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  • Inactive low-balance super accounts

    The Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019 introduced a new category of accounts that need to be reported and paid to us – inactive low-balance accounts.

    To protect accounts from fee erosion, inactive low-balance super accounts will be transferred to us and, where possible, we will proactively consolidate your super on your behalf.

    Inactive low-balance accounts

    Generally, a super account is an inactive low-balance account if the following criteria are met:

    • no amount has been received by your fund for crediting to that account for your benefit within the last 16 months
    • the account balance is less than $6,000
    • you have not met a prescribed condition of release
    • the account is not a defined benefit account
    • there is no insurance on the account
    • the account is not held in a self-managed super fund (SMSF) or small Australian Prudential Regulation Authority (APRA) fund

    However, the account will not be an inactive low-balance account if any of the following have occurred in relation to you in the last 16 months:

    Depending on how your account is structured with your fund, they may need to consider some of the above criteria at a product level within your account. This may mean that only part of your account is paid to the ATO.

    Funds are required to identify inactive low-balance accounts on 30 June and 31 December each year and then report and pay them to us by the statement date.

    For accounts identified on:

    • 30 June, the statement date is 31 October of the same year
    • 31 December, the statement date is 30 April of the following year.

    The balance of inactive low balance accounts must be reported and paid to us by the statement date.

    What you need to do

    You are not required to do anything. The balance of your inactive low-balance account will be transferred to us by your fund and, where possible, we will proactively consolidate it into an active super account on your behalf.

    If you have an account that you do not want transferred to us as an inactive low-balance account, you can:

    • consolidate your super accounts using ATO online services through myGov
    • contact your super fund for more information
    • authorise your super fund to provide a written declaration to us by completing this formThis link will download a file and sending it to your super fund

    See also:

    Written declaration that you are not a member of an inactive low-balance account

    Use this formThis link will download a file to provide a written declaration that you are not a member of an inactive low-balance account. Send the completed form to your super fund. Your fund will then notify us that you are not a member of an inactive low-balance account and they will not need to report and pay your account to us as an inactive low-balance account.

    Example

    Jane has a super account with a balance of $4,500 on 30 June 2019. It has received no contributions in 18 months. Jane wants to keep this account, so to ensure it is not transferred to the ATO as an inactive low-balance account, Jane completes the Inactive low-balance accounts – Authorising your fund to provide a written declaration to the ATO form and sends it to her fund on 28 September 2019.

    Jane's fund then provides written notice of the declaration to us on 30 October 2019. Jane's account is not considered an inactive low-balance account and that status will remain in place until the 31 December 2020.

    If Jane’s account meets the criteria of being an inactive low balance account at the 30 June 2021 and if she doesn't provide another written declaration, her fund will report and pay this account to us on the 31 October 2021 statement date.

    End of example

    See also:

      Last modified: 23 Jul 2019QC 59051