Understanding your payment
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Why have I received, or why will I be receiving, a payment?
You made one or more partial withdrawals from your AustralianSuper account between November 2016 and March 2022 using a form that had incorrect information on how your withdrawal would be processed.
The form asked members requesting to withdraw part of their account balance to select the percentage of their withdrawal to be taken from each of their investment options. The form said that if a selection wasn’t made the withdrawal would be made equally across all the member’s current investment options. This didn’t reflect what happens in practice. If a selection isn’t made, a withdrawal is taken from the member’s investment options based on their future contribution investment choice(s). If an investment option is exhausted with this approach, the remainder of the withdrawal is drawn proportionately from the member’s remaining investment options.
Based on our calculations, some members who had their partial payment(s) withdrawn in line with their future contributions would have been better off if their withdrawal(s) had instead been processed in line with their current investment options, as described in the form. These members have received, or will receive, a payment for the investment returns they missed out on. For further information on how the payment was calculated please see the relevant sections below:
- My impacted accumulation account is still open. How was my payment calculated?
- My impacted accumulation account is closed. How was my payment calculated?
- I made multiple partial withdrawals from my account between November 2016 and March 2022. Will I receive a payment for all of these withdrawals?
Below are some examples of how your partial withdrawal was deducted from your future contributions. These examples are not based on a particular member’s circumstances and are for illustrative purposes only.
Example 1
On 1 November 2017 Sam requested to withdraw a partial payment of $10,000 from his AustralianSuper account. Sam didn’t select a percentage to withdraw from each of his investment options when completing the form. The form said that if Sam didn’t make a percentage selection, his partial payment would be drawn equally from across his current investment options. This did not happen. Instead, the partial payment of $10,000 was withdrawn in line with how Sam’s future contributions were invested.
Sam’s account balance by investment option before the partial withdrawal was requested:
Investment Option Account Balance ($) Percentage Split (%) High Growth 50,000 31 Balanced 60,000 38 Australian Shares 20,000 12 Cash 30,000 19 How Sam’s future contributions were invested:
Investment Option Percentage Split (%) High Growth 60 Balanced 40 How Sam’s partial withdrawal was drawn:
Investment Option Account ($) Percentage Split (%) High Growth 6,000 60 Balanced 4,000 40 Example 2
On 1 November 2017 Sam requested to withdraw a partial payment of $60,000 from his AustralianSuper account. Sam didn’t select a percentage to withdraw from each of his investment options when completing the form. The form said that if Sam didn’t make a percentage selection, his partial payment would be drawn equally from across his current investment options. This did not happen. Instead, the partial payment of $60,000 was withdrawn in line with how Sam’s future contributions were invested. This resulted in the exhaustion (the reduction to $0) of one of those investment choices. This meant that the remainder of the withdrawal was then drawn proportionately from Sam’s remaining investment options.
Sam’s account balance by investment option before the partial withdrawal:
Investment Option Account Balance ($) Percentage Split (%) High Growth 50,000 31 Balanced 60,000 38 Australian Shares 20,000 12 Cash 30,000 19 How Sam’s future contributions were invested:
Investment Option Percentage Split (%) High Growth 90 Balanced 10 There are two parts to how Sam’s $60,000 partial payment was drawn:
Part 1: Sam’s partial payment was drawn in line with his future contribution investment choices. This resulted in the exhaustion (the reduction to $0) of the High Growth option of his future contribution investment choices.
Investment Option Account balance ($) Future contributions investment split (%) Part 1: $60,000 drawn as per future contribution split Actual draw from each future contribution High Growth 50,000 90 54,000 50,000 Balanced 60,000 10 6,000 6,000 Australian Shares 20,000 0 0 0 Cash 30,000 0 0 0 Total 60,000 56,000 The future contribution investment split is 90% High Growth and 10% Balanced. 90% of $60,000 is $54,000. As the High Growth account balance was $50,000, there wasn’t $54,000 available in this option to withdraw the full 90% of the partial withdrawal. The most that could be withdrawn from Sam’s High Growth option was $50,000. The remaining $4,000 needed to be deducted from Sam’s remaining investment options.
