Excess contribution tax:

To encourage saving for retirement, the Government offers certain deductions and tax offsets on certain contributions made to superannuation funds and retirement savings accounts.

While some forms of contributions and deductions may be made without limit, there are limits on what a member may contribute personally in any given year. The penalty for exceeding the excess contributions cap, set year to year, is generally excess contributions tax on the amount of contribution that exceeds the cap for the year. Your fund may also be prohibited from accepting excess contributions or may be required to release funds to pay the excess contributions tax liability. The end result can be devastating, and in the worst cases, cause you to lose most of the contributions made.

Our Sydney Taxation Lawyers and Superannuation Solicitors can professionally advise you on your superannuation rights and obligations, including any tax obligations that may arise as a result of member contributions. If you receive a Notice of Assessment of excess contributions tax we can assist you with an application to the Commissioner to have the contribution disregarded or reallocated to another year or lodge an objection against the assessment.

For quality and professional Taxation advice, we invite you to contact our firm and speak to one of our dedicated Sydney Taxation Solicitors. To book a consultation, please call (02) 9233 4048 or send an email to info@navado.com.au. 

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