The ATO has published a fact sheet outlining the super (eg contribution), income tax and goods and services tax (GST) consequences for super funds receiving compensation payments from financial institutions and insurance providers.
The consequences depend on the circumstances in which the compensation amounts are received, including:
- Fees were charged where no service is provided
- Deficient financial advice
- Overcharged insurance premiums
- Interim use of reserves
- Payments where no right to seek compensation
APRA Resources – Fact Sheet, Compensation received by super funds from financial institutions and insurance providers 19 July 2019