Re-contribution of COVID-19 early release super amounts

COVID-19 re-contributions

Individuals can re-contribute amounts they withdrew under the COVID-19 early release of super program without them counting towards their non-concessional contributions cap. These contributions can be made between 1 July 2021 and 30 June 2030.

COVID-19 re-contribution amounts are not a new type of contribution. They're a personal contribution that we'll exclude from an individual’s non-concessional contribution cap.

Individuals can make COVID-19 re-contribution amounts to any fund of their choice where the fund rules allow.

What you need to do

Individuals can use the approved form to make a COVID-19 re-contribution. You can choose to design your own Notice of re-contribution of COVID-19 early release amounts approved form for your members, as outlined in the CRT Alert 008/2021. Once you receive a completed approved form from your member you need to:

• check the COVID-19 re-contribution amount, an amount can't be accepted where it exceeds $20,000
• provide us with the information from the approved forms you've received – you're not required to provide nil lodgment reports.

There's no change for you when accepting and reporting personal contribution amounts a member is treating as a COVID-19 re-contribution.

Information to record and send to us

We require you to:

• capture the following information from the Notice of re-contribution of COVID-19 early release amounts approved form
• create a comma separated value (CSV) file containing all reported member data per the exact specifications included in the Re-contribution of COVID-19 early release of super amount guideExternal Link (the Guide). A sample template is available at section 2.2 of the Guide.

How to report this information to us

To report Covid-19 re-contribution amounts received from your members, we've developed the functionality for you to use the bulk data exchange facility via online services for business and online services for agents.

To report member COVID-19 re-contribution information to us you will need to do the following steps:

• Log on to online services for businesses or online services for agents and navigate to the File transfer screen, select Lodge to open the submission form.
  • If using online services for business, the File transfer screen is available via the Lodgments menu.
  • If using online services for agents, the File transfer screen is available via the Reports and forms menu.
• Input the details requested within the form and select submit, ensuring the following actions are completed
  • select lodge
  • attach your CSV file
  • select to receive a validation report and include an email address
  • tick to sign the declaration.
• Check your validation report to ensure that your form has been successfully submitted. If a validation error has occurred, follow the instructions within the validation report to correct the error and resubmit your form using these steps.

SMSFs without access to online services for business and who are not represented by a tax agent can report over the phone by phoning our super enquiries line on 13 10 20.

When to report this information to us

APRA Funds should report this information to us monthly and report the contribution as a personal contribution through MATS.

Accepting COVID-19 re-contributions

Members must use an approved form

Members choosing to make a COVID-19 re-contribution must notify you in the approved form, either before or at the time of making the contribution. Members can use the approved form or you can choose to design your own Notice of re-contribution of COVID-19 early release amounts for your members.

Valid tax file number (TFN)

Regulation 7.04 of the Superannuation Industry Supervision Regulations 1994 (SISR) provides that a fund can't accept any member contributions if the member's TFN hasn't been provided.

COVID-19 re-contribution

Members can make COVID-19 re-contributions to any fund of their choice, where the fund rules allow. They don't have to re-contribute to the fund they used for COVID-19 early release.

The current rules regarding the general acceptance of contributions under regulation 7.04 of the SISR apply to COVID-19 re-contributions.

Making multiple COVID-19 re-contributions

Multiple contributions can be made. COVID-19 re-contribution amounts can be made between 1 July 2021 and 30 June 2030.

Work tests and COVID-19 re-contributions

COVID-19 re-contributions are personal contributions.

The current rules regarding the acceptance of contributions as contained in the SISR apply to this contribution, including the application of the work test or work test exemption.

Matching amounts of personal contribution

We'll perform the match of the amount on the form compared to the personal contributions reported to us. There's no need for you to match the amounts.

Members of defined benefit funds

The law doesn't specify the type of super funds to which the COVID-19 re-contribution can be made. The current rules regarding the acceptance of contributions as contained in the SISR apply to the COVID-19 re-contribution. Similarly, the acceptance of the COVID-19 re-contribution is also subject to the acceptance rules of the fund.

Declaration not completed by the member

The law requires the member to declare that the contribution is to be treated as a COVID-19 re-contribution at the time or before the contribution is made.

If that declaration, including the date of declaration, hasn't been made then the contribution can't be treated as a COVID-19 re-contribution.

You're not able to accept the amount as a COVID-19 re-contribution and then later accept a COVID-19 re-contribution form that relates to that earlier contribution. The alternatives available to you are either of the following:

• contact the member and have them make the declaration and then accept the contribution after the declaration has been made and report as normal
• accept the contribution and don’t report the information on the approved form because that contribution can't be treated by us as a COVID-19 re-contribution without the declaration. The fund will report the contribution as a personal contribution.

