For breaches of the concessional contributions cap, the Government announced in the 2011 Federal Budget that where the breach is below $20,000, there will be a one-off option to request a refund of the contributions. This will only apply to breaches from 1 July 2011. The excess contribution will instead be taxed at the individual’s marginal rate of tax, rather than 46.5% inside the fund.
Written by Diana Morris / 40 Articles
Diana Morris founded The SMSF Accountant in 2010. Diana is a member of both CPA Australia and Chartered Accountants Australia and New Zealand and an affiliate of The Tax Institute. She holds a current public practice certificate, and is a registered tax agent. Diana has completed a Bachelor of Commerce degree and a Graduate Diploma of Chartered Accounting.