Superannuation Taxes

Surcharge

Surcharge was a tax on that applied between 20 August 1996 and 30 June 2005. The surcharge only applied to the surchargable superannuation contributions and certain eligible termination payments (rolled into superannuation funds) of higher income individuals.

Surcharge payments were assessed each year by the ATO for each member. When a surcharge assessment was received by the Plan:

• the assessment amount was paid to the ATO; and
• the member’s Surcharge Account was debited with the assessment amount.

The Surcharge Account therefore comprises any surcharge payments made to the ATO for the member, plus interest at the Credited Interest Rate. Members may make Non-concessional contributions (Surcharge Offset Contributions) to reduce or eliminate the balance in the Surcharge Account.

When the member is entitled to receive a benefit, the balance of the Surcharge Account is deducted from the other benefit entitlements.