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Subject: Non-concessional contributions
Question
Where the non-concessional contribution is accepted by your superannuation fund in the 2011-12 income year will you be liable for excess non-concessional contributions tax under section 292-80 of the Income Tax Assessment Act 1997?
Advice/Answers
No.
This ruling applies for the following period
Year ending 30 June 2012
The scheme commenced on
1 July 2011
Relevant facts
You are over 65 years of age.
You intend to make a non-concessional contribution under the non-concessional contributions cap into your superannuation fund in the 2011-12 income year.
In the 2011-12 income year you were engaged in paid employment and worked a total of 37.75 hours.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 292-80.
Income Tax Assessment Act 1997 Subsection 292-85(2).
Superannuation Industry (Supervision) Regulations 1994 Subregulation 7.01(3)
Superannuation Industry (Supervision) Regulations 1994 Subregulation 7.04(1)
Reasons for decision
Summary of decision
You intend to make a non-concessional contribution under the non-concessional contributions cap into your superannuation fund in the 2011-12 income year. Therefore, where your superannuation fund is able to accept the contribution you will not be liable for excess non-concessional contributions tax.
Detailed reasoning
Non-concessional contributions cap
Non-concessional contributions made to a complying superannuation fund will be subject to an annual cap (subsection 292-85(2) of the Income Tax Assessment Act 1997 (ITAA 1997)). For a person who is 50 years of age or more their non-concessional contributions cap for the 2011-12 income year is $150,000.
Non-concessional contributions include:
§ personal contributions for which an income tax deduction is not claimed;
§ contributions a person's spouse makes to their superannuation fund account; and
§ transfers from foreign superannuation funds (excluding amounts included in the fund's assessable income).
Some contributions are specifically excluded from being non-concessional contributions. These include:
§ a Government co-contribution;
§ a contribution arising from a structured settlement or an order for personal injury;
§ a contribution relating to some capital gains tax (CGT) small business concessions to the extent that it does not exceed the CGT cap amount ($1,000,000 indexed annually) when it is made; and
§ a roll-over superannuation benefit.
A taxpayer will be taxed on non-concessional contributions over the cap at the rate of 46.5% (section 292-80 of the ITAA 1997).
In this case, you are over 65 years of age. Hence, your non-concessional contributions cap for the 2011-12 income year is $150,000. You intend to make a non-concessional contribution under your non-concessional contributions cap into your superannuation fund in the 2011-12 income year.
Therefore, where your superannuation fund is able to accept the contribution made by you, you will not be liable for excess non-concessional contributions tax.