POWERED BY MOMENTUM MEDIA
Early release re-contributions to super excluded from NCC
Individuals who withdrew money from their superannuation under the early release of scheme can now re-contribute it without it counting towards their non-concessional contribution cap (NCC).
According to the Australian Taxation Office (ATO), contributions could be made between 1 July, 2021 and 30 June, 2030.
“COVID-19 re-contribution amounts are not a new type of contribution. They are a personal contribution that we will exclude from an individual’s non-concessional contribution cap.
“Individuals can make COVID-19 re-contribution amounts to any fund of their choice where the fund rules allow.”
The ATO confirmed that the money did not need to be invested in the same super fund that it was withdrawn from and multiple re-contributions could be made.
However, if they were found to be ineligble, this could mean they exceeded the NCC.
"COVID-19 re-contribution amounts are reported as personal contributions. If the member is found to be ineligible it may result in that member exceeding their non-concessional contributions cap."
Up to $20,000 per individual was able to be withdrawn under the scheme and this was the maximum that could be re-contributed.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
The Federal Court has ordered AustralianSuper to pay $27 million for failures to address multiple member accounts.
The country’s fourth-largest fund is targeting the “missing middle” of members with a new digital advice service in partnership with Ignition Advice.
The prudential regulator confirmed it is considering BUSSQ’s Federal Court appeal.
The Albanese government has put forward a bold proposal to tackle the challenges of Australia’s swelling retirement pool, in an effort to allow superannuation funds to play a more active role in shaping members’ retirement outcomes.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.78 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
30.80 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
28.31 3 y p.a(%)
