From January 2014, the ATO will help super funds to auto-consolidate accounts with low balances by providing details of these accounts to members’ active funds. The information will be provided annually and will include details of:
- lost accounts
- accounts that have not received a contribution or rollover for two years with balances under $1,000
- accounts in eligible rollover funds.
Funds will be responsible for arranging consolidation unless the member opts out.
Subject to a review by the Treasury, ATO and the Australian Prudential Regulation Authority (APRA), the threshold for auto-consolidation of lost and inactive accounts will be increased to at least $10,000 in the latter half of 2014.
These proposed changes are not law as they have not been passed by Parliament.