Document ID: chunk:federal_register_of_legislation:C2023C00409:section:8:p1
Version: federal_register_of_legislation:C2023C00409
Segment Type: section
Provision Reference: s 8 (pt 1/3)
Character Range: 17581–20369

8  Surchargeable contributions

Application
 (1) This section explains what are the surchargeable contributions of a member for a financial year and how they are to be worked out.

Member other than a member of a defined benefits superannuation scheme
 (2) If:
 (a) there are any contributed amounts for a financial year in relation to a member other than a member of a defined benefits superannuation scheme; and
 (b) where the relevant superannuation provider is the trustee of a superannuation fund or of an approved deposit fund—the superannuation fund is a complying superannuation fund or the approved deposit fund is a complying approved deposit fund, as the case may be, for the purposes of the year of income comprising the financial year;
the surchargeable contributions of the member for the financial year are the sum of:
 (c) so much of the amounts referred to in subparagraph (a)(i) of the definition of contributed amounts in section 43 as:
 (i) are taxable contributions under subparagraph 274(1)(a)(i), (b)(ii), (ba)(i) or (ba)(iv) or paragraph 274(1)(d) or (e) of the Income Tax Assessment Act; or
 (ii) are allowed as deductions to the member under section 82AAT of that Act; or
 (iii) subject to subsection (2A), constitute amounts accrued after 20 August 1996 that are eligible termination payments under paragraph (a) of the definition of eligible termination payment in subsection 27A(1) of that Act and are rolled‑over on or after 1 July 1997; and
 (d) any amounts referred to in subparagraph (a)(ii) or (iii) of the definition of contributed amounts in section 43.
 (2A) If an eligible termination payment within the meaning of subparagraph (2)(c)(iii) has been made or is made to or for a taxpayer after 20 August 1996, surcharge is payable only on the part of the reduced amount of the eligible termination payment that is worked out using the formula:

where:
post‑20 August 1996 period means the number of days in the period of the taxpayer's employment for which the eligible termination payment was made that occurred after 20 August 1996.
reduced amount of an eligible termination payment is the amount remaining after deducting from the amount of the payment any post‑June 1994 invalidity component or CGT exempt component of the payment or any part of the payment that was made from an employee share acquisition scheme.
total period means the number of days in the period of the taxpayer's employment for which the eligible termination payment was made.

Member of defined benefits superannuation scheme
 (3) The surchargeable contributions for a financial year of a member of a defined benefits superannuation scheme are the amounts that constitute the actuarial value of the benefits that accrued to, and the value of the administration expenses and