The Labor Party has indicated it has formulated a plan to make it easier for individuals to recover lost superannuation amounts in response to the Australian Taxation Office (ATO) estimates that lost superannuation balances have grown to $8.2 billion, including an increase of $1 billion over the past 12 months.
Labor revealed it would implement a scheme whereby tax file numbers would be used to automatically find and consolidate all of the lost superannuation accounts held by Australians.
“What we have to do is find a practical way of reducing down this $8.2 billion – a practical and simple way that works,” Labor Senator and opposition spokesman for superannuation Nick Sherry said.
“A Labor Government will fix the problem by removing the form-filling, by removing the search requirements and using our tax file numbers system to automatically roll together those lost accounts,” he added.
Under the scheme superannuation balances would have to be declared lost for a period of two years before automatic consolidation would occur.
However, the Federal Government has claimed Labor’s super consolidation plan will work to limit the ability to select a super fund of choice employees now enjoy as part of the current retirement savings regime.
“Labor prefers a policy of automatic consolidation that would result in many Australians having their superannuation benefit moved to a different fund without their consent,” assistant treasurer Mal Brough said.
“Automatic consolidation will not increase competition in the superannuation sector and it will not place downward pressure on fees and charges, unlike superannuation choice of fund,” he continued.
Details of lost superannuation accounts are currently kept in the ATO’s Lost Members Register to allow consumers the ability to locate their super through a centralised point. Superannuation members can access this register by using the ‘Super Seeker’ website that is incorporated as part of the ATO website.
