Tax and Superannuation Laws Amendment (2014 Measures No. 7) Act 2015 (21 of 2015)
Schedule 1 Excess non-concessional superannuation contributions tax reforms
Income Tax Assessment Act 1997
4 Subsection 280-15(3)
Repeal the subsection, substitute:
(3) If non-concessional contributions exceed an indexed cap, the individual can:
(a) elect to release an amount corresponding to that excess, and 85% of the associated earnings on that excess, from the individual's superannuation interests; or
(b) elect not to release such an amount if the value of the individual's superannuation interests is nil.
An amount corresponding to those associated earnings is then included in the individual's assessable income and gives rise to a tax offset.
(4) The individual is taxed:
(a) if the amount released as described in paragraph (3)(a) fell short of that excess - on that shortfall; or
(b) on that excess, if the individual did not make either of those elections.
An amount equal to this tax liability must be released from the individual's superannuation interests.