• Co-contribution recovery notice

    Co-contribution recovery notices are sent to funds to advise them of members who have received an overpayment from us. The notices contain details of super co-contribution payments to be recovered from members' accounts.

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    Why we send super recovery notices

    We send you a super recovery notice when we have recalculated a member's entitlement to a super co-contribution and, as a result, an overpayment has occurred. We reassess a member's entitlement when either:

    • their fund has amended a Member contribution statement to advise that the contributions declared for a member have decreased, or
    • the member's income tax return has been amended (which can be initiated by the ATO or by the member).

    If a member does not understand why we are reducing their co-contribution entitlement, they should refer to more information about how super co-contribution is calculated.

    The recovery notice

    The recovery notice lists the overpaid amounts that should be returned to the ATO. We always send the recovery notice letter and payment slip by mail, but how we send you the overpaid member list depends on your preference. If you prefer:

    • electronic commerce interface (ECI), we send the associated recovery notice file containing the overpaid member list electronically
    • paper, we send the overpaid member list with the recovery notice letter.

    We generally issue recovery notices to super funds on the fourth weekend of each month.

    Notifying members

    We do not advise your members at the time of the recovery. The recovery transaction is between us and you. You can decide how you wish to advise affected members. You may notify members in their annual super statement.

    What you need to do

    You should action recovery notices within 28 days of issue. You can find the due date in the covering letter, and in the ECI file if you receive your notice electronically (character 40-47 of the Super Contribution Data Record).

    If you cannot return an overpaid co-contribution amount advised in a recovery notice, you must lodge a superannuation payment variation advice (PVA), which includes codes explaining why you cannot action the recovery notice. These explanations include:

    • member contributions have been paid or transferred out – that is
      • the member's contributions have been transferred from the member's account
      • the member's contributions were in the course of being transferred from the member's account, or
      • action to pay a pension or annuity had commenced
       
    • member account has insufficient funds.

    If the member account has funds, but the amount is insufficient to satisfy a recovery notice in full, you should still return as much as you can. For example, if we advise we require the return of $1,000 and you only have $900 remaining in the member's account, you cannot ignore the notice; rather you should return the $900 to us. You should also lodge a PVA for the missing $100 using the code that explains the shortfall.

    As an overpayment of a co-contribution is a debt to the Commonwealth, amounts not repaid to the ATO within 28 days of the notice will incur the general interest charge.

    See also:

      Last modified: 08 Sep 2015QC 45235