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  • Reminder to exclude COVID-19 ERS payment from PAYG reporting

    COVID-19 early release of superannuation (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. All funds are reminded to exclude COVID-19 ERS payments in your pay as you go (PAYG) withholding payment summary annual report.

    Incorrectly including COVID-19 ERS payments in PAYG reporting has a significant impact on members. These amounts will be automatically pre-filled in the member’s income tax returns, potentially resulting in 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.

    Payments made to your members under other compassionate grounds should continue to be included in PAYG reporting.

    Incorrect reporting will also require remediation activity from funds (member contact and corrected reporting), so funds should take care to avoid this by confirming the accuracy of their PAYG withholding reporting before lodging.

    If a fund or their digital service provider (DSP) becomes aware that COVID-19 ERS payments have been incorrectly included in PAYG reporting, email SuperCRT@ato.gov.au.  

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      Last modified: 21 Jun 2021QC 65992