Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
Govt addresses contributions concerns

Govt addresses contributions concerns

Katarina Taurian
14 May 2014 — 1 minute read

In last night’s Budget, the government introduced a mechanism which is being heralded as “a win for SMSF trustees”.

The government has moved to introduce a mechanism to allow taxpayers to withdraw excess non-concessional contributions made after 1 July 2013.

“This is good news as it stops punitive tax outcomes where taxpayers can pay up to 93 per cent on excess non-concessional contributions,” said Jordan George, senior manager, technical and policy, at the SMSF Professionals’ Association of Australia (SPAA).

Advertisement
Advertisement

“We congratulate the government on allowing taxpayers to refund excess non-concessional contributions, removing the overly punitive outcomes.”

Speaking to SMSF Adviser, Mr George said this is a measure SPAA has been advocating, and the association is pleased with the government’s response.

However, he also said the government will need to work through the finer details of the proposal.

“The suggestion to allow taxpayers to withdraw earnings associated with the excess non-concessional contributions is likely to result in complex compliance requirements,” Mr George said.

In its 2014-15 Federal Budget Report, Bendzulla Actuarial said this measure will reduce the significant tax impost of making an inadvertent contribution error.

Govt addresses contributions concerns
default
smsfadviser logo
join the discussion

When do you plan to undertake the exam under the new adviser education standards?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.