The surcharge was a Government imposed tax on eligible super contributions made by employers for higher income earners between 1996 and 2005. This tax was immediately deducted from all accumulation members’ accounts so they do not have a surcharge debt.
How did I get a surcharge debt?
For defined benefit members, AvSuper paid this surcharge on your behalf. This created a debt to the fund from the date it was paid. Interest is applied to this debt daily at our Defined Benefit portfolio’s earning rate and the debt is fully recovered by AvSuper from your account balance when you or your beneficiaries end your defined benefit, including a rollover to another fund or starting an income stream. Any outstanding surcharge amount is listed on your annual member statement or can be obtained by contacting us on 1300 128 751 or via AvChat.
What are my options for that debt?
Option 1 – Pay off the surcharge debt in full as soon as possible
Option 2 – Pay off the surcharge debt in instalments
Option 3 – Let the debt grow and have that amount deducted from your final balance
Which option is best will depend on your personal circumstances, such as the time until you retire, your risk comfort level, your overall contribution levels (remember that contribution limits apply) and your current financial commitments. Please make an appointment with one of our Senior Member Advice Consultants if you would like personalised advice on a strategy to suit your needs.
Email: email@example.com | Local call: 1300 128 751 | Phone: 02 6109 6888 | www.avsuper.com.au
This information is of a general nature only and does not take into account your personal objectives, situation or needs. Before making a decision about AvSuper, you should consider your own requirements and the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD). For a copy call us or visit the AvSuper website, www.avsuper.com.au. AvSuper Pty Ltd (ABN 46 050 431 797, AFSL 239078) is the Trustee of the AvSuper Fund (ABN 84 421 446 069). FS3000.5 02.2021