• Updates to 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, and
    • streamlining lost and unclaimed superannuation administrative arrangements.

    Increase in the small lost member account threshold

    There has been another increase to the threshold of small lost members' accounts being transferred to the ATO as unclaimed money. From 31 December 2016, funds must transfer the balance of a lost member’s account to the ATO if the account balance is less than $6,000. Prior to 31 December 2016, funds were required to transfer balances less than $4,000 to the ATO.

    Changes to superannuation for working holiday makers

    As part of the Working Holiday Maker Reform Package, legislation was passed to increase the tax rate applied to the departing Australia superannuation payment (DASP). From 1 July 2017, a new tax rate of 65% will be applied to DASP which includes superannuation contributions made while the individual was a working holiday maker. This new rate applies to visa subclasses 417 (Working Holiday) and 462 (Work and Holiday).

    No deferral for reporting lost members

    We recently consulted with superannuation industry stakeholders about deferring the lodgment of lost member statements (LMS) in 2017. Their preference is to continue reporting lost members. This means LMS lodgments remain mandatory for all funds.

    Funds' next lodgment for the period 1 July to 31 December 2016 is due on or before 30 April 2017.

    If you require a deferral or extension of time to meet your lodgment obligation, please follow the current procedure.

    Revisions to our protocol and specification documents

    The lost member register and unclaimed superannuation money protocols have been updated to include recent law changes and relevant scenarios.

    The unclaimed superannuation money statement electronic reporting specificationExternal Link is also being updated to include a change to the threshold for reporting and paying small and insoluble accounts.

    Next steps: We will keep you informed of any further changes to your reporting obligations.

    Read more: Cutting red tape for lost and unclaimed superannuation.

    See also:

    • Regularly check the what’s new page
    • Subscribe to our alert service to receive an email or RSS feed alert. When you subscribe, select ‘Super’ in the subscription choices
    • Register as a participant in the Superannuation Community on Let’s TalkExternal Link to have your say in online engagement activities.
      Last modified: 10 Mar 2017QC 51457