The End of Excess Contributions Tax Mark 2

In the Tax and Superannuation Laws Amendment (2014 Measures No 7) Bill 2014 we finally get the final rules that will allow the refund of excess non-concessional contributions. We have discussed this change when it was released as draft legislation. But the final legislation is different from the draft legislation in the following ways:

There is no longer a requirement an amount withdrawn from a superannuation fund must be from the member’s tax-free component. Therefore, a release authority payment will always reduce the taxable component of a superannuation interest in accumulation phase.

The time limit for a superannuation fund to pay a release amount to the member has been increased from 7 days to  21 days.

The fund will only release 85% of the earnings they calculate. However, 100% of the earnings will be taxed in the taxpayer’s amended tax return, but the taxpayer will get a 15% offset for the earnings tax the fund will pay.

These are three great changes…

Advertisements

About Ken Mansell

As a stay at home Dad most of the week this is my way of pretending I am still the tax counsel of ASX and SEC listed companies, working at big 4 firms, working at the Federal Treasury, on the Henry Review and at Parliament House for the previous government.
This entry was posted in Legislation, Planning Idea, Super. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s