I perform as a hobby and had to open a new super fund because mine can't be paid into, but I don't do it often enough and all my super payments have been eaten up by fees and now I owe money and they closed my account, but I have to have a super account because I perform sometimes. What am I supposed to do here?
Hello @brownlin,
That's a relatively unique situation.
To keep my main superfund open, I contribute my own personal contributions to it on a semi-regular basis.
This 'could' be an option for you, but that'll depend on what you can / can't afford, and the regularity of your paid super work schedule for the year.
Check out the YourSuper comparison tool (use the non-personalised version) to possibly compare superfunds and choose one that has lower fees.
Maybe then give a few a buzz to discuss your situation and the options they may have for you. 🍀
I am surprised this is happening - super accounts now are supposed to have a cap on fees. If your balance is below $6,000 at the end of the financial year, fees cannot exceed 3% of your balance.
Alternatively, is it possible that you had insurance premiums coming out of that super account? That could push it into negative balance. Worth checking when you setup a new one that you don't have the default insurances on
If that isn't the case, is it possible that it is actually a low balance inactive super account? For accounts with balances less than $6,000 and no deposits in a 16 month periods, the super fund is required to close the account and transfer the balance to the ATO. You can then try to consolidate this with your other super accounts using the steps in the link below. If this is the problem, then to keep the account open, if you make a small deposit that should circumvent the requirement to close the account
There's some great detail in the replies from both @BroncosvRabbits and @TaxTalk1234 , @brownlin , and we can't mention specific funds here of course. But I have many friends in the performing arts industry, and know more than a few who have kids starting out and earning very little initially, and I can guarantee the funds are out there.
By way of example, a balance of just $500 with one of the major retail funds has total fees of $66.40, so it would take eight years to lose it all! Just look around ...
At $500 balance, wouldn't the fees be capped at 3%/$15 under the "Protecting your Super" rules implemented in 2019? And we would expect growth to exceed that even after tax.
Good point, @TaxTalk1234 - I read and then, well, ignored your advice - sorry!
FYI I'd looked at three funds online, including the two used by my family, and not one of them indicated fees for a balance of $500 would be capped at three per cent. It seems to be a bit secretive, so it would probably be best of @brownlin contacted a fund or two and obtained tailored information for their income.
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