April 11, 2013 by stirling
There is currently around $17 billion sitting in 3.4 million lost accounts in superannuation funds.
New Treasury analysis shows the Government can do more to prevent small accounts being eroded by fees and charges without a member being aware.
Casual and part time workers, as well as younger workers are particularly at risk because they may have small balances from a number of different employers.
The following reforms are being introduced to preserve the value of lost member accounts in the superannuation system:
- The account balance threshold below which inactive accounts, and accounts of uncontactable members, are required to be transferred to the ATO will be increased from $200 to $2000, to ensure they are properly protected from being eroded by fees and charges.
- Interest will be paid at a rate equivalent to CPI inflation from 1 July 2013 on all lost super accounts reclaimed by the ATO
- The period of inactivity before an account is required to be transferred to the ATO will be reduced from five years to 12 months.
These reforms will take effect from 31 December 2012. The ATO will use its data matching resources to match these lost accounts with members and assist those members to be reunited with their lost super.
Call Stirling on 02 42615506 if you have any queries.