On 4 May we sent you an email letting you know about a mailout we were undertaking. This email provides you with an update. 
 
We have recently sent letters to taxpayers about advising taxpayers they may have exceeded one or both of the superannuation contributions caps. The mailout has identifed a number of issues with both our data and fund data. 
 
SMSF member contributions reporting  
 
In approximately 5% of the excess contributions tax (ECT) letters, we have identified errors in the member contributions reported by self-managed super funds (SMSFs) which have occurred through our systems. For example, data for one member has been recorded for another member within the SMSF. 
 
Solution: We have identified the taxpayers for whom we are aware this error has occurred. If the taxpayer rings us, we can advise them that this may have occurred for them. We will correct any identified reporting errors prior to raising any ECT assessments from July. We will be making further contact with these clients to provide them with correct information. 
 
Inclusion of the taxable component of a directed termination payment  
 
In about 1.5% of the ECT letters, the amount reported as the taxable component of a directed termination payment was incorrectly counted towards the taxpayer's concessional contributions. Under the law, only the amount of the taxable component of a DTP which exceeds the member's transitional termination payment cap of $1 million is counted towards the member's concessional contributions.  
 
Solution: We are planning to contact all taxpayers affected by this error. In the meantime, if the taxpayer rings us, we can advise them that this may have occurred. Again, this will not affect ECT assessments raised from July. 
 
Reporting personal contributions covered by 290-170 notices as employer contributions  
 
Some funds have reported personal contributions as employer contributions where members have notified them that the member is intending to claim the amount as a personal superannuation deduction. This means that the member's concessional contributions are basically double what the member expects, as we include both the amounts reported as employer contributions and the member's personal superannuation deduction amount in working out the member's concessional contributions. 
 
Solution: Funds must re-report the contributions correctly. Contributions made by the member, for the member, are personal contributions, even if the member notifies you that they intend to claim a personal superannuation deduction. Funds must include the amount that they acknowledge to the member in the fund's assessable income, and tax the amount at 15%. 
 
System errors  
Some funds have identified fund-specific system errors in their reporting systems including double reporting of amounts or of accounts. 
 
Solution: Funds must re-report the contributions correctly and take steps to change their reporting system for future reports. 
 
Self Managed Superannuation Funds and Tax File Number Notifications  
 
Two to three weeks ago, we issued Tax File Number notifications of Possible incorrect quotation of tax file numbers to fund administrators. The letter version of the notification asked self managed superannuation funds that need to correct member TFNs or other personal data (name, date of birth and/or address) to fully complete an annual return in paper format to make the changes. A number of administrators have queried the requirement to lodge amended Self Managed Superannuation Funds Annual Returns.  
 
Solution: We recognise the compliance burden this requirement to lodge an amended Self Managed Superannuation Fund Annual Return is placing on some administrators and are currently looking at other ways of updating this information in our systems. Self managed superannuation fund administrators may provide any changed member details in writing to the return address on the notice, i.e.: 
 
Australian Taxation Office  
PO Box 655  
Civic Square  
Canberra ACT 2608  
 
We will contact administrators individually if we need them to do anything else or if we require further information.  
Please note that APRA regulated superannuation funds should continue to follow advice issued in the past and lodge amended member contribution statements to report any changes. 
 
On 4 May we sent you an email letting you know about a mailout we were undertaking. This email provides you with an update. 
 
We have recently sent letters to taxpayers about advising taxpayers they may have exceeded one or both of the superannuation contributions caps. The mailout has identifed a number of issues with both our data and fund data. 
 
SMSF member contributions reporting  
 
In approximately 5% of the excess contributions tax (ECT) letters, we have identified errors in the member contributions reported by self-managed super funds (SMSFs) which have occurred through our systems. For example, data for one member has been recorded for another member within the SMSF. 
 
Solution: We have identified the taxpayers for whom we are aware this error has occurred. If the taxpayer rings us, we can advise them that this may have occurred for them. We will correct any identified reporting errors prior to raising any ECT assessments from July. We will be making further contact with these clients to provide them with correct information. 
 
Inclusion of the taxable component of a directed termination payment  
 
In about 1.5% of the ECT letters, the amount reported as the taxable component of a directed termination payment was incorrectly counted towards the taxpayer's concessional contributions. Under the law, only the amount of the taxable component of a DTP which exceeds the member's transitional termination payment cap of $1 million is counted towards the member's concessional contributions.  
 
Solution: We are planning to contact all taxpayers affected by this error. In the meantime, if the taxpayer rings us, we can advise them that this may have occurred. Again, this will not affect ECT assessments raised from July. 
 
Reporting personal contributions covered by 290-170 notices as employer contributions  
 
Some funds have reported personal contributions as employer contributions where members have notified them that the member is intending to claim the amount as a personal superannuation deduction. This means that the member's concessional contributions are basically double what the member expects, as we include both the amounts reported as employer contributions and the member's personal superannuation deduction amount in working out the member's concessional contributions. 
 
Solution: Funds must re-report the contributions correctly. Contributions made by the member, for the member, are personal contributions, even if the member notifies you that they intend to claim a personal superannuation deduction. Funds must include the amount that they acknowledge to the member in the fund's assessable income, and tax the amount at 15%. 
 
System errors  
Some funds have identified fund-specific system errors in their reporting systems including double reporting of amounts or of accounts. 
 
Solution: Funds must re-report the contributions correctly and take steps to change their reporting system for future reports. 
 
Self Managed Superannuation Funds and Tax File Number Notifications  
 
Two to three weeks ago, we issued Tax File Number notifications of Possible incorrect quotation of tax file numbers to fund administrators. The letter version of the notification asked self managed superannuation funds that need to correct member TFNs or other personal data (name, date of birth and/or address) to fully complete an annual return in paper format to make the changes. A number of administrators have queried the requirement to lodge amended Self Managed Superannuation Funds Annual Returns.  
 
Solution: We recognise the compliance burden this requirement to lodge an amended Self Managed Superannuation Fund Annual Return is placing on some administrators and are currently looking at other ways of updating this information in our systems. Self managed superannuation fund administrators may provide any changed member details in writing to the return address on the notice, i.e.: 
 
Australian Taxation Office  
PO Box 655  
Civic Square  
Canberra ACT 2608  
 
We will contact administrators individually if we need them to do anything else or if we require further information.  
Please note that APRA regulated superannuation funds should continue to follow advice issued in the past and lodge amended member contribution statements to report any changes.