ATO addresses excess NCC determination issue

excess non-concessional contributions determinations

Excess non-concessional contributions determinations issued in error are currently being addressed by the ATO

The ATO has released a guidance note to alleviate concerns over excess non-concessional contributions (NCC) determinations issued to some SMSFs in error.

The situation has arisen from certain pensions being double counted for total super balance purposes.

According to the regulator, an SMSF member may have received an excess NCC determination if they have a pension that commenced on either 30 June 2017 or 1 July 2017 and have already lodged a transfer balance account report (TBAR) with the ATO with respect to those income streams.

In the guidance note, the ATO confirmed it was aware this error had occurred and as such had implemented processes and fixes in order to stop any further incorrect excess NCC determinations being issued in these circumstances.

Further, the regulator stipulated SMSF trustees are not required to amend any of the reporting in relation to the fund if an excess NCC determination has been issued to them as an amended determination should be sent out within the next four weeks.

If SMSF trustees have not received an amended determination within this period of time, it has been recommended they contact the ATO via email at [email protected].

“An incorrect determination is more likely to issue where an SMSF is reporting late or amending its TBAR reporting as this will trigger our calculation of the individual’s total super balance and override any fixes already in place,” the regulator said.

The ATO also clarified an amended determination will not be issued in situations where the TBAR for an SMSF contained an error.

It pointed out trustees would be required to lodge a TBAR cancelling the original incorrect reporting and lodge a new TBAR notifying the ATO of the income stream in question with the correct reported effective date.

The response comes after selfmanagedsuper reported SuperConcepts had identified some ATO staff may not be aware of the transitional arrangements in place to deal with this anomaly.

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