• Introduction

    This guide is aimed at the intermediate level.

    The intent is to give a general understanding of excess contributions tax (ECT). Important issues, key concepts and the governing legislation is discussed.

    Attention

    All legislative references in this learning product are to the Income Tax Assessment Act 1997External Link (ITAA 1997), unless stated otherwise.

    End of attention

    Learning outcomes

    After completing this guide you will be able to:

    • describe the circumstances that will give rise to an ECT assessment for both concessional and non-concessional contributions
    • detail the rates of tax applicable to ECT assessments
    • explain how special ECT rules operate regarding personal injury payments, capital gains tax (CGT) exemptions, directed termination payments, transfers from overseas funds, and transitional period arrangements
    • explain the Commissioner's discretion to disregard or reallocate contributions from one income year to another income year
    • outline the release authority requirements, including conditions of release, compulsory release authority, voluntary release authority obligations and penalties
    • describe the circumstances in which a person is eligible for an excess concessional contributions refund offer
    • outline the ECT collection and recovery rules.
      Last modified: 22 Nov 2013QC 34181