MEMBER 64 writes:
"We had the circumstance where a client was assessed for excess contributions made to his super fund. The taxpayer obtained a release of the funds from the Super Fund to pay the tax.
The taxpayer subsequently also sought an objection against the assessment (actually sought the Commissioner to exercise his discretion), which was ultimately successful. The ATO refunded to the taxpayer the overpaid tax. The taxpayer then wanted to re-contribute the money withdrawn from the super fund (being the tax amount) back into the Super Fund.
The ATO has confirmed that the re-contribution of the amount would be subject to the ordinary contribution limits, and if the taxpayer exceeds these limits, they would need to once again be subject to the excess contributions tax liability (and would need to request the Commissioner to exercise his discretion to reduce the excess contributions tax)."