Administering COVID-19 re-contributions

Monitoring COVID-19 re-contributions

You don't have an obligation to monitor COVID-19 recontributions but you must not accept a single approved form declaring more than $20,000 as a COVID-19 re-contribution.

Ineligible members claiming re-contribution

COVID-19 re-contribution amounts are reported as personal contributions.

If the member is found to be ineligible it may result in that member exceeding their non-concessional contributions cap.

Early release and preserved tax-free amount

The COVID-19 re-contribution will be preserved until the member meets a condition of release as set out in Schedule 1 of the SISR and the amount will form part of the tax-free component of the superannuation interest under section 307-210 of the Income Tax Assessment Act 1997 (ITAA 97).

Non-concessional contributions cap calculations

COVID-19 re-contribution amounts are excluded from the non-concessional contributions cap on an annual basis based on the actual COVID-19 re-contribution amount(s) made during the financial year.

Reporting re-contribution where there are no personal contributions

If you report a COVID-19 re-contribution form to us, but the contribution never arrives, there is no change to the process for funds. You would report the COVID-19 re-contribution to us, we will see from the reporting that there is no related personal contribution, and no amounts would be treated as a COVID-19 re-contribution.

Discrepancies

If the COVID-19 re-contribution declared on the form is more or less than the personal contribution received there's no change to the process for you.

You would report the COVID-19 re-contribution to us and accept the personal contribution, subject to your acceptance rules, and report it to us.

We'll see the difference and only treat the amount of the actual contribution as being excluded from the non-concessional contributions cap calculation.

We'll then treat the portion of the next personal contribution(s) in that financial year if any, as a COVID-19 re-contribution up to the amount on the COVID-19 re-contribution form or the approved early release amount whichever is the lesser.

One approved form for multiple personal; contributions

One approved form may cover multiple contributions in a financial year, if the form is provided to the super fund on or before the time when the contributions are made.

Contributions made to another fund

If a member submits an approved form to one fund without a personal contribution, then makes a personal contribution to another fund, the following will apply for the contribution to be considered a COVID-19 re-contribution.

A COVID-19 re-contribution can only be accepted by the fund named in the declaration form, which must include the fund’s name and ABN. If known, the member account number and USI should also be included (leave blank for SMSFs). Under ITAA 97, the form must be provided to the same fund receiving the contribution, at or before the time of payment. Contributions made to a different fund are not valid COVID-19 re-contributions.

Date on approved form not matching date payment is received

The law requires the member to declare that the contribution is to be treated as a COVID-19 re-contribution at the time or before the contribution is made. We will perform the match of the amount on the form compared to the personal contributions reported to us. There is no need for you to match the amounts or dates.

Additional scenarios

Updating Notice of Intent

Individuals declare on the COVID-19 re-contribution form that they withdrew amounts under COVID early release, won't contribute more than they withdrew and won't claim a personal super deduction for a COVID-19 re-contribution.

Funds won't be required to check that COVID-19 re-contribution amounts aren't claimed as a personal super deduction. There'll be no changes made to the Notice of intent to claim or vary a deduction for personal super contributions form.

Reporting a COVID-19 re-contributions as part of a rollover

A COVID-19 re-contribution as part of a rollover would be reported in the same manner as other personal contributions.

Co- contributions

As long as the member meets all of the eligibility criteria in section 6 of the Superannuation (Government Co-contributions for Low Income Earners) Act 2003, a COVID-19 re-contribution would be an eligible personal super contribution that attracts co-contributions.

Stapled funds

The Regulations for the stapled fund measure contain the hierarchy rules. In accordance with those Regulations a fund will firstly be a stapled fund in the case where the Commissioner has previously identified the fund as a stapled fund. Then if a stapled fund hasn't been previously identified the stapled fund will be the one which has received the most recent contributions for the benefit of the employee.

As such a COVID-19 re-contribution may cause a fund to be one which has received the most recent contribution.

Unclaimed super accounts and lost member criteria

A member will no longer be a lost member or meet the definition of an unclaimed super account where a contribution has been made.

SuperStream and COVID-19 re-contribution

COVID-19 re-contribution don't need to be supported as part of the suite of SuperStream transactions.

Closing member accounts

The successor fund reporting protocol states that before closing member accounts, the transferring fund will need to ensure the reporting of member account transactions and contributions is up to date and accurate at the time of the transfer.

It's a requirement that the approved form and contribution is given to the same complying super fund chosen in the approved form.