ATO Warns Aussies to Claim $17.8 Billion in Unclaimed Superannuation Funds: Australia’s superannuation system is meant to support citizens in saving for their retirement. However, an astonishing $17.8 billion worth of lost or unclaimed superannuation funds remain unaccounted for, awaiting the rightful owners. The Australian Taxation Office (ATO) is urging Australians to check if they are entitled to these funds, as many may not even realize they have forgotten or misplaced their super accounts. In this article, we’ll explain what lost super is, why it occurs, and how Australians can claim back their money through simple steps provided by the ATO.
What is Lost and Unclaimed Super?
Lost super refers to superannuation funds that cannot reach the account holders due to outdated contact information or lack of activity. When super funds are unable to make contact with the account holder, the funds are transferred to the ATO for safekeeping, eventually becoming unclaimed super.
There are several reasons why people lose track of their superannuation. For example, changing jobs, moving residences, or not updating personal information can cause super funds to lose contact with the account holder. If someone has multiple super accounts, the lack of consolidation can cause funds to be scattered across different accounts.
ATO Deputy Commissioner Emma Rosenzweig highlights that Australians over the age of 65 are particularly affected, with $471 million in unclaimed super reserved for retirees who may have forgotten or overlooked their super. Since 2021, the ATO has helped reunite Australians with $6.4 billion of lost super, but a considerable amount remains unclaimed.
Key Facts About ATO’s Push to Reunite Aussies with $17.8 Billion in Lost Super
The ATO’s efforts to reunite Australians with their lost super provide a valuable chance for those who may have forgotten about their accounts. By checking your super through the ATO’s online services, you might uncover thousands of dollars in retirement savings. With the following easy-to-follow steps, there’s no reason to leave your money unclaimed. Act now and secure your financial future by performing a Super Health Check.
| Key Statistic | Details |
|---|---|
| $17.8 Billion in Lost Super | The ATO is holding $17.8 billion in unclaimed super funds. |
| $471 Million for Retirees | Funds set aside specifically for Australians aged 65 and over. |
| 5-Step Super Health Check | A simple checklist from the ATO to help Australians reclaim lost super. |
| $6.4 Billion Reclaimed Since 2021 | Amount the ATO has helped Australians reclaim since 2021. |
| Eligibility | Includes people who’ve changed jobs, moved homes, or have multiple super accounts. |
| Official ATO Resources | For more details, visit the ATO’s official website. |
Why Do Australians Lose Track of Their Super?
There are several factors that cause Australians to lose track of their superannuation accounts:
- Changing Jobs: When people switch employers, new super accounts may be opened for them while old accounts are often forgotten.
- Moving House: If personal contact details aren’t updated when someone moves, the super fund may lose touch with the account holder.
- Multiple Super Accounts: Having multiple super accounts can scatter funds across different places. Without regular consolidation, fees and lost contact may reduce the balance in these accounts.
How to Reclaim Your Lost Super
The ATO has created a straightforward process to help Australians locate and consolidate their lost super. Here’s the 5-Step Super Health Check recommended by the ATO:
- Verify Your Contact Details
Ensure that your personal information, including your name, address, and tax file number, is up-to-date. Super funds often lose contact due to outdated details. - Check Your Super Balance and Employer Contributions
Review your super balance to ensure that your employer’s contributions are current. You can check your balance by logging into your super fund or via your myGov account, which is linked to the ATO. - Search for Lost or Unclaimed Super
Once logged into your myGov account, you can easily check for any lost or unclaimed super funds. The ATO will display all your super accounts, including inactive ones. - Consolidate Multiple Accounts
If you find multiple super accounts, consider consolidating them. This can help reduce fees and make your super easier to manage. However, make sure to review any attached insurance policies before consolidating, as you may lose important coverage. - Update Your Beneficiary Details
Ensure that your nominated beneficiary is up-to-date. This is important in case of unforeseen circumstances, as it dictates where your superannuation benefits should go.
What Happens After Finding Lost Super?
Once you locate your lost or unclaimed super, the next step is to consolidate it into a single, eligible super account. You can either:
- Transfer the lost super into your existing account via the ATO’s online services.
- Request your super fund to manage the transfer on your behalf.
For amounts under $200 or if you are over 65, you may be eligible to withdraw the lost super directly into your bank account.
Frequently Asked Questions
- How Do I Know If I Have Lost Super?
You can check for lost super by logging into your myGov account or contacting your super fund directly. The ATO will show all your active and inactive accounts. - Can I Withdraw My Lost Super?
If you’re over 65 or the amount is under $200, you may be eligible to withdraw your lost super. Otherwise, it’s recommended to transfer it into an active super account to continue growing your retirement savings. - What Happens to Unclaimed Super If I Don’t Claim It?
If you don’t claim your lost super, the ATO will hold onto it until you come forward. However, it’s advisable to claim and consolidate it as soon as possible to maximize its potential growth and minimize unnecessary fees. - Is There a Deadline to Claim Lost Super?
There is no specific deadline for claiming lost super, but it’s better to act sooner than later. Unclaimed super will continue to be managed by the ATO, but leaving it unclaimed can lead to missed growth opportunities and unnecessary fees. - Can I Claim Lost Super for a Deceased Relative?
Yes, you can claim lost super for a deceased relative. You’ll need to contact the relevant super fund and provide necessary documents such as a death certificate and proof of relationship.
By following the steps outlined by the ATO, Australians can easily reclaim their lost super and ensure their retirement savings are in one place.
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