Announcements
Worried you’re missing part of your refund? Remember, the low and middle income tax offset isn’t a refund on its own – it’s used to offset (or reduce) the amount of tax you pay. The offset amount you may be entitled to is automatically applied and could range between $255-$1080, depending on things like your taxable income and how much tax you’ve paid.
Still not sure? Ask the Community

ATO Community

So called unclaimed super

Newbie

Views 77

Replies 1

My son worked in Australia while completing his degree and accumulated a small amount in a superfund of $3000 approx. He left to work in the UK so has been unable to add to his Australian superfund. So, the fund decided to transfer his so called unclaimed super to the Ato where  it sits gaining no interest and effectively depreciating. He cant withdraw it, he cant roll it into another fund as it would only be returned to the ATO at the end of the year. This is clearly wrong, he should be able to cash it out, as $3000 is not going to provide any sort of pension and will be worth nothing by pension age.

So, why is no interest paid?

What can he do to access this super?

He will not be working in Australia for the foreseeable future.

Can funds still charge exit and entry fees?

Please answer all questions and not point me to unclaimed super, i have read that, i have spoken to the ATO, I just want to know a reasonable solution to this, and leