The AAT has found a taxpayer had exceeded the relevant concessional contributions cap for the 2007-08 year and therefore affirmed the imposition of excess contributions tax. It also held there were no “special circumstances” present in the case to allow the Commissioner’s discretion (contained in s 292-465 of the ITAA 1997) to disregard or reallocate excess contributions to another financial year.
On 28 June 2007, the taxpayer’s former employer mailed a cheque for $7,215.83 to a super fund. That amount represented the employer’s liability to make a superannuation guarantee contribution in respect of the taxpayer for the June 2007 quarter. The cheque was received by the fund on 5 July 2007. Contributions to that fund totalled $26,889.97 for 2007-08. Additional contributions were made to another fund by the taxpayer’s new employer, which totalled $30,600 for 2007-08. The Tribunal noted that under s 292-20 of the ITAA 1997, a concessional contributions cap of $50,000 applied in 2007-08 for the taxpayer. The Commissioner decided the taxpayer’s superannuation contributions in 2007-08 exceeded the cap by $7,468.97 and issued an excess contributions tax notice for $2,359.30.
The AAT found the superannuation guarantee contribution reported on 5 July 2007 was correctly counted towards the taxpayer’s concessional contributions cap for 2007-08. It said a contribution to a super fund is “made” when the contribution is received by the fund. It added that if the contribution is made by cheque conveyed by post, the contribution is not “made” until the cheque is received by the fund (unless it is dishonoured). Accordingly, the AAT found the contribution was made on 5 July 2007. The AAT also held there were no special circumstances in the case to allow the excess contributions to be disregarded or reallocated to another year.
(AAT Case [2012] AATA 140, Re Peaker and FCT, AAT, Ref No: 2011/3849, Webb M, 6 March 2012.)
[LTN 45, 7/3]