Author: _rwandrall(Initiate)Initiate 16 Apr 2021
Hello,
I became a tax resident on January 2019 (and have a private ruling to support it). I did not work until August 2019 and thus had no employer contributions for super, nor did I have an opened super account.
The ATO does not report any unused concessional contribution cap for 2018-19. I called the ATO hotline and the person told me to file a request for correction via this form but I never had a SMSF nor am I trying to register concessional contributions (since I didnt make any). The ATO person's view was that, not having a super fund and not having made any concessional contributions during this financial year (2018-19), I am not eligible to the carry forward.
The person was not able to point me to the relevant piece of legislation or ATO ruling that would support my ineligibility, so I'm reaching out here to:
1) figure whether or not I am actually eligible to carry forward my unused concess. contributions (which I assume would have to be prorated based on the number of days I was a tax resident)
2) indicate how I can formally make a request to the ATO (to take a view or make the correction)
3) if all else fails, is a private ruling request relevant here?
Thank you.
2,725 views
7 replies
Most helpful replyATO Certified Response
Author: JodieR_ATO(Community Support)Community Support ATO Certified Response19 Apr 2021
Hi @rwandrall,
The form you were advised of is incorrect. To use your unused cap amounts you need to meet two conditions:
- Your 'total super balance' at the end of 30 June of the previous financial year is less than $500,000.
- You made concessional contributions in the financial year that exceeded your general concessional contributions cap.
The amount of unused cap amounts you will be able to carry-forward will depend on the amount you have contributed in previous years, starting from 2018–19. You can use caps from up to five previous financial years.
I've included 2 legal database links below, I cannot see anything that advises you can't apply the carry-forward concession. Generally it is automatic on our behalf, we would allow the extra contributions to be included in the financial year following, as long as the two conditions are met.
You can write in or request a callback from our early engagement team for assistance if you'd like further interpretation.
Links-
Total super balance.
Carry-forward unused concessional contributions.
Legal database Section 291-20 to 291-20(7).
Law Companion ruling LCR 2016/11.
Early engagement.
All the best.
Author: _rwandrall(Initiate)Initiate 20 Apr 2021
Thank you for taking the time to reply Jodie.
Do you know how to make a request to ATO for my ATO account to reflect properly the unused cap in 2018-19 ? I think this would help confirm that I am indeed eligible for the carry forward (especially as my tax residency only started mid year) ?
I reached out to the early engagement team in parallel.
Author: JodieR_ATO(Community Support)Community Support 20 Apr 2021
Hi @rwandrall,
As in my previous post, you do not have to do anything. The carry-forward condition is relative to you having an unused cap amount and using the carry-forward provision for the following year. I would assume you may receive a similar response from our early engagement team. We can only advise what the website and legislation provides.
Your super fund can advise you what your concessional contributions for the financial year were. The cap is currently $25000, so whatever your concessional contributions are say they are $10000 for the year, your unused cap amount would be the remainder amount of $15000 (able to carry-forward). I hope this helps, please let us know how you go with this.
All the best.
Author: _rwandrall(Initiate)Initiate 21 Apr 2021
Thanks for bearing with me Judie !
You reckon there is no uncertainty whatsoever as to my eligibility to claim the 2018-19 unused concessional cap carry forward given that:
- I became a tax resident in Jan 2019
- I did not have a super fund during this FY
- I did not receive any super contributions (was not employed) during this FY
Because my ATO account does not reflect this carry forward for 2018-19, I was worried there is some ambiguity and should get it rectified before making concessional contributions that would take this $25,000 carry forward into account.
I see there was a similar question here but it hadn't been replied to by someone from the ATO.
Author: JodieR_ATO(Community Support)Community Support 22 Apr 2021
Hi @rwandrall,
Thank you for sharing the link, this was answered on the post by Glen4802. As he mentions, there is nothing in the legislation to suggest you can't be new to Australia or you need to have a super balance to use the carry-forward provision. As advised the cap is $25000, unused amounts can be used for up to 5yrs. This started in 2018-19 year and is ongoing till 2023-24. However, if you did not have contributions in that year it may mean your carry-forward provision would start in a later year.
You mentioned you wrote to Early engagement, you can wait for a response from them to confirm the year you can commence the carry forward provision.
I hope this helps.
Author: _rwandrall(Initiate)Initiate 22 Apr 2021
Thanks Jodie, appreciate your help
