Document ID: chunk:federal_register_of_legislation:C2023C00409:section:8:p3
Version: federal_register_of_legislation:C2023C00409
Segment Type: section
Provision Reference: s 8 (pt 3/3)
Character Range: 22644–25177

that excludes Government co‑contributions made under the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003 and contributions made by the member for which the member is not entitled to an income tax deduction under the Income Tax Assessment Act or under the Income Tax Assessment Act 1997—the method so approved.

Regulations
 (6) Regulations made for the purposes of paragraph (5)(a) may specify, or make provision for the Commissioner to specify in writing, different methods in relation to different superannuation schemes, different classes of superannuation schemes or different classes of members of a superannuation scheme.

Transitional provision for 1996‑97 financial year
 (7) For the 1996‑97 financial year, a member's surchargeable contributions are to be worked out only for the part of that financial year that started immediately after 7.30 pm by legal time in the Australian Capital Territory on 20 August 1996.

Reduced surchargeable contributions
 (8) The amount of the surchargeable contributions of a member for a financial year is the amount worked out under subsection (2) or (3) (as appropriate), reduced by the amount worked out under subsection (9), if:
 (a) an eligible termination payment is made to the member in the financial year from the superannuation fund, approved deposit fund or RSA; and
 (b) the eligible termination payment has an excessive component.
 (9) The amount of the reduction is worked out as follows:

      Amount of the reduction
           Step 1. Work out the amount that would have been the taxed element of the retained amount of the post‑June 83 component of the eligible termination payment if the amount of the excessive component of the eligible termination payment had been nil.
           Step 2. Work out the taxed element of the retained amount of the post‑June 83 component of the eligible termination payment.
           Step 3. Subtract the result of step 2 from the result of step 1.
           Step 4. Divide the result of step 3 by 0.85.
           Step 5. Subtract the result of step 3 from the result of step 4.
           Step 6. Add the result of step 5 to the excessive component of the eligible termination payment.
           Step 7. Identify the amount of the surchargeable contributions (apart from subsection (8)) of the member reported for the financial year by the entity that paid the eligible termination payment.
           Step 8. Identify the lesser of the results of steps 6 and 7 (or either result if they are the same).