Automatic consolidation of low-balance accounts

A person's super account(s) will be automatically transferred into an active super account that they have with another fund, through this consolidation measure. Super fund accounts are affected if they are part of an eligible rollover fund (ERF) or have a balance of less than $1,000 and either:

• the super fund has been unable to contact the account's owner, or
• have not received money through a contribution or a rollover in the last two financial years.

We will identify accounts that are eligible for consolidation through this process and notify the fund that holds the member's eligible active account. This fund will be responsible for arranging consolidation, unless the member opts out.

Accounts in self-managed super funds (SMSFs) will not be consolidated through this process.

On 20 March 2013, the government announced that it will review the need to proceed with this measure in late 2014.

These proposed changes are not law as they have not been passed by parliament.

Media release

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.

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