Earlier this year, the government passed its Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018, which was aimed at reducing the erosion of superannuation balances and inappropriate insurance arrangements.
The new changes mean that superannuation accounts with balances below $6,000 that have not received a contribution for 16 months will be transferred over to the ATO.
The ATO said that APRA-regulated super funds will be required to report and pay inactive low-balance accounts to the Tax Office as a new category of unclaimed super money for the first time by 31 October.
“While SMSFs won’t be required to report and pay inactive low-balance accounts, they may receive a rollover of consolidated unclaimed super money for members,” the ATO said.
“We will now be able to proactively consolidate eligible unclaimed super money into eligible active super accounts, including SMSFs and small APRA funds, if an individual hasn’t requested a direct payment of this money or for it to be rolled over to a fund of their choice.”
The ATO said that it will start proactive consolidation from November and notify individuals when it has consolidated their unclaimed super money into an active account.
The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney in August to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting. Visit the website for more information: www.accountantsdaily.com.au/strategy-day