ATO Excess Concessional super contributions

So I made a mistake for 2017/18 and made about 6K extra super salary sacrifice contribution about the 25K cap .

Now ATO giving the option of 'releasing' 85% (first breach) of it or leaving it as post-tax contribution (and paying additional penalty/tax).
I kinda want the cash back as I don't see the benefit of leaving it as post-tax contribution (aside from more in super). But the YTD super performance has gone backwards this year and I assume the 'release' will come out of the current balance - so not great either

anyone have comments or suggestions best way forward ?

 

Interested to hear the answer. In my case its only $800, which I elected to release rather than paying ~$200 to leave it there. I found the $12.15 charge for late tax payment somewhat interesting too, given the notification delay.

We have the option of having any bonus paid directly to Super, but the catch is we nominate in August but don't find out if we get a bonus (or how much) until mid November.

 

What's your balance and your age?? (not getting personal but I'm wondering how soon you would access the super). If close by keeping it in super (as post-tax contribution), you would access this money as part of your tax-free pension. Another benefit of keeping it in super is the compounding effect.

 

I'm 35 and balance $125K. I worked overseas for a few years, no super - so wanted to put in a bit more to make up for those years. I miscalculated/miscommunicated with my company, as they match employee super pre-tax contributions (salary sacrifice) to a certain point.

I'm thinking of taking it out and putting into offset for IP

 

Is there a way you could put additional (salary sacrifice) $6K into super which will count towards new FY and make sure it stays as cash and then take that amount out instead of selling your investments?

Cheers,
Oracle.

 

The release of funds can be made by the required date but that money also needs to pay the tax (both the excess charge and the extra personal tax). Otherwise, no release of super is permitted at your age

 

So just follow up on this. There is no "roll over" option currently but this will be available starting 1 July 2018 - I haven't read up on it, but may be worth checking out

In the end I did a mix, asked to keep some as post-tax contribution and others were released from super (as this was my first 'breach').

 

The 1 July 2019 issues arent yet operative and the ALP has indicated its opposition to the rule...a likely repeal may yet occur.

Carry-forward concessional contributions of unused caps over five years

 

Good info. Is it up to the taxpayer to calculate the contributions shortfall and identify that this is a carry forward contribution I wonder?

 

No. The ATO would calculate this. They would then not impose the ECT.

One of the concerns with the catch up rule is that nobody bar the ATO would have any idea what their unused cap actually is. (At least accurately!!)

And the ATO only know after the financial year is finalised for all reporting contributions. Its like me asking you how much of your land tax threshold is un-utilised for the past three years.

 

Yes that's what I was thinking, a bit like the $1.6m ceiling I guess going up and down with market performance.

 

The $1.6m can go below $1.6m with performance and pensions but it can also go up !! However given present market conditions I doubt many will see that benefit. eg if a lucky investor with a $1.6m cap had their asset outperform markets and double in value their cap will cover the pension account with a value of $3.2m There is a anti-avoidance rule in there somewhere I recall so it cant be manipulated with (I think its the non-segregated asset rule !)