I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC

Super Facts and Tips

Views on the Compulsory System

While the system had yet to go the full 20 years cycle and had the chance to show its potential, it has been asserted that only the compulsory system will work in ensuring that the people save for retirement. At the same time, the body of funds made by compulsory super contributions are considered advantageous towards the economy since it sets investment opportunities for capital development which will help improve the economy.

Concerns Relating to a Compulsory System

Another concern relating to a compulsory system has something to do with the inequitable tax benefit of superannuation among higher income earners and low-income earners. Some super fund associations thought that the super system requires the amendment to make sure that the superannuation contributions are efficient regarding tax to spare the contributors some financial burden.

There was some concern among super fund association on the effectiveness of the 9% contribution. Since the contribution attracts more reduction of 15% fees and tax from the super fund the resulting money isn't taken as sufficient to give enough funds during retirement, especially to those with lower incomes and those who goes on leave from work for pregnant women.

Another loop hole found within the superannuation system is the Tax Office's lack of ability to get back defaulted contributions which the employers failed to give. Super fund associations thought that lost super, especially the once with balances less than $1,000, must be stored into a central fund managed by the ATO.

The ATO has been seen as lacking in resources when it comes to enforcing the super guarantee payment. This is a crucial issue because a lot of employees don't closely monitor contributions expended on their behalf. Super fund associations thought it was inequitable compared to the policing of other compulsory payments like fringe benefits tax.

Likewise, where is the legal requirement in making such contribution, no legal requirement existing in supplying the information for certain super accounts? This resulted in the accumulation of lost money that can't be accessed for other purposes. There's a sense in which such amount was growing fast with the introduction of the super guarantee.

Efficiency of Superannuation

Superannuation fund associations thought that the biggest inefficiency within the system lies in its lack of legislation and consistency especially with the adoption of electronic fund payments. This lead to additional management and resulted in errors to a major part of contributions. This is also considered as major inefficiency when it comes to the submission of funds; a procedure that must be made easier and more efficient in encouraging more consolidation of funds and fewer cases of lost super accounts.

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