A person will be liable for an administrative penalty of 20 penalty units if either:
- they fail to give a release authority to ensure the release of the full amount of excess non-concessional contributions tax to a super fund within 21 days after the date of the release authority under section 288-90External Link of Schedule 1 of the TAA
- the total amount paid by their super funds exceeds the amount authorised to be released under section 288-100External Link of Schedule 1 of the TAA.
Example: penalties and taxes
Shaz receives a compulsory release authority for her excess non-concessional contributions tax.
She presents her compulsory release authority to multiple funds and in doing so, accesses more than the total authorised for release.
Shaz will be liable for an administrative penalty. In addition, the amount over what should have been released (that is, her ECT liability) will be included in her assessable income in the year it was released and subject to income tax at marginal rates.
End of example
Under section 288-95External Link of Schedule 1 of the TAA, a super fund will be liable for an administrative penalty of 20 penalty units if they fail to comply with a release authority within 30 days of receiving a release authority or transitional release authority.
Section 286-75External Link of Schedule 1of the TAA imposes an administrative penalty for a super fund that fails to comply with the release authority reporting requirements (to the ATO and to the member) set out in section 390-65External Link of Schedule 1 of the TAA.
The amount of the penalty is worked out in accordance with section 286-80External Link of Schedule 1 of the TAA.