The ATO has advised that it will start issuing Div 293 tax notices of assessment for the 2012-13 financial year to individuals from early February 2014.
From the 2012-13 income year, a 15% Div 293 tax on concessional contributions applied to those individuals with incomes above $300,000. According to the ATO, to calculate whether an individual has income and concessional contributions greater than $300,000, it will look at the income reported on an individual’s income tax return, and contributions reported in their superannuation member contribution statement, or SMSF annual return.
The ATO noted that the notices of assessment to be issued will state an individual’s total earnings for Div 293 tax purposes, tax contributions, and the amount of Div 293 tax that is due and payable by the prescribed due date (usually 21 days after the Commissioner gives the notice of assessment).
It said a release authority will also be issued with the notice of assessment, and individuals can choose to have their super funds pay the tax or pay it themselves.
[LTN 1, 3/1/14]