FAQs - Inactive low-balance accounts
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Why is my account considered inactive?
Your account is considered inactive if:
- we haven’t received a contribution to your account for 16 months or more; and
- your account has a balance of less than $6,000; and
- you haven’t changed your insurance cover, switched your investments, made or amended a binding beneficiary nomination on your account or told us in writing that you don’t want to be transferred.
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When will the transfer of my account to the ATO take place?
AustralianSuper is required to report and transfer inactive accounts to the ATO twice a year on 31 October and 30 April. -
Why are you transferring my account to the ATO?
The legislation states that from 1 July 2019, inactive accounts must be transferred to the ATO. -
What happens when my money is transferred to the ATO?
Within 28 days of receiving your money, the ATO will try to transfer it to your active super fund, if you have one. The ATO will only transfer your money to your active super fund if it will take your total balance to $6,000 or more. An active super account is defined as an account that:
- is held by a person who has not died
- in accumulation phase
- accepts government rollovers
- has received a contribution in the current or previous financial year
- the balance of the active super account after we initiate transfer of certain types of ATO-held super is equal to or greater than $6,000.
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Is there anything I can do stop the transfer of my account?
Yes, you can stop the transfer of your account by taking one or more of the following actions:
- Making a contribution to your account1.
- Changing an investment option.
- Changing your insurance.
- Changing or making a binding beneficiary nomination.
- Telling us in writing that you don’t want to be transferred by completing the Authorisation for ATO declaration form.
Taking one of the above actions will stop your account from being transferred for a period of 16 months. The best way to stop your account from being transferred in the long term is to make sure the account balance stays above $6,000 by making regular contributions.
1 Before adding to your super, consider your financial circumstances, contribution caps that may apply, and tax issues. We recommend you consider seeking financial advice.
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Will my money be invested at the ATO?
No, however when you claim your lost super, any interest due will be paid to you. Interest is based on the Consumer Price Index (CPI). -
Will I keep my insurance cover?
No, if your account is transferred to the ATO, you will lose any insurance cover you have. See more about what you can do to retain your insurance below. -
Will I pay any fees?
No, you will not be charged any fees by the ATO. -
I’ve checked my account and I have over $6,000, why am I being transferred?
Super funds are required by law to identify inactive low-balance accounts twice a year, on 30 June and 31 December. If your account balance was less than $6,000 on one of these dates, your account will be transferred on the respective transfer date (30 April and 31 October) if in the past 16 months you haven’t received any type of contribution into your account, changed your insurance cover, switched your investments, made or amended a binding beneficiary nomination on your account or told us in writing that you don’t want to be transferred. This will occur whether or not your balance has increased due to investment returns, investment credits and/or refunds.
FAQs - Insurance
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How do I know if I’m affected by the insurance changes?
We’ll write to you if you haven’t received any money into your account for 9, 12 and 15 months, with your options if you want to keep your cover.
The letter will explain the changes and let you know when you received your last contribution. It will include a form to extend your cover (with the date you need to return your form by) and provide you with other options if you want to keep your cover.
If you want to keep your cover you can either complete the form or make a contribution. You don't need to do both.
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What type of contribution can I make to keep my cover?
From 1 July 2019 you need to have received money into your super account in the past 16 months to keep your insurance cover. You can receive any type of contribution however investment returns, investment credits and refunds are excluded.
- Making a contribution1 – there’s a number of ways to add to your super. Learn about your options.
- Telling your employer – ask your employer to pay super to your AustralianSuper account. Complete our Pay my super into AustralianSuper form.
- Consolidating your super2 – find out the benefits and how to combine.
Government contributions (including co-contributions) super guarantee credits, or Low Income Super Tax Offsets will also count as a contribution for the purposes of keeping your insurance.
1 Before adding to your super, consider your financial circumstances, contribution caps that may apply, and tax issues. We recommend you consider seeking financial advice.
2 Before making a decision to combine your super, consider any fees or charges that may apply, and the effect a transfer may have on benefits in your other fund such as insurance cover. We recommend you consider seeking financial advice. -
I’m receiving investment returns into my super account – do I still need to do something if I want to keep my cover?
Yes. Investment returns, investment credits and refunds don’t count as contributions under the new legislation. To keep your cover you’ll need to receive money into your account. We’ll write to you if you haven’t received money for 9, 12 and 15 months with options if you want to keep your cover.
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I want to extend my cover – what should I do?
If you received a letter from us, complete an online form by going to the web address on your letter. Or complete and return the paper form to us (by the due date) via:
- Email: insurance@australiansuper.com
- Post: use the Reply Paid envelope enclosed with your letter
If you don’t return your form by the date shown on your letter, your cover will end.
You don't need to add money to your account if you complete the form.
If you need help completing the form please call us on 1300 300 273.
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I’ve extended my cover – what happens next?
If you’ve completed the online form or returned your paper form by the due date, we’ll send you a letter confirming your cover has continued. Due to the high volume of requests, there may be a delay in your letter being sent. We apologise for any inconvenience.
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Do I need to do anything if I have already extended my cover before?
According to the new legislation, any extensions prior to 8 May 2018 are no longer valid. If you want to continue your cover as it is, you’ll need to complete a new form even if you’ve previously extended your cover. We’ll send you a letter with the new form, and the date that you’ll need to return it by. -
What happens if I don’t do anything?
If you don’t tell us you want your cover to continue, or make a contribution to your account your cover may stop on or after 1 July (your letter will tell you when your cover will end). We’ll write to you if your cover stops.
If your cover stops, it may restart1 when we receive an employer contribution to your account. If it restarts, it could be higher or lower than the cover you had before so we’ll write to you and let you know how much cover you have. If you’re aged 24 and under, your cover won’t restart until you turn 25 (if you’re eligible).
Any type of cover you’ve previously cancelled won’t start again.
1 If you’re a member of our Personal Plan you’ll need to reapply for insurance cover and provide detailed health information with your application for the insurer to consider. You’ll need to have enough in your account to cover the cost of your first month of insurance before your cover can start.
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Should I keep my cover?
The PYS changes are designed to protect Australians’ super savings from unnecessary erosion through fees and insurance costs. If you’re not sure, you should consider getting professional financial advice to help work out what cover you need (if any) and how much is right for you.