POWERED BY MOMENTUM MEDIA
ECT breaches could jump further: SPAA
The Self-Managed Super Fund Professionals' Association (SPAA) has warned that recent Australian Taxation Office (ATO) figures revealing a huge jump in excess contributions tax (ECT) breaches could be a sign of things to come when the caps are reduced further in July.
The ATO's ECT Statistical Report showed that ECT breaches had tripled in one year, with 45,330 excess concessional contributions assessments issued during the 2010 financial year - up from 15,315 recorded in 2008/09 and 18,068 in 2007/08. The jump coincided with the halving of the contributions caps on 1 July 2009, SPAA said.
When the concessional contribution cap for those aged 50 and over, and with a superannuation balance over $500,000 is halved again from 1 July this year, it could result in a further spike in breaches, SPAA said.
SPAA is advocating for the restoration of the caps to pre-2009 levels, and also wants the Government to revisit the decision to freeze indexation of the concessional contribution cap and adopt a workable solution for those who unintentionally breach superannuation caps and incur ECT penalties.
SPAA said it was encouraged that the ATO used discretion in 24 per cent of cases where there was a request for discretion.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
