Excess concessional contributions - release resolution
Superannuation Law requires the release to the ATO of part of a member’s benefits when the ATO serves on the Trustee a “Release Authority” in respect of a determination of excess concessional contributions (ATO Release Authority).
This resolution is to acknowledge that the ATO has served on the Trustee an ATO Release Authority in respect of a member and has requested the Trustee to release all or part of the member’s benefits to the ATO to pay all or part of the assessed income tax (or additional income tax) and excess concessional contributions charge arising from excess concessional contributions of the member and to authorise the processing and implementation of that request.
1. This resolution may be used to authorise the release of monies to the ATO in response to an excess concessional contributions determination (ECC Determination) of a Member.
2. Monies can only be released if and when the ATO provides to the Trustee a completed “Release Authority for Excess Concessional Contributions” (“the ATO Release Authority”) in respect of the Member.
3. The amount to be released cannot exceed the total release amount which is stated in the ECC Determination.
4. The ATO Release Authority cannot be processed by the Trustee if the ATO Release Authority has been provided to the Trustee more than 120 days after the Issue Date of the ATO Release Authority.
5. The Trustee must action the Release Authority within 10 business days of its issue date.
6. The Released Amount must be paid to the ATO. For this purpose, a Payment Slip (or copy) is attached to the ATO Release Authority.
7. If the requested amount cannot be paid or paid in full, the Trustee must complete the relevant sections of the ATO Release Authority indicating the relevant reason – that is, insufficient account balance, stale release authority or “other”.
8. The Trustee must complete and sign the ATO Release Authority. In particular, the declaration must be signed by the Trustee (or its agent). The completed and signed authority must be forwarded to the ATO within 10 business days of the payment. This can be done by posting or faxing: Post “ATO, PO Box 3578, Albury, NSW, 2640” or fax to 1300 139 024.
9. The ATO will notify the member of the outcome of the Release Authority: whether entire requested amount was paid to the ATO; whether only a portion of the requested amount was paid to the ATO or whether none of the requested amount was paid.
10. Penalties can be imposed on the Trustee – if the Trustee releases more than the specified amount, does not pay the released amount within 10 business days of receiving the ATO Release Authority or fails to forward the completed and signed ATO Release Authority to the ATO within 10 business days of payment of the released amount.
11. This resolution can be used by both corporate and by individual trustees.
12. All trustees/directors must sign the resolution.
13. The resolution must be dated.
For further information or advice please call the SUPERCentral Help Desk on 02 8296 6266, we would be pleased to assist.