This guide is aimed at the intermediate level.
The intent is to give a general understanding of excess contributions tax (ECT). Important issues, key concepts and the governing legislation is discussed.
After completing this guide you will be able to:
- describe the circumstances that will give rise to an ECT assessment for both concessional and non-concessional contributions
- detail the rates of tax applicable to ECT assessments
- explain how special ECT rules operate regarding personal injury payments, capital gains tax (CGT) exemptions, directed termination payments, transfers from overseas funds, and transitional period arrangements
- explain the Commissioner's discretion to disregard or reallocate contributions from one income year to another income year
- outline the release authority requirements, including conditions of release, compulsory release authority, voluntary release authority obligations and penalties
- describe the circumstances in which a person is eligible for an excess concessional contributions refund offer
- outline the ECT collection and recovery rules.