under subsection 15(1) of the SCT Act. This is where for a financial year for which there are surchargeable contributions for a member, the Commissioner must make an assessment that calculates the members' adjusted taxable income (ATI) and if the ATI is greater than the surcharge threshold, calculate the surcharge payable.
Up to the time the objection was lodged, the Commissioner had not made an assessment of surcharge under the provisions of subsection 15(1) of the SCT Act.
As there is no assessment of surcharge for the purposes of subsection 24(1) of the SCT Act, the provider's objection is invalid.