Lost super properly protected
Australians who have lost track of superannuation or old bank accounts will now have their money returned faster and interest paid to preserve its real value, under reforms passed by Parliament late last week.
Australians who have lost track of superannuation or old bank accounts will now have their money returned faster and interest paid to preserve its real value, under reforms passed by Parliament late last week.
The federal government’s reforms will ensure lost super and monies are properly protected so people can be reunited with money that is rightfully theirs.
There are literally hundreds of thousands of Australians who reportedly have unclaimed money in bank accounts held by Australian Securities and Investments Commission and in lost superannuation held by the Australian Taxation Office.
Under the current rules, lost super and unclaimed monies are not paid interest and are held for long periods of time by banks and super funds, eroded by fees, charges and inflation.
Under the Treasury Legislation Amendment (Unclaimed Money and Other Measures):
• for the first time, interest will reportedly be paid on unclaimed moneys held by the Australian Securities and Investments Commission and the Australian Taxation Office (at the rate of Consumer Price Index inflation);
• inactive bank accounts and life insurance policies will be put on a public website after three years of inactivity (instead of seven years) when banks are unable to track down the owner; and
• lost superannuation accounts will be put on a public website if they contain less than $2,000 where the account has been inactive for five years or the member is uncontactable.
These lost funds can be easily found by owners or descendants by visiting the MoneySmart or SuperSeeker websites.
The Senate Economics Committee recommended Parliament pass the legislation and found the reforms would be of significant benefit to consumers as they help reunite people with their unclaimed money sooner, and protect the real value of that money while it remains unclaimed.
To see if you have lost super, visit SuperSeeker. To see if you have an unclaimed bank account, life insurance policy or company money, visit MoneySmart.
