How will refunding of excess non-concessional contributions work?
ATO / Contributions / SMSF / SMSF Compliance

How will refunding of excess non-concessional contributions work?

Whilst the issues of excess non-concessional contributions have not been anywhere near as extensive as concessional contributions, regular problems have existed for individuals who were subject to a punitive tax at the top marginal tax rate for breaches of this post-tax contributions cap. In the Federal Budget, the Government announced that it will allow for … Continue reading »

7 things to remember with excess concessional contributions reforms
ATO / Contributions / Professionals / SMSF / SMSF Compliance

7 things to remember with excess concessional contributions reforms

Let’s be honest, excess contributions tax has been a pain in the (you know what)… For every genuine case of individual’s breaching their concessional contribution cap, there has been a story of inadvertent breaches due to the timing and reporting of contributions. The decision by the Government to simply refund excess concessional contributions tax from … Continue reading »

ATO / Contributions / Professionals / SMSF / SMSF Compliance

INFOGRAPHIC: Latest ATO Excess Contributions Tax statistics

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 »

ATO / Contributions / Professionals / SMSF / SMSF Compliance / Trustee education

Back-to-back wins for taxpayers with excess contributions tax cases

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 »

ATO / Contributions / SMSF

Changing landscape when dealing with excess contributions?

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 »

SMSF

Get your June salary sacrifice amounts in order now to avoid excess contributions tax

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 »

Contributions / SMSF / SMSF Compliance / Trustee education

Latest ATO statistics on excess contributions

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 »

ATO / Contributions / SMSF / SMSF Compliance

de minimis to help with contribution maximus

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 »

ATO / Contributions / Professionals / SMSF / SMSF Compliance / SMSF Strategy

ATO releases interpretative decision on allocation of June contributions

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 »

ATO / Contributions / Limited Recourse Borrowing Arrangements / Pensions / Professionals / SMSF / SMSF Compliance / Trustee education

Reflecting on SMSFs in 2011

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 »