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9.2.4 PPLSC overpayments

Introduction

If the Commissioner of Taxation (Commissioner) (1.1.C.125) pays a PPLSC that was not payable for the person or the amount paid is more than the correct amount, the Commissioner may recover the amount overpaid (1.1.A.75).

Methods for recovering amount overpaid

The following table details the action the Commissioner may take to recover a PPLSC amount overpaid, as well as the conditions which must be satisfied prior to any such recovery.

ItemMethods for recovering amount overpaidConditions to be satisfied
1Deduct the whole or part of the amount overpaid from any PPLSC payable for the person.
  • Nil.
2Debit an account of the person in the Superannuation Holding Accounts Special Account (1.1.S.97) with the whole or part of the amount overpaid.
  • One or more PPLSCs for the person must be held in the account.
  • The amount recovered must not exceed the amount of those PPLSCs in the account.
3Recover the whole or part of the amount overpaid from the legal personal representative (1.1.L.20) of the person as a debt (1.1.D.50) due by the representative to the Commonwealth.
  • The PPLSC must have been paid by the Commissioner to the representative.
  • The Commissioner must provide the representative with written notice of the proposed recovery, including the amount to be recovered.
  • At least 28 days must have elapsed since the notice was given.
  • The amount recovered must not exceed the amount specified in the notice.
4Recover the whole or part of the amount overpaid from a superannuation provider (1.1.S.98) whom the Commissioner paid the PPLSC to, or another provider that may have been transferred the PPLSC, as a debt due to the Commonwealth.
  • One or more PPLSCs must be held by the superannuation provider.
  • The amount recovered must not exceed the amount of those PPLSCs held by the provider.
  • The Commissioner must give the provider written notice of the proposed recovery, including the amount to be recovered.
  • At least 28 days must have elapsed since the notice was given.
  • The amount recovered must not exceed the amount specified in the notice.

If the Commissioner gives a superannuation provider a notice in relation to an overpaid amount for a person and the provider holds one or more PPLSCs for the person at the time the Commissioner issues the notice, the Commissioner may recover the amount overpaid from the provider regardless of whether the provider continues to hold the contribution or contributions after that time.

The Commissioner may revoke a written notice given if they are satisfied that it is appropriate in the circumstances to do so.

The total of the amounts deducted, debited or recovered in relation to an overpayment must not exceed the amount overpaid.

Act reference: PPLAct section 115P Recovery of overpayment of PPL superannuation contribution

Notice to recover an amount overpaid

The Commissioner must give a superannuation provider or a legal personal representative written notice of a recovery at least 28 days prior to the recovery of the amount overpaid.

The notice must include the information detailed in the following table.

Notice to a superannuation providerNotice to a legal personal representative
  • the person's name
  • the amount to be recovered
  • the date by which the amount to be recovered must be paid
  • the person's date of birth
  • the person's account number
  • the person's tax file number (if quoted to the superannuation provider)
  • the person's name
  • the amount to be recovered
  • the date by which the amount to be recovered must be paid
  • the amount of the PPLSC
  • the reason that the PPLSC was overpaid
  • the right to apply for a review
  • the person's tax file number

Notice of recovery of an amount overpaid

If the Commissioner makes a deduction, debit or recovery in relation to a PPLSC for a person, the Commissioner must give the person notice within 28 days after the deduction or debit is made. The notice must include the following information:

  • the person's name
  • the person's tax file number
  • the amount of the PPLSC that included the overpayment
  • the income year for which that PPLSC was paid
  • the amount of the overpayment
  • the amount of the deduction or debit
  • in the case of a deduction from a PPLSC, the income year for which that PPLSC is or was payable
  • the right to apply for a review.

Act reference: PPLAct section 115P Recovery of overpayment of PPL superannuation contribution

PPL Rules section 45 Information for recovery of overpayment

General interest charge

If the Commissioner gives a notice under Item 3 or 4 of the above table for an amount overpaid, the amount is due 28 days after the day on which the notice is given.

A legal personal representative or superannuation provider will be liable to pay general interest charge (1.1.G.15) on any amount that remains unpaid after this due date.

General interest charge will be applied for each day during the period that:

  • starts at the beginning of the day the unpaid amount was due to be paid, and
  • finishes at the end of the last day on which the unpaid amount or general interest charge on any unpaid amount remains unpaid.

Example: On 31 July 2026 the Commissioner pays a PPLSC of $3,017.78 to a superannuation provider for crediting to a person’s account. The correct amount was actually a PPLSC of $2,636.02 for the year. On 7 September 2026, the Commissioner sends a notice to the superannuation provider stating that the overpaid amount of $381.76 is to be recovered, with a due date of 5 October 2026.

The overpaid amount of $381.76 is recovered on 30 October 2026, after the due date. The superannuation provider is liable to pay general interest charge on the amount for each day in the period beginning 5 October 2026 (the day the amount was due) and ending on 29 October 2026 (the last day that the amount remained unpaid). The general interest charge amount must also be paid on 30 October 2026.

Act reference: PPLAct section 115Q When general interest charge payable, section 115P Recovery of overpayment of PPL superannuation contribution

Taxation Administration Act 1953 Part IIA The general interest charge

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