Private ruling: Non-concessional contributions
Published: February 2012
Ruling period: Year ending 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Where the non-concessional contribution is accepted by your superannuation fund in the 2011-12 income year will you be liable for excess non-concessional contributions tax under section 292-80 of the Income Tax Assessment Act 1997 ? Advice/Answers No.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 292-80. | Income Tax Assessment Act 1997 Subsection 292-85(2). | Superannuation Industry (Supervision) Regulations 1994 Subregulation 7.01(3) | Superannuation Industry (Supervision) Regulations 1994 Subregulation 7.04(1)

Reasons for decision: Detailed Reasoning - Summary of decision: You intend to make a non-concessional contribution under the non-concessional contributions cap into your superannuation fund in the 2011-12 income year. Therefore, where your superannuation fund is able to accept the contribution you will not be liable for excess non-concessional contributions tax. | Detailed Reasoning - Non-concessional contributions cap: Non-concessional contributions made to a complying superannuation fund will be subject to an annual cap (subsection 292-85(2) of the Income Tax Assessment Act 1997 (ITAA 1997)). For a person who is 50 years of age or more their non-concessional contributions cap for the 2011-12 income year is $150,000. Non-concessional contributions include: § personal contributions for which an income tax deduction is not claimed; § contributions a person's spouse makes to their superannuation fund account; and § transfers from foreign superannuation funds (excluding amounts included in the fund's assessable income). Some contributions are specifically excluded from being non-concessional contributions. These include: § a Government co-contribution; § a contribution arising from a structured settlement or an order for personal injury; § a contribution relating to some capital gains tax (CGT) small business concessions to the extent that it does not exceed the CGT cap amount ($1,000,000 indexed annually) when it is made; and § a roll-over superannuation benefit. A taxpayer will be taxed on non-concessional contributions over the cap at the rate of 46.5% (section 292-80 of the ITAA 1997). In this case, you are over 65 years of age. Hence, your non-concessional contributions cap for the 2011-12 income year is $150,000. You intend to make a non-concessional contribution under your non-concessional contributions cap into your superannuation fund in the 2011-12 income year. Therefore, where your superannuation fund is able to accept the contribution made by you, you will not be liable for excess non-concessional contributions tax.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns. | In the 2011-12 income year you were engaged in paid employment and worked a total of 37.75 hours.