ESSSuper is now offering a new product feature for the Accumulation Plan, Beneficiary Account and Income Streams. All tax that has been paid by a member will be refunded upon payment of a death benefit to dependants.

There is no legal obligation for super funds to pass on these tax refunds to their members. However, ESSSuper has decided to do so in the best interests of our members, to ensure their dependants will receive the maximum benefit possible.
A tax refund* will be made as an additional lump sum amount on top of any death benefits paid from the Accumulation Plan, Beneficiary Account or Income Stream to one or more eligible dependant(s).

Death benefits paid from ESSSuper’s defined benefit funds (i.e. New Scheme, Revised Scheme, Transport Scheme, SERB Scheme & ESSS Defined Benefit Fund) are generally paid on an untaxed basis, meaning contributions tax has not been deducted and therefore a refund does not apply.

Whilst the super industry has always described death benefit payments to dependants as tax free, they are not truly a tax free benefit due to the contributions tax that has been paid on the member’s benefit. By refunding these payments, ESSSuper are ensuring that dependants are receiving a totally tax free benefit.

For more information, please contact the Member Contact Centre on 1300 650 161.

* This change takes effect from 1 March 2010 and will not apply to benefits paid prior to this date.Get the latest news here