You don’t have to pay twice – get your release authorities right
When you process a superannuation release authority statement, you need to check who you should be releasing the money to. This may be your member or it could be us.
If you do process a release authority statement incorrectly and release amounts directly to your members when you should have sent the money to us, you will still be required to pay the right amount to us within the legislated timeframe. You will then need to separately recover any overpaid amount from your members.
The easiest way to avoid paying twice is to verify from the cover letter attached to the release authority statement form who you should be releasing the money to.
It is also important to note that when processing a release authority form:
- You always need to send us the release authority statement, whether or not any money is released
- You don’t need to attach a covering letter when you return your statement to us.
We have already contacted a small number of funds in relation to incorrectly processed release authorities for Fairer Taxation of Excess Concessional Contributions (FTECC) and the Refund of Excess Non-Concessional Contributions (RENCC).
While we may not necessarily be applying penalties at this point, given these are new measures, we will be considering these types of errors as part of the Large APRA Fund Risk Differentiation Framework program.
Further information on your release authority statement obligations is available at www.ato.gov.au/Super/APRA-regulated-funds/Managing-member-benefits/Release-authorities/
This article informs APRA fund clients of superannuation release authority statements.