Excess Super Contributions Tax
From our September 2011 issue
The government recently released a consultation paper on the implementation of an announced Budget measure to allow taxpayers that have made excess super contributions to get a refund of the excess and therefore avoid excess contributions tax liability.
The option will only be available from the 2011/12 income year for taxpayers that are first-time offenders and where the cap has been breached by $10,000 or less.
Taxpayers who choose to have such excess contributions refunded to them will have the excess contributions included in their assessable income (subject to a refundable tax offset equal to 15% of the excess contributions).
Notably, the employer is not involved in the new refund process and so will not be affected by this measure.
This information is for guidance only and is not intended as specific advice to any reader. Professional advice should be obtained before acting on any information contained herein. The publisher accepts no responsibility for loss occasioned to any person or organisation as a result of action or the refrain of action as a consequence of the contents of this publication.