Around 700,000 Australians are set to receive a slice of $1 billion in unclaimed superannuation payments just in time for Christmas, the peak body for superannuation funds has revealed.
The exact amount each Aussie will pocket will vary, but the Association of Superannuation Funds Australia (ASFA) estimates it will be an average of around $1,600.
These repayments are part of the Australian Taxation Office’s (ATO) efforts to reunite any lost balances from small or inactive super accounts with their rightful owners.
The consolidations occur every April and October.
“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,” ASFA deputy CEO, Glen McCrea said.
Will I get a refund?
Those with small inactive super accounts will receive a refund from the ATO.
Your super account will be deemed inactive if:
No amount has been received by the fund as a credit or benefit within the last 16 months;
The account balance is less than $6,000;
The account is not a defined benefit account;
There is no insurance on the account; or
The account is not held in a self-managed super fund or small APRA account.
Who doesn’t get a refund?
If your superannuation account is still active, you won’t receive any refunds.
Your super will be deemed active if:
You have changed your investment options;
You have elected to maintain insurance on the account;
You have made changes to your insurance coverage; or
You have made a written declaration that it is not a low-balance inactive account.
How will I receive the refund?
The funds will be transferred automatically, so you don’t need to do anything.
The ATO will automatically transfer any balances under $6,000 into your current active superannuation account. If the balance of the super fund is less than $200, the sum will be sent to your bank account.
If you are over 65, any balance will be sent to your bank account, regardless of the amount.
However, ASFA’s McCrea said that Aussies should log into myGov to update their contact details, and to check for any lost super the ATO may still be holding in their name.
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