Excess Contributions – SPAA warns of ‘perfect storm’ – watch 1 July 2012 when over 50’s cap halves with Bal over $500K!

SMSF Excess Contributions watch 1 July 2012 when over 50’s cap halves  -

Watch 1 July 2012 Excess Caps

Recent Australian Taxation Office figures revealing another increase in excess contributions tax (ECT) breaches foreshadows a potential perfect storm when the concessional contribution cap for those aged 50 and over, with a superannuation balance over $500,000, is halved again from 1 July this year. The warning, from the Self-Managed Super Fund Professionals’ Association (SPAA), follows the ATO’s ECT Statistical Report showing that ECT breaches had tripled in one year, with 45,330 excess concessional contributions assessments issued during the 2010 financial year, up from 15,315 recorded in 2008/09 and 18,068 in 2007/08.
5 April 2012 | Chris Kennedy, Money Management DOWNLOAD ARTICLE

Tony Negline has a tip for us –

“Would you like to double your concessional super contributions this financial year and also avoid excess contributions tax? This is how you do it and how to avoid getting into trouble.
Some important details about this strategy are found in a tax office Interpretative Decision (2012/16), published in early March. I encourage you to read this document. It’s my guess that because of the way many large super funds are set up and their need to standardise administration and operations, they’ll find it too hard to execute this strategy. This means if you want to use it you’ll need a self-managed super fund.”
Reported 10 April 2012 | Tony Negline, The Australian, page 22


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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 Law & Compliance, Super Tax and tagged , , , , . Bookmark the permalink.

2 Responses to Excess Contributions – SPAA warns of ‘perfect storm’ – watch 1 July 2012 when over 50’s cap halves with Bal over $500K!

  1. smsf says:

    I’ll be looking forward to the 1st of July.


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