That’s right! Another tax year is upon us! While we may lodge your return and you may get a nice refund early on, keep in mind that your superfund does not send data to the ATO until later. That means, that if your income is over $250,000 and your employer contributed to your super, your assessment will be amended to include Division 293 and you may be asked to return portion of your refund. In some cases, you end up with additional tax to pay.

Do not despair, the Division 293 assessments can be paid out of your super. You just cannot ignore them and need to fill in additional forms.

The ATO is reminding taxpayers and tax practitioners that the process to release money from super fund accounts to pay additional tax on concessional contributions (referred to as ‘Division 293’) changed on 1 July 2018.

Since then, practitioners or their clients must send the Division 293 election form to the ATO, not to the super fund (if the election form is sent to the fund it will be rejected and returned to the sender).

When the ATO receives the election form, they will have the client’s nominated super fund release and send the money to the ATO, which will then be offset against any outstanding tax or other Australian Government debts before they refund any remaining balance to the client.

You can do this via MyGov account.

If you’d like to know more about Division 293, contact your Brisbane accountants on 07 3160 7386.

For more information visit our blog on Div293 assessments  https://xperion.com.au/division-293-assessments/

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