Inactive low-balance accounts

FAQs

• Why are you transferring my account to the ATO?

  The Federal Government’s Protecting Your Super Package came into effect on 1 July 2019. The legislation states inactive accounts must be transferred to the ATO and is designed to protect Australians’ super savings from unnecessary erosion by fees and insurance costs.

  Your account was identified as an inactive account.

• Why is my account considered inactive?

  Your account is considered inactive if:

  1.  we haven’t received a contribution to your account for 16 months or more; and
  2.  your account has a balance of less than $6,000; and
  3.  you haven’t changed your insurance cover, switched your investments, made or amended a binding beneficiary nomination on your account or told us in writing that you don’t want to be transferred.

• Is there anything I can do to stop the transfer of my account?

  Yes, you can stop the transfer of your account by taking one or more of the following actions:

  1. Making a contribution to your account.¹
  2. Consolidate super from another super fund into your AustralianSuper account.²
  3. Changing an investment option.
  4. Changing your insurance.
  5. Changing or making a binding beneficiary nomination.
  6. Telling us in writing that you don’t want to be transferred by completing the Authorisation for ATO declaration form.

  Taking one of the above actions will stop your account from being transferred for a period of 16 months. To prevent your account from being transferred in the long term, you may consider making sure your account balance stays above $6,000 by making regular contributions, if available to you.

  If you want to keep your account with AustralianSuper go to australiansuper.com/PYS-Stay for more details.

  ¹ Before adding to your super, consider your financial circumstances, eligibility, contribution caps that may apply, tax issues and when your super can be accessed. We recommend you consider seeking financial advice.

  ² Before making a decision to combine your super, consider any fees or charges that may apply, and the effect a transfer may have on benefits in your other fund such as insurance cover. We recommend you consider seeking financial advice. If you wish to claim a tax deduction for personal super contributions, you must lodge a notice of intent to claim a tax deduction with your other fund before you combine your super.

• I’ve checked my account and I have over $6,000, why am I being transferred?
  Super funds are required by law to identify inactive low-balance accounts twice a year, on 30 June and 31 December. If your account balance was less than $6,000 on one of these dates, your account will be transferred on the respective transfer date (30 April and 31 October) if in the past 16 months you haven’t received any type of contribution into your account, changed your insurance cover, switched your investments, made or amended a binding beneficiary nomination on your account or told us in writing that you don’t want to be transferred. This will occur whether or not your balance has increased due to investment returns, investment credits and/or refunds.

• What happens when my money is transferred to the ATO?

  The ATO will try to transfer it to your active super fund, if you have one. The ATO will only transfer your money to your active super fund if it will take your total balance to $6,000 or more. An active super account is defined as an account that:

  • is held by a living person
  • in accumulation phase
  • accepts government rollovers
  • has received a contribution in the current or previous financial year
  • the balance of the active super account after we initiate transfer of certain types of ATO-held super is equal to or greater than $6,000.

• When will the transfer of my account to the ATO take place?
  AustralianSuper is required to report inactive accounts to the ATO twice a year on 31 October and 30 April. We are also required to transfer any inactive accounts to the ATO by these same dates each year.

• Will I keep my insurance cover?
  No, if your account is transferred to the ATO, you will lose any insurance cover you have.

• Will I pay any fees?
  No, you will not be charged any fees by the ATO.