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Retirement

700,000 Aussies to reunite with $1bn in lost super

  • November 19 2020
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Retirement

700,000 Aussies to reunite with $1bn in lost super

By Cameron Micallef
November 19 2020

Around 700,000 Australians are set to receive a slice over $1 billion in unclaimed superannuation, an industry body has revealed.

lost super

700,000 Aussies to reunite with $1bn in lost super

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  • November 19 2020
  • Share

Around 700,000 Australians are set to receive a slice over $1 billion in unclaimed superannuation, an industry body has revealed.

lost super

The Association of Superannuation Funds Australia (ASFA) has revealed that some members will, on average, pocket $1,600 in unclaimed super.

“The amount of money to be transferred back into people’s super accounts will vary from small amounts up to thousands of dollars. We estimate that the average amount will be around $1,600,” said ASFA deputy CEO Glen McCrea.

Each April and October, super funds send lost and small inactive accounts to the Australian Tax Office as part of processing to reunite the accounts with account holders.

Cash payments will be made automatically to active super and bank accounts in cases where the ATO is able to reunite members of inactive super accounts with lost balances.

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People with inactive super accounts with balances of less than $6,000 will see that balance automatically transferred into their current active super account.

However, if the balance is less than $200, that sum will be sent to their bank account, if the ATO has the correct details – and if a person is aged over 65, the cash will be sent to their bank account regardless of the amount.

“Last year, the ATO transferred a number of large unclaimed super payments, including $600,000 to a woman aged over 65 who had recently lost her house in a fire, and to a retired man who received a payment of $120,000.”

The ATO pays interest on super balances at the rate of inflation, currently less than 2 per cent, and significantly lower than the average annual investment return that super fund members typically earn through their super fund.

“It’s a fantastic opportunity for Australians to engage with any unclaimed super that they may have. It’s a good idea to log into myGov to update your contact details and to check for any lost super the ATO may still be holding in your name,” Mr McCrea concluded.

700,000 Aussies to reunite with $1bn in lost super
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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