How Aussies get their share of $16 billion in lost, unclaimed super

New data shows the amount of lost and unclaimed super has increased by $2.1 billion since last financial year. See how you get your share.

Australians could collectively be $16 billion richer by unlocking lost or unclaimed super, new data shows.

New figures from the Australian Taxation Office show the amount of lost and unclaimed super has jumped $2.1 billion since last financial year, to $16 billion.

Deputy Commissioner Emma Rosenzweig said Aussies’ super was not “lost forever” and could easily be found it in a matter of minutes by accessing ATO services online through myGov.

“Super is one of the most important investments many Australians will have during their lifetime, which is why we want to reunite hard-working Australians with what is rightfully theirs. When it comes to protecting your financial future, every bit counts,” Ms Rosenzweig said.

“People often lose contact with their super funds when they change jobs, move house, or simply forget to update their details.”

It’s worth checking whether you have lost money in superannuation.

Almost one in four (23 per cent) Aussies hold two or more super accounts, ATO’s new data reveals.

“While we know that some people intentionally maintain a number of accounts, some are unaware that this is the case. If you’ve unknowingly got multiple accounts, you could possibly be losing hundreds of dollars a year to fees,” Ms Rosenzweig said.

It comes after superannuation was thrust in the spotlight last week, with both sides of politics weighing in on proposed changes to super tax concessions.

Those concessions, which were first introduced to encourage workers to save super instead of relying on the pension, could soon cost budget more each year than the aged pension.

With about two-thirds of the $50 billion in annual concessions going to the top 20 per cent of income earners, the government reignited the debate over whether they should be amended.

One idea being floated is removing tax concessions for super balances over $3 million. Labor says only 1 per cent of Australians have this much super and that the average balance is $150,000.

Senior Liberals have accused the Albanese government of going back on its pre-election commitment not to tamper with superannuation and have defended Coalition-era policies which allowed Australians to withdraw $36 billion worth of superannuation early during the pandemic.

The proposed super caps have also raised concerns among the investment sector.

GOVERNMENT HAS MORE OF OUR MONEY

Joel Gibson, of One Big Switch, said finding lost or unclaimed super was just one of three ways to unlock money kept with the government.

He said in addition to tax, there was about $2.5 billion ‘unclaimed cash’ held by state and federal governments.

“Start by searching for ‘unclaimed money’ in your state and in the federal government’s ASIC website – this is cash that for whatever reason got lost and ended up in government coffers for safekeeping. Maybe you moved house and a cheque never found its way to you,” Mr Gibson said.

@joelmgibson

Daily saving 28/365: See if Australian govts are holding any “unclaimed money” for you or your loved ones. It takes 5mins at the websites listed in my book and in this video #moneysavingtips#dailysaving#unclaimedmoney

♬ original sound - Joel Gibson

WHAT IS LOST SUPER?

Super becomes lost when the account holder is uncontactable or the account is inactive. There is currently $10.4 billion in lost super held by super funds.

WHAT IS UNCLAIMED SUPER?

Of the $16 billion pool, $5.6 billion is ‘unclaimed’ super, which is $1.6 billion more than in 2019.

Unclaimed super is where the money from low or inactive accounts meet certain conditions and therefore are required to be transferred from funds managed by super companies to the ATO.

Since November 2019, the ATO has proactively consolidated almost 4.7 million accounts with a value of $7.1 billion dollars.

“While we’re doing all we can to get this money back where it belongs, we rely on people keeping their contact information up-to-date. The best thing you can do to ensure you’re getting what you’re entitled to is checking that your current contact information and bank account details are correct,” Ms Rosenzweig said.

– With Catie McLeod, of NCA NewsWire

Originally published as How Aussies get their share of $16 billion in lost, unclaimed super