Tax File Numbers - Additional tax may be imposed on employer contributions

Super Funds, including Self Managed Superannuation Funds, have until 30 June 2008 to obtain Tax File Numbers from those members who have, to date, not quoted their TFNs to the trustee.

While it is not compulsory for a member to provide the trustee with their TFN, if the trustee does not have a member’s TFN by 30 June 2007, the trustee must impose an additional tax at 31.5% on all employer contributions for that member once more than $1,000 of such contributions have been received in a financial year.  This 31.5% is in addition to the normal 15% tax on the taxable contributions.

Once the $1,000 threshold of employer contributions is exceeded, the additional tax of 31.5% applies to each dollar of employer contributions for that member and not simply each dollar of employer contribution in excess of $1,000.