Countdown to transfer smaller super balances to ATO
In one week, inactive super accounts with less than $2000 will be shielded from insurance and administration fee erosion by being sent to the Australian Taxation Office (ATO).
The move is a result of a Federal law, passed in December, requiring super funds to send these balances to the ATO by the end of May.
BT Financial Group general manager Deanne Stewart said protecting smaller balances from fee erosion was important, as research showed few Australians would retire comfortably.
"An Australian on the average wage of $72,400 will only replace half of their income in their retirement — well short of the Government's recommended 70 per cent," she said.
"Australians will need every dollar of their superannuation to be working for them in the lead-up to and during retirement."
Finding lost super and consolidating accounts were two steps Australians could take to increase their super balances, Stewart said.
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.