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Duplicate accounts a $315m problem
Unnecessary and duplicate superannuation accounts are costing Australia in the order of $315 million a year, according to the latest research released by the Association of SuperannuationFunds of Australia (ASFA).
The research suggested that a recent report published by (the Australian Consumers’ Association) might have “significantly overstated” the incidence and costs of unwanted multiple superannuation accounts, but concluded that it nonetheless represented a significant problem.
The ASFA report found there are around 14 million necessary primary superannuation accounts for resident Australians, former residents and former visitors and that, in addition, there are likely to be a further four million accounts over and above the primary accounts that are justified.
However, this compares with the total 28 million accounts that currently exist in Australia.
ASFA research director said that in light of these findings care was needed in developing solutions to the problem of multiple accounts and warned proposals to set up a centralised fund and relax identity checks could end up costing more through higher costs, lower returns and a much higher incidence of theft and fraud.
“While there are no grounds to be complacent, Australian arrangements for consolidation and tracking lost super already are better than anywhere else in the world,” he said.
AUTHOR
Mike Taylor
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