The AAT has upheld an excess contributions tax assessment and affirmed the Commissioner’s decision that there were no “special circumstances” under s 292-465 of the ITAA 1997 to warrant reallocating an excess contribution received late via BPay.
On 29 June 2009, a concessional contribution of $97,127 was initiated by the taxpayer’s employer (also her husband) via BPay to the taxpayer’s superannuation fund. However, the BPay payment was not received into the superannuation fund’s bank account until 1 July 2009. The Commissioner treated the $97,127 as a concessional contribution “made” in the 2010 year (instead of the 2009 year) and issued the taxpayer with an ECT assessment of $30,595.
The AAT held that the concessional contribution by BPay on 29 June 2009 was not “made” in the 2009 year pursuant to s 292-25(2)(a) of the ITAA 1997 as the amount was not “received” by the superannuation fund until 1 July 2009 (ie in the 2010 year). The AAT agreed with the established view that contributions by electronic funds transfer are “made” when they are actually “received” by the superannuation fund and credited to the fund’s account.
In addition, the AAT affirmed the Commissioner’s decision that there were no “special circumstances” under s 292-465(3)(a) to justify a determination to reallocate the excess contribution to the 2009 year. The mere fact that a transfer of funds, initiated on the last business day of the financial year (given it was made after the BPay cut off on 29 June), but was not credited to the superannuation fund until the following business day is not in any way “unusual or out of the ordinary”, the AAT said.
(AAT Case [2012] AATA 322, Re Rawson and FCT, AAT, Ref No 2011/5199, Walsh SM, 25 May 2012).
[LTN 110, 8/6]