Super Co-contributions Payments Delayed 2008/09

Around 200,000 out of a total of 1.3 million super co-contribution payments may not be made by us [ATO] to super funds by the end of the 2008-09 financial year, due to problems with ATO systems.

The ATO will pay interest on the payments that have been delayed at the rate specified by the Reserve Bank of Australia, which is currently at 3.16%.

If you are an eligible recipient, you do not have to do anything.

The ATO are working closely with super funds on this matter and will clear the backlog of payments, apply interest automatically and make payments to the super funds.

Interest will continue to be paid until you either receive the payment or it is paid into the relevant super fund.

More information:

If you are suffering hardship as a result of these delayed payments, you should contact us [ATO] on 1300 139 027 to discuss your circumstances. We [ATO] can only make payments where you meet the requirements for a direct claim (when you have retired and no longer have a super account eligible to receive the co-contribution).

The super co-contribution was introduced from 1 July 2003. It is an Australian Government initiative to help low to middle income earners save for their retirement.

If you are eligible and make personal super contributions to a complying super fund or retirement savings account (RSA), the Government will match your personal super contribution with a co-contribution up to certain limits.

(Source ATO)

Copyright 2014. My Tax Zone.