Lost superannuation accounts may soon be recovered by automatic rollover into a member’s last known active account using the Tax File Number system, according to the Federal Government, which has plans to slash the level of unclaimed super.
Australian unclaimed super fund AUSfund welcomed the announcement by Senator Nick Sherry, Minister for Superannuation and Corporate Law, calling the move a major landmark for superannuation.
AUSfund manager Warren Fawcett said automatic rollovers would not only reduce the incidences of lost accounts, but may also reduce the number of increasing unclaimed super accounts.
“People don’t leave money in their account when they close their bank account. Why do they do it with superannuation?” he said.
However, AUSfund fears Australians may not consolidate recovered funds because of the lack of understanding of the benefits of consolidation or the small amounts involved.
“The Government really needs a major financial literacy program to accompany the auto roll and to tackle the lost and unclaimed super problem once and for all,” Fawcett said.
