AUSfund Eligible Rollover Fund
How can you protect your members’ balances when their accounts are inactive?
Inactive and lost super accounts are a big deal. Across the ‘all benefit to member’ super sector there are over 4 million accounts with total FUM of almost $63 billion that fall into one of these categories.* *APRA, 30 June 2015, Annual Fund Level Superannuation Statistics released 10 February 2016. Accessed at: apra.gov.au
What do we mean by lost or inactive?
A member is considered lost if there has been no contribution or rollover into an account for 12 months and the fund has either never held an address or has had 2 pieces of mail returned. Members who have, within the last 12 months, accessed details about their account from any fund-provided electronic facility or otherwise contacted the fund are exempted from the lost super definition.
An inactive account is defined as an account that has not had a contribution or rollover for a period of 5 years.
There have been significant changes to the regulatory landscape around lost and inactive accounts over the past few years. These include the removal of Member Protection and the increasing minimum balance thresholds that are required to be sent to the Australian Tax Office (ATO).
|Minimum balance thresholds for compulsory transfer of super accounts|
|Pre-2016|| Effective 1 January 2016
|| Effective 1 January 2017
Sending member accounts to an ERF before the lost and inactive compulsory ATO transfer deadlines apply, provides an extra layer of opportunity for active member details to be updated. AUSfund operates to temporarily house member accounts of Participating Funds and transfer those super monies to active member accounts as soon as they are located. AUSfund is a market leader in transferring members’ housed accounts to their active accounts.
AUSfund offers your members an industry super solution which provides them with:
- A low flat account keeping fee.
- Competitive returns.
- Easy transfer to an active super account.
- Peace of mind that their account continues to be managed in their best interest.
- Additional protection from ‘inactivity’ rules that may result in transfer of funds to the ATO.
Transferring to ATO or AUSfund?
|Accepts members who meet lost & inactive criteria||Focus on accounts before they become lost & inactive|
|Guaranteed return of CPI||Competitive returns from a medium risk, medium growth investment strategy|
|No fees||One low fee payable annually|
|Identification of ATO-held monies relies on Tax File Number (TFN) and confirmed member details||AUSfund-held records may have no TFN recorded or incorrect details – AUSfund can consolidate accounts without TFNs|
|Reclamation of funds requires a registered MyGov account||AUSfund's simple Transfer Out tool uses name, birthdate and address to search, then online ID verification via GreenID to claim or transfer|
|Unclaimed super members reported by Funds twice a year – data may be out of date||Active data searching, cross-matching & validation systems to locate the current member address – AUSfund may be more up to date than the records of the transferring Fund|
|12 month extension on timeframes to update the member’s address before compulsory ATO transfer|
|Monthly merging of newly transferred accounts that match existing AUSfund member accounts – reduces fees and may push balances above the minimum ATO transfer thresholds|
ATO can advise Funds where member has super accounts
ATO can transfer ATO held money to all Funds without member consent
|AUSfund can Cross Fund Match and transfer accounts to a Participating Fund without member consent|
Industry Funds Investments Limited (IFI), ABN 17 006 883 227, AFSL 229881, RSE L0000413 as the Trustee of Australia’s Unclaimed Super Fund, trading as AUSfund. Before investing in any product you should read the relevant Product Disclosure Statement (PDS) and consider the appropriateness of any investment for your objectives, financial needs or situation. A copy of the AUSfund PDS is available at ausfund.com.au