Thanks to the complex tax regulations which are applied to Australia’s superannuation system, making excess contributions is not as difficult as it sounds. Currently, those aged over 50 can contribute $50,000 into superannuation and only the concessional tax rate is applied to this amount. However, as this includes payments made under the Employer Superannuation Guarantee, knowing exactly what you have paid into superannuation can be tricky.
From 1 July 2011, those who breach the concessional cap can request that the money be refunded to them, up to a maximum of $10,000.
Consultation with the superannuation industry will be sought by the Government on the implementation of this measure.