The ATO has begun to issue excess transfer balance (ETB) tax assessments to self-managed super fund (SMSF) members (or their agents) who had previously received an ETB determination and rectified the excess.
According to this ATO update, these paper ETB tax assessments are sent to SMSF members (or their agents), and not to the fund. In determining how to cover the liability, members can use assets from outside Superannuation, or they can access their Superannuation and either:
- make an additional commutation of their income stream;
- make a larger than usual one-off pension payment; or
- take a lump sum from any accumulation interest they hold.
The ATO has warned that SMSF members who did not receive an ETB determination may still receive an ETB assessment.
The ETB tax is due and payable 21 days after the assessment is issued. A general interest charge will accrue if any amount remains unpaid after the due date.