Superannuation (Excess Non-concessional Contributions Tax) Act 2007

Administered by Department of the Treasury

Legislation au C2007A00011 In force Act

Legislation content

Superannuation (Excess Non‑concessional Contributions Tax) Act 2007

No. 11, 2007 as amended

Compilation start date:  25 June 2014

Includes amendments up to: Act No. 52, 2014

 

About this compilation

This compilation

This is a compilation of the Superannuation (Excess Non-concessional Contributions Tax) Act 2007 as in force on 25 June 2014. It includes any commenced amendment affecting the legislation to that date.

This compilation was prepared on 3 July 2014.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.

Uncommenced amendments

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.

Provisions ceasing to have effect

If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.

 

 

 

Contents

1 Short title

2 Commencement

3 Definitions

4 Imposition of tax

5 Amount of tax

6 Temporary budget repair levy

Endnotes

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Endnote 5—Uncommenced amendments [none]

Endnote 6—Modifications [none]

Endnote 7—Misdescribed amendments [none]

Endnote 8—Miscellaneous [none]

 

An Act to impose excess non‑concessional contributions tax, and for related purposes

1  Short title

  This Act may be cited as the Superannuation (Excess Non‑concessional Contributions Tax) Act 2007.

2  Commencement

  This Act commences on the day on which it receives the Royal Assent.

3  Definitions

  In this Act:

excess non‑concessional contributions has the same meaning as in the Income Tax Assessment Act 1997.

financial year has the same meaning as in the Income Tax Assessment Act 1997.

4  Imposition of tax

  Excess non‑concessional contributions tax payable under section 292‑80 of the Income Tax Assessment Act 1997 is imposed.

5  Amount of tax

  The amount of the tax is 47% of a person’s excess non‑concessional contributions for a financial year.

6  Temporary budget repair levy

 (1) This section applies to the temporary budget repair levy years.

 (2) Increase the percentage mentioned in section 5 by 2 percentage points.

Increase limited if certain contributions already taxed

 (3) However, do not increase the percentage in relation to a person to the extent the increase would result in the sum of the following amounts payable on the person’s excess concessional contributions for a temporary budget repair levy year exceeding 95% of those excess concessional contributions:

 (a) income tax;

 (b) excess non‑concessional contributions tax.

Definitions

 (4) In this section:

excess concessional contributions has the same meaning as in the Income Tax Assessment Act 1997.

income tax has the same meaning as in the Income Tax Assessment Act 1997.

temporary budget repair levy year has the same meaning as in section 4‑11 of the Income Tax (Transitional Provisions) Act 1997.

Endnotes

Endnote 1—About the endnotes

The endnotes provide details of the history of this legislation and its provisions. The following endnotes are included in each compilation:

 

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Endnote 5—Uncommenced amendments

Endnote 6—Modifications

Endnote 7—Misdescribed amendments

Endnote 8—Miscellaneous

 

If there is no information under a particular endnote, the word “none” will appear in square brackets after the endnote heading.

 

Abbreviation key—Endnote 2

The abbreviation key in this endnote sets out abbreviations that may be used in the endnotes.

 

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

 

The legislation history in endnote 3 provides information about each law that has amended the compiled law. The information includes commencement information for amending laws and details of application, saving or transitional provisions that are not included in this compilation.

 

The amendment history in endnote 4 provides information about amendments at the provision level. It also includes information about any provisions that have expired or otherwise ceased to have effect in accordance with a provision of the compiled law.

 

Uncommenced amendments—Endnote 5

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in endnote 5.

 

Modifications—Endnote 6

If the compiled law is affected by a modification that is in force, details of the modification are included in endnote 6.

 

Misdescribed amendments—Endnote 7

An amendment is a misdescribed amendment if the effect of the amendment cannot be incorporated into the text of the compilation. Any misdescribed amendment is included in endnote 7.

 

Miscellaneous—Endnote 8

Endnote 8 includes any additional information that may be helpful for a reader of the compilation.

 

Endnote 2—Abbreviation key

 

ad = added or inserted

pres = present

am = amended

prev = previous

c = clause(s)

(prev) = previously

Ch = Chapter(s)

Pt = Part(s)

def = definition(s)

r = regulation(s)/rule(s)

Dict = Dictionary

Reg = Regulation/Regulations

disallowed = disallowed by Parliament

reloc = relocated

Div = Division(s)

renum = renumbered

exp = expired or ceased to have effect

rep = repealed

hdg = heading(s)

rs = repealed and substituted

LI = Legislative Instrument

s = section(s)

LIA = Legislative Instruments Act 2003

Sch = Schedule(s)

mod = modified/modification

Sdiv = Subdivision(s)

No = Number(s)

SLI = Select Legislative Instrument

o = order(s)

SR = Statutory Rules

Ord = Ordinance

Sub‑Ch = Sub‑Chapter(s)

orig = original

SubPt = Subpart(s)

par = paragraph(s)/subparagraph(s)

