Reforming the Superannuation Excess Non-concessional Contributions Tax

The attached exposure draft legislation and draft explanatory memorandum give effect to the 2014‑15 Budget measure to allow individuals the option of withdrawing superannuation contributions in excess of the non‑concessional contributions cap made from 1 July 2013 and associated earnings, with these earnings to be taxed at the individual's marginal tax rate.

This measure delivers on the Government's election commitment to develop an appropriate process that addresses inadvertent breaches of the contribution caps where the error would result in a disproportionate penalty.