The Association of Superannuation Funds of Australia (ASFA) welcomes the Federal Government’s announcement last week, as part of the Economic and Fiscal Update, to allow superannuation funds to voluntarily transfer amounts to the ATO in circumstances where the trustee believes it is in the best interests of that member.
ASFA CEO Dr Martin Fahy said that ASFA had advocated for this important change. “There are a number of circumstances that can result in there being a small residual balance in a member’s superannuation account, including the COVID-19 early release scheme. Transferring such amounts to the ATO can be in the best interests of the members, especially where further contributions to that account are unlikely.”
In particular, ASFA considers the flexibility to transfer balances to the ATO by trustees may be beneficial in the circumstances where:
- the account is small and it is uneconomical for it to be maintained within a fund
- a person cannot continue to be a member of the fund – for example a corporate super plan where a member has ceased employment with a sponsoring employer and has not provided payment instructions
- there are remediation amounts with respect to an exited member where the benefit must be preserved within the super system but the trustee is unable to contact the former member
- a superannuation fund is being wound-up and a member has not provided directions as to where their benefit is to be rolled over.
“Having the ability to transfers amount to the ATO will improve flexibility for super fund trustees in the administration of their fund, lead to more people’s super being re-united with their active account and reduce the incidence of multiple accounts.”
For further information, please contact:
Jacqui Maddock, 0451 949 300.
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.