Super, new govt move re small lost accounts

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Super, new govt move re small lost accounts

Postby HBS Guy » 09 Nov 2012, 13:22

LOST superannuation accounts with balances of $2000 and less will be transferred to the Tax Office and held in trust until they are claimed, the Government will announce in today's mid-year Budget update.
The measure will protect lost retirement savings from unnecessary fees charged by super funds, while also boosting returns for all super savers by reducing the cost to funds of administering these small "lost" accounts.

It will also generate extra revenue for the Government as it seeks to balance its books.

A Treasury analysis found lost super accounts with balances as low as $1000 were being slugged with average insurance charges of $169 a year, meaning they would disappear after six years.

The Tax Office already manages lost super accounts with less than $200. This threshold will increase to $2000 and, for the first time, the Government will start paying interest on the accounts at the rate of inflation.

"The introduction of interest means that not only will these small lost accounts no longer be eaten up by fees and charges, but they'll actually retain their value in real terms until they're reunited with the lost member,'' Mr Shorten said.

"There are 3.4 billion lost super accounts in Australia with a combined balance of $17.7 billion.'' ... 6500248833

What a great idea! I guess the govt will invest the funds, pay the inflation rate and keep any proceeds above that.
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