Part 2: The remaining $4,000 was drawn proportionately from Sam’s other investment options:
Investment Option Remaining account balance Resulting percentage split of account balance Part 2: Remaining amount was drawn down in proportion to the account balance High Growth 0.00 0 Balanced 54,000 52% 2,076.92 Australian Shares 20,000 19% 769.23 Cash 30,000 29% 1153.85 Total 4,000 After withdrawing the maximum amount available in High Growth, Sam’s account balance was invested in the following proportions: 52% Balanced, 19% Australian Shares and 29% Cash. To complete the $60,000 partial payment, the remaining $4,000 was drawn in proportion to the remaining investment options.
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My impacted accumulation account is still open. How was my payment calculated?
Your payment was calculated by first determining what the amounts allocated to each investment option applicable to your account should have been, at the date of withdrawal from your account, had the process in the form been followed correctly (Principal)1. We then completed the following calculations to determine the remediation amount (described as the payment):
- We calculated what the investment returns of the Principal would have been from the date of your withdrawal(s) to 30 June 2024 had the process described in the form been followed (investment returns).
- We then applied the crediting rates to those investment returns from 1 July 2024 to the calculation output date2, based on your future contribution investment choice(s) on 30 June 2024 (forgone returns).
- Finally, we applied the Reserve Bank of Australia (RBA) cash rate plus 6% to the foregone returns for two weeks from the calculation output date to account for the time required for us to process the payment into your active accumulation account.
1 As a benchmark for our calculations, we compared the 30 June 2024 balance that was on our administration system against the results of a calculator that we built to work out the exact impact of this error. If there was a discrepancy of $100 or less, the value of that discrepancy was added to the Principal. Discrepancies of over $100 were individually investigated further to determine a more accurate figure.
2 Calculation output date: This is the effective date of the most recent crediting rates available at the time the calculation was completed.Example
This example is not based on a particular member’s circumstances and is for illustrative purposes only.
- 2 January 2022: John made a partial withdrawal using the form that had incorrect information. He withdrew $100,000. His remaining balance was $20,000.
- The remaining balance was invested as follows: 33% in Balanced, 33% in High Growth, and 34% in Cash.
- If the withdrawal had been made in line with what was described in the form, the remaining balance would’ve been invested as follows: 20% in Balanced, 50% in High Growth and 30% in Cash.
- 20 June 2024: John’s future contribution investment choice setting was changed to 100% High Growth.
- 30 October 2024: AustralianSuper calculated the financial impact of the incident for John.
The payment made to John would’ve been calculated as follows:
- Calculated the investment returns that John would have earned from 2 January 2022 to 30 June 2024 (investment returns) had the process described in the form been followed.
- Applied the crediting rate to those investment returns from 1 July 2024 in the High Growth option until 30 October 2024 (foregone returns).
- Applied two weeks of the RBA Cash Rate plus 6% to the foregone returns from 30 October 2024 to account for the time for us to process the payment into John’s active accumulation account.
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My impacted accumulation account is closed. How was my payment calculated?
Your payment was calculated by first determining what the amounts allocated to each investment option applicable to your account should have been, at the date of withdrawal from your account, had the process in the form been followed correctly (Principal)1. We then completed the following calculations to determine the remediation amount (described as the payment):
- We calculated what the investment returns on the Principal would have been from the date of your withdrawal(s) to the date the account(s) was closed had the process described in the form been followed (investment returns).
- We then applied the higher of the following amounts for the period from the date the account(s) was closed until the calculation output date2 (foregone returns):
- the returns on the highest performing investment option held on the account(s) when the account(s) was closed, or
- the Reserve Bank of Australia (RBA) cash rate plus 6%.
- Finally, we applied the RBA cash rate plus 6% to the foregone returns for two weeks from the calculation output date to account for the time required for us to process the payment into a temporary account and hold the payment on your behalf until we receive your payment instructions.3
1 As a benchmark for our calculations, we compared the 30 June 2024 balance that was on our administration system against the results of a calculator that we built to work out the exact impact of this error. If there was a discrepancy of $100 or less, the value of that discrepancy was added to the Principal Discrepancies of over $100 were individually investigated further to determine a more accurate figure.
2 Calculation output date: This is the effective date of the most recent crediting rates available at the time the calculation was completed.
3 For former members with no active accumulation account, the payment amount showing in your letter will be allocated to a temporary account before it is either paid out in accordance with your instructions, or where relevant, paid into the same bank account as your regular Choice Income account payments, paid to your TTR income account or transferred to the ATO. No administration fees will be charged on these temporary accounts and your payment amount will be invested in the Fund’s Cash investment option during this time. This means that any returns generated during this period will be based on the Cash investment option’s returns. -
I made multiple partial withdrawals from my account between November 2016 and March 2022. Will I receive a payment for all of these withdrawals?
In relation to each withdrawal you made between November 2016 and March 2022:
- If you missed out on any investment returns as a result of the form’s error, you’re due a payment.
- If you benefitted from the error and received higher investment returns than you would have if the withdrawal had been processed as described on the form, we will not seek to recover those gains.
If you requested multiple withdrawals from your account between November 2016 and March 2022, there may have been a withdrawal(s) from which you missed out on investment earnings due to the form’s error, and other withdrawal(s) from which you benefitted from the form’s error. In this situation, the payment due to you for the investment returns you missed out on will be offset by any investment gains you received.
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Why is my payment paid back into my super account, not my bank account?
By law, we can only pay your payment to your nominated bank account if you’ve met a condition of release. Common conditions of release include:
- turning age 65,
- ceasing employment on or after age 60, and
- reaching preservation age and permanently retiring.
You can obtain more information about the conditions of release on the ATO’s website (ato.gov.au).
If you’ve not met a condition of release, we must make your payment to a nominated super account.
For step by step instructions on how to provide your payment details to us, view the Get your remediation payment form.
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I received a letter notifying me that my payment has been transferred on my behalf from AustralianSuper to the Australian Taxation Office. Why did this happen?
We recently wrote to you to inform you of our error and requested your super account or bank account details so we could transfer your payment amount to you.
As we did not receive a response from you by the deadline stated in your communication, your remediation payment has been transferred to the Australian Tax Office (ATO), as advised in your previous communication(s).
Please contact the ATO directly for details on this payment at 13 28 65 or visit ato.gov.au
Concessional contributions and investment
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Will my payment count towards my concessional contributions cap? If so, what happens and where do I find more information?
Yes, your payment amount will count towards your concessional contributions cap for the financial year ending 30 June 2025.
The Australian Taxation Office (ATO) has established a streamlined process for members who exceed their concessional contributions cap after receiving this payment.
If you believe you may exceed the contributions cap because of this payment, you may wish to lodge an Application – excess contributions determination (NAT 71333) with the ATO for their consideration, to have the payment disregarded for the purposes of your concessional contributions cap. This Application form can be accessed via the ATO’s website, ato.gov.au, by entering QC 20122 into the search facility.
If you decide to apply to have your payment amount disregarded for the purposes of your concessional contributions cap, you need to include the following information with your application:
- a reference to Project ID: 1-XRUD8RI,
- the amount of the payment received because of this error which has counted towards your concessional contribution cap, and
- a request to have this payment amount disregarded so that it does not count towards your concessional contributions caps for the relevant financial years.
Further information about concessional contributions, the concessional contributions cap and requesting to have contributions disregarded or reallocated can be found on the ATO’s website by entering QC 23223, QC 19749 and QC 73090 into the search facility.
You can keep track of your concessional contributions by logging onto your myGov account, using ATO online services and selecting Super, then Information, then Concessional contributions.
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Will my current investment options change because of this error?
No, your current investment options will not be changed.
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How will the payment be invested?
If you have an active AustralianSuper account your payment amount will be invested in accordance with your current investment choice for future contributions. The payment will appear as an Account Adjustment in the transaction history of your active account.
If you no longer have an active account with AustralianSuper (or you are receiving a payment in respect of a deceased member), we have created a temporary account to hold your payment amount on your behalf until you provide your payment instructions. No administration fees will be charged for this temporary account and your payment amount will be invested in the Fund’s Cash investment option during this time. This means that any returns generated during this period will be based on the Cash investment option’s returns.
Receiving my payment
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When will the payment appear in my account?
If you have an active AustralianSuper accumulation account your payment amount has already been paid to this account.
If you no longer have an active AustralianSuper accumulation account your payment amount will be held in a temporary account on your behalf pending your payment instructions. When we receive your payment instructions, we’ll aim to process your payment within five business days. Once the process is complete, we’ll send you a confirmation letter and an exit statement.
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Do I need to do anything?
Active AustralianSuper accumulation accounts
If your payment has been credited to an active AustralianSuper accumulation account in your name, you don’t have to do anything.
