All Australians who have previously inadvertently breached their concessional superannuation contribution caps should be given the opportunity to correct their mistakes without incurring heavy penalties, according to Shadow Minister for Financial Services and Superannuation, Senator Mathias Cormann.
After finally addressing the issue of inappropriate penalties for unintentional excess contributions, the Government should allow those who have made the breaches the same opportunity to correct them that they would have in other parts of the tax system, Cormann said.
Tax Office figures show 65,000 people had been hit with extra taxes after inadvertent breaches of their concessional super caps during the 2009/10 financial year, according to Cormann.
The problem is being made worse in the current financial year due to the halving of the caps from $50,000 to $25,000, he said.
“One of the many real life examples of the problem is a part-time schoolteacher who inadvertently paid $700 above her contribution cap into her superannuation funds, triggering a penalty tax bill of $70,000,” Cormann said.
“This lady and the thousands of people like her deserved better than to be ignored by Labor as it reaped the windfall revenue from effective rates as high as 93 per cent,” Senator Cormann said.
