Private ruling: Excess contributions tax
Published: May 2013
Ruling period: Year ending 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Can you make a contribution with the proceeds from the sale of your business to your self-managed superannuation fund? Advice/Answers No.

Relevant facts and circumstances: You are currently over 75 years of age. You wish to sell your business and roll over the proceeds to your self-managed superannuation fund.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 292-100 | Superannuation Industry (Supervision) Act 1993 | Superannuation Industry (Supervision) Regulations 1994 Subregulation 7.04(1) Further issues for you to consider

Reasons for decision: Summary: As you are over 75 years of age and the contribution is from the sale of your business, which are not mandated employer contributions, your self-managed superannuation fund will not be able to accept the contribution. | Detailed Reasoning - Detailed reasoning: If an individual made a capital gain from a CGT event (such as the disposal of a CGT asset) they may be able to reduce the capital gain using either or both of the following: · the CGT discount · one or more of the four CGT concessions available for small business Section 292-100 of the Income Tax Assessment Act 1997 (ITAA 1997) covers certain superannuation contributions relating to some CGT small business concessions. However, one must first consider whether a superannuation fund may accept the contributions. Whether a regulated superannuation fund is able to accept contributions is determined under the Superannuation Industry (Supervision) Act 1993 (SIS Act) and the Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations). Under the SIS Act, regulation 7.04 of the SIS Regulations, sets out the circumstances under which a regulated superannuation fund can accept contributions for a member. Subregulation 7.04(1) states: A regulated superannuation fund may accept contributions only in accordance with the following table and subregulations (2), (3), (4) and (6). Please note, for a member not under 75, Item 4 of the table states that a superannuation fund may only accept mandated employer contributions. In this case, as you are over 75 years of age and the contribution is from the sale of your business, which are not mandated employer contributions, your self-managed superannuation fund will not be able to accept the contribution.