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