• Assessment of excess concessional contributions tax

    In accordance with section 5External Link of the Superannuation (Excess Concessional Contributions Tax) Act 2007, concessional contributions in excess of the relevant cap amount for the financial year are subject to excess concessional contributions tax at 31.5%.

    The liability for the excess concessional contributions tax is imposed on the person, not the super fund.

    A person will receive an assessment of excess concessional contributions tax from us. It is not calculated by their super fund.

    We determine the amount of excess concessional contributions and the excess concessional contributions tax from member contributions statement (MCS) data received from super funds and information on a person's tax return.

    For more information about assessments and the rate of tax, see Assessments.

    Example: calculation of ECT

    Harry is 40 years old and works for two employers. As he is under 50 years old, Henry's concessional contributions cap is $25,000.

    During 2009-10 each employer makes a concessional contribution of $15,000 for Harry.

    The total of $30,000 exceeds the concessional contributions cap of $25,000 by $5,000.

    Therefore, Harry is liable to pay excess concessional contributions tax on the $5,000 of $1,575 (that is, $5,000 x 31.5%).

    End of example
      Last modified: 22 Nov 2013QC 34181