Chances are if you’ve shifted jobs in Australia and not consolidated your superannuation, then part of the estimated $20+ billion in lost superannuation could be yours. If you have multiple superannuation accounts, this could mean that you’re paying unnecessary administrative fees, multiple insurance premiums and each of these items could negatively impact your future retirement income.
Even though as Australian expats, we may not be actively contributing to our superannuation fund, it’s still important to ensure that you’re on top of it. Superannuation is one of the most tax-efficient ways that Australians have to both save and provide for their retirement income. If you have multiple super accounts, it can also be incredibly difficult to track performance and ensure that the funds are invested in line with your own risk profile and financial goals and objectives.
This week our team at Ally Wealth Management is outlining how you can track down and consolidate your superannuation. It’s important that you do your homework and reach out for professional advice before simply consolidating your superannuation, as you may find that you lose your insurance policies or other benefits attached to your super.
Firstly, what is lost or unclaimed superannuation?
Australian superannuation platforms and providers report your superannuation to the Australian Tax Office (ATO) as lost super whenever they can’t reach you at your address on file, and when you haven’t made any contributions or rollovers into your account for a period of at least 12 months.
Under the Protecting Your Super rules that came into effect in 2019, if your account balance is below $6,000 and you haven’t contributed for 16 months, then your super fund may pay the balance to be held by the ATO. This can mean that your funds are not invested in line with your risk profile, so it’s important to check it out and consolidate your superannuation.
How can I check for any lost superannuation accounts?
The Australian Government has set up myGov, which allows both Australian residents and expats to access the Australian Government services online. Below we have outlined the steps to set up your own myGov account and link it to your Tax File Number (TFN), allowing you to track down your superannuation.
Step 1 – Set Up Your myGov Account
Your first step is to visit my.gov.au and follow the links to ‘Create Your Account’. This is a simple step-by-step process and you will need to ensure that you have some identifying details on hand to set up your account.
Step 2 – Link your myGov Account to Tax Services
Once you have set up your new myGov account and logged in, click on the ‘Services’ tab. Your next step is to scroll down and then click on the ‘Link’ icon next to ‘Australian Tax Office’. You will need to ensure that you have your Australian Tax File Number on file to enable you to link this properly. If you don’t know what your Australian Tax File Number is, you can call the ATO on +61 13 28 61, go through the ID verification process and they will provide your TFN.
Step 3 – Access the portal
Once you have logged into your account, click on the ‘Australian Tax Office’ button under ‘my linked services’. You will then be taken to a screen where you can click on the ‘Super’ tab, which will display your superannuation account balances. This will display the provider for your superannuation, as well as the current balance for your super account.
Step 4 – Consolidate your superannuation
Now that you have found out if you have any lost superannuation, you can start to consider whether you should consolidate it into one of your existing accounts, or set up a new account with different providers. This is where we’d suggest that you seek professional advice to review your options and outline the suitable options to move forward.
If you have any questions or difficulties in tracking down your lost superannuation, please feel free to reach out to our team.
Ally Wealth Management is the trusted ally in finance for Australians at home and across the globe. As both Australian expats and residents, the founders of Ally have a unique understanding of the common personal financial challenges faced.
Book your complimentary appointment with our team at Ally Wealth Management to discuss how we can help you to achieve your financial goals.
Ally Wealth Management Pty Ltd is a Corporate Authorised Representative of Sentry Advice Pty Ltd ABN 77 103 642 888. Sentry Advice holds an Australian Financial Services Licence (AFSL) No. 227 748.
General Advice Warning: The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances, and objectives. We recommend you obtain professional financial advice specific to your circumstances.