AUSTRALIA- Minister for Revenue, Mal Brough has rejected suggestions from Labor's Nick Sherry that superannuation accounts should be automatically rolled together.
There are currently $8.2 billion worth of unclaimed superannuation in fund accounts which have not been touched for two years.
In an attempt to fix this problem Sherry has called for lost superannuation accounts to be automatically consolidated using tax file numbers.
Assistant Treasurer Mal Brough said a large driver of how accounts were lost was that employees (were) being forced to establish new accounts when they moved employers rather than having the freedom to choose to continue contributing to their existing account.
“Labor prefers a policy of automatic consolidation that would result in many Australians having their superannuation benefit moved to a different fund without their consent,” Brough said.
“Automatic consolidation will not increase competition in the superannuation sector and it will not place downward pressure on fees and charges, unlike superannuation choice of fund.”
“This government prefers to encourage Australians to take strong interest in their retirement savings, rather than seeking to disengage Australians from their superannuation by making decisions on their behalf.”
Brough said the Government had taken steps to reduce the number of lost accounts.
The Australian Taxation Office (ATO) maintains the Lost Members Register, this allows members who have lost their superannuation benefits to attempt to locate them through a central register.
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