The number of unclaimed superannuation accounts in the eligible rollover fund (ERF) sector grew by 106,000 in fiscal 2010, according to a new study.
This brought the total number of small and lost accounts to 6.1 million as at June 2010, more than 15 per cent of all super accounts and represented and around $5.4 billion in effectively unclaimed super, the SuperRatings 2010 ERF review said.
“Unfortunately, despite significant improvements being made to a number of these ERFs since strong scrutiny of this sector commenced some 5 years ago, the rate of fees deducted from these inactive accounts remains close to double that of mainstream superannuation funds,” SuperRatings managing director Jeff Bresnahan said.
“This has allowed suppliers to strip an estimated $130 million from these accounts in the past financial year alone, due in part to Australians’ apathy and in part to a system that makes consolidating super far too complicated, despite the best efforts of some of the better ERFs in the industry.”
The study said that under new regulations which came in effect last October, the government is set to reap some benefits from lost and unclaimed super accounts.
“SuperRatings estimates that some 1.5 million accounts, predominantly lost accounts of less than $200 each were passed onto the ATO, to eventually find their way to consolidated revenue and effectively making the ATO the second largest ERF by members,” it said.
“It is estimated that the ATO received well over $100 million in the first tranche of monies transferred around October last year.
“The introduction of the Government’s SuperStream initiatives, including TFN matching, should greatly improve the ease with which members are able to consolidate their superannuation benefits.”
