$18bn in unclaimed super

Almost $18 billion of lost super is languishing in accounts across the country, with NSW leading the pack for the most unclaimed funds.

Almost $18 billion of lost super is languishing in accounts across the country, with New South Wales leading the pack for the most unclaimed funds.

As at June 30, more than six million accounts were holding the lost and unclaimed funds, the Australian Taxation Office revealed yesterday.

NSW was head and shoulders above the rest, with more than $5bn sitting in lost or ATO-held super accounts across the state, followed by Victoria and Queensland, which each have more than $3bn of lost funds.

Mackay and Cairns and surrounding areas topped the list for the most unclaimed super nationally, with each holding more than $60 million of lost super.

Surry Hills and Darlinghurst in Sydney’s east also made the top 10 list, with $45m held in over 9,000 accounts. In Melbourne, Werribee and Cranbourne also featured in the top 10, with $56m and $44m lost super sitting in accounts.

Super funds are holding more than $14bn of lost super, with a further $3.75bn of unclaimed super held by the ATO.

Over half of the lost super belongs to people aged between 40 and 55.

ATO Assistant Commissioner Debbie Rawlings said almost 2.3 million Australians have three or more super accounts.

People can lose contact with their super funds when they change jobs, move house, or haven’t updated their details with their super fund.

“Over the past four financial years we’ve reunited 1.68 million accounts worth $8.12bn with the account owner, and there’s plenty more to be found,” Ms Rawlings said.

“More people are finding their lost and unclaimed super through our online services every year,” she said.

The Association of Superannuation Funds of Australia says the government needs to amend the law to allow the Commissioner of Taxation to return unclaimed super to active super accounts.

“One way to greatly improve the system is to have the ATO, which has the details of the active superannuation accounts for most individuals with unclaimed super, to return unclaimed funds currently captured by legislated threshold transfers,” ASFA chief policy officer, Glen McCrea said.

“A move to place the responsibility on the ATO to reunite lost accounts with their true owners

would be welcomed by consumers,” he said.