Transition to Retirement Administration Fee Remediation

On 1 April 2020, AustralianSuper introduced a new asset-based administration fee component following the Federal Government’s Protecting Your Super (PYS) reforms, known as the PYS Administration Fee.

The PYS Administration Fee was supposed to be charged only to Accumulation members (i.e. superannuation members based on the assets held in their accounts) and not to pension members (i.e. Transition to Retirement (TTR) Income and Choice Income members). However, the asset-based PYS Administration Fee was deducted from the daily investment returns in the taxed pool of assets (which included TTR Income members’ accounts) before returns were allocated to members’ accounts.

The PYS Administration Fee was last deducted from the taxed pool of assets on 1 August 2022, ceasing for all members from this date. A new fee structure was implemented from 1 September 2022 which has resolved this matter.

Some members were previously compensated for the period 1 April 2020 to 30 June 2020. This compensation was paid to members who had an open TTR Income account on 21 October 2020, effective 30 June 2020.

AustralianSuper is now refunding the incorrectly charged fee and providing compensation for any loss of earnings to return your account to the position it would have been in, or as closely as possible to that position, had the PYS Administration Fee not been charged to TTR Income members.

The calculation of the remediation payment specifically aims to restore you to the financial position you would’ve been in, or as close as possible to that position, had the error not occurred. That is, had the asset-based component of the Administration Fee not been charged to your TTR Income account.

Your Total Remediation Payment is comprised of the following:

• Financial loss amount,
• Loss of earnings, and
• Additional earnings.

The financial loss amount refers to the refund of the asset-based component of the Administration Fee which shouldn’t have been charged to your TTR Income account.

To this we added compensation for loss of earnings up until the calculation date. The calculation is based on the actual returns that you received while your impacted TTR Income account remained active or if it had transitioned to a Choice Income account.

If your impacted account was closed, we applied the loss of earnings calculation until the date your account was closed. We then used the RBA Cash Rate plus 6% (RBA +6%) from the day after your impacted account was closed until the calculation date.

An additional 21 days of earnings were applied after the calculation date, using RBA +6%, to allow sufficient time to make the Total Remediation Payment.

By law, we can only pay your payment to you (via your nominated bank account) if you’ve met a condition of release. Common conditions of release include:

• turning age 65 (even if you’re still working),
• ceasing employment on or after age 60, and
• reaching preservation age and permanently retiring.

You can obtain more information about the conditions of release at Access your super.

If you’ve not met a condition of release, we must make your payment to the account that was impacted by the charging of the asset-based component of the Administration Fee. And if that account is closed, we must make the payment to an active super account in your name.

No, your current investment option(s) will not change.

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 adjustment in the transaction history of your active account.

If the TTR Income account that was impacted is still active or transitioned to a Choice Income account, your payment amount has already been paid to this account.

If the TTR Income account that was impacted is now closed but you have an active AustralianSuper accumulation account, or another TTR Income or Choice Income account, your payment amount has already been paid to this account.

If you no longer have an active AustralianSuper account, your payment amount will be held 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. If we don’t hear from you, from 90 days of the date of the letter we sent you, we’ll attempt to make the payment to the last known instructions you provided. This may take a few weeks to appear in your account.

If we don’t hear from you and we find that the account that we made your last payment to is closed, we’ll transfer payment to the Australian Taxation Office (ATO) as a Trustee Voluntary Payment (TVP). Once transferred, you can claim this amount by calling the ATO on 13 28 65.

If your payment has been credited to your still active TTR Income/Choice Income account, an AustralianSuper accumulation or another TTR Income or Choice Income account in your name, you don’t have to do anything.

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. You’ll have 45 days from the date of your letter to return the form to us.

If no payment instructions are received, we’ll attempt to make the payment to the last known instructions you provided. If we find that the account that we made your last payment to is closed, 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.

When we receive your completed form, we’ll aim to process your payment within five business days. Once that process is completed, we'll send you a confirmation letter.  

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 to verify your identity, we will aim to make the payment to the nominated bank account within five business days. Once that process is complete, we will send you a confirmation letter.

If you’ve received a letter about a death benefit payment asking you to 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.

If I’m receiving a payment as a beneficiary of a death benefit, will the payment count towards my non-concessional contributions cap?

No, your payment amount will not count towards your non-concessional contributions cap.

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.

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 non-concessional contributions cap of that member for the financial year ending 30 June 2025. Please refer to the FAQ What about tax?

In addition, as the payment will be paid to you as the LPR, 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 you 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.

Members or former members

Members or former members can call our dedicated phone line 1800 204 194 from 8am to 8pm 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.

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.

If you have a complaint, please discuss it with us by:

• calling 1800 204 194 8am to 8pm 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