POWERED BY MOMENTUM MEDIA
Lost super pool shrinking
The push to reunite members with their lost superannuation accounts appears to have worked according to the Australian Taxation Office's (ATO's) annual report, which stated the amount of lost super had fallen for the first time over 2011/12.
Approximately 1.1 million lost and unclaimed super accounts holding $3.2 billion were 'found' this year, reducing the overall amount of lost super to $17.7 billion.
It is the first time the level of lost super has fallen, after it reached a peak of $21 billion at the end of the 2010/11 financial year.
Programs such as the ATO's SuperSeeker that aimed to reunite members with lost super were behind the shrinking pool of lost retirement savings, the Government said.
It said super reforms including SuperStream, and the increase in compulsory contributions from 9 to 12 per cent, were also designed to save costs for the industry and protect Australians' retirement savings.
Further super reforms including the announcement to protect small lost super accounts from fee erosion by increasing the lost accounts threshold for transferral to the ATO would also help protect lost super accounts.
Changes to tax charges for low-income earners, and applying interest to lost super accounts, were also cited as reforms to help protect capital and reunite lost super accounts with their owners.
There are still about 6.1 million lost and unclaimed accounts with a value of approximately $17.7 billion.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
