Excess super concessional contributions made from 1 July 2013, will be included in an individual’s assessable income and taxed at their marginal tax rate. As part of the assessment process clients will receive a non-refundable tax offset of 15% of their excess concessional contributions along with an additional excess concessional contribution charge.
To assist payment of the additional tax and charge, individuals can request up to 85% of their excess concessional contributions to be released from their super fund. When released from the fund, it is not counted as non-concessional contributions.
For the 2011-12 and 2012-13 financial years only, individuals with excess concessional contributions of $10,000 or less may receive a once only offer to refund their excess concessional contributions. If refunded, the amount is still assessed at their marginal tax rate rather than pay excess contributions tax.