Inactive AustralianSuper accounts
If you no longer have an active AustralianSuper account and your letter from us included a Get your remediation payment form, you’ll need to provide us with payment instructions to either transfer your payment amount to an active super account with another super fund, or, if you have met a condition of release, transfer your payment amount to your bank account.
If no payment instructions are received, your payment will be transferred to the Australian Taxation Office and they will endeavour to transfer the payment amount to you, which may include paying the amount to your eligible super account on your behalf.
Active AustralianSuper Choice Income account
Your letter may have also advised that unless we hear from you, either by returning the Get your remediation payment form or by contacting us directly, your payment will be made in accordance with the payment instructions for your active Choice Income account. This will be the bank account your Choice Income account payments are paid into. Please note that even if you don’t wish to provide alternative payment instructions and are happy for the automatic transfer to your bank account to occur, you will still receive follow-up communication from us as we will not know for certain whether you received our initial communication.
Active AustralianSuper TTR Income account
Your letter may have also advised that unless we hear from you, either by returning the Get your remediation payment form or by contacting us directly, your payment will be made to your active TTR Income account. Please note that even if you don’t wish to provide alternative payment instructions and are happy for the automatic transfer to your Active TTR Income account, you will still receive follow-up communication from us as we will not know for certain whether you received our initial communication.
Bouncebacks
If our payment is returned to us by your financial institution, we will contact you and send another Get your remediation payment form to provide us with new payment instructions.
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I closed my super account and received a full withdrawal due to permanent incapacity. Do I need to provide further documents to have my payment paid to my bank account?
If you have previously provided two medical certificates to receive your account balance withdrawal due to permanent incapacity, you only need to complete and return to us a Get your remediation payment form. You may have provided these medical certificates during a Total and Permanent Disablement claim prior to your permanent incapacity withdrawal. If you did not previously provide two medical certificates, these will need to be provided.
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Can I keep the temporary account?
No, as you do not have a current active accumulation super account with AustralianSuper this account was created temporarily for the purpose of holding the payment amount on your behalf until we receive your payment instructions.
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I have an active Choice Income account. Can I have my payment transferred into my Choice Income account?
No, we are unable to allocate the payment to your open Choice Income account.
However, if you would like to consolidate the funds from your payment with the funds available in your Choice Income account, there is a process by which this can happen. We recommend that you seek personal financial advice prior to deciding to consolidate the funds. For further information on AustralianSuper’s advice options, please contact us on 1800 204 194 from 8am to 6pm AEST/AEDT or visit australiansuper.com/advice.
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I’ve returned my Get your remediation payment form. When will I get my remediation payment?
When we receive your completed Get your remediation payment form, we will aim to process your payment within five business days. Once that process is completed, we will send you a confirmation letter.
Deceased estates
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I’ve received a letter about a death benefit and an additional payment. What do I need to do next? Who can I talk to?
If you’ve received a letter about a death benefit payment with a Get your additional payment form enclosed, please complete the form with the nominated bank account details following the instructions, and return the signed form to us via email or post:
- scan the completed and signed form and email to RemDeceasedEstates@australiansuper.com, or
- post the completed and signed form using the enclosed Reply Paid envelope.
When completing the form, you will also need to provide the necessary certified identity documents (listed in the form) to verify your identity.
When we receive your completed form and the required documents we need to successfully verify your identity, we will aim to pay the payment amount to the nominated bank account within five business days. Once that process is completed, we will send you a confirmation letter.
If you’ve received a letter about a death benefit payment where we have requested that you contact us directly (no form will be enclosed with the letter), please contact our Remediation Deceased Estates team to find out about next steps:
- email RemDeceasedEstates@australiansuper.com, or
- call 03 9117 1205 from 9am to 5pm AEST/AEDT weekdays.
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If I’m receiving a payment as a beneficiary of a death benefit, will the payment count towards my concessional cap?
No, your payment amount will not count towards your concessional contributions cap.
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If I’m receiving a payment as a beneficiary of a death benefit, will I pay tax on the payment?
Resident beneficiary
The payment amount forms part of the death benefit. When it is paid to a beneficiary that is not a dependant for tax purposes, any taxable component of the payment will be subject to tax. Where it is paid to a beneficiary that is a dependant for tax purposes, it will be tax-free.
Where the payment is subject to tax, beneficiaries will be sent a PAYG payment summary within 14 days of payment which will show the amount of total tax withheld.
