The river of unclaimed or lost super now surpasses $20.8 billion, a new data released recently by the Australian Taxation Office reveals. Under the new rules, the Tax Office works in reuniting Australians with the missing fragments of their retirement savings, which have remained unclaimed or lost through working abroad, job changes, or just by moving to another state. In the previous year alone, at least 540,000 lost, unclaimed, and active superannuation accounts worth $4.4 billion have been retrieved and consolidated through pressure upon the superannuation funds and data matching to assert inactive accounts. The Australian Taxation Office assistant commissioner Graham Whyte mentioned that, for several Australians, the superannuation windfall is life-changing, especially for those whose retirement plans remain uncertain. Just recently, a woman was reunited with at least $600,000 of unclaimed superannuation after her home was devastated by the bushfire. And since she’s over 65, we’re able to pay such money to her such that she can now rebuild her house. Under such circumstances, it was not until she contacted us that she discovered just how super she has. That is how fantastic it is to be able to reunite people with their lost superannuation – something they may not be aware of. In case of a breakdown, the Australian Tax Office realized that New South Wales residents have been missing out $6 billion in super, while Victoria sitting next at $4.7 billion, $2.2 billion for Western Australian, $2,8 billion for Queensland, $1.4 billion for South Australia and Tasmania with $404 million.
New regulations for consolidating superannuation
With the new rules, the super fund should report low balance and inactive accounts to the Australian Tax Office, including those that haven’t gotten any contribution in 16 months and has a balance lower than $6,000. The ATO has united $841,000 accounts that are worth $1.38 billion, while $1.22 billion have been transferred into active superannuation accounts and at least $161 million to bank accounts. People can also look to see if they contain lost superannuation with us in Australian Super Finder. This action from the ATO to retrieve lost superannuation arises as employers have to deal with resistance from unions, workers, and regulators in situations wherein superannuation has been inadvertently or deliberately withheld.
The easy way to find and consolidate lost super accounts
Consolidating all your superannuation funds into a single fund is generally straightforward. Still, you must first find your lost or unclaimed super accounts, and this requires checking every detail of every fund you possess before making the best choice for you. You must check any exit fees and insurances that your super funds may be attached to. You may lose money and insurance savings from carelessly consolidating your super accounts. The ASIC’s MoneySmart website has this to suggest – while consolidating your superannuation, do not just select the fund that has the most significant balance. The ideal fund is either an entirely new fund or one of the small accounts. One of the fastest ways to consolidate superannuation accounts is through the Australian Super Finder. If you have all the necessary information collected, all you need to do is fill out the form on this page, and you are good to go – we will handle the rest.
Another easy way to consolidate your superannuation accounts is with the myGov website. The ATO, between July 1, 2018 – June 30, 2019, had at least 537,000 accounts that cost $4.38 billion that was transferred or consolidated by members through myGov.
Finding and consolidating your lost superannuation
Through Australian Super Finder:
- Fill in the form in this page with your personal information, I.e., TIN#
- Wait for a follow-up email
- Let the administrators find and consolidate your super with constant updates
Through a myGov account:
- Subscribe or Log in to a myGov account
- To subscribe, you can create an account through my.gov.au
- Link your account to the Australian Tax Office
- Choose “super.”
- Should the ATO contain records of your superannuation funds, you can opt to find or consolidate your superannuation to another account
Reminders: Don’t forget to check for insurance coverage and exit fees. Exit fees are no longer applicable since they’ve been banned since July 1, 2019, although it’s worth checking whether or not the super fund will charge you.
As we’ve learned in this post, the Productivity Commission or PC said that the Federal Government’s top economic adviser, at least a third of the total superannuation accounts are unintentional multiple accounts that are not wanted or needed and these accounts cost at least 2.6 billion each year in fees. The Productivity Commission estimates that there may be at least 10 million unintentional multiple superannuation accounts, which constitutes 35% of the total member accounts kept by funds linked to the $690 million or $1.9 million yearly as extra admin fees or insurance premiums. Unavoidable compounding returns aggravate the costs. The Productivity Commission’s draft report over Superannuation: Evaluation Efficiency and Competitiveness, revealed last April 2018, mentioned an example where a worker who has two accounts throughout their work-life is at least 6% (or $51,000) poorer during retirement compared to workers with just a single account. The Australian Taxation Office reveals the total number of unclaimed or lost superannuation was reduced to at least $420 million by 2017-2018 although there’s still $17 billion still waiting throughout 6.2 million accounts. There’s no better time to find unclaimed super and consolidate your super than now. The ATO has become more supportive of superannuation members when it comes to this matter, and you should take advantage of the opportunity. Find and consolidate super now and reap the benefits during your retirement while ignoring it and suffer the consequences.