A recent amendment to the Treasury Laws Amendment (More Flexible Superannuation) Bill 2020, which received royal assent on 22 June 2021, allows individuals who withdrew a COVID-19 early release of super amount to recontribute up to that amount back into super without it counting towards their non-concessional cap.
These contributions can be made from 1 July 2021, with the measure ending on 30 June 2030.
To make a recontribution of COVID-19 early release amounts, members need to complete the approved form and provide it to you before or at the time they make the contribution.
In a recent update, the ATO said it is now finalising the recontribution of COVID-19 early release amounts approved form and aims to have this available on ato.gov.au for members by the end of August 2021.
The ATO noted that if the fund chooses to design its own recontribution of COVID-19 early release amounts approved form for members, they will need to include various elements including member and fund details.
Funds will also need to provide details of the recontribution, with the mandatory need to report the amount to be treated as a recontribution of COVID-19 early release of superannuation which is up to a maximum of $20,000 only.
The ATO also noted that while a member’s tax file number (TFN) may be required for the fund to accept the contribution, it is not a mandated field for the request to be in the approved form.
In addition to the required contents of the form, the ATO noted funds may consider including key messages for members.
“This may include messages informing members that prior to making a recontribution of COVID-19 early release amounts, you may wish to seek financial advice,” the ATO said.
“Furthermore, any amounts over the total amount released to you through COVID-19 early release will be ineligible as a recontribution of COVID-19 early release amounts.
“Funds can also let members know that recontribution of COVID-19 early release amounts identified as ineligible will be reported as personal contributions which may result in exceeding your non-concessional contributions cap, and by signing this form, you are confirming that you meet all the eligibility requirements to make a recontribution of COVID-19 early release amounts.”
The ATO noted a further CRT alert will also be issued shortly to provide some additional information on what funds need to do to administer these contributions.
If there are any further enquiries on this matter, funds can lodge a request using the Super Enquiry Service External Link.
