Support Query
How to process Excess Contributions?
How to process Excess Co-Contributions? Step-by-Step Guide in BGL 360 (Simple Fund 360) FOR the "Refund for Overpayment of Co-Contributions" condition of release.
Solution
If a member has excess contributions for 2013–14 or later years, the ATO will issue an excess contributions determination and a Notice of Assessment.
The example below outlines instructions for excess concessional contributions.
For information on the process of managing excess non-concessional contributions, see the following ATO article:
Example:
A fund member made an excess concessional contribution of $10,000 to a super fund in FY 2023-24.
Members have the options below:
Option 1. Leave the excess concessional contributions in the super fund;
Option 2. Elect to release - up to 85% of the excess concessional contributions from the super fund using the 46600/MemberCode Refund Excess Contributions account.
Option 1: The member decided to leave the full excess contribution in the fund.
Users can record the net excess concessional contribution amount that is not released as “External Non-Concessional Contribution” using the Previous Years & External Contributions - Member Dashboard
wizard.
Record the contribution as a Non-Concessional contribution using the PY & External Contribution wizard, selecting the appropriate financial year.
Note
1. Where the excess contribution component is to be reclassified as Tax-free, users can manually Update Member Components.
2. Where the excess concessional contribution is made to the SMSF instead of an external fund, users can still utilise the PY & External Contribution wizard to process, by entering N/A or the SMSF name under External Fund Name.
Option 2: The member decided to release 85% of the excess concessional contributions.
Record a bank statement entry through Transaction Input in the Transaction List to account 46600/MEMBERCODE for the net amount of excess contributions to be refunded.
DR 46600/MEMBERCODE (select the relevant member) $8,500
CR 60400/BANKCODE $8,500
When a refund of excess contributions is posted to account 46600/MEMBERCODE, the amount will appear in the Member Statement under the line item under "Decreases to Member account during the period".
See also
Please note BGL does not provide tax advice. Users may find other solutions that also suit.