Dates and payment methods key to avoid excess contributions

AAT decision, Hope and Commissioner of Taxation [2014] AATA 877, excess contributions, superannuationYet again an Administrative Appeals Tribunal (AAT) decision has shown the importance of dates and payment methods for avoiding making excess contributions to superannuation. This is particularly the case when making super contributions around the end of the financial year.

As described in the case of Hope and Commissioner of Taxation [2014] AATA 877, Mr and Mrs Hope were both directors and employees of their company. Part of Mrs Hope’s responsibilities was as bookkeeper, including payroll and making superannuation contributions. On the 30th of June 2008 $88,000 of superannuation contributions were transferred from the company bank account to the super funds of Mr and Mrs Hope, $42,000 and $46,000 respectively. These payments were made via the MYOB Clearing House using the M-Powered Superannuation system to two different APRA-regulated superannuation funds. However these amounts were received by the super funds on the 3rd and 4th of July 2008. Read more...