Document ID: chunk:federal_register_of_legislation:C2013A00118:clause:1_2:p1
Version: federal_register_of_legislation:C2013A00118
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 1/7)
Character Range: 24643–27419

2  At the end of Chapter 2 in Schedule 1
Add:

Part 2‑35—Excess concessional contributions

Division 95—Excess concessional contributions charge

Table of Subdivisions
 Guide to Division 95
95‑A Object of Division
95‑B Excess concessional contributions charge

Guide to Division 95

95‑1  What this Division is about

      You are liable to pay a charge on the income tax you pay on excess concessional contributions.
      The charge is applied at a uniform rate that is the same as the shortfall interest charge.
      The period for the excess concessional contributions charge starts at the start of the income year and ends just before tax is due to be paid under your first assessment for the year.

Subdivision 95‑A—Object of Division

Table of sections
95‑5 Object of Division

95‑5  Object of Division
  The object of this Division is to neutralise benefits that taxpayers could otherwise receive from *excess concessional contributions, so that they do not receive an advantage in the form of:
 (a) the later time at which *tax is collected, as compared to tax that is collected through the Pay as you go system; and
 (b) the earnings on the contributions, which receive a concessional tax rate and remain in superannuation even if the contributions are released under Division 96.

Subdivision 95‑B—Excess concessional contributions charge

Table of sections
95‑10 Liability to excess concessional contributions charge
95‑15 Amount of excess concessional contributions charge
95‑20 When excess concessional contributions charge is due and payable
95‑25 General interest charge

95‑10  Liability to excess concessional contributions charge
 (1) If:
 (a) you have *excess concessional contributions for a *financial year; and
 (b) you are liable to pay an amount of *tax (your actual tax) for the corresponding income year; and
 (c) your actual tax exceeds the amount of tax you would be liable to pay for the income year if the excess concessional contributions were disregarded;
the excess is an amount of tax on which you are liable to pay excess concessional contributions charge.
Note 1: Excess concessional contributions are included in assessable income and give rise to a tax offset: see section 291‑15 of the Income Tax Assessment Act 1997.
Note 2: In this Act, tax is an assessed amount: see subsection 995‑1(1) of the Income Tax Assessment Act 1997.
 (2) If you would not be liable to pay *tax for the income year if the *excess concessional contributions were disregarded, apply paragraph (1)(c) as if you would be liable to pay a nil amount of tax.

Period for which the charge is payable
 (3) The liability is for each day in the period:
 (a) beginning on the first day of the income year; and
 (b) ending on the day before the day on which *tax under