Non-concessional contributions above the cap
Non-concessional contributions above the cap
You should monitor all contributions (made by you and on
your behalf ) into your account to ensure they don’t exceed
the caps. If you exceed the cap and you leave the excess in
the fund, any non-concessional contributions above the cap
will be taxed at the top marginal rate of 47% including the
Medicare levy.
If you have exceeded the cap the ATO will send you an excess
contributions tax Notice of Assessment for the relevant year,
which will include the amount that you have to pay. At the
same time, the ATO will send you a Compulsory Release
Authority for the amount of the excess non-concessional
contributions tax liability, which you must use to authorise
the release of the tax amount from your super fund.
You can pay your excess non-concessional contributions tax
in a number of ways.You can:
- pay the tax yourself and use the Compulsory Release
Authority to ask your super fund to release the money
to you, or
- use the Compulsory Release Authority to instruct your
fund to pay the money to the ATO on your behalf, or
- pay using a combination of these options.
However, you must withdraw the full amount of your
excess non-concessional contributions tax from your super,
whether you use it to help you pay the tax or not.