Mr Frydenberg said the Tax and Superannuation Laws Amendment (2014 Measures No.7) Bill will make the “taxation of excess after-tax superannuation contributions fairer”.
“This honours our election commitment to make sure inadvertent breaches of the non-concessional contributions cap do not incur a disproportionate penalty,” he said.
The minister said the new approach will be fairer to those who make mistakes while discouraging those who embark on aggressive tax planning strategies.
“Passage of this Bill represents another important step towards as a stronger, more sustainable economy and a fairer tax system.”
Terry, could you tell me why there has been no class action against the ATO where they have denied Restitution, under the law, of Excess Contributions for mistakes (ie 90% of ECT)?
The original law does not seem to deny restitution as long as the trustee agreed -SisR 7.0.4. and as you say I dont think the law makers intended this unfair tax – and actually didnt!.
It was the ATO who overrode that long standing law even against the advice of treasury (so who was directing the ATO to charge ECT??? !!! – the answer is there if you look carefully)
Surprisingly the ATO now admit their mistakes in the Inspctor General of Taxation report into ECT
http://www.igt.gov.au/content/…
it actually is a very good comprehensive read and supplies all the evidence for complete restitution back to 2007- not just 2013!!
Royal Commision material ??
so what are the new rules and especially treatment of earnings?
It is perfectly clear that whoever drafted the original legislation either did not understand what “tax advantage” non-concessional contributions (do not) get or was a sadist.
When you are fighting to get a favourable exercise of a discretion to avoid excess non-concessional contributions tax wiping out someone’s lifetime super savings, you really wonder what drives tax legislation. It is not logic or equity.
Yes, great decision. Pity it is not retrospective!
Thank god.. and the liberals….