| Ideally, after learning about superannuation | | | | voluntary release authority, you must give it to |
| contribution limits and excess contributions tax, | | | | your self managed superannuation fund within 90 |
| you will be able to avoid being in this situation. | | | | days after the date on the release authority. |
| However, if events have transpired whereby you | | | | - your SMSF has 30 days to release the tax |
| do find yourself having exceeded your | | | | amount after receiving the release authority. It |
| contribution limits and are subject to excess | | | | must also send both you and the ATO a |
| contributions tax, then its important you | | | | statement within 30 days after paying the money |
| understand your options on how to pay, the | | | | out. |
| timeframe's involved, and the process you'll need | | | | Excess non-concessional contributions tax |
| to go through. | | | | Similar to concessional contributions tax, if it turns |
| Excess concessional contributions tax | | | | out that you have exceeded your |
| If it turns out that you have exceeded your | | | | non-concessional contributions limit, then the ATO |
| concessional contributions limit, then the ATO | | | | (after having received all the required information) |
| (after having received all the required information) | | | | will send you a notice of assessment for the |
| will send you a notice of assessment for the | | | | relevant year. This assessment will include the |
| relevant year. This assessment will include the | | | | amount that you have to pay. However, this time |
| amount that you have to pay. Along with this | | | | along with the assessment, you'll receive a |
| assessment, you'll also receive a 'voluntary release | | | | 'compulsory release authority' for the amount of |
| authority' for the amount of the excess | | | | the excess non-concessional contributions tax |
| concessional contributions tax liability. It is this | | | | liability. It is this authority that you MUST use to |
| authority that allows you (if you wish - see | | | | release this tax amount from your SMSF. |
| below) to release this tax amount from your | | | | Your options in this instance are slightly different: |
| SMSF. | | | | |
| You actually have a couple of choices in terms of | | | | 1. You can just pay the tax yourself, however |
| how you pay this tax amount: | | | | you must still withdraw the tax amount from |
| | | | your SMSF, or; |
| 1. You can just pay it yourself out of your regular | | | | 2. Have the SMSF pay the tax amount directly to |
| non-super money | | | | the ATO, or; |
| 2. Pay it yourself as above, but then make a | | | | 3. Any combination of the above. |
| request to your SMSF to release those funds to | | | | The time limits you need to keep in mind are: |
| you via the 'voluntary release authority'. | | | | - you must pay the excess tax to the ATO |
| 3. Use the 'voluntary release authority' and have | | | | within 21 days of receiving the assessment notice. |
| your SMSF pay the tax amount directly to the | | | | - you must also give the compulsory release |
| ATO | | | | authority to your SMSF within 21 days after the |
| 4. Any combination of the above. | | | | date on the release authority. If you don't, then |
| There are also a few key time limits that you | | | | you're up for a penalty of 20 penalty units |
| need to keep in mind with all of this: | | | | (currently $2,200). However, if you do go over |
| - any excess concessional contributions tax that | | | | this time limit, your SMSF can still release funds |
| you are liable for is due and payable 21 days after | | | | via a compulsory release authority, provided it's |
| you receive the ATO assessment notice. Beyond | | | | within 90 days after the release authority's issue |
| this, the general interest charge (GIC) will apply. | | | | date. After this time, your SMSF cannot release |
| However, if you give your release authority to | | | | the money. |
| your SMSF within the time allowed for payment, | | | | - your SMSF has 30 days to release the tax |
| and your fund makes the payment within 30 | | | | amount after receiving the release authority. It |
| days (or any delay in payment was not within | | | | must also send both you and the ATO the |
| your control), you can request the ATO to refund | | | | statement for it within 30 days after paying the |
| any GIC. | | | | money out. |
| - if you decide that your going to use the | | | | |