Senator Sherry: The Assistant Treasurer has provided the following answer to the honourable senator's question: (1) The number of individuals exceeding the concessional contributions caps, as per Table 1 in the answer to question on notice number 367 broken down by the marginal income tax rate brackets is as follows: (a) Financial Year 2008-09 Table 1: Number of individuals potentially exceeding contribution caps in 2008-09 by marginal tax rate Marginal Tax Rate Concessional Cap Non Concessional Cap Both caps 0% 437 627 24 15% 2,086 1,612 90 30% 6,226 1,118 205 40% 8,798 624 194 45% 9,764 457 324 No Income tax return1 980 360 16 Total 28,291 4,798 853 1 Individuals in this category are those who either are not required to lodge a return or have an outstanding tax return. The ATO is following up these cases where required. (b) Financial Year 2009-10 Table 2: Number of individuals potentially exceeding contribution caps in 2009-10 by marginal tax rate Marginal Tax Rate Concessional Cap Non Concessional Cap Both caps 0% 333 317 20 15% 2,103 922 46 30% 8,625 627 80 40% 17,409 328 96 45% 13,449 186 102 No Income tax return1 23,814 1,959 197 Total 65,733 4,339 541 1 Individuals in this category are those who still have to lodge their return in accordance with the Tax Agent Lodgment Program and those who either are not required to lodge a return or have an outstanding tax return. The ATO is following up these cases as required. Note: In the above tables, not all individuals identified as exceeding the contribution caps will receive an assessment. A number of cases will be subject to correction of reporting errors by funds. Additionally, the ATO takes a practical, risk based approach in relation to cases where the caps are exceeded by only a small amount. Figures for 2009-10 will change as self managed super funds and some individuals are not required to lodge 2009-10 information until May and June of 2011. (c) An estimate for 2010-11 is currently not available. (2) The percentage of the individuals who have exceeded the concessional contribution caps that are defined benefit members is outlined in the below table. Table 3: Percentage of individuals who have exceeded the concessional cap who are members of a defined benefit fund Financial Year % Defined Benefit Fund Members %Hybrid Defined Benefit Fund Members 2007-08 1.0% 44.9% 2008-09 1.0% 44.1% 2009-10 1.7% 58.8% Source: The defined benefit numbers shown in the table are ascertained by matching data from the Australian Prudential Regulation Authority Statistics - Superannuation fund-level profiles June 2010 (issued 27 January 2011) with excess contribution data. Note: Hybrid defined benefits funds will have both a defined benefit and accumulation element (eg Commonwealth Superannuation Scheme). The ATO is unable to determine the proportion of members in the hybrid funds who would only receive defined benefits. Information for 2010-11 financial year is not available and the ATO is unable to provide percentage figures at this time. (3) Revenue is generally not hypothecated to spending. The excess contributions tax will become part of general revenue. (4) This estimate has not been calculated. (5) The net impact for 2009-10 and 2010-11 were made public as part of the 2010 11 Budget Estimates in Treasury’s written response to BET68. An electronic copy of this response can be found on the Australian Parliament House website, located at: http://aph.gov.au/Senate/committee/economics_ctte/estimates/bud_1011/Treasury/answers/BET68.pdf (6) It is not possible to provide projected forward estimates given the legislative detail for some measures are still being finalised, e.g. concessional contributions cap for those over 50. (7) Excess contributions tax is an integrity measure to ensure the tax concessions provided to superannuation are both fiscally sustainable and targeted appropriately.