Commonwealth Consolidated Acts Commonwealth Consolidated Acts(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 the individual's superannuation interests.
Note: This can be done under subsection 131 - 15(3) in Schedule 1 to the Taxation Administration Act 1953 .