The Treasury has released draft legislation and explanatory material on the Government’s proposal to refund certain excess concessional superannuation contributions announced in the 2011-12 Budget. The draft is available on the Treasury website.
Under the proposal, eligible individuals would be given a once-only option to have excess concessional contributions up to $10,000 (not indexed) refunded and assessed at their marginal tax rate for the financial year in which the contributions were made. The refund option will only apply for the first year in which the concessional contributions cap is breached, commencing from 2011-12.
Treasury previously released a consultation paper on the measure and received 22 submissions in response from various professional bodies including ASFA, CPA, ICAA and Financial Planning Association of Australia.
Submissions are due by 20 January 2012.
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