When must the election be completed?
This election must be made and given to your super fund when you make the contribution it applies to, or before you make the contribution it applies to.
An election made after the contribution it refers to, is not valid. Your contribution will not be excluded from the non-concessional contributions cap. Your super fund will not be permitted to report to the ATO that a valid election was made.
What effect will making the election have?
The purpose of the election is to exclude personal contributions from your non-concessional contributions cap. It has no other effect on your super. For example, it does not stop you receiving a super co-contribution for the personal contribution if you are otherwise eligible.
When you give the election to your super fund they check if it’s valid and, if so, record the contributions it applies to. When they report to the ATO all the contributions made for you during a financial year, they report contributions this election applies to separately from other personal contributions.
How do I complete this election?
Section A: Your fund's details
Provide the name of your super fund and your member account number so your super fund can identify your account.
Section B: Your details
Provide your personal details so your super fund can identify you.
Section C: Payer details
If you are making the contribution yourself, include your details. If another entity is making the contributions for you under your instructions, provide that entity’s details.
This election is only valid for personal 'after-tax' contributions. If a payer is not acting for you and on your behalf, the contribution may not be a personal contribution. For example, if your employer makes the contribution under an obligation to contribute for you it may be treated as an employer contribution and be counted towards the concessional contributions cap.
Section D: Election
Place an ‘X’ in the appropriate box to indicate the CGT concession you are eligible for and the type of election you are making. You can make both elections on this form for different parts of your contribution. In each case, provide the amount of the contribution you are electing to exclude from the non-concessional contributions cap.
There are limits to the amounts you can elect to exclude in each case. You must not elect to exclude either:
- an amount of more than $500,000 under the small business retirement exemption
- a total amount, at both the 15 year asset exemption and the small business retirement exemption, that exceeds your lifetime CGT cap (for 2015/16 the indexed cap is $1,395,000. This may be indexed each year).
Your election will not be effective if you exceed these limits. Your contributions, or the part of them that exceeds the limits, will be counted towards your non-concessional contributions cap.
Section E: Declaration
Read the declaration carefully. If it is correct, print your full name, sign and date the declaration. The date is important and must be the actual date you sign the election. If you make a false declaration you may be penalised.
Give your signed and dated election to your fund with your contribution or before your contribution is made. If you lodge it late after making your contribution, it won’t be valid and your super fund will have to reject it.
The information on this election is for you and your super fund. Do not send this election to us. We don't collect this information; we only provide a format for you to provide the information to your super fund. Your super fund reports to us that you have made this election when it reports all your contributions each year.
- Send this election to your super fund either before or when the contribution is made.
What if I need to vary the amount in my previous election notice?
If you become aware the amount you specified on the form was higher than the CGT exempt amount you were entitled to, you can complete a new form with the correct, lower amount, and send it to your super fund. You cannot send a form with a greater amount specified.
Your fund must then report the new amount you have specified to the ATO, which may also mean your fund reports you made a personal contribution that year. You should be aware that, if the non-concessional contribution exceeds the cap, you may be liable for excess contributions tax.
Form and instructions for superannuation funds and their members to make a capital gains tax (CGT) cap election (NAT 71161).Last modified: 18 Mar 2016QC 19584