ATO released updated guidelines for the Excess contributions tax penalties.
Guidelines are very helpful for trustees and Super administration firms which provides lots of clarity and puts the onus on having right processes in place once excess contribution event is identified.
Practice Statement Law Administration
PS LA 2011/24
SUBJECT: Excess contributions tax – release authority – remission of certain administrative penalties where an individual or superannuation provider does not comply with obligations in relation to a release authority
PURPOSE: To provide guidelines for the remission of administrative penalties regarding excess contributions tax where:·
– an individual does not provide a release authority to a superannuation provider within the specified time
– an individual gives a release authority and the total amount released in accordance with the release authority exceeds the amount required to be released, or
– a superannuation provider does not release the required amount within the specified time.
To read more at ATO website click on the following link: