• Cutting red tape – lost and unclaimed superannuation

    In the 2015–16 federal Budget the government announced a package of measures to reduce red tape for superannuation funds and individuals by:

    • removing redundant reporting obligations
    • streamlining lost and unclaimed superannuation administrative arrangements.

    These changes will make it easier for individuals to be reunited with their lost and unclaimed super.

    Treasury have been working with us and superannuation industry stakeholders to implement these changes, which are being rolled out progressively.

    Removal of the lost member statement (LMS)

    Funds are currently required to lodge a lost member statement (LMS) on a bi-annual basis to report their lost members to us.

    This purposed legislation change will remove the fund's obligation to lodge a LMS and allow them to use our new reporting regime starting in November 2017 to fulfil their reporting requirements. This change will remove separate reporting obligations.

    See also:

    Enabling payment of unclaimed super to trans-Tasman KiwiSaver accounts

    Retirement savings can be moved between an Australian APRA regulated superannuation fund and a New Zealand (NZ) KiwiSaver account. However, individuals with unclaimed superannuation money (USM) accounts held by the ATO cannot have this money directly rolled into their KiwiSaver account.

    This change proposes to allow individuals to rollover their USM balances directly to KiwiSaver accounts.

    Legislation for this change has not yet been drafted.

    Direct payment of unclaimed super on terminal medical grounds

    A person suffering a terminal medical condition can access their super in a fund tax-free, prior to preservation age. However, they cannot currently access unclaimed superannuation money (USM) amounts greater than $200 held by us.

    This measure proposes to allow payments of USM to be made directly to individuals who qualify on terminal medical condition grounds.

    See also:

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      Last modified: 22 Jun 2017QC 45705