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  • Inactive low-balance accounts and proactive consolidation

    You will find the provisions governing the reporting and payment to the Commissioner of Taxation of inactive low-balance accounts (ILBA) in Part 3B of the Superannuation (Unclaimed Money and Lost Member) Act 1999 (SUMLMA).

    The law also gives us authority to consolidate certain ATO-held super amounts on behalf of individuals. An individual no longer needs to direct us to do so.

    On this page:

    Reporting and paying of ILBAs

    Super funds have to identify ILBAs on the two unclaimed money days each year (that is, on 30 June and 31 December). Super funds need to report and pay the balance to us by the end of the scheduled statement day, as follows:

    • For accounts identified on 30 June – the scheduled statement day is 31 October of the same year.
    • For accounts identified on 31 December – the scheduled statement day is 30 April of the following year.

    Only accounts that meet the criteria for ILBA on the unclaimed money day and continued to meet the criteria on the corresponding scheduled statement day are to be reported and paid to us.

    Note that this only applies for ILBA as different rules apply to other unclaimed super money (USM) categories.

    Interim reporting solution

    Super funds must report and pay inactive low-balance accounts by the scheduled statement day. However, SuperStream Rollover message implementation guide (MIG) v2.0 doesn't include a separate reason code for the ILBA category. A new reason code will not be implemented until April 2021 with Rollover MIG v3.0.

    An agreement made with industry supports the use of the ‘Insoluble lost member accounts’ USM reason code 'P' as an interim solution to report ILBA as well.

    The lost status indicator reported via the Member Account Attribute Service (MAAS) will be used to account for the total of each category.

    We'll use the following formula to determine the number of ILBAs:

    • total number of accounts reported using reason code P minus
    • total number of accounts with lost status indicator reported via MAAS.

    If a super fund has not reported accounts as ‘lost’ via MAAS before transferring them as 'lost insoluble', they must advise us of those accounts via the data transfer facility (DTF) using the Interim reporting lost members not reported in MAAS template.

    The fund must also send an email to the ATO to advise us which mailbox was used to upload the template.

    Next steps:

    Note: Super funds will be able to report and pay ILBA with the appropriate code, using Rollover MIG v3.0, for the scheduled statement date commencing in 2021.

    Proactive consolidation

    Super funds that can accept government rollovers may receive rollovers from us where your members have certain types of ATO-held super and they have an eligible active account in your fund.

    We use information reported to us via your MAAS and Member Account Transaction Service (MATS) lodgments to determine if your member has an eligible active account.

    See also:

    Last modified: 20 Jul 2020QC 60541