The attached exposure draft regulation and draft explanatory statement would make changes to regulations to implement the Fairer Taxation of Excess Non-concessional Contributions reforms and correct minor technical errors in the regulations.
The reforms will allow individuals to withdraw superannuation contributions in excess of the non‑concessional contributions cap made from 1 July 2013 and associated earnings, with these earnings to be taxed at the individual's marginal tax rate. The reforms were introduced on 4 December 2014 as part of the Tax and Superannuation Laws Amendment (2014 Measures No. 7) Bill 2014 and are currently before Parliament.
This measure is part of the Government's election commitment to develop an appropriate process that addresses inadvertent breaches of the contribution caps where the error would result in a disproportionate penalty.
The regulations would enable superannuation providers to release amounts to individuals who elect to withdraw non-concessional contributions under the reforms, and would also correct some other minor technical errors in the regulations.