KOCH:
New tax office figures show the staggering amount of money Aussies have in lost or unclaimed superannuation. NSW tops the nation, with more than $3 billion waiting to be claimed. Western Australia over a billion, South Australia almost $800 million, ACT, Tasmania and the Northern Territory have slightly less. Combined, it adds up almost $14 billion in retirement money that could be yours. I'm joined now by Superannuation Minister Jane Hume. Minister that’s a staggering amount. What are the main reasons why workers have lost unclaimed super?
HUME:
Good morning Kochie, yes it is a staggering amount, isn't it! It is largely because people changed their names or have moved address, changed jobs or have moved address, change jobs or not updated their superannuation details. Those super funds from jobs, way way back in the past when you in your teens or your early 20s may have been lost, languishing within a superfund.
A couple of years ago, we changed legislation so that the superfunds were compelled to roll that money into the ATO, and the ATO has data matching technology so it can find its way back to its rightful owner.
It is a really easy thing to do, you log on to the myGov website with a couple of clicks, in the time it takes you to eat a bowl of cereal in the morning, you can find out whether some of that super is yours.
KOCH:
It is fascinating when you look at the data, breaking down the top 10 locations for lost super. Sydney, Cairns, Bondi, as well as Mackay, Toowoomba in Queensland, Werribee in Victoria. So a lot of this would be people who had jobs in industries where they changed quickly, like hospitality or tourism or whatever. Even though it is a small amount of super or you may be that a short amount of time, it is worth rolling it into your existing fund, isn’t it?
HUME:
Very much so, because when you have duplicate accounts out there, you may have duplicate sets of fees, potentially duplicate sets of insurance premiums and all of that is eroding away your balances. We would suggest people log onto MyGov, see if some of that super money is theirs and consolidate it back into their active superannuation account to get the maximum benefit.
KOCH:
Because the money is just being parked with the tax office at the moment. So fees, basically no fees, which has been a good thing which was introduced a few years ago.
HUME:
That's exactly right. The ATO doesn't charge fees for holding on to that superannuation money but it would still be better off if it was in an active consolidated superannuation account and where it can have the benefits of compound interest over many years.
KOCH:
Great reminder Jane Hume. Appreciate your time. Go to myGov and as Jane says, in the same amount of time as eating a bowl of cereal, check whether there’s any money that’s yours there. Appreciate your time thank you.
HUME:
Great to be with you Kochie.
BARR:
Good tips, I love Jane’s white jacket too.