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  • What to do when you receive a determination

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    Review your determination

    You can review all the events and reporting that has been taken into consideration in determining if you have exceeded your transfer balance cap through your myGov account. If you don't have a myGov account you can register at ato.gov.au/onlineservices.

    You can download and print this information or send it via email it to your agent or financial advisor.

    If you think your determination is based on amounts that your super fund has reported to us incorrectly, you should contact your super fund. We have no discretion to disregard your excess or adjust the information reported to us by your super fund.

    If you need more time to understand your situation or for your super fund to correct any reporting, you must contact us to seek an extension of time; however, you should do this before the due date on your determination.

    If you don't act by the due date on your determination or your extended due date we will send a commutation authority to the super fund specified in your determination.

    Commuting an excess amount

    To commute the excess transfer balance you should contact your super fund and ask them to commute the excess amount. You do this by commuting some or all of the value of your income stream into a lump sum.

    If you don't commute your excess transfer balance or make an election by the due date shown on your determination we will send a commutation authority to your super fund requiring them to commute the excess.

    Unless you are commuting a death benefit income stream this lump sum can be transferred into an accumulation account or withdrawn from super. If you are commuting a death benefit income stream, the lump sum must be withdrawn from super.

    You need to ensure the commutation:

    • is made by the due date set out on your determination
    • is for the full amount set out on your determination, including any cents.

    If your super fund requires you to commute an amount in whole dollars and the amount you need to commute is comprised of dollars and cents, round up to ensure you have commuted enough to rectify your excess.

    If you don't commute the full amount by the due date we will send a commutation authority to your super fund, even if the remaining amount is very small. Excess transfer balance tax will continue to accrue until you cease to have an excess transfer balance.

    If you can't commute the full amount set out in your determination then you will need to commute as much as possible and close the account.

    If you have no retirement phase super income streams other than capped defined benefit income streams left we will issue you with a notice of non-commutable excess transfer balance which will mean you are no longer in excess. We will also send you an excess transfer balance tax assessment.

    Your super fund will tell us when an amount has been commuted from your account. This ensures we are aware that your transfer balance account is debited for any commutations and we can determine whether you still have an excess transfer balance.

    Note: If you commute an income stream after the due date shown on your determination and have not sought an extension of time we may issue, or may already have issued, a commutation authority to your super fund to have the excess transfer balance amount removed from retirement phase and there is a risk that the money could be commuted twice.

    You don't need to advise us of any commutations; however, if your super fund can't report the debit to your account for any reason, you will need to provide us with a statement in writing that includes the following details.

    The member's:

    • full name
    • residential address
    • date of birth
    • contact number
    • account number with the amount commuted and the date commuted
    • the super fund's name and ABN.

    Your written statement must be signed and include:

    • the signatory's full name (this could be you as member or a person authorised by the member)
    • a contact number
    • a statement declaring that the information provided is true and correct.

    Making a commutation authority election

    If you don't want to request a commutation from your fund or if you want to choose another income stream to remove the excess from then you may make an election by the due date on your determination.

    If you do make an election, you must ensure that the total amount you elect equals the excess transfer balance amount. Once you have made an election it is irrevocable.

    We are unable to send a commutation authority to your super fund until after the due date.

    The longer you remain in excess the more excess transfer balance tax you will pay.

    You don't need to make an election if you either:

    • have requested a commutation from your fund
    • want us to send a commutation to your default fund.

    See also:

    Extension of time

    If you need more time to respond to your determination you can phone us prior to the due date on 13 10 20 and request an extension of time. You will need to explain the cause for the delay.

    The longer you are in excess the more excess transfer balance tax you will pay. This is because your excess transfer balance earnings continue to accrue until you are no longer in excess.

    Note: We can't give you an extension of time if we have already sent a commutation authority to your super fund.

    Commutation authorities

    We will issue a commutation authority to your super fund if your excess transfer balance has not been commuted in full by the due date on your determination. If you have made an election the commutation authority will issue to the super fund that you elected.

    The commutation authority will detail the amount that your super fund must commute from a specific income stream. Your super fund must action the commutation authority and tell us what action they have taken within 60 days.

    While we may be able to adjust or revoke a commutation authority if we receive late reporting from your super fund we have limited ability to do so. We can't take any action if your super fund has already complied with the commutation authority. Your super fund should make reasonable efforts to contact you and discuss your options. For example, whether to retain the commuted amount in an accumulation account or take it out of the super system. If your super fund is unable to contact you then they should commute the amount in a way that they judge to be in your best interests.

    Your super fund must notify you when they:

    • commute an amount from your super income stream in response to a commutation authority, or
    • can't action the commutation authority because the super income stream specified is a capped defined benefit income stream.

    You can't:

    • object to the commutation authority that we send to your super fund
    • direct your super fund not to comply with the commutation authority.

    See also:

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      Last modified: 26 Mar 2019QC 54355