AUSTRALIA - One in two people in Australia has a lost super account, according to new figures.
Options to be discussed include a proposal to "auto roll" together lost accounts into a member's last active account using the Tax File Number system, to remove red tape and complexity.
Senator Sherry stated: "The current system of 'rolling together' is too complex and costly Ð finding the fund, form filling, and providing necessary identification."
He continued: "I am extremely concerned the 2007 Australian Tax Office (ATO) Annual Report has shown lost superannuation has blown out from A$9.7bn in 2005-06 to $11.9bn in 2006-07 - this is a shocking $2.2bn increase in one year."
This increase is after an extensive ATO mail-out of 3 million letters over two years, removing $2.73bn from the register.
The number of lost accounts also increased significantly from 5.7 million to 6.1 million over the same period - 400,000 extra accounts lost in one year.
Senator Sherry has also laid out further plans for superannuation, which include: choice of default fund, a central clearing house for employers and a simpler disclosure regime for financial services in general. He is also expected to launch a medium term savings vehicle to be used for a mortgage deposit.
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