Pollyana

I'm sure its in here somewhere, but the info may be out of date and I can't find it anyhow!!

Small amounts in two super funds - one is QSuper, the other a WA fund - if they are left dormant from now until retirement age with nothing paid in for 10-15 years, what happens?
Will the funds just sit there until retirement when they can be claimed?
And if the person has gone back to the UK does that affect it or will they still just sit there until they are claimable?

Talked to someone over the weekend who reckoned that if a fund stays dormant for 2 years the government claim it - as they had done with someone he knows who is only 20!

Would some kind of regular payment have to be made to keep the fund "alive"?

All help gratefully received!!

teza

Hubby had several old small funds, most were eaten by fees but certainly not claimed by government. Best to roll them over to your current one!

Pollyana

That's the eventual intention - and is partly what raised the question! Couldn't understand why this friend said the other fund had been snaffled by the government.

teza

Not to my knowledge, apart from fees maybe? J rolled over things all the way from 30yrs ago, seemed stupid to be paying different fees on all different funds, he rolled them to super account linked to his bank acc so he can see every week the balance instead of annual statements without knowledge. And yes, I've seen the ads "banks shouldn't do the super" but his money, his choice and he seems happy with his.

Pollyana

Ah could be the fees that led to it being closed then, she's only young so there wouldn't have been much in it.
I rolled my own into one a few years back, will have to work on getting my mate's rolled up as well.

Amazulu

It's very easy to do. Your current fund will probably have a facility to do this and they nay even find it for you. Mine did

teza

Also if I remember correctly, ATO has a facility called "find my super" that helps to find your dormant super, making it easier to roll them over

Pollyana

Too easy

And then if my mate goes back to the UK, the fund will just sit here until he's able to access either a lump sum orregular payments?

Swerv-o

Some funds will transfer your super into a government approved basic fund if you don't make any contributions for a minimum period of time ( a year I think) this could be what has happened to his Super?

So if you have a special fund set up, you risk losing it back to the default fund if you don't keep up regular payments into it.

Also, re. fees, it's probably worth rolling it into a fund with a low fee structure based on the fund balance, rather than ongoing specified management costs. Virgin and Australian Super are good examples of this, and will seek to reduce the burden of fees on your balance.

I received some advice the year before last that if you pay Capital Gains Tax on the growth of your Super before leaving the country, then the Super is allowed to grow tax free thereafter, providing you don't return as a tax resident. Now I am unable to find this in writing *anywhere* but my accountant advised me to look into the CGT payment option if I was considering returning to the UK.

And remember that you can continue to make personal payments to your Super if you are out of the country, providing you don't exceed the yearly maximums.


S

goldchoccycoin

As stated - may be worth looking for the lowest fee fund. I believe ING do a no-fee fund - but need to consider performance as well.

Also, QSuper have always been most helpful to me so maybe give them a call - they can tell you what will happen. Might also be worth looking at his investment preference within QSuper If he stays with them.

Good luck.

Swerv-o

This is what my Super says about "Unclaimed Super":

Super providers are required to transfer accounts classified as “unclaimed super” to the ATO. If two items of written communication to you are returned to us as unclaimed mail from your last known address and no contributions have been received in the last 12 months, or you are regarded
to be an “inactive member” (as defined by Government legislation), we’ll classify you as a “lost member” and report this to the ATO. Where lost members who have balances of less than $2,000 ($4,000 from 31 December 2015), or where an amount has not been received in respect of them in
the last 12 months and the super provider is satisfied that it will never be possible having regard to the information available to it to pay an amount to the lost members, their balances may be transferred to the ATO.


Looks like I was wrong up there - it does get transferred to the ATO if you be come an Unclaimed Super person. Seems to all be defined in legislation though.


S

goldchoccycoin

Just to add - some good info at https://firststatesuper.com.au/NewsCentre/stop

Might be worth contributing $50 every year to prevent it being seen as dormant.

Swerv-o

Yeah, that was the point I was making - in a roundabout way


S

Pollyana

Thanks for that guys, very useful. Think I'll have a word with QSuper as they are one of the funds involved, and check out the option of throwing a few $$ a year into the fund.