More than $21 billion in lost super and unclaimed superannuation is currently waiting across Australia, according to the ATO figures cited in the original article. The average lost account holds around $41,000, and the ATO reunited more than $1.1 billion with members last year.
That money could be contributing to your retirement savings instead of sitting in a forgotten account. Checking for lost super is free, usually takes only a few minutes, and tax time can be a useful opportunity to review where your super is held.
How does lost super happen?
Lost super generally occurs when a super account becomes inactive and the fund can no longer contact the member. This can happen for several common reasons, including:
- Changing jobs and leaving an old super account behind
- Moving house without updating your address with the fund
- Changing your phone number or contact details
- Changing your name and not notifying the fund
When a fund cannot contact you, the account may eventually be classified as lost. In some cases, the balance is transferred to the ATO, which holds the money until it can be reunited with its rightful owner.
The important point is that lost super does not simply disappear. It may still be waiting for you to claim it.
How to find lost super through myGov
Finding lost super is straightforward and free. One of the quickest ways is through ATO online services linked to myGov.
- Log in to myGov and open the ATO service.
- Select Super, then Fund details.
- Review your active super accounts and any lost or ATO-held super linked to your tax file number.
You may also be able to search through the ATO app, use the automated lost super search service on 13 28 65, or complete a paper form.
Old accounts can easily be forgotten, particularly after changing jobs several times. Even a small balance from an early job may have grown over time.
Why it matters near retirement
Finding lost super can be valuable at any age, but it may be especially important if you are approaching retirement.
An additional $20,000, $40,000 or more could make a noticeable difference to the amount available in your retirement nest egg. Smaller balances may also continue to grow once they are brought together in an active account that earns investment returns and receives future contributions.
Consolidating super may also make your retirement savings easier to monitor and can help reduce unnecessary duplicated fees.
Check your insurance before consolidating
Before rolling several super accounts into one fund, check whether any of your existing accounts include insurance cover.
Super accounts can include death, total and permanent disability, or income protection insurance. In some circumstances, that cover may end when the account balance is rolled into another fund.
Losing insurance without realising it could leave an unexpected gap in your protection. Before consolidating, check with your super fund or adviser so you understand what cover may stop, continue or change.
Why checking your super is worthwhile
Money held in a lost or low-balance account may be earning less than it could or attracting unnecessary fees. Bringing your super together can make it easier to track your overall position, reduce duplicated costs and review your investment options.
The ATO reunification figures show that meaningful amounts are regularly returned to members who search for lost super.
With more than $21 billion waiting to be claimed, checking whether you have lost or ATO-held super could be well worth a few minutes.
You can start a free search through the ATO’s lost superannuation service:
https://www.ato.gov.au/forms-and-instructions/superannuation-searching-for-lost-superannuation
Need professional tax assistance?
If you are unsure whether you have lost or ATO-held super, or whether consolidating multiple super accounts is right for you, Pitt Martin Group can help you review your super position, understand the potential impact on fees and insurance cover, and consider the next steps based on your circumstances.
Pitt Martin Group is a firm of Chartered Accountants, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group, Sydney tax accountants, is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.
Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, Registered Australia Tax Agents, membership certification of the Chartered Accountants Australia and New Zealand (CA ANZ), certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.
This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.
By Nora Pham @ Pitt Martin Tax
