Tax office blunder
A delay in the payment of $186 million in superannuation co-contribution funds from the Federal Government is hitting thousands of low-income earners on the verge of retirement.
The Australian Tax Office (ATO) has said that it is struggling to make 200,000 payments by the end of June due to problems with its systems.
“Issues in the operation of the new system have become apparent in the ramp-up process,” the ATO said.
“We are working closely with super funds in this matter and will clear the backlog of payments, apply interest automatically, and make payments to the super funds”.
The policy co-ordinator of the Combined Pensioners and Superannuants Association, Charmaine Crowe, said the ATO’s performance was unacceptable.
“The big issue here is that most of these payments are for people on lower incomes and it’s very disappointing, especially for those in their late 50s and early 60s”.
