Tax and Superannuation Laws Amendment (2014 Measures No. 7) Act 2015 (21 of 2015)

Schedule 1   Excess non-concessional superannuation contributions tax reforms

Taxation Administration Act 1953

44   At the end of Division 97 in Schedule 1

Add:

Subdivision 97-B - Excess non-concessional contributions determinations

Guide to Subdivision 97-B

97-20 What this Subdivision is about

The Commissioner must give you a determination stating:

(a) the amount by which your non-concessional contributions exceed your non-concessional contributions cap; and

(b) a proxy amount for your associated earnings on this excess; and

(c) the total amount that can be released from your superannuation interests in relation to this excess and those earnings.

Table of sections

Operative provisions

97-25 Excess non-concessional contributions determinations

97-30 Associated earnings

97-35 Review

Operative provisions

97-25 Excess non-concessional contributions determinations

(1) If your *non-concessional contributions for a *financial year (the contributions year ) exceed your *non-concessional contributions cap for the contributions year, the Commissioner must make a written determination stating:

(a) the amount of the excess; and

(b) the amount of your associated earnings worked out under section 97-30; and

(c) the following amount (the total release amount ):

(2) A determination under this section is an excess non-concessional contributions determination .

(3) The Commissioner may amend a determination at any time.

(4) Notice of the determination may be included in any other notice given to you by the Commissioner.

(5) Notice of a determination given by the Commissioner under this section is prima facie evidence of the matters stated in the notice.

97-30 Associated earnings

(1) You are taken to have associated earnings equal to the sum (rounded down to the nearest dollar) of the amounts worked out under the following formula for each of the days during the period:

(a) starting on the first day of the contributions year; and

(b) ending on the day the Commissioner makes the first *excess non-concessional contributions determination you receive for the contributions year.

where:

excess means the amount of the excess referred to in paragraph 97-25(1)(a).

proxy rate means the lower of:

(a) the rate worked out under subsection 8AAD(1) for the first day of that period as if the base interest rate (within the meaning of subsection 8AAD(2)) for that day were the average of the base interest rates for each of the days of the contributions year; and

(b) a rate determined under subsection (2) for the contributions year.

sum of earlier daily proxy amounts means the sum of the amounts worked out under the formula for each of the earlier days (if any) during that period.

Note: Any excess non-concessional contributions determination you receive after the first one for the contributions year is an amended determination.

(2) The Minister may, by legislative instrument, determine a rate for a specified *financial year.

97-35 Review

If you are dissatisfied with an *excess non-concessional contributions determination made in relation to you, you may object against the determination in the manner set out in Part IVC.