From smsmagazine.com.au: SMSF members may benefit from an unexpected improvement in their taxable components when they accidentally exceed their non-concessional contribution cap and later release the excess amount.

The proportioning rule typically applied to superannuation withdrawals does not affect the released excess contribution, allowing for a higher tax-free component ratio.

For example, following the release of an excess contribution, a member can see their tax-free component increase from 50% to 56%, despite the total super balance being reduced.