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Lost super changes to impact WA public sector
Public sector super funds in Western Australia will feel the impact of new legislation where lost and unclaimed money will be moved to the Australian Taxation Office (ATO).
Funds like GESB, which was not affected by these rules before, said it will be forced to close accounts and move super balances to the ATO if a member is declared as lost.
GESB said it will have to close accounts and transfer balances if a member is uncontactable (no address and two pieces of mail returned to GESB as undeliverable) or inactive (member's account has not received any contribution for five years).
RSM Bird Cameron Financial Services financial adviser Robert Zammit warned this new legislation could have unintended results as members cannot reopen a GESB West State account once it is closed.
The super scheme is a constitutionally protected fund.
"Although individuals may believe their accounts are small and insignificant they may also have life and disability insurance cover within their accounts. This cover may be lost and irreplaceable once the account is closed."
GESB will try to contact members over the coming weeks, and members will need to choose to be excluded from any transfers before 27 February.
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