From Bondi to Cranbourne: postcodes with most missing super revealed

From Bondi to Cranbourne: postcodes with most missing super revealed

There is over $20.8 billion in lost and unclaimed superannuation across Australia, according to new data from the Australian Taxation Office (ATO).

The data, released today, also highlights the postcodes with the highest amount of lost and unclaimed super account values.

Sydney suburb of Liverpool (2170) came out on top, with residents missing over $81 million in lost and unclaimed super.

Werribee (3030), a suburb of Melbourne, followed with a missing value of over $72 million in lost and unclaimed super.

Top 10 postcodes ranked by number of lost and unclaimed super account values as at 30 June 2019

Ranking Postcode State Total number of accounts Total value
1 2170 – Liverpool and surrounds NSW 13,251 $81,085,282
2 3030 – Werribee and surrounds VIC 9,966 $72,114,112
3 2560 – Campbelltown and surrounds NSW 11,004 $63,231,975
4 2145 – Westmead and surrounds NSW 8,807 $60,764,352
5 3977 – Cranbourne and surrounds VIC 10,126 $58,918,901
6 3029 – Hoppers Crossing and surrounds VIC 8,883 $57,248,692
7 2026 – Bondi and surrounds NSW 8,105 $56,000,248
8 2000 – Sydney CBD NSW 8,295 $55,984,758
9 2010 – Surry Hills and Darlinghurst NSW 7,493 $55,732,148
10 2148 – Blacktown and surrounds NSW 8,416 $52,838,249

Source: ATO.gov.au

Losing super over the years is not uncommon. ATO Assistant Commissioner, Graham Whyte, explained: “Often people lose touch with their fund by simply changing jobs or moving home.”

“It’s important to know that this doesn’t mean it’s lost forever, getting back in touch is easier than you think,” Mr Whyte said.

New rules mean lost super may be sent directly to you

New legislation now means that the ATO may soon be reuniting Aussies with their lost super, without them having to do the finding.

Super funds are now required to report and pay inactive low balance accounts to the ATO. This includes accounts with balances under $6,000, or accounts that have not received contributions in 16 months.

The ATO have been made aware of 2.3 million inactive low balance accounts, valued at approximately $2.16 billion.

It will be working to transfer missing funds to the active accounts of the owners. If the member is over 65, or the value of the missing funds is under $200, it will simply be directly sent to their bank account.

Thinking of switching super? Compare your options:

How to know if you are missing super

If you’re concerned that you may have lost super, you can visit ato.gov.au/checkyoursuper for more information.

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Learn more about superannuation

How do you pay superannuation?

Superannuation is paid by employers to employees. Employers are required to pay superannuation to all their staff if the staff are:

  • Over 18 and earn more than $450 before tax in a calendar month
  • Under 18, work more than 30 hours per week and earn more than $450 before tax in a calendar month

This applies even if the staff are casual employees, part-time employees, contractors (provided the contract is mainly for their labour) or temporary residents.

Currently, the superannuation rate is currently 9.5 per cent of an employee’s ordinary time earnings. This is scheduled to rise to 10.0 per cent in 2021-22, 10.5 per cent in 2022-23, 11.0 per cent in 2023-24, 11.5 per cent in 2024-25 and 12.0 per cent in 2025-26.

Employers must pay superannuation at least four times per year. The due dates are 28 January, 28 April, 28 July and 28 October.

How is superannuation calculated?

Superannuation is calculated at the rate of 9.5 per cent of your gross salary and wages. So if you had a salary of $50,000, your superannuation would be 9.5 per cent of that, or $4,750. This would be paid on top of your salary.

The ‘superannuation guarantee’, as it is known, has been at 9.5 per cent since the 2014-15 financial year. It is scheduled to rise to 10.0 per cent in 2021-22, 10.5 per cent in 2022-23, 11.0 per cent in 2023-24, 11.5 per cent in 2024-25 and 12.0 per cent in 2025-26.

What is lost superannuation?

Lost superannuation refers to savings in an account that you’ve forgotten about. This can happen if you’ve opened several different accounts over the years while moving from job to job.

