Individuals can now recontribute amounts they withdrew under the COVID-19 early release of super (ERS) program without them counting towards their non-concessional cap.
In a recent online update, the ATO said that it is important to note COVID-19 recontribution amounts are not a new type of contribution, rather a personal contribution that receives a treatment to exclude it from an individual’s non-concessional contribution cap.
“The ATO will be applying the treatment to exclude eligible COVID-19 recontributions from the non-concessional contribution cap calculation,” the ATO said.
“Individuals can make COVID-19 recontribution amounts to any fund of their choice where the fund rules allow.
“Each COVID-19 recontribution amount must be detailed on a separate approved form and must not exceed $20,000 per approved form.”
Once members receive an approved form and COVID-19 recontribution that can be accepted subject to the specific rules of the fund, members will need to report the COVID-19 recontribution amounts to the ATO via MATS as a personal contribution as is currently required, according to the ATO.
Funds will also need to provide the ATO information from the approved form on a monthly basis and members will not be required to provide nil lodgement reports. However, the ATO noted that it is still working through the process for SMSFs and will advise that in due course.
In order to send information from the form to the ATO, the Tax Office said it is developing the functionality to use the Bulk Data Exchange facility via the Business Portal.
“Until this is in place, we need you to record and hold this information. We will advise you when you can send it to us,” the ATO said.
“The ATO expects to have the COVID-19 recontribution approved form and information for individuals and funds available on ato.gov.au by the end of August.
“If you have further enquiries on this matter, lodge a request using the Super Enquiry ServiceExternal Link.”