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Re: Regarding excess concessional contributions

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Initiate

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I have received ATO generated tax amendment due to excess concessional contributions in 2018-2019. When i looked the statement, i have noticed that my employee is paying the superannunation into super fund on following month 1st week.

 

Due to this whatever i salary scarifie on June 2018, deposited to July 2019. Due to i have received tax due.

 

I spoke to my super fund and also my employer. They both said, this is process and cant much done from them. But they happy to provide the acklodgement about this.

 

Can you suggest something and how to approach ATO to avoid the additional tax. ?

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Replies 7

Hi @rajvenka

 

Welcome to our Community.

 

It is important to note that the link provided by the previous poster is no longer current. Electing to have the excess concessional contributions released is no longer a once-only option limited to excess contributions of $10,000 or less. It is now available every year, regardless of the excess amount.

 

For more information, refer to the paperwork that we issued with your notice of assessment. You can also find the excess concessional contributions election form and information on how to submit it online on our website.

 

Electing to have 85% of the excess contributions released doesn't change the fact that you exceeded the concessional contributions cap. If you believe your super contributions exceeded the cap due to special circumstances, you can submit a request to have the contributions disregarded or reallocated.

 

For more information on how to do that and what constitutes special circumstances, refer to the disregarding or reallocating your contributions section on our website.

 

It is important to note that even if you successfully apply to have the contributions disregarded or reallocated, it is only for excess contributions purposes. For first home super saver (FHSS) scheme purposes, a contribution received in July 2018 is still a contribution received in July 2018.

 

You can't ask us to consider a contribution received in July to have been received in June when it wasn't. It doesn't matter that it related to salary earned or paid in June. In turn, to avoid this issue in future we recommend that you speak with your employer about the timing of future contributions.

 

Hope this helps.

 

Thanks,

 

ChrisR

14 REPLIES 14
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Devotee

Replies 1

You do get a one-time option to refund the excess. see here

 

Please note, you should always take caution when making super contributions in June as contributions are measured based on when the super fund receives the amount - not when you make the transfer. Take more care moving forward when salary sacrificing into super.

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Thanks @TaxedoMask  I would like to know can get this exception and update my June 2018 contribution(added into July 2018) can be changed back. 


The reason last year, i have used as First home saver scheme. If ATO helps to update, it would help me to save few hundred dollors.

 

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Best answer

Community Support

Replies 7

Hi @rajvenka

 

Welcome to our Community.

 

It is important to note that the link provided by the previous poster is no longer current. Electing to have the excess concessional contributions released is no longer a once-only option limited to excess contributions of $10,000 or less. It is now available every year, regardless of the excess amount.

 

For more information, refer to the paperwork that we issued with your notice of assessment. You can also find the excess concessional contributions election form and information on how to submit it online on our website.

 

Electing to have 85% of the excess contributions released doesn't change the fact that you exceeded the concessional contributions cap. If you believe your super contributions exceeded the cap due to special circumstances, you can submit a request to have the contributions disregarded or reallocated.

 

For more information on how to do that and what constitutes special circumstances, refer to the disregarding or reallocating your contributions section on our website.

 

It is important to note that even if you successfully apply to have the contributions disregarded or reallocated, it is only for excess contributions purposes. For first home super saver (FHSS) scheme purposes, a contribution received in July 2018 is still a contribution received in July 2018.

 

You can't ask us to consider a contribution received in July to have been received in June when it wasn't. It doesn't matter that it related to salary earned or paid in June. In turn, to avoid this issue in future we recommend that you speak with your employer about the timing of future contributions.

 

Hope this helps.

 

Thanks,

 

ChrisR

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Initiate

Replies 6

@ChrisATO  Thanks Chris for your explaination and totally understand how it works now. 

 

I would like to apply for evaulation for disregarding or reallocating your contributions and hopefully my situation would be considered one of the special circumstance. 

 

Thanks again for your help.

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Initiate

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@ChrisATO I have sent the letter to ATO on Dec 2nd and still waiting for the response from them. Can you please let me know how long it would take to respond? 


Pls advise about what should be next steps? 

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Hi @rajvenka

 

Thanks for your reply.

 

We usually aim to provide a response to an excess contributions determination application within 28 days. Sometimes it can take longer, especially when we receive lots of applications.

 

If you haven't heard from us yet, we will do our best to provide you with an outcome as soon as possible. We understand that it can be frustrating when you have been waiting a couple of months for a response. We really appreciate your patience.

 

Thanks,

 

ChrisR

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@ChrisATO  Thanks for your reply. 

 

just requesting your guidance here. I have not received the email saying its under process or something so that i can be more confident that my request is taken for considerations.

 

Should i wait few more days to get the response from ATO or should i ring the help desk to further information. 

 

I have to do the payment in march so looking for the response from ATO before to payment due date.

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Community Support

Replies 2

Hi @rajvenka

 

Thanks for your reply.

 

You can give us a call if you want to find out where your application is at.

 

The super enquiries number can be found on the phone us page of our website.

 

Thanks,

 

ChrisR

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Thanks again for your guidance