• Release authorities – penalties

    Super funds that do not meet their excess contributions tax release authority obligations may incur significant penalties.

    You must pay the required amount within 30 days of receiving a valid release authority. The penalty for non-compliance is 20 penalty units.

    You must report the payment to us in the approved form, and give a copy to your member, within 30 days of paying the amount. The penalty for non-compliance is up to 25 penalty units.

    For voluntary, compulsory and Commissioner’s compulsory release authorities, and release authorities for Division 293 tax, your fund may incur a penalty of 20 penalty units if you release an amount that is not the lowest amount of the following:

    • the amount nominated in the release authority by the member
    • the amount of excess contributions tax or Division 293 tax stated in the release authority
    • the total value of the member’s super accounts in your fund.

    See also:

    • Practice statement PS LA 2011/24External Link on remitting administrative penalties when an individual or super provider does not comply with their excess contributions tax release authority obligations.
    Last modified: 08 Sep 2015QC 24768