When you lodge your tax return, the ATO will send you a Notice of Assessment with details about any tax you’ll need to pay. If you’re required to pay excess contributions tax, you’ll have 21 days from the issue date of your Notice of Assessment to pay the tax. After that, interest and further penalties are charged.
Paying excess concessional contributions tax
If the tax is on excess concessional contributions, you can choose to pay this with your own money or with money from your super fund. If you choose to pay it with money from your super fund, you can authorise your super fund to release the amount to you or to pay the ATO directly.
You can't use a release authority from the ATO to release an amount from a Defined Benefit account. If you don't have any money in an Accumulation account and all of your money is in a Defined Benefit account, you must pay the excess concessional contributions tax from your own money.
Paying excess non-concessional contributions tax
If the tax is on excess non-concessional contributions, you must pay this tax from your superannuation. You can authorise your super fund to release the amount to you or to pay the ATO directly.
The ATO will send you a release authority form to authorise the withdrawal of money from your superannuation fund to pay the tax.
You can present release authorities to any of your superannuation funds, other than those that hold only a Defined Benefit account on your behalf, within 90 days of the issue date.
It's important to note that while you have 90 days to present your release authority to your superannuation fund, interest may be charged if you pay after the due date, which is 21 days from the date of your ATO Notice of Assessment.
After receiving the release authority, we’ll generally make a payment to the ATO or to you as nominated within seven working days.
You can't use a release authority from the ATO to release an amount from a Defined Benefit account. If you don't have any money in an Accumulation account and all of your money is in a Defined Benefit account, you’ll need to pay the excess non-concessional contributions tax from other sources.
Remember, the caps apply to your total contributions across all of your super funds, so it's important to keep a track of your contributions. If you contact us, we’ll be able to tell you what contributions you have made to your QSuper account within the financial year (another good reason to consolidate all of your super into QSuper).