Excess contribution breaches still problematic
The number of excess concessional contributions tax breaches may have declined in 2010-11, but the number of breaches finding their way to the Superannuation Complaints Tribunal (SCT) is on the rise, according to the chair of the SCT, Jocelyn Furlan.
During a Roundtable last week, Furlan pointed out the rising number of excess contribution breaches finding their way to the SCT, saying this was one of the reasons she had welcomed the superannuation changes announced by the Federal Government last week.
She said that while excess contributions issues were not normally something which would fall under the jurisdiction of the SCT, they became an issue when they involved disputes around the conduct of superannuation funds.
Her comments came ahead of the SMSF Professionals' Association of Australia (SPAA) pointing to the reduction in the number of excess contribution caps breaches in 2010-11, with technical director Graeme Colley saying members of super funds and their advisers were increasingly getting a better understanding of lower concessional caps and may have adjusted accordingly.
"There seems little doubt that members are coming to grips with the changes in the caps and as such it's likely this welcome decline will continue when we see the Australian Taxation Office figures for 2011-12," Colley said.
He said it appeared the Australian Taxation Office had exercised discretion in about one third of cases, which was a change from the previous year when discretion was exercised in about a quarter of cases.
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