(a)   If there are surchargeable contributions for a member for the 1996 - 97 financial year or a later financial year (being a financial year that ends before 1   July 2005), the Commissioner will calculate the member's adjusted taxable income for the financial year.

(b)   If the amount calculated is greater than the surcharge threshold amount, the Commissioner will calculate the rate of surcharge and the amount of the surcharge payable on the surchargeable contributions. Only surchargeable contributions calculated for a period after 7.30 pm on 20   August 1996 are subject to surcharge.

(c)   For a defined benefits superannuation scheme, the surcharge is payable on an amount calculated to be the actuarial value of the benefits that accrued to, and the value of the administration expenses and risk benefits provided in respect of, the member for the financial year.

(d)   If surcharge is payable for a member for a financial year under an assessment made before 23   March 1999, an advance instalment of one - half of the surcharge is payable on account of surcharge payable for the member for the next financial year. However, no instalment is payable if the contributions for the next financial year are held under an unfunded defined benefits superannuation scheme.

(e)   If, after the assessment of surcharge, the member's adjusted taxable income is found to be different from the amount that was previously calculated or the surchargeable contributions are found to be different from the amount on which the assessment was based:

  (i)   if the person who was liable to pay the assessed surcharge is still the holder of the contributions--the Commissioner may amend the assessment; or

  (ii)   otherwise--the Commissioner may make a further assessment of surcharge.

(f)   The holder of a member's surchargeable contributions for a financial year is liable to pay:

  (i)   the surcharge on those contributions; and

  (ii)   if the liability to pay the surcharge arose under an assessment made before 23   March 1999--any advance instalment on the member's surchargeable contributions for the next financial year;

  within prescribed periods.

(g)   However, if the holder is a superannuation (unfunded defined benefits) provider, the surcharge is not payable until benefits become payable.

(h)   If liability for surcharge is increased as a result of an amendment of an assessment or the making of a further assessment, interest is payable on the additional surcharge.

(i)   Either a superannuation provider or a member may object against an assessment of surcharge in the way set out in Part   IVC of the Taxation Administration Act 1953 for objecting against assessments of income tax.

(j)   A late payment penalty applies if surcharge or an advance instalment is not paid on time.