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  • Re-contribution of COVID-19 early release super amounts

    Individuals can now re-contribute amounts they withdrew under the COVID-19 early release of super program without them counting towards their non-concessional contributions cap. These contributions can be made between 1 July 2021 and 30 June 2030.

    COVID-19 re-contribution amounts are not a new type of contribution. They are a personal contribution that we will exclude from an individual’s non-concessional contribution cap.

    Individuals can make COVID-19 re-contribution amounts to any fund of their choice where the fund rules allow.

    On this page:

    What you need to do

    Individuals can use the approved form to make a COVID-19 re-contribution. You can choose to design your own Notice of re-contribution of COVID-19 early release amounts approved form for your members, as outlined in the CRT Alert 008/2021.

    Once you receive a completed approved form from your member you need to:

    • Check the COVID-19 re-contribution amount, an amount cannot be accepted where it exceeds $20,000. You may wish to confirm with your member if the correct figure has been provided.
    • Provide us with the information from the approved forms you have received on a monthly basis – you are not required to provide nil lodgement reports.

    There is no change for you when accepting and reporting personal contribution amounts that a member is treating as a COVID-19 re-contribution.

    Information to record and send to us

    We require you to capture the following information from the Notice of re-contribution of COVID-19 early release amounts approved form.

    Table: Information to record and send to us

    Field

    Data type

    Length

    Mandatory

    Validation

    Member's TFN

    Integer

    9

    Y

    TFN algorithm

    Family Name

    String

    38

    Y

    -

    First Given Name

    String

    38

    Y

    -

    Other Given Names

    String

    38

    N

    -

    Contributor's Date of Birth

    String

    8

    Y

    DDMMYYYY

    Member account number

    String

    16

    Y

    -

    Unique Superannuation Identifier (USI)

    String

    14

    Y

    -

    Date of Contribution

    String

    8

    N

    DDMMYYYY

    Contribution Amount

    Decimal

    5, 2

    Y

    0.01 to 20000.00

    Declaration Signed

    String

    3

    Y

    Response must = Yes
    Validation fails if declaration is not signed

    Date of Declaration

    String

    8

    Y

    DDMMYYYY

    Date Declaration Received

    String

    8

    Y

    DDMMYYYY

    How to send information to us

    We are developing the functionality for you to use the bulk data exchange facility via Online services for business. Until this is in place, we need to you record and hold this information.

    We will update this page to advise you on how to provide the information to us once the functionality has been developed. 

    Frequently asked questions

    Accepting COVID-19 re-contributions

    Can your member make a COVID-19 re-contribution without the approved form?

    No. Individuals choosing to make a COVID-19 re-contribution must notify you in the approved form, either before or at the time of making the contribution.

    Are you required to hold a valid TFN in order to accept a COVID-19 re-contribution?

    Yes. Regulation 7.04 of the Superannuation Industry Supervision Regulations 1994 (SISR) provides that a fund cannot accept any member contributions if the member's TFN has not been provided.

    Does a member have to make a COVID-19 re-contribution to the same fund from which they accessed funds through the COVID-19 early release measure?

    Members can make COVID-19 re-contributions to any fund of their choice, where the fund rules allow.

    Can a member make multiple COVID-19 re-contributions?

    Yes, multiple contributions can be made. COVID-19 re-contribution amounts can be made between 1 July 2021 and 30 June 2030.

    Are there any restrictions on who can make a COVID-19 re-contribution?

    Yes, the general acceptance rules under regulation 7.04 of the SISR applies to COVID-19 re-contributions.

    Does the work test apply for COVID-19 re-contributions received this financial year?

    COVID-19 re-contributions are personal contributions. The current rules regarding the acceptance of contributions as contained in the SISR apply to this contribution, including the application of the work test or work test exemption.

    Are you required to match the amount of the personal contribution against the amount on the approved form or is reporting the information on the approved form received the only requirement?

    We will perform the match of the amount on the form compared to the personal contributions reported through MATS. There is no need for you to match the amounts.

    Are members of defined benefit funds eligible to make these contributions into their defined benefit interest (if the fund rules permit)?

    The law does not specify the type of super funds to which the COVID-19 re-contribution can be made. The current rules regarding the acceptance of contributions as contained in the SISR apply to the COVID-19 re-contribution. Similarly, the acceptance of the COVID-19 re-contribution is also subject to the acceptance rules of the fund.

    What is required of you if the declaration has not been completed by the member?

    The law requires the member to declare that the contribution is to be treated as a COVID-19 re-contribution at the time or before the contribution is made. If that declaration, including the date of declaration, has not been made then the contribution cannot be treated as a COVID-19 re-contribution. You are not able to accept the amount as a COVID-19 re-contribution and then later accept a COVID-19 re-contribution form that relates to that earlier contribution. The alternatives available to you are:

    • contact the member and have them make the declaration and then accept the contribution after the declaration has been made and report as normal, or
    • accept the contribution and don’t report the information on the approved form because that contribution cannot be treated by us as a COVID-19 re-contribution without the declaration. The fund will report the contribution as a personal contribution on the MATS report.

    Administering COVID-19 re-contributions

    How do you report COVID-19 re-contributions to us?

    You report the contribution to us via MATS as a personal contribution. Details from the COVID-19 re-contribution form will be provided to us using Online services for business.

    Do you have an obligation to monitor COVID-19 re-contributions across a single financial year, or from year to year?

    No, but you must not accept a single approved form declaring more than $20,000 as a COVID-19 re-contribution.

    What is the process if we determine a member who has claimed a re-contribution of early release of super is ineligible?

