The ATO has recently updated its website with the latest statistics regarding excess contributions tax (ECT), which continues to show individuals predominantly getting caught with their concessional contribution (i.e. salary sacrifice arrangements). After a 314% increase in ECT notices in 2009-10, there has been a reduction again in 2010-11 to date, however it is significantly … Continue reading »
Deciding to take on the Commissioner with Excess Contribution Tax (ECT) assessments was becoming a daunting task, with a perfect record that started to look a little like Black Caviar’s!! Well, the last couple of cases has seen the taxpayer land knockout blows against the Commissioner at the Administrative Appeals Tribunal (AAT). After tasting defeat … Continue reading »
Much has been talked about of the budget announcements impacting contributions, in particular a flat $25,000 concessional contribution cap that will apply across all individuals from 1 July 2012. Whilst concessional contributions have been impacted, non-concessional contribution amounts will remain at $150,000 p.a. with the bring forward rule available for those under age 65. Given the … Continue reading »
The recent release of the 2010 ATO excess contribution tax statistics for concessional contributions showed a 296% increase to date in the number of people caught up in this ongoing saga. The key issue that triggered this enormous spike was the Labor Government’s decision to halve the concessional contribution caps from: Under 50 – $50,000 … Continue reading »
The Australian Taxation Office last Friday provided an update to the Excess Contributions Tax (ECT) statistics. Many in the industry have been waiting to see the impact of the Labor Government’s decision to halve the concessional contributions cap for the 2009-10 financial year. As you can see from the chart below, it was significant, with … Continue reading »
For several years now, many people and professional bodies within the financial services industry have been pushing to address the inequalities in respect to excess contributions tax (ECT). So it was pleasing recently to read via Peter Burgess, National Technical Director of SPAA that the Australian Taxation Office (ATO) had recently indicated in a Superannuation … Continue reading »
The ATO has released ATO ID 2012/16 which addresses the timing issue of when a concessional contribution is made on behalf of a member in one financial year but is allocated in the following financial year for the purposes of the contribution caps. Until the release of this ATOID, the industry has been relying on … Continue reading »
As the 2011 year comes to a close, it’s a time to ponder where the SMSF industry has come from in the last 12 months and also where it is heading… This time last year, we had just seen the Government’s response to the Cooper Review, with many of these reforms now only 6 months … Continue reading »
I was interested to read on the ATO’s website this week an updated Superannuation Prosecution Strategy in relation to issues and risks attached with superannuation and taxation law. The strategies available to the ATO to address non-compliant behaviour of taxpayers may be: administrative (for example, conducting an audit, raising a default assessment, imposing a penalty, … Continue reading »
In late November 2011, the ATO updated their website with a release regarding the withdrawal of Taxpayer Alert 2010/2. This document, titled “Fund rules intended to prevent excess contributions tax” outlines the ATO’s reasons for its withdrawal. Interestingly, at the same time, as part of Government’s announcements in the Mid-Year Economic & Fiscal Outlook, it was … Continue reading »