• Cutting red tape for superannuation

    The government announced measures in the 2015–16 budget to cut red tape for superannuation funds and individuals.

    Allow proactive eligible rollover fund consolidation

    This change will allow the licensee of an eligible rollover fund (ERF) to transfer a member's superannuation monies to the member’s active account in another superannuation entity without the member’s consent.

    The legislation for this measure is contained in Treasury Laws Amendment (2016 Measures No.1) Regulation 2016. The regulation was registered on 9 May 2016 and the start date was 10 May 2016.

    Updating the ‘uncontactable’ definition for lost member accounts

    This change recognises modern communication methods in determining if a member is not contactable. New examples of communication methods include emails and members logging in to the super fund’s website.

    The legislation for this measure is contained in Treasury Laws Amendment (2016 Measures No.1) Regulation 2016. The regulation was registered on 26 February 2016 and the start date is 1 July 2016. This new definition will impact reporting for the period 1 July 2016 – 31 December 2016 onwards.

    Other remaining changes

    • Small lost member account threshold increases – the threshold of unclaimed superannuation money (USM) being reported and paid to the ATO increased from $2,000 to $4,000 on 31 December 2015. It will increase to $6,000 on 31 December 2016.
    • Removal of the lost member statement (LMS) – it is proposed to remove a fund’s legislative obligation to lodge a lost member statement to report lost members.
    • Direct payment of unclaimed superannuation money (USM) on terminal medical grounds – it is proposed that individuals suffering from a terminal medical condition can access their USM prior to preservation age.
    • Enabling payment unclaimed superannuation money (USM) claims to trans-Tasman KiwiSaver Accounts – it is proposed to enable individuals with USM balance to rollover it over to their KiwiSaver account in New Zealand.
    • Removal of the ‘employer sponsored’ element of the 'Lost inactive' definition – it is proposed to remove the employer sponsored element contained within the lost member definition.

    See also:

      Last modified: 07 Jun 2016QC 49286