The level of lost superannuation assets and lost member accounts in the Australian superannuation system increased in the 2007-08 financial year.
The Lost Members Register increased from $11.9 billion in superannuation assets on 30 June 2007 to $12.9 billion on 30 June 2008, an increase of 8.4 per cent.
The total number of lost member superannuation accounts rose by 315,325 or 5.2 per cent, from 6.1 million accounts on 30 June 2007 to 6.4 million accounts at 30 June 2008.
"This is a major structural inefficiency in our retirement savings system and it has reached the scale it now has because of twelve long years of the Liberal Party either doing nothing about it, or misunderstanding the problem".
"The Rudd Labor Government came to office promising to fix the lost super problem."
"While the ATO does a commendable job trying to contact lost super fund members and by conducting audits of super funds to check their reporting of lost members, using tax file numbers to re-unite people with their lost super would be a more efficient and cost effective way to solve the problem," said Minister Sherry.
"Fund members pay multiple fees as the price of having multiple super accounts which ultimately impacts their end retirement savings balance.
"Currently, if members do try to consolidate their accounts, many give up as they face the prospect of having to find their other accounts, and other red tape to complete the process," Minister Sherry said.
"My preference is for the Government to develop a new system that automatically consolidates people's lost accounts, but with an individual opt-out for those who actively choose not to take part."
The Superannuation (Unclaimed Money and Lost Members) Act 1999 requires super funds to report to the ATO twice a year on the details of member accounts that meet the definition of lost member. The information is retained in a register of accounts called the Lost Members Register.
Attachment
Number and Value of Lost Member Accounts by Location of Member.
|
|
As at 30 June 2008 |
||
|---|---|---|---|
|
State |
Number |
% of Accounts |
Value ($m) |
|
ACT |
103,766 |
1.6% |
253,175,171 |
|
NSW |
1,933,333 |
30.1% |
4,135,267,063 |
|
NT |
95,582 |
1.5% |
208,536,130 |
|
QLD |
1,277,581 |
19.9% |
2,805,455,770 |
|
SA |
327,762 |
5.1% |
822,119,684 |
|
TAS |
85,974 |
1.3% |
222,819,082 |
|
VIC |
1,162,908 |
18.1% |
2,832,916,234 |
|
WA |
650,085 |
10.1% |
1,241,067,187 |
|
OVS |
280,522 |
4.4% |
146,030,551 |
|
UNK |
501,851 |
7.8% |
249,723,212 |
|
Total |
6,419,364 |
100% |
12,917,110,086 |