A new rule could see the government taking your super 1



View Profile

Super fund members face losing important life insurance cover amid a rule change that will automatically transfer more forgotten funds to the Federal Government.

If you currently have less than $4000 in a super account, haven’t been active with it for a year, and the fund does not have your current address, your money gets automatically moved to an ATO superannuation holding account.

The $4000 threshold for this transfer will rise to $6000 from December 31, causing an estimated 100,000 more super accounts to be compulsory moved.

The ATO says people can claim their money back at any time, but super industry groups say much of it remains untouched.

The ATO reported last month that there were more than 5.7 million lost and unclaimed super accounts worth $14 billion as of June 30. It said more than 40 per cent of Australians had more than one super account — with some having more than five.

Super industry group ASFA says 130,000 accounts totalling $470 million were moved to the ATO last financial year, mainly because of a threshold increase from $2000 to $4000 in December.

ASFA interim CEO Jim Minto said the previous Labor government started compulsory transferring more lost super into government revenue “and this one’s continued it”.

“ASFA has been concerned that increasing the threshold will deprive many Australians of valuable insurance benefits without their permission,” Mr Minto said.

He said an estimated 50 per cent of the new accounts to be transferred had life insurance policies attached to them “that would be dropping off”.

“For most people it’s not lost money. Sometimes people go overseas for a period and it doesn’t mean they have turned their back on their super. The government is capable of matching these people up, but that hasn’t happened so far.”

Mr Minto said the most important aim was reuniting people with their super. “Individuals should do the checking themselves, and parents can challenge their children to do the check because younger people aren’t as tuned in as they could be,” he said.

What do you think about this rule change? Should the government be doing more to match people with their lost super, or is it the individual’s responsibility?

Starts at 60 Writers

The Starts at 60 writers team seek out interesting topics and write them especially for you.

  1. Every overseas person who entered Australia on a working holiday visa is forced to pay super , tax and Medicare , which is deducted from their pay packets . They are not allowed to have a Medicare card , nor claim any benefits and must have private health insurance before they enter the country . Some of them claim a small tax return when they leave the country , but none of them ever get to claim all or any of the super they have paid as they now have a new address in another country . No Government official at the departure area ever asks them their home address . Therefore the Government of Australia is illegally pocketing billions of dollars of this unclaimed money . This on top of all the Australians who have paid super and regularly change jobs and addresses . It is legalised theft .

Leave a Reply

Your email address will not be published. Required fields are marked *