Non-resident beneficiary
Where the payment amount is paid to you as a beneficiary, and you are a foreign resident for Australian tax purposes, the payment will receive the same tax treatment as for a resident beneficiary (see directly above). This is because the payment is considered Australian sourced income. The main difference is that as a non-resident beneficiary, you should be exempt from the Medicare levy. However, if you have not provided a tax file number (TFN) to us, you may pay higher tax on any taxable component.
If your country of tax residency has a double tax agreement with Australia, there may be no Australian tax imposed on the payment. Beneficiaries need to check the taxation laws of their country and whether it has a tax treaty with Australia.
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I’m receiving a payment as the Legal Personal Representative (LPR) of a late member’s estate, what do I need to do?
The payment that you receive on behalf of the late member’s estate as LPR will count towards the concessional contributions cap of that member for the financial year ending 30 June 2025.
The ATO has established a streamlined process to assist LPRs acting on behalf of estates who believe this payment may cause the late member to exceed their concessional contributions cap.
As the LPR, you may wish to lodge an Application – excess contributions determination (NAT 71333) with the ATO for consideration on behalf of the late member, to have the payment amount disregarded for the purposes of the late member’s concessional contributions cap. This Application form can be accessed via the ATO’s website, ato.gov.au, by entering QC 20122 into the search facility.
If you decide to apply to have the payment amount disregarded for the purposes of the late member’s concessional contributions cap, you need to include the following information with the application:
- a reference to Project ID: 1-XRUD8RI,
- the amount of the remediation payment received on behalf of the late member because of this error which has counted towards the concessional contribution cap of the deceased, and
- a request to have this payment amount disregarded so that it does not count towards the concessional contributions cap/s for the relevant financial year/s of the late member.
Further information about concessional contributions, the concessional contributions cap and requesting to have contributions disregarded or reallocated can be found on the ATO’s website by entering QC 23223, QC 19749 and QC 73090 into the search facility.
As the payment will be paid as a lump sum death benefit to you as LPR on behalf of the estate, you will be responsible for deducting the appropriate tax when the amount is distributed to beneficiaries. The Fund won’t withhold any tax on the payment. However, we’ll send the estate a payment summary showing the breakdown of the tax-free and/or taxable components that the payment comprises. As the estate is not an individual, no Medicare Levy is payable.
Advice options
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What if I can’t decide what to do?
Members or former members
Members or former members can call our dedicated phone line 1800 204 194 from 8am to 6pm AEST/AEDT weekdays or speak to their financial adviser (if they have one).
As an AustralianSuper member, you can access a mix of advice options including general information, simple personal advice1 over the phone or comprehensive personal financial advice1 (which may incur additional costs). For details visit australiansuper.com/advice.
1 Personal financial product advice is provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd. Some personal advice may attract a fee, which would be outlined before any work is completed and is subject to your agreement. With your approval, the fee for advice relating to your AustralianSuper account may be deducted from your AustralianSuper account subject to eligibility criteria.
Death benefits
Individuals who are receiving a payment as part of a late member’s death benefit, as a beneficiary or Legal Personal Representative, can contact our remediation deceased estates team at 03 9117 1205 from 9am to 5pm AEST/AEDT weekday or RemDeceasedEstates@australiansuper.com.
Complaint
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How do I make a complaint?
If you have a complaint, please discuss it with us by:
- calling 1300 300 273 8am to 6pm AEST/AEDT weekdays,
- emailing your complaint to us at complaints@australiansuper.com,
- filling in an online form at australiansuper.com/email, or
- writing to the Complaints Officer, AustralianSuper, GPO Box 1901, MELBOURNE VIC 3001.
We aim to address all complaints as soon as possible and generally within 45 days of receiving your complaint. However, you can ask your assigned Complaint Officer for an update at any stage.
If you are not happy with our response to your complaint, or if you have not received a response within 45 days, you can contact the Fund's external complaints resolution body, the Australian Financial Complaints Authority (AFCA). AFCA provides fair and independent financial services complaint resolution that is free to consumers. However, before raising a complaint with AFCA, we encourage members to utilise the complaints procedures of the Fund.
Australian Financial Complaints Authority
GPO BOX 3
MELBOURNE VIC 3001
Telephone: 1800 931 678
Email: info@afca.org.au
Website: afca.org.au