    COVID-19 re-contribution amounts are reported as personal contributions. If the member is found to be ineligible it may result in that member exceeding their non-concessional contributions cap.

    Is a re-contribution of early release of super a preserved tax-free amount?

    The COVID-19 re-contribution will be preserved until the member meets a condition of release as set out in Schedule 1 of the SISR and the amount will form part of the tax-free component of the superannuation interest under section 307-210 of the Income Tax Assessment Act 1997 (ITAA 97).

    Is the amount excluded from a member's non-concessional contributions cap calculated on an annual or rolling basis?

    COVID-19 re-contribution amounts are excluded from the non-concessional contributions cap on an annual basis based on the actual COVID-19 re-contribution amount(s) made during the financial year.

    If you report a COVID-19 re-contribution form to us, but the contribution never arrives how will this be treated?

    There is no change to the process for funds. You would report the COVID-19 re-contribution to us, we will see from MATS reporting that there is no related personal contribution and no amounts would be treated as a COVID-19 re-contribution.

    What happens if the COVID-19 re-contribution declared on the form is more than the personal contribution received?

    There is no change to the process for you. You would report the COVID-19 re-contribution to us and accept the personal contribution, subject to your acceptance rules, and report it to us through MATS. We will see the difference and only treat the amount of the actual contribution as being excluded from the non-concessional contributions cap calculation. We will then treat the portion of the next personal contribution(s) in that financial year if any, as a COVID -19 re-contribution up to the amount on the COVID-19 re-contribution form or the approved early release amount whichever is the lesser.

    What happens if the COVID-19 re-contribution declared on the form is less than the personal contribution received?

    There is no change to the process for you. You would report the COVID-19 re-contribution to us and accept the personal contribution, subject to your acceptance rules, and report it to us through MATS. We will see the difference and only treat the amount of the personal contribution up to the amount included on the member’s form as being excluded from the non-concessional contributions cap calculations (provided that this amount does not exceed the approved COVID-19 early release amount). Any amount of the personal contribution exceeding that, as detailed in the member form, will count as a personal contribution and count towards the non-concessional contributions cap calculation.

    Can multiple personal contributions be covered by one approved form be treated as COVID-19 re-contributions?

    One approved form may cover multiple contributions in a financial year, as long as the form is provided to the super fund on or before the time when the contributions are made.

    Example

    Sam lodges the COVID-19 re-contribution form with their fund on 23 August declaring an amount of $20,000 to be a COVID -19 re-contribution on:

    • 30 August Sam makes a contribution of $5,000
    • 15 December Sam makes a contribution of $10,000
    • 3 May Sam makes a contribution of $5,000

    As Sam has lodged the approved form on or before the contributions were made each of those contributions will be treated as a COVID-19 re-contribution.

    Alternatively, Sam may lodge three approved forms on or before each of the above dates for the amounts contributed on those dates. That would also result in the amounts being treated as COVID-19 re-contributions.

    End of example

    If a member submits an approved form to one fund without a personal contribution then makes a personal contribution to another fund, will the contribution be considered a COVID-19 re-contribution?

    We wouldn’t accept the contribution to another fund as being a COVID-19 re-contribution as the declaration includes the name of the fund, the fund ABN, the member account details and the USI (if known). The intent of the provision through the operation of paragraphs 292-103(1)(a) and (2)(b) of the ITAA 97 is that the approved form must be given to the same fund that the contribution will be made to. If the contribution is made to a different fund, then the declaration has not been made in respect of the receiving fund at or before the time a valid declaration has been made for that fund and account.

    What considerations are there in relation to the date of contribution provided on the approved form matching the date the payment is received as this may not align due to the nature of digital payments?

    The law requires the member to declare that the contribution is to be treated as a COVID-19 re-contribution at the time or before the contribution is made. We will perform the match of the amount on the form compared to the personal contributions reported through MATS. There is no need for you to match the amounts or dates.

    Additional scenarios

    Can you update the Notice of intent to claim or vary a deduction for personal super contributions form and the COVID-19 re-contribution form to have the member declare that their intent to claim is not also a re-contribution?

    Individuals declare on the COVID-19 re-contribution form that they withdrew amounts under COVID early release, will not contribute more than they withdrew and will not claim a personal super deduction for a COVID-19 re-contribution. Funds will not be required to check that COVID-19 re-contribution amounts are not claimed as a personal super deduction. There will be no changes made to the Notice of intent to claim or vary a deduction for personal super contributions form.

    How is a COVID-19 re-contribution reported as part of a rollover?

    This would be reported in the same manner as other personal contributions.

    Does a COVID-19 re-contribution meet the personal contribution eligibility requirement for a co-contribution?

    As long as the member meets all of the eligibility criteria in section 6 of the Superannuation (Government Co-contributions for Low Income Earners) Act 2003, a COVID-19 re-contribution would be an eligible personal superannuation contribution that attracts co-contributions.

    Will making a COVID-19 re-contribution impact the selection of a stapled fund?

    The Regulations for the stapled fund measure contain the hierarchy rules. In accordance with those Regulations a fund will firstly be a stapled fund in the case where the Commissioner has previously identified the fund as a stapled fund. Then if a stapled fund has not been previously identified the stapled fund will be the one which has received the most recent contributions for the benefit of the employee. As such a COVID-19 re-contribution may cause a fund to be one which has received the most recent contribution.

    How will making a COVID-19 re-contribution impact unclaimed and lost member criteria?

    A member will no longer be a lost member or meet the definition of an unclaimed super account where a contribution has been made.

    Does a COVID-19 re-contribution need to be supported as part of the suite of SuperStream transactions?

    No, there is no change required.

      Last modified: 31 Aug 2021QC 66719