Consolidating multiple accounts within the same fund for individuals

From 1 July 2013, funds will be required to establish procedures for consolidating multiple superannuation accounts they hold for the same member on an annual basis, when it is in the member's best interests.

These changes are designed to facilitate a reduction in the number of unnecessary accounts in the superannuation industry. This will boost superannuation balances by ensuring members avoid paying unnecessary fees, including insurance premiums on multiple accounts, and will reduce the number of lost accounts.

Funds must complete the first round of this consolidation by 30 June 2014.

Exempt from the new changes and consolidation will be defined benefit interest accounts, accounts supporting an income stream, and First Home Saver Accounts.

As of late March 2013, the proposed changes were not law because they have not been passed by parliament or received royal assent.

Media releases

For more information, refer to:

• Media release no. 014: Reduction in unnecessary superannuation accounts will boost retirement savings, issued on 20 March 2013 by the Minister for Financial Services and Superannuation, and the Minister for Employment and Workplace Relations.
• Media release no. 131: A better deal for superfund members, issued on 21 September 2011 by the Assistant Treasurer and Minister for Financial Services and Superannuation

Legislation and supporting material

Tax and Superannuation Laws Amendment (2013 Measures No. 2) Bill 2013 and Explanatory Memorandum tabled in Parliament on 20 March 2013.

More information For more information about super reform, refer to Stronger Super website