27 Aug 14 Changes to super excess concessional contributions
The ATO advises that from the 2013-14 financial year, if taxpayers exceed their concessional contributions cap the excess amount will be included in their assessable income. The excess amount will be taxed at their marginal tax rate along with an additional excess concessional contribution charge.
To assist in paying the liability, taxpayers will receive an election form, which allows them to release up to 85% of their excess concessional contributions from their super fund. A 15% non-refundable tax offset will be applied. This is to account for the contributions tax that has already been paid by the superannuation fund.
The ATO says it will issue notice of assessments or amended assessments containing excess concessional contribution amounts during September and October 2014. To assist taxpayers understand the notice of assessment a determination, fact sheet and election form will accompany the assessments.