The Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019 introduced new category of accounts that need to be reported and paid to the ATO.
To protect accounts from fee erosion, inactive low-balance super accounts will be transferred to the ATO and, where possible, the ATO will proactively consolidate super on the individual’s behalf.
Generally, a super account is an inactive low-balance account if the following criteria are met:
- no amount has been received by the fund for crediting within the last 16 months
- the account balance is less than $6,000
- the member has not met a prescribed condition of release
- the account is not a defined benefit account
- there is no insurance on the account
- the account is not held in a self-managed super fund (SMSF) or small Australian Prudential Regulation Authority (APRA) fund
However, the account will not be an inactive low-balance account if any of the following have occurred in the last 16 months:
- the member has changed investment options
- the member has made changes to their insurance coverage
- the member has made or amended a binding beneficiary nomination
- the member has made a written declaration that they are not a member of an inactive low- balance account
- there was an amount owed to the super provider in respect of the member
Australian Taxation Office Inactive low-balance super accounts, 23 July 2019