As reported last week, Angie Ananda FTIA represented the Taxation Institute at the ATPF meeting on Friday 26 February 2010. At the meeting, the ATO provided an update on excess superannuation contributions. With this issue affecting many members, please find below a summary of the ATO update:
- Up until 15 February 2010, the ATO had issued 4,600 pre-assessment letters to individuals whose contributions exceeded the 2007-08 or 2008-09 caps. The ATO expects to issue further pre-assessment letters (around 30,000 in total) at regular intervals over the rest of this financial year.
- The ATO will issue Excess Contributions Tax (ECT) assessments to individuals who have received a pre-assessment letter and have not provided information that indicates that the contributions data in the pre-assessment letter is incorrect.
- Around 80% of breaches are of the concessional cap.
- Approximately 1,600 assessments have issued in relation to the transitional cap for the 2006-07 income tax year.
- Approximately 280 requests for discretion have been lodged. Of these 14% have been allowed in full or part, 62% have been disallowed and 24% are still in progress.
- Three cases are currently with the AAT.
- 41 Authority to release ECT and Statements have issued directly to super funds where individuals failed to give release authorities as required.