Deloitte welcomes review into excess contributions taxDOWNLOAD
29 April 2011: Professional service firm Deloitte has welcomed the review into the excessive super contributions tax which was recently detailed by Assistant Treasurer and Minster for Financial Services & Superannuation, Bill Shorten. Mr Shorten confirmed last week that Treasury is reviewing the current Excess Contributions Tax (ECT) penalty regime and is looking at options to change the laws.
Deloitte Superannuation partner, Mark Wilkinson, said the upcoming Federal Budget would be the perfect time to make these changes which he believed would be unfair for many Australians.
“Breaching the cap on superannuation payments is easy to do as consumers often have several employers so their compulsory contributions are not straight forward.
“People need to get the most from their Self Managed Super Funds and the administration process needs to be less complicated ensuring the tax sting from excessive contributions is minimised,” said Mr Wilkinson.
“Many organisations are now assisting people to capture their super fund information on a monthly basis in order to prevent compliance breaches and help with planning for the future,” added Mr Wilkinson.
Deloitte have developed a system which is designed to capture fund information on a monthly basis.
This enables clients to plan for compliance breaches and planning opportunities as well as identifying:
“The quicker that Treasury resolve this issue, the better it will be for all those Australians stung by the ECT,” said Mr Wilkinson.