/sub‑subparagraph(s)

 

 

 

Endnote 3—Legislation history

 

Act

Number and year

Assent

Commencement

Application, saving and transitional provisions

Superannuation (Excess Non‑concessional Contributions Tax) Act 2007

11, 2007

15 Mar 2007

15 Mar 2007

 

Superannuation (Excess Non‑concessional Contributions Tax) Amendment (DisabilityCare Australia) Act 2013

46, 2013

28 May 2013

Schedule 1: 28 May 2013 (see s. 2(1))
Remainder: Royal Assent

Sch. 1 (item 2)

Superannuation (Excess Non‑concessional Contributions Tax) Amendment (Temporary Budget Repair Levy) Act 2014

52, 2014

25 June 2014

Sch 1: 25 June 2014 (see s 2(1))
Remainder: Royal Assent

—

Endnote 4—Amendment history

 

Provision affected

How affected

s. 5.....................

am. No. 46, 2013

s 6.....................

ad No 52, 2014

 

Endnote 5—Uncommenced amendments [none]

Endnote 6—Modifications [none]

Endnote 7—Misdescribed amendments [none]

Endnote 8—Miscellaneous [none]

 

 

 

 

Overview

The Superannuation (Excess Non-concessional Contributions Tax) Act 2007 was enacted to address the issue of individuals making contributions to their superannuation funds that exceed the non-concessional contributions cap. This legislation imposes a tax on excess non-concessional contributions, aiming to maintain the integrity of the superannuation system by ensuring that individuals do not benefit from making contributions that exceed the prescribed limits. The Act was passed by the Australian Parliament and received Royal Assent on 15 March 2007. The policy objective of the Act is to regulate the amount of non-concessional contributions that can be made to superannuation funds and to impose a tax on any excess contributions to discourage such behaviour, thereby preserving the intended benefits of the superannuation system for retirement savings. The Act specifies that the tax imposed is 47% of the excess non-concessional contributions for a financial year, ensuring that individuals are financially penalised for exceeding the contribution limits. Additionally, the Act includes provisions for a temporary budget repair levy, which increases the tax rate by 2% during specified years, subject to certain conditions that prevent the total tax payable on excess contributions from exceeding 95% of those contributions. This measure was introduced to address fiscal concerns and was amended by the Superannuation (Excess Non-concessional Contributions Tax) Amendment (Temporary Budget Repair Levy) Act 2014.

Scope and Application

The Superannuation (Excess Non-concessional Contributions Tax) Act 2007 imposes a tax on excess non-concessional contributions as defined in the Income Tax Assessment Act 1997. The Act applies to individuals who make excess non-concessional contributions to their superannuation accounts. The tax rate is set at 47% of the excess non-concessional contributions for a financial year. The Act applies across the Commonwealth of Australia and is subject to modifications through subordinate instruments, including amendments that have been made to the original Act, such as those introduced by the Superannuation (Excess Non-concessional Contributions Tax) Amendment Acts. Notably, during temporary budget repair levy years, the tax rate can be increased by 2 percentage points, subject to certain limitations on the total tax burden on excess contributions.

Key Provisions

The Superannuation (Excess Non-concessional Contributions Tax) Act 2007, as amended, primarily imposes an excess non-concessional contributions tax, which applies to contributions exceeding the non-concessional contributions cap (sections 4 and 5). The tax rate is set at 47% of the excess contributions for the financial year (section 5). During temporary budget repair levy years, the tax rate increases by 2 percentage points, subject to certain limitations to prevent the total tax liability on excess contributions from exceeding 95% (section 6). These sections clarify the tax's imposition, its calculation, and the specific conditions under which it applies. The Act imposes several obligations on individuals who make non-concessional contributions to their superannuation accounts. These include the requirement to report the excess non-concessional contributions to the Australian Taxation Office (ATO) and to pay the corresponding tax (section 4). The Act also mandates that the ATO review contributions and determine the applicable tax, ensuring that individuals remain compliant with the superannuation laws and do not exceed the allowable contribution limits (section 5). During the temporary budget repair levy years, individuals must also consider the additional tax implications and ensure that their total tax liability does not surpass the specified threshold (section 6). Failure to comply with the requirements of this Act can result in significant penalties. The Act does not explicitly state the penalties for non-compliance, but penalties for related provisions in the Income Tax Assessment Act 1997 can be inferred. Generally, penalties for non-compliance with superannuation laws can include fines, interest on unpaid tax, and in severe cases, criminal charges. The exact penalties would depend on the specific circumstances and the provisions of other relevant legislation, such as the Income Tax Assessment Act 1997 and the Crimes Act 1914. It is crucial for individuals to accurately report and pay the tax to avoid these potential consequences.

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Area of Law
Taxation Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Offence Provisions
Reporting & Disclosure Obligations
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.