• Solutions

    Answer 1

    This is false.

    Employer contributions, regardless of whether they are related to a salary sacrifice arrangement, are counted as concessional contributions.

    To return to this question, see Exercise 1.

    Answer 2

    The incorrect answer is (b).

    The transitional contributions cap applies to people who are 50 years old or older on the last day of the income year.

    To return to this question, see Exercise 2.

    Answer 3

    The correct answer is (d).

    All three preceding conditions must be satisfied.

    To return to this question, see Exercise 3.

    Answer 4

    It is false.

    Unless specifically excluded, non-concessional contributions include the amount of excess concessional contributions (if any) for that income year.

    To return to this question, see Exercise 4.

    Answer 5

    The answer is (c).

    The amount of any contribution made to that plan for the individual that is covered by a valid and acknowledged notice under section 290-170, to the extent that it is not allowed as a deduction for the person making the contribution

    To return to this question, see Exercise 5.

    Answer 6

    It is true.

    In 2009-10 the non-concessional contributions cap is six times the concessional contributions cap.

    To return to this question, see Exercise 6.

    Answer 7

    It is false.

    The two medical practitioners must certify that the individual is unlikely to ever be gainfully employed in a capacity for which they are reasonably qualified because of education, experience or training.

    To return to this question, see Exercise 7.

    Answer 8

    The correct answer is (b).

    The concession applies even if there has not been a capital gain.

    To return to this question, see Exercise 8.

    Answer 9

    It is false.

    The contract, law, or agreement must specify the amount of the payment, or a way to work out a specific amount of the payment. The methodology must be such that the payment can be objectively determined. A voluntary amount chosen by an employer does not satisfy this condition.

    To return to this question, see Exercise 9.

    Answer 10

    It is false.

    The $50,000 is not included in non-concessional contributions because it has been included in the assessable income of the fund. Nor will it count towards concessional contributions because it has been specifically excluded by the operation of subparagraph 292-25(2)(c)(i).

    To return to this question, see Exercise 10.

    Answer 11

    It is false.

    The rate of tax is correct but the individual can choose to pay it or give a release authority to their super fund.

    To return to this question, see Exercise 11.

    Answer 12

    The correct answers are (b) and (c).

    There must be special circumstances and making the determination must be consistent with the object of the ECT rules. Bankruptcy and uncooperative super funds do not generally satisfy these two conditions.

    To return to this question, see Exercise 12.

    Answer 13

    The correct answer is (d).

    The super interest must be accumulated gradually over a person's working life. Simply wishing to invest in super is not enough of itself.

    To return to this question, see Exercise 13.

    Answer 14

    The correct answer is (b).

    The ECT is due and payable 21 days after the Commissioner gives the person a notice of assessment.

    To return to this question, see Exercise 14.

    Answer 15

    It is false.

    If a person accesses more than the amount authorised for release, that amount will be included in their assessable income and subject to income tax at their marginal rate in accordance with subsection 304-15(4).

    In addition, the person will be liable for an administrative penalty under section 288-100 of Schedule 1 of the TAA.

    To return to this question, see Exercise 15.

    Answer 16

    The correct answer is (b).

    Option (a) is incorrect because the individual has 90 days to give the release authority to the super provider.

    Option (c) is incorrect because this condition only applies to super interests that are not defined benefits.

    To return to this question, see Exercise 16.

    Answer 17

    It is true.

    A refund offer will be made to an eligible person who has made $10,000 or less excess concessional contributions during an income year.

    To return to this question, see Exercise 17.

    Answer 18

    The correct answer is (d).

    Zoe is not eligible for a refund offer. The excess concessional contributions for the 2010-11 income year are not taken into consideration as the conditions for a eligible person to be made a refund offer state that it is for any income year from 2011-12.

    Zoe had excess concessional contributions in the 2011-12 income year and those contributions were more than $10,000, so she is not eligible for a refund offer.

    As Zoe has had excess concessional contributions in the 2011-12 year, she is not eligible for a refund in any subsequent income year, so she is not eligible for 2012-13.

    To return to this question, see Exercise 18.

    Answer 19

    It is false.

    When the Commissioner issues a written notice of offer to an eligible person, they may accept the offer within 28 days after the issue date, or within a longer time if the Commissioner allows, using the approved form.

    If a person does not wish to accept an offer they can allow the offer to lapse or contact the ATO, however they are not required to formally reject the offer.

    If the offer lapses or the person has contacted the ATO to advise they reject the offer, an ECT notice of assessment will be issued for the excess concessional contributions.

    To return to this question, see Exercise 19.

    Answer 20

    It is false.

    A person's refund offer only applies to the total amount of their excess concessional contributions. Refunding part of a person's excess concessional contributions is not an option.

    To return to this question, see Exercise 20.

    Answer 21

    The correct answer is (b).

    85% of $8,295 is $7,050.75. Only 85% of the excess concessional contributions will usually be stated on the refund release authority. The excess contributions are assessable to the super fund, which reduces the excess contributions by 15% to provide for its income tax liability.

    To return to this question, see Exercise 21.

    Answer 22

    It is true.

    A determination may be varied at any time before receiving payment if it is determined that the person has excess concessional contributions for the income year of $10,000 or less.

    A determination can also be varied under subsection 292-468(4) after receiving a payment if the Commissioner is satisfied that the person has excess concessional contributions for the income year both:

    • greater than the amount of excess concessional contributions mentioned in the determination
    • not greater than $10,000.

    To return to this question, see Exercise 22.

      Last modified: 22 Nov 2013QC 34181