How can I withdraw my superannuation?

There are three different ways you can withdraw your superannuation:

  • Lump sum
  • Account-based pension
  • Part lump sum and part account-based pension

Two rules apply if you choose to receive an account-based pension (also known as an income stream):

  • You must receive payments at least once per year
  • You must withdraw a minimum amount per year
    • Age 55-64 = 4%
    • Age 65-74 = 5%
    • Age 75-79 = 6%
    • Age 80-84 = 7%
    • Age 85-89 = 9%
    • Age 90-94 = 11%
    • Age 95+ = 14%

If you want to work out how long your account-based pension might last, click here to access ASIC’s account-based pension calculator.

When did superannuation start in Australia?

Australia’s modern superannuation system – in which employers make compulsory contributions to their employees – started in 1992. However, before that, there were various restricted superannuation schemes applying to certain employees in certain industries. The very first superannuation scheme was introduced in the 19th century.

What are my superannuation obligations if I'm an employer?

Employers are required to pay superannuation to all their staff if the staff are:

  • Over 18 and earn more than $450 before tax in a calendar month
  • Under 18, work more than 30 hours per week and earn more than $450 before tax in a calendar month

This applies even if the staff are casual employees, part-time employees, contractors (provided the contract is mainly for their labour) or temporary residents.

Is superannuation included in taxable income?

Superannuation is not included when calculating your income tax. So if you have a salary of $50,000, your assessable income would be $50,000, not $50,000 plus superannuation.

That said, superannuation itself is taxed. It is generally taxed at 15 per cent, although if you earn less than $37,000, you will be reimbursed up to $500 of the tax you paid.

Who can open a superannuation account?

Superannuation accounts can be opened by Australians, permanent residents and temporary residents. You’re automatically entitled to superannuation if:

  • You’re over 18 and earn more than $450 before tax in a calendar month
  • You’re under 18, you work more than 30 hours per week and you earn more than $450 before tax in a calendar month

What are personal contributions?

A personal contribution is when you make an extra payment into your superannuation account. The difference between personal contributions and salary sacrifices is that the former comes out of your after-tax income, while the latter comes out of your pre-tax income.

What is superannuation?

Superannuation is money set aside for your retirement. This money is automatically paid into your superannuation fund by your employer.

Can I take money out of my superannuation fund?

Superannuation is designed to provide Australians with money in their retirement. The government has strict rules around when people can take that money out of their fund because it wants to prevent people eroding their savings before they reach retirement.

As a general rule, you can only take money out of your superannuation fund when you reach:

  • Age 65
  • Your ‘preservation age’ and retire
  • Your preservation age and begin a ‘transition to retirement’ while still working

That said, you can take money out of your superannuation fund early based on one of these seven special conditions:

  • Compassionate grounds
  • Severe financial hardship
  • Temporary incapacity
  • Permanent incapacity
  • Superannuation inheritance
  • Superannuation balance under $200
  • Temporary resident departing Australia

How do you find superannuation?

Lost superannuation refers to savings in an account that you’ve forgotten about. This can happen if you’ve opened several different accounts over the years while moving from job to job.

You can use your MyGov account to see details of all your superannuation accounts, including any you might have forgotten. Alternatively, you can fill in a ‘Searching for lost super’ form and send it to the Australian Taxation Office, which will then search on your behalf.

How much money do you get on the age pension?

Pension payments can be reduced due to the income test and asset test (see ‘What is the age pension’s income test?’ and ‘What is the age pension’s assets test?’).

Here are the maximum fortnightly payments:

Category

Single

Couple each

Couple combined

Couple apart due to ill health

Maximum basic rate

$808.30

$609.30

$1,218.60

$808.30

Maximum pension supplement

$65.90

$49.70

$99.40

$65.90

Energy supplement

$14.10

$10.60

$21.20

$14.10

TOTAL

$888.30

$669.60

$1,339.20

$888.30

What are the risks and challenges of an SMSF?

  • SMSFs have high set-up and running costs
  • They come with complicated compliance obligations
  • It takes a lot of time to research investment options
  • It can be difficult to make such big financial decisions