As part of the changes to super this year, private sector super funds must pay their unclaimed super money to the Australian Government.
From 1 July 2007, private sector funds are required to report and pay their unclaimed super for the half-year ending 30 June 2007 and later half-years to the Tax Office rather than to their state or territory authority.
As a result of the removal of compulsory cashing of benefits at age 65, the meaning of unclaimed super has changed. From 1 July 2007, for an amount to be unclaimed super it no longer has to be immediately payable to a member.
What is unclaimed super from 10 May 2006 to 30 June 2007?
For the period 10 May 2006 to 30 June 2007, a benefit is only unclaimed super if:
the member was deceased, or
it was immediately payable when the member turned age 65, under their fund’s governing rules.
What is unclaimed super from 1 July 2007?
Unclaimed super is a super amount payable for a member of a fund where ALL of the following conditions are met:
the member has reached the eligibility age of 65 years, for both males and females, and
the account has been inactive for at least two years, and
five years after last having had contact with the member, the fund is unable to contact the member despite making a reasonable effort.
Unclaimed super is also an amount payable in respect of a member of a fund if:
the member has died, and
the member is eligible for a benefit (other than a pension or annuity) that is payable immediately under the rules of the fund or by operation of law, and
the super account has been inactive for at least two years, and
the fund cannot ensure the benefit will be paid to the person entitled to it.
Private sector funds with unclaimed super for the half year ending 31 December 2007 must lodge their reports and forward unclaimed money to the Tax Office by 30 April 2008.
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