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  • Excess Contributions Tax learner guide

    This guide provides an explanation of excess contributions tax (ECT) up to the 2012-13 income year, and includes:

    • determining ECT
    • special rules
    • assessments
    • ECT refund offer
    • payment of ECT.

    For more information about recent changes to superannuation contribution caps and how excess concessional contributions amounts from 2013-14 are taxed, go to ato.gov.au/supercaps

    This material has been developed to help train financial planners and must not be used as a legislative support tool in the workplace.

    We made every effort to make sure this material was accurate and up-to-date as at 30 June 2013 but we advise users to:

    • check for any changes that have affected the currency of this material
    • conduct their own research and inquiries regarding interpretation of law.

    We accept no responsibility for any loss or damage incurred as a result of the use of this material in personal transactions that are not part of our official business.

    Materials

    If you choose to refer to the references in this guide, you will need access to ATOlawExternal Link.

    Time

    It should take you approximately four hours to complete this learner guide.

    Introduction

    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.

    All legislative references in this learning product are to the Income Tax Assessment Act 1997External Link (ITAA 1997), unless stated otherwise.

    Learning outcomes

    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.
      Last modified: 06 Sep 2017QC 34181