Rudd’s super rollover plan for lost funds
Lost superannuation accounts may soon be recovered by automatic rollover into a member’s last known active account using the Tax File Number system, according to the Federal Government, which has plans to slash the level of unclaimed super.
Australian unclaimed super fund AUSfund welcomed the announcement by Senator Nick Sherry, Minister for Superannuation and Corporate Law, calling the move a major landmark for superannuation.
AUSfund manager Warren Fawcett said automatic rollovers would not only reduce the incidences of lost accounts, but may also reduce the number of increasing unclaimed super accounts.
“People don’t leave money in their account when they close their bank account. Why do they do it with superannuation?” he said.
However, AUSfund fears Australians may not consolidate recovered funds because of the lack of understanding of the benefits of consolidation or the small amounts involved.
“The Government really needs a major financial literacy program to accompany the auto roll and to tackle the lost and unclaimed super problem once and for all,” Fawcett said.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
