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SCT hits super fund with ECT penalty
A superannuation fund has been made to pay half the excess contributions tax levied against a member because it was found to have contributed to the problem.
The Superannuation Complaints Tribunal (SCT) has cited the case to encourage super trustees to be more conscious of fund responsibilities with respect to dealing with excess contributions issues.
The superannuation fund was required to pay half the member's excess contributions because it was found to have failed, in part, to appropriately reclassify contributions of more than $9000 made as salary sacrifice contributions or to compensate him for the resultant excess contributions tax.
However, the SCT found the super fund member had also contributed to the issue by failing to appropriately pursue the issue, not contacting the fund for more than two years.
The Tribunal found both parties contributed to the tax being levied, and determined that the Trustee compromise the Complainant's claim by payment to the Complainant of an amount equivalent to 50 per cent of the excess contributions tax.
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