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By: Simon Gow, Lindsay Huynh
03 Aug 2022 3 min read
There are limits on the amount of contributions you can make to your superannuation fund each year. When you exceed your non-concessional (after-tax) contributions cap, the ATO will issue a determination letter which gives you the choice to:
Once you make the election, the ATO will issue a release authority to your super fund with further instructions. From 1 October 2021, there are new streamlined processes for release authorities to be issued to super funds (including SMSFs) electronically via SuperStream.
Super funds can expect to receive a high volume of ATO release requests for their members over the coming months as they work through the backlog (noting that the determination letter may have been issued to the member in a prior year and long forgotten!).
Within 10 business days from the date of the release authority, the super fund must arrange for an electronic payment to the ATO and send them a Release Authority Statement (RAS) message advising whether the amount is successfully released to the ATO. For clients with SMSFs, we will assist you in this process.
Should you have any queries about the above, please contact your usual Grant Thornton relationship partner.
New “EET election” option for discretionary trusts to avoid the minimum 30 per cent without having to restructure, but creates inflexibility.
The rules for SMSF borrowing to acquire real property have now changed. While the policy debate has largely focused on residential property, the final law operates by reference to whether the real property qualifies as business real property under the superannuation rules. This distinction is important for trustees, advisers and lenders considering property transactions from 10 August 2026.
Treasury has released draft regulations supporting the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Act 2026, which introduced the new Division 296 tax on superannuation balances exceeding $3m and $10m. The regulations provide the long awaited operational detail on how the new tax will work in practice, particularly for defined benefit interests, large Australian Prudential Regulation Authority funds and Self-managed Superannuation Funds.
