Excess concessional contributions refund offer Print E-mail
July 2012 your clients may receive a once-only offer to have their excess concessional contributions refunded. If they decide to accept this offer, their excess concessional contributions will be:

  • withdrawn from their superannuation fund, and
  • added to their assessable income and taxed at their marginal tax rate (for the year the contributions were made).

Your client will not be entitled to receive an offer for future years regardless of whether they accept the offer or not. Their choice to accept the offer or not will be final and cannot be reversed, once it is made.

 

Direction icon

For information on eligibility, defined benefit accounts and the potential impacts of your client's choice, refer to Super contributions - too much super can mean extra tax.

What you need to do

Determine whether your client's acceptance of this offer has an impact on the income tests for certain benefits, payments and offsets by:

  1. Adding the amount of the refund offer to your client's assessable income (for the financial year in which the excess contributions were made).
  2. Reducing their reportable super contributions by the amount of the refund offer, but not below zero.

However, for the following tests listed below, your client's reportable employer super contributions (which are components of reportable super contributions) are reduced by the amount of the refund offer, but not below zero:

  • mature age worker tax offset
  • tax offset for spouse contribution
  • super co-contributions.

The amount of the refund offer is disregarded for:

  • maximum earnings as employee condition
  • super co-contributions 10% eligibility test.

If your client chooses to accept the refund offer

The form Choice to include excess concessional contributions in assessable income that is sent to your client with the refund offer needs to be completed. This can be done either on the electronic lodgment service via the form EY - Excess concessional contributions or manually using the paper form.

 

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