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ATO set to issue 90k assessments

The Tax Office is set to start issuing assessments for taxpayers with additional tax on their concessional contributions to superannuation.

Tax&Compliance Miranda Brownlee 18 January 2019
— 1 minute read

As part of the 2016 budget changes, the government lowered the threshold for division 293 tax from $300,000 to $250,000, effective 1 July 2017.

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Division 293 tax is applied to certain concessional contributions where an individual’s combined income and low tax contributions for a year exceed $250,000.

Lump sums can also be included for division 293 purposes depending on the member’s age, the amount paid and the components of the lump sum.

In an online update, the ATO said that with the system upgrades accommodating the law changes for the 2017/18 financial year, it will begin issuing additional tax on concessional contributions (division 292) assessments.

“Funds should be prepared for potential increase in release authorities, approximately 50,000 over the January to February period,” it said.

The ATO said that it expects to issue around 90,000 assessments.

ATO set to issue 90k assessments
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Miranda Brownlee

Miranda Brownlee

Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.

Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.

Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.

Tax&Compliance