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Excess contributions tax - administrative penalties

Practice statement, providing guidelines for remitting penalties for non compliance with excess contributions.

Last updated 19 May 2013

We have released a practice statement, PS LA 2011/24, which provides guidelines for remitting administrative penalties where an individual or super provider does not comply with their excess contributions tax (ECT) release authority obligations.

We impose penalties to:

  • encourage compliance
  • encourage the prompt withdrawal of excess non-concessional contributions tax from the super system
  • ensure that no more than the ECT amount is removed from the super fund.

We will consider each case individually when deciding whether we should remit any part of the penalty. If we find the individual or super provider has made a genuine attempt to comply with their obligations, we may remit the penalty in full. However, if we find they have made little or no attempt to meet their obligations, we may not remit the penalty at all.

The practice statement provides examples that show what we will consider when working out whether to impose or remit these penalties.