Tax and Superannuation Laws Amendment (2014 Measures No. 7) Act 2015 (21 of 2015)
Schedule 1 Excess non-concessional superannuation contributions tax reforms
Taxation Administration Act 1953
26 After section 96-5 in Schedule 1
96-7 Electing to release non-concessional contributions etc.
(1) If you receive an *excess non-concessional contributions determination for a *financial year, you may:
(a) elect to release the *total release amount stated in the determination from your *superannuation interests; or
(b) elect not to release that total release amount if the value of your superannuation interests is nil; or
(c) elect not to release that total release amount for some other reason.
Note 1: For excess non-concessional contributions determinations, see Subdivision 97-B.
Note 2: The released amount will be non-assessable non-exempt income (see section 303-17 of the Income Tax Assessment Act 1997), but an amount corresponding to your associated earnings on those excess contributions will be included in your assessable income (see Subdivision 292-B of that Act).
Note 3: If the value of your superannuation interests is between nil and that total release amount, you could first make an election under paragraph (a) and then a further election under paragraph (b) (see subsection (6)).
Note 4: An election purportedly made under paragraph (b) will be invalid if the value of your superannuation interests was not nil.
(2) However, if that determination is an amended determination that increased the *total release amount, any election under subsection (1) relating to the amended determination is to be made as if that new total release amount were reduced by:
(a) if you made an election under paragraph (1)(a) for each earlier *excess non-concessional contributions determination you received for the *financial year - the sum of any amounts paid to you in response to release authorities issued in relation to those determinations; or
(b) otherwise - the total release amount stated in the most recent of those earlier determinations.
(3) Receiving an amended determination does not prevent you from making an election under subsection (1) in relation to an earlier determination.
Requirements for election
(4) You make an election under paragraph (1)(a) by identifying:
(a) one or more superannuation providers who hold one or more *superannuation interests for you; and
(b) the amount each superannuation provider is to release.
(5) An election under paragraph (1)(a), (b) or (c) relating to an *excess non-concessional contributions determination must:
(a) be in the *approved form; and
(b) be given to the Commissioner within:
(i) 60 days after the Commissioner issued notice of that determination; or
(ii) a further period allowed by the Commissioner.
Unsuccessful release - making a further election
(a) you make a valid election under paragraph (1)(a); and
(b) the Commissioner gives you a notice under subsection 96-40(2) stating an amount (the unpaid amount ) that a *superannuation provider did not pay in relation to the release authority issued in relation to that election;
you may make a further election under paragraph (1)(a) or (b) for the release, or non-release, of the unpaid amount.
Note: That further election would be under paragraph (1)(b) if the value of your superannuation interests is now nil.
(7) The further election must comply with subsection (4) and paragraph (5)(a), and must be given to the Commissioner within:
(a) 60 days after the Commissioner issued the notice mentioned in paragraph (6)(b); or
(b) a further period allowed by the Commissioner.
Election is irrevocable
(8) An election under this section is irrevocable.