The ATO has announced individuals can now make a recontribution under the COVID-19 early release of super (ERS) program without it counting towards their non-concessional cap but the approved documents for the process are yet to be released.
In an update on its website directed towards superannuation funds, the SMSF regulator said the “recontribution amounts are not a new type of contribution … rather a personal contribution that receives a treatment to exclude it from an individual’s non-concessional contribution cap”.
“The ATO will be applying the treatment to exclude eligible COVID-19 recontributions from the non-concessional contribution cap calculation,” it added, noting an individual can make a COVID-19 early release recontribution to any fund they choose, with appropriate details outlined in an approved form, and not exceeding the $20,000 limit.
It pointed out no approved form was available until the end of August and any recontributions received by a super fund should be held until that time and then processed after notification from the ATO. It said it was working on a separate process for SMSFs.
After an approved form has been received, super funds will then need to report the COVID-19 recontribution amounts to the ATO along with the member’s tax file number and account number, unique superannuation identifier, date and amount of the contribution, and the declaration signed and dated.
The regulator noted that once the approved forms and corresponding information for members were released, Australian Prudential Regulation Authority funds would be able to use its bulk data exchange to upload COVID-19 recontribution data to the ATO.
