These changes were announced in the 2014 Federal Budget, and according to the Government statement would mean:
“If an individual chooses this option [withdrawing excess non-concessional contributions], no excess contributions tax will be payable and any related earnings will be taxed at the individual’s marginal tax rate.
Individuals who leave their excess contributions in the fund will continue to be taxed on these contributions at the top marginal rate.”
Though the change is meant to apply from 1 July 2013 the consultation process is still proceeding. According to SPAA the legislation is “being drafted”, and meetings are being held between Treasury and “representatives of the superannuation industry, including the SMSF Professionals’ Association of Australia”.