Treasury has moved a step closer to allowing the use of tax file numbers (TFN) to combine superannuation accounts and other retirement savings after releasing draft amendments for consultation.
The draft laws, released yesterday, would allow superannuation trustees and retirement savings account (RSA) providers to use TFNs to consolidate accounts in a bid to whittle away at Australia’s $18-billion mountain of unclaimed super.
The deadline for industry submissions is Friday and the provisions are slated to start on 1 January 2012 or earlier.
The amendments are part of the government’s Stronger Super reforms, aimed at streamlining the nation’s cumbersome super system and getting Australians more engaged with their $1.3 trillion in retirement savings.
“The measure expanding the use of TFNs, which these regulations support, is designed to increase the administrative efficiency of the superannuation industry,” Treasury said in explanatory commentary accompanying the draft laws.
“It improves fund administration by allowing trustees and RSA providers to identify member accounts quickly and easily, and take steps to facilitate account consolidation.”
The drafts are Superannuation Industry Amendment Regulations 2011 and Retirement Savings Accounts Regulations 2011.
They amend the Superannuation Industry (Supervision) Act 1993 and Retirement Savings Act 1997, respectively.
Treasury initially unveiled the draft laws in February and they were slated to be implemented by 1 July, but apparently hit a roadblock.
Some members of the Stronger Super working group fell out over whether all multiple accounts should be automatically consolidated or whether the mechanism would apply only to super balances above $1000.
