If you are making use of the Government’s myGov service, be aware of this particular glitch when it comes to reviewing your superannuation contributions for the 2016 and 2017 financial years.
Following the recent change to superannuation contribution levels, there is a glitch that causes incorrect information to be shown in myGov accounts for people who made large non-concessional contributions in the 2015/16 or 2016/17 financial years.
Prior to 1 July 2017, the limit on non-concessional contributions was $180,000 pa or up to $540,000 for those who used the “bring forward” provisions. From 1 July 2017 this amount was reduced to $460,000 (less if you had more than $1.6m in superannuation at the time).
If, prior to 30 June 2017, you used this opportunity to make large non-concessional contributions still within the $540,000 cap, the glitch may cause your myGov account to show the rather alarming message that “You have exceeded the bring forward cap and will need to pay extra tax at your marginal tax rate or higher,” even though you were within the limit at the time of making the contribution.
The good news is that provided your contributions were made within the acceptable limits prior to 1 July 2017, there are no tax consequences and you should not be panicked by this message.
The ATO has been notified of the glitch and we understand this should be corrected in myGov before the end of the year.
If you are concerned by the information displayed in your myGov account, or if you’d like to confirm your tax obligations, do not hesitate to contact our office.
This information does not give business, accounting, taxation or financial planning advice. It is intended to provide information in a summary form and is general in nature. The contents do not constitute business, accounting, taxation or financial planning advice and should not be relied upon as such. Formal business, accounting, taxation or financial planning advice should be sought in particular matters. O’Connells OBM Pty Ltd accepts no liability in respect of this information and any person acting solely on the information contained within does so entirely at their own risk.