excess contributions trustee refund?, page-4

  1. OSF
    9 Posts.
    You generally need to look at the SMSF trust deed first to see what contributions must be accepted by the SMSF, and if excess contributions can be rejected.

    Reg 7.04 of the SIS Act deals with accepting contributions, and also outlines the exceptions which allow for contributions to be rejected/refunded.

    If your trust deed allows, and if you fit into one of the exceptions of reg 7.04, then the SMSF may be able to reject the contribution.

    One thing to note which is often overlooked, if the contribution is refunded to you it will be taxable to you personally. If you are on the top marginal tax rate then there may be no tax benefit in refunding the contribution (depending of course on the amount of the excess contribution and whether or not it breaches one or both caps).

    Cafa is right, there may be some other avanues depending on your circumstances and so it is always worth talking to the ATO
 
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