Superannuation fund trustees have been granted the power to consolidate multiple accounts for the same member under the Tax and Superannuation Laws Amendment (2013 Measure No.2), which has been introduced into Parliament.
Minister for Financial Services and Superannuation Bill Shorten said the reforms would take effect on 1 July 2013, with the first round of consolidation occurring on 30 June 2014.
Trustees will need to set up procedures for consolidating multiple super accounts for individual members — in situations where it is in the member's best interests — on an annual basis under the legislation.
Defined benefit, fixed home saver accounts and accounts that support an income stream would all be exempt, Shorten said, and the legislation did not consider the level of account balances.
The bill brings to light a recommendation in the Cooper Review which gave super fund trustees the ability to consolidate accounts.
Shorten said Government would continue to assess intrafund consolidation, with the next review due out in late 2014.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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