Following a review of claim payments, we’ve identified that some claims lodged from August 2022 onwards weren’t assessed and paid within standard processing times. Our members and their families deserve better than this – especially at such a difficult time. It’s unacceptable to us and not what we strive for as a fund that puts our members first.
As part of this review, we’ve also determined that some claimants are entitled to financial compensation for the delay. We’re writing to eligible members and beneficiaries to confirm the compensation they’re entitled to and how the payment will be made.
More information for claimants
We’re writing letters to all members and beneficiaries who are eligible for compensation. We’re also contacting some people by phone if we need to confirm any details or require additional information to process their compensation payments.
You don’t need to do anything, unless we ask you to provide bank details or any other information. In most cases, the payment will be processed automatically, and details of when and how the payment will be made will be in the letter we send you.
This will depend on the type of claim your compensation is for:
TPD, PI, TI and TMCR claims: If your compensation relates to a claim for total and permanent disablement, permanent incapacity, terminal illness or a terminal medical condition of release, the compensation will be paid into:
- your Media Super account if you have an open accumulation account with us when the payment is processed, or
- the bank account we have on file for you (or another account that you nominate) if you no longer have an accumulation account with us.
Death claims: In most cases, the compensation payment will be paid into the same bank account as the original claim payment (or another account that you nominate).
The compensation amount could be made up of the following, depending on your specific circumstances:
- lost investment earnings – calculated using the Reserve Bank of Australia cash rate plus 6% per annum, less any investment earnings, over the delay period
- fee refund – any administration fees and asset fees charged during the delay period
- premium refund – insurance premiums charged during the delay period (where applicable).
The calculation will be outlined in the letter we send you, with the specific amounts for your situation.
The tax treatment will depend on the type of claim the compensation is for, how the compensation is paid to you, and your personal circumstances:
If payment is to a bank account or by cheque
We may be required to deduct tax before making the payment to you if the compensation relates to:
- a claim for total and permanent disablement or permanent incapacity and you’re under 60 when the payment is made, or
- a death claim for which you were not a financial dependant.
No tax will be deducted if the compensation relates to:
- a claim for terminal illness or a terminal medical condition of release
- a claim for total and permanent disablement or permanent incapacity and you’re 60 or over when the payment is made, or
- a death claim for which you were a financial dependant.
After the payment is made, you’ll receive a further letter and PAYG payment summary outlining any tax withheld from the compensation amount (if applicable).
If payment is to your Media Super account
No tax will be deducted when the payment is made to your super account, but you may need to pay tax if you withdraw it.
Your withdrawal won’t be taxed if you’re over 60, you transfer the money to another super fund, or the compensation relates to a claim for terminal illness or a terminal medical condition of release.
The compensation amount paid into your super account will be reported as a non-concessional contribution and count towards your non-concessional contributions cap. For the 2024/25 and 2025/26 financial years, this cap is $120,000 (or $360,000 if you’re eligible for the bring-forward option).
If your total non-concessional contributions stay within the cap, no extra tax will apply.
If your total non-concessional contributions exceed the cap, the ATO will contact you with details of what to do next. You can visit the ATO website for more information.
Importantly, as Media Super isn’t authorised to provide personal tax advice, we recommend that you seek independent advice to confirm how tax may apply to your specific circumstances.
The payment will generally be in your super account or bank account within a few weeks from when you receive our letter. If you need to supply new bank details, this will be subject to additional checks so payment may take a little longer.
If payment is to a bank account or by cheque, we’ll send you another letter once the payment is made confirming the amount paid and any other relevant information (such as any tax deducted).
If payment is to your Media Super account, this will happen automatically after we send you the initial letter about the compensation, so you won’t receive any additional payment confirmation.
If our letter says we’ll pay your compensation into a bank account, you can provide details of another account for the payment. You’ll need verify your identity in accordance with our ID requirements and complete standard security checks before we can deposit the money into the new account.
If your compensation relates to a claim for total and permanent disablement, permanent incapacity, terminal illness or a terminal medical condition of release, and you’re a Media Super accumulation member, the payment will go into your super account. You can leave it in your account, or you can transfer it to another super fund or withdraw it at any time.
Details will be in the letter we send you.
If the compensation is paid into your Media Super account, you can leave it in your account or you can withdraw it or transfer it to another super fund at any time. To do this, simply complete the Compensation withdrawal form that was enclosed with the letter we sent you and return it to us.
The form we sent you allows you to withdraw the full compensation amount, which is shown on the form. If you’d like to withdraw a different amount, please complete a Super withdrawal (Application for benefit) form (PDF) instead.
You can download another Compensation withdrawal form (PDF) at any time from our website. Or you can ask for one to be sent to you by calling our dedicated support team on 1300 559 384 (9am to 5pm AEST/AEDT weekdays).
Please bear in mind that the Compensation withdrawal form can only be used to withdraw the full compensation amount. If you’d like to withdraw a different amount, please complete a Super withdrawal (Application for benefit) form (PDF) instead.
You’ll be compensated for any claim that took longer than the standard processing time to assess and pay. So, for example, if you made a claim for income protection as well as a claim for total and permanent disablement, and both took longer than they should have, you’ll receive compensation for both.
Yes. Where there is more than one beneficiary for a delayed claim which qualifies for compensation, each beneficiary will receive a letter and a compensation payment.
If you have any questions about the letter we sent you or your compensation payment, you can call our dedicated support team on 1300 559 384 (9am to 5pm AEST/AEDT weekdays).
If you'd like to make a complaint, you can write to:
Complaints Officer
Media Super
PO Box 24231
Melbourne VIC 3001