Treatment and remediation of excess super contributions

The Board has received the following suggestion during the course of its consultations.

The existing process for the treatment and remediation of excess superannuation contributions is unfair and overly bureaucratic. Many directors with contributions multiple organisations and death and disability insurance find it difficult to comply with the existing caps. Where they don't they are required to be advised by the ATO generally years later, withdraw the surplus and take an earnings adjustment. No account is taken of other withdrawals in excess of the minimum pension amount that the beneficiary may have received. In my case I had made a six figure withdrawal in excess of the minimum pension but still had to make a further withdrawal of the deemed excess amount. The policy is directed at ensuring contributors don't benefit from a lower tax rate on excess earnings but it is a one sided test which does not account for situations where no benefit has been derived.

The Board is interested in getting the thoughts of the Sounding Board community on this issue. Do people share a similar concern?