Amendment law needed to return unclaimed super

The Association of Superannuation Funds of Australia (ASFA) is calling for an amendment law to enable the Commissioner of Taxation to return nearly $3 billion in unclaimed super to Australians, as part of its pre-budget submission.

An additional 100,000 accounts worth $220 million had been captured by the Australian Taxation Office (ATO) since December 31, after the threshold at which super funds must transfer inactive accounts to the ATO rose to $6000.

ASFA chief executive, Dr Martin Fahy, said $2.7 billion was now held in more than four million accounts as consolidated revenue under the government.

Related News:

"One way to greatly improve the system is to have the ATO, which has the necessary capacity and identifying information, to return unclaimed funds currently captured by legislated threshold transfers," he said.

"This means the government could amend the Superannuation (Unclaimed Money and Lost Members) Act 1999 to permit the Commissioner of Taxation to pay unclaimed money to an individual's current active superannuation account."

ASFA-commissioned research from October 2016 showed that 61.2 per cent of respondents agreed that inactive or dormant super funds accounts should be consolidated into a person's active superannuation account rather than going to the ATO as unclaimed superannuation.

The unclaimed super is part of a total of around $14 billion in 5.7 million lost and missing, as well as ATO held unclaimed accounts.




Related Content

MySuper impacts views on retail versus industry funds

New research has been released suggesting members of retail superannuation funds are happier than their counterparts who are members of industry funds...more

Bloch returns from US to head up Pillar business

Former Financial Planning Association (FPA) chief executive, Jo-Anne Bloch is returning to Australia to head up Mercer’s recently-acquired Pillar Ad...more

Trust needed for member engagement

Superannuation funds need to gain trust from Millennials if they are to tackle member disengagement, according to Kinetic Super.Citing a panel conduct...more

Author

Comments

Add new comment