The ECC form (EY) is a standalone form to the Individual income tax return. It applies to the 2012 and 2013 year and it's issued to individuals with a Notice of offer where eligible individuals have been identified to have exceeded their concessional contributions cap by $10,000 or less for the first time.
If the taxpayer chooses to take up a once only refund offer to have the amount of their excess concessional contributions released from their super account, the completed ECC (EY) form must be returned to the ATO within 28 days of issue.
If you have received a refund offer, the election gives you 3 choices:
Accept the offer and withdraw refund amount from the fund nominated by the ATO.
Accept the offer and nominate a different fund to withdraw the refund offer amount.
Accept the offer where no valid accumulation fund exists. (This will enable the offer to be provided, though no fund will be contacted to release benefit payments).
Where choices 1 or 2 are selected the ATO will send a refund release authority to the fund.
You can open the EY by selecting it from the:
- Navigation pane > ATO Forms > Excess concessional contributions
- Preparation > Schedules > Excess concessional contributions
The election form requires the individual to advise the ATO if the nominated fund holds their TFN. It is important that the fund nominated to release the benefit payments has the TFN of the individual as this facilitates an efficient release authority process.
Individuals will have 28 days to return the election form to the ATO. Where an extension of time is required, or changes to contributions reporting, contact the ATO to request an extension. Each request will be assessed on its merits.
The excess contributions will be added as income into the individual income tax return in the year the contributions were made.
A refundable tax offset equal to 15% of the excess concessional contributions will reduce the tax payable (This recognises the 15% tax already paid by the superannuation fund.)
Once the assessment is complete, the benefit payment received from the fund will be transferred to the individual to offset any debt from the assessment. The remainder will be refunded to the individual along with a notice of amended assessment and statement of account.