ATO flags availability of COVID-19 early release super recontribution
Individuals can now recontribute amounts they withdrew under the COVID-19 early release of super program.
In a recent update, the ATO said individuals can now recontribute amounts they withdrew under the COVID-19 early release super program without them counting towards their non-concessional contributions cap.
These contributions can be made between 1 July 2021 and 30 June 2030.
“COVID-19 recontribution amounts are not a new type of contribution. They are a personal contribution that we will exclude from an individual’s non-concessional contribution cap,” the ATO said.
“Individuals can make COVID-19 recontribution amounts to any fund of their choice where the fund rules allow.
“Individuals can use the approved form to make a COVID-19 recontribution. You can choose to design your own Notice of re-contribution of COVID-19 early release amounts approved form for your members, as outlined in the CRT Alert 008/2021.”
Once funds receive a completed approved form from the member, funds will need to check the COVID-19 recontribution amount, as an amount cannot be accepted where it exceeds $20,000, according to the ATO. Funds may wish to confirm with their member if the correct figure has been provided.
It will also be important to provide the ATO with the information from the approved forms that have been received on a monthly basis, as funds are not required to provide nil lodgement reports.
There is also no change when accepting and reporting personal contribution amounts that a member is treating as a COVID-19 recontribution.
The ATO noted it is still currently developing the functionality for funds to use the bulk data exchange facility via Online services for business.
“Until this is in place, we need you to record and hold this information,” the ATO said.
“We will update this page to advise you on how to provide the information to us once the functionality has been developed.”
Tony Zhang is a Journalist at SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2020, Tony has covered various publications across the legal, financial and professional services sectors including Lawyers Weekly, Adviser Innovation, ifa and Accountants Daily.