Two recent cases have highlighted the need to ensure that superannuation contributions are actually received by the fund by the relevant date, not mere paid by the employer by that date.

In AAT Case [2012] AATA 322, Re Rawson and FCT, the Administrative Appeals Tribunal (AAT) upheld an excess contributions tax assessment and affirmed the commissioner’s decision that there were no “special circumstances” under section 292-465 of the Income Tax Assessment Act 1997 to warrant reallocating an excess contribution received late via BPay.

In AAT Case [2012] AATA 334, Re Paget and FCT, the AAT upheld an excess contributions tax assessment after ruling that there were no “special circumstances” under section 292-465 of the Income Tax Assessment Act 1997 to reallocate to an earlier financial year an excess contribution made via an electronic funds transfer (EFT).

Both these cases involve payments made to a fund just before, or on, 30 June but not received by the fund until early July becuause of processing times by banks and the bPay service. Consequently the contributions are deemed to have been in the later financial year. The timing difference tipped the members over the contributions cap and left them liable to excess contributions tax.