Australia’s superannuation system is designed to help citizens save for retirement, but a staggering $17.8 billion in lost or unclaimed super is sitting idle, waiting for its rightful owners. The Australian Taxation Office (ATO) is urging Aussies to check if they are entitled to a portion of these funds, as many people may not even realize they have forgotten or misplaced super accounts. In this article, we’ll break down what lost super is, why it happens, and how Australians can reclaim their money using practical steps provided by the ATO.
What is Lost and Unclaimed Super?
Lost super occurs when superannuation funds cannot reach account holders due to outdated contact details or inactivity. When a super fund can no longer get in touch with the account holder, these funds are transferred to the ATO for safekeeping, where they become unclaimed super.
Many Aussies lose track of their super for various reasons. For example, changing jobs, moving homes, or failing to update personal details can result in the superannuation fund losing contact with the account holder. In cases where individuals have multiple super accounts, consolidation might not have occurred, leading to scattered funds across different accounts.
According to ATO Deputy Commissioner Emma Rosenzweig, Australians over the age of 65 are particularly impacted, with $471 million in unclaimed super set aside for retirees who have forgotten or overlooked their funds. Since 2021, the ATO has reunited Australians with $6.4 billion of lost super, but a significant amount remains unclaimed.
Key Highlights of ATO Urging Aussies to Cash in on $17.8 Billion in Lost Super
The ATO’s push to reunite Australians with their lost super presents a valuable opportunity for those who may have forgotten about their accounts. By taking just a few minutes to check your super through the ATO’s online services, you could potentially reclaim thousands of dollars in retirement savings. With the easy steps outlined above, there’s no reason to leave your hard-earned money sitting unclaimed. Take action today and secure your financial future by completing the Super Health Check.
| Key Statistic | Details |
|---|---|
| $17.8 Billion in Lost Super | ATO holds $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 | ATO’s simple checklist to help Australians reclaim lost super. |
| $6.4 Billion Reclaimed Since 2021 | Amount the ATO has reunited with Australians in the past few years. |
| Eligibility | Includes people who changed jobs, moved homes, or have multiple super accounts. |
| Official ATO Resources | For more details, visit the ATO website. |
Why Do Australians Lose Track of Their Super?
There are several reasons why Australians lose track of their superannuation accounts, including:
- Changing Jobs: When moving between employers, new super accounts may be opened for you, while older accounts become forgotten.
- Moving House: Failing to update your contact details when relocating can lead to your super fund losing contact with you.
- Multiple Super Accounts: Having multiple accounts can result in scattered funds, and without regular consolidation, fees and lost contact may diminish your retirement savings.
How to Reclaim Your Lost Super
The ATO has introduced a simple process to help Australians locate and consolidate their lost super funds. Here is the 5-Step Super Health Check recommended by the ATO:
1. Confirm Your Contact Details
First, make sure your personal information, including your name, address, and tax file number, is up to date. Super funds often lose touch with account holders because of outdated contact details.
2. Check Your Super Balance and Employer Contributions
Review your super balance to ensure that your employer contributions are up to date. You can check your balance through your super fund or by logging into your myGov account, which is linked to the ATO.
3. Look for Lost or Unclaimed Super
Once logged into your myGov account, you can check for any super funds that are lost or held by the ATO. The ATO makes this process simple by displaying all your super accounts, including any that are lost or inactive.
4. Consolidate Multiple Accounts
If you find that you have multiple super accounts, consider consolidating them. Having one account can save on fees and make your super easier to manage. Be mindful, however, to check for any insurance policies attached to your accounts before consolidating, as you may lose valuable coverage.
5. Nominate a Beneficiary
Ensure that your nominated beneficiary is up to date. This is important in case something happens to you, as it directs where your superannuation benefits should go.
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What Happens If You Find Lost Super?
Once you’ve located lost or unclaimed super, the next step is to consolidate it into an eligible super account. You can either:
- Transfer the lost super into your existing account via the ATO’s online services.
- Ask your super fund to manage the transfer for you.
For amounts under $200 or if you’re over 65, you may be eligible to withdraw the lost super directly into your bank account.
Commonly Asked Questions
1. 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 list all your active and inactive accounts.
2. Can I Withdraw My Lost Super?
If you are over 65 or the amount is less than $200, you may be eligible to withdraw your lost super. Otherwise, it is recommended to transfer it into an active super account to continue growing your retirement savings.
3. What Happens to Unclaimed Super if I Don’t Claim It?
If you don’t claim your lost super, the ATO will continue to hold it until you come forward. However, it is recommended to claim and consolidate your super as soon as possible to ensure your funds are being managed efficiently.
4. Is There a Deadline to Claim Lost Super?
There is no specific deadline, but the sooner you reclaim it, the better. Leaving your super unclaimed can result in missed growth opportunities and unnecessary fees.
5. Can I Claim Lost Super for a Deceased Relative?
Yes, you can claim lost super for a deceased relative by contacting the relevant super fund and providing the necessary documentation, such as a death certificate and proof of relationship.
