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  • Exclude COVID-19 ERS payments from PAYG reporting

    For tax time 2020, a number of funds incorrectly included COVID-19 early release of superannuation (ERS) payments in their pay as you go (PAYG) withholding payment summary annual report.

    COVID-19 ERS payments are tax free and are therefore not included in a member's assessable income and do not need to be reported to the ATO.

    Incorrectly including ERS payments in PAYG reporting has a significant impact on members and funds. These amounts will be automatically pre-filled in the member's income tax return, potentially resulting in a miscalculation of tax payable by the individual.

    Incorrect member tax assessments also impact a range of calculations and entitlements in the superannuation and welfare systems. Funds should check that their systems exclude COVID-19 ERS payments from their PAYG withholding reporting.

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      Last modified: 18 Mar 2021QC 65092