• Excess concessional contribution charge

    The excess concessional contributions (ECC) charge is applied to the additional income tax liability arising as a result of having excess concessional contributions included in your income tax return. The intent of the ECC charge is to acknowledge that the tax is collected later than normal income tax. The charge is payable for the year a person makes excess concessional contributions and applies from the 2013–14 income year onwards.

    The ECC charge period is calculated from the start of the income year in which the excess concessional contributions were made and ends the day before the tax is due to be paid under your first income tax assessment for that year.

    The formula for calculating the ECC charge is provided for under section 4 of the Superannuation (Excess Concessional Contributions Charge) Act 2013. It uses a base interest rate for the day plus an uplift factor of 3%. The base interest rate is defined under section 5 of the same Act and is the monthly average yield of 90-day Bank Accepted Bills published by the Reserve Bank of Australia.

    This compounding interest formula is applied against the base amount (the additional income tax liability) for each day of the ECC charge period.

    The ECC charge rates are updated quarterly and listed in the table below.

    Table 3: Excess concessional contribution charge rates

    Quarter

    Annual rate

    Daily rate

    July - September 2016

    5.01%

    0.013688524590164%

    April - June 2016

    5.28%

    0.014426229508197%

    January - March 2016

    5.22%

    0.014262295081967%

    October – December 2015

    5.14%

    0.014082191780822%

    July – September 2015

    5.15%

    0.014109589041096%

    April – June 2015

    5.36%

    0.014684931506849%

    January – March 2015

    5.75%

    0.015753424657534%

    October – December 2014

    5.63%

    0.015424657534247%

    July – September 2014

    5.69%

    0.015589041095890%

    April – June 2014

    5.63%

    0.015424657534247%

    January – March 2014

    5.59%

    0.015315068493151%

    October – December 2013

    5.6%

    0.015342465753425%

    July – September 2013

    5.82%

    0.015945205479452%

    See also:

    Last modified: 20 Jun 2016QC 18123