Treasury [on Wed 18.2.2015] released for comment exposure draft regulation and an accompanying draft explanatory statement, which propose to make changes to regulations to implement the Fairer Taxation of Excess Non-concessional Contributions reforms and correct minor technical errors in the regulations.
The changes will allow individuals to withdraw superannuation contributions in excess of the non-concessional contributions cap made from 1 July 2013 and associated earnings, with these earnings to be taxed at the individual’s marginal tax rate. The changes were introduced on 4 December 2014 as part of the Tax and Superannuation Laws Amendment (2014 Measures No 7) Bill 2014 and are currently before the House of Reps.
Treasury said the regulations would enable superannuation providers to release amounts to individuals who elect to withdraw non-concessional contributions under the changes, and would also correct some other minor technical errors in the regulations.
COMMENTS are due by 18 March 2015.
[LTN 32, 18/2/15]
Treasury has released exposure draft regulations to implement the Fairer Taxation of Excess Non-concessional Contributions reforms and correct minor technical errors in the regulations. The reforms will allow individuals to withdraw superannuation contributions in excess of the non-concessional contributions cap made from 1 July 2013 and associated earnings, with these earnings to be taxed at the individual’s marginal tax rate.
The Tax and Superannuation Laws Amendment (2014 Measures No 7) Bill 2014, which is currently before parliament, proposes to allow individuals who exceed their non-concessional contributions cap in the 2013/14 or later financial years to elect to release from superannuation an amount equal to their contributions in excess of the cap plus 85% of an associated earnings amount. Excess non-concessional contributions that are released from superannuation will not attract excess non-concessional contributions tax.
The proposed regulation amends the Superannuation Industry (Supervision) Regulations 1994 (SISR) and the Retirement Savings Account Regulations 1997 (RSAR) to enable superannuation providers to release amounts to individuals that make an election to release non-concessional contributions.
The regulation also amends SISR and RSAR to allow payments under release authorities to meet certain tax liabilities for temporary residents.
[IT, 18/2/15]