Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p35
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 35/80)
Character Range: 4428149–4431097

superannuation, as follows:
 (a) the contributions phase;
 (b) the investment phase;
 (c) the benefits phase.
 (2) In the contributions phase, contributions are made to a superannuation plan in respect of a member of the plan.
 (3) In the investment phase, these contributions are invested by the superannuation provider.
 (4) In the benefits phase, these contributions, plus earnings from investing them, are usually paid as benefits to the member when he or she retires after reaching preservation age. In the event of death, the benefits are usually paid to the member's dependants.
 (5) There is also a regulatory scheme outside this Act that is relevant to the taxation treatment of superannuation. For example, other Acts set out prudential and operating standards for superannuation providers.

Contributions phase

280‑10  Contributions phase—deductibility

Contributions that can be deducted
 (1) Employers can usually deduct contributions they make in respect of their employees. Individuals can usually deduct contributions they make in respect of themselves to most complying superannuation funds.

Other contributions cannot be deducted
 (2) Other contributions cannot be deducted. These include contributions made by others in respect of individuals (such as contributions by a spouse or family member, or Government co‑contributions).

280‑15  Contributions phase—limits on superannuation tax concessions
 (1) There is a limit to contributions that can be made in respect of an individual in a year that receive favourable tax treatment.
 (2) If concessional contributions exceed an indexed cap, the excess is included in the individual's assessable income and gives rise to a tax offset. The individual can release the excess concessional contributions from his or her superannuation interests. Unused cap can be carried forward for 5 years.
 (3) If non‑concessional contributions exceed an indexed cap, the individual can request the release of either:
 (a) nothing; or
 (b) an amount equal to the sum of that excess and 85% of the associated earnings on that excess;
from the individual's superannuation interests. Whether or not such a request is made, an amount relating to those associated earnings may be included in the individual's assessable income and may give rise to a tax offset.
 (4) In the absence of such a request, the Commissioner may require the relevant superannuation fund to release the amount described in paragraph (3)(b).
Note: This can be done under subsection 131‑15(2) in Schedule 1 to the Taxation Administration Act 1953.
 (5) The individual is taxed:
 (a) on any shortfall between the amount released as described in subsection (3) or (4) and the excess referred to in subsection (3); or
 (b) on that excess, if the individual requested that nothing be released from the individual's superannuation interests.
 (6) The Commissioner may require the release of an amount equal to this tax liability from