Many people missed the announcement in the last mini-budget that as of the 31st May 2013, the Australian Taxation Office will become the beneficiary of any inactive (for 12 months or longer) superannuation accounts with balances of $2,000 or under.
The funds will be held in trust by the government, boosting their coffers by about $675 million over the next four years. Members are able to apply to reclaim these funds and the amount refunded will be adjusted to account for inflation. This could be an area of concern for people who have insurance policies purchased through superannuation which may be forfeited by the winding up of the fund.
If you know people with multiple smaller super accounts, it’s time for them to get them consolidated into a single fund. If they need assistance with this or advice on how to get the best returns from their super get them to contact Fusion.