Under the Protecting Your Super package, the ATO says Self-Managed Superannuation Funds (SMSF) may receive a rollover of consolidated unclaimed super money for members.
The Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019 introduces a number of reforms to protect individual’s super savings from undue erosion by fees and unnecessary insurance.
The Bill was originally introduced in June 2018 and was finally passed in February 2019, receiving Royal Assent on 12 March 2019 as Act No 16 of 2019. Some 22 amendments were made to the Bill by the Greens in the Senate and they were subsequently agreed to by the House. Those amendments to the ill retain group insurance on an “opt-out” basis for people with default superannuation
Super providers, exclusing SMSFs and small APRA funds, will be required to report and pay inactive low-balance accounts to the ATO as a new category of unclaimed super money (USM) for the first time by 31 October 2019. The ATO says it will now be able to proactively consolidate eligible USM into eligible active super accounts, including SMSFs and small APRA funds, if an individual hasn’t requested a direct payment of this money or for it to be rolled over to a fund of their choice. While SMSFs won’t be required to report and pay inactive low-balance accounts, they may receive a rollover of consolidated USM for members, the ATO said
The ATO says it will start proactive consolidation from November 2019 and notify individuals when it has consolidated their USM into an active super account.
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