Excess Contributions Tax assessments 2009-2010 nearly three times 2008-2009

SMSF ATO compliance excess contributions tax

SMSF compliance Excess Contributions Tax

The number of Excess Contributions Tax notices issued in the 2009-10 financial year has spiked by almost 296%, according the latest statistical update from the ATO. The sharp increase from 15, 315 assessments issued in 2008-09 to 45,330 in 2009-10 is being attributed to the Government’s decision in 2009 to halve the concessional contributions cap. “A lot of people got caught in an excess tax position because of the timing issue,” said Aaron Dunn, managing director of the SMSF Academy.
“There should have been some remedy to fix that many people impacted by a policy decision but the Government is clearly trying to address this moving forward. Though I think it may be a better avenue for the Government to refund on an annualised basis rather than a simple once off,” said Dunn. This is consistent with the position of the Self-Managed Super Fund Professionals’ Association of Australia (SPAA), which has urged the $10,000 inadvertent breach refund be made available on an ongoing basis.
2 April 2012 | Melanie Timbrell, Financial Standard  – Go To ARTICLE

Concessional contribution cap breaches have increased around three-fold in the past three years, according to specialist SMSF company, Canvendish Superannuation. Cavendish head of education, David Busoli this week pointed to the latest Australian Taxation Office (ATO) data on excess contributions tax and the strong trends which had emerged. He said the number of concessional cap breaches had increased three-fold from 15,315 in 2008/09 to 45,330 in 09/10.

Institute of Chartered Accountants in Australia superannuation specialist, Liz Westover has pointed to the latest Australian Taxation Office statistics on excess contributions tax (ECT) as having confirmed just how problematic the regime remains. In analysis published this week, Westover suggested the Government and the regulators had got it wrong in believing that excess contribution tax contributions would decline as people become more aware of the consequences. “When concessional contributions were introduced and ECT assessments started being issued, the government and regulators believed that the number of assessments would fall as people became aware of the new rules,” she said.
2 April 2012 | Mike Taylor, Money Management Go To ARTICLE

Advertisements

About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
This entry was posted in SMSF Info, News & Stats, Super Tax and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s