Superannuation
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Things to consider before consolidating
- Employer/Member Contributions: If your employer is paying contributions to the fund you are transferring out of, you will need to advise payroll where new contributions are to be made - use the Standard choice form. Most funds will not roll over if your current employer or member contributions are being paid into the account – they need confirmation that contributions have ceased before rollover can occur.
- Exit Fees: Contact your fund for information regarding any exit or withdrawal fees that may apply.
- Insurance cover: Check any insurance cover which may be on the existing account. If this amount of insurance cover is still required, you can apply for replacement insurance cover with the fund you wish to keep before rolling over. In most cases, the insurance cover will automatically be cancelled once you leave the fund. Carefully consider any terms and conditions of the replacement insurance, such as applicable waiting periods. You will most likely need to be medically assessed when applying for replacement insurance cover.
- Tax File Number (TFN): Clients are not obliged to provide their TFN to their super fund. If no TFN is provided, your super contributions may be taxed at the highest marginal tax rate plus the Medicare levy, compared to the concessional rate of 15%.
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Last updated on 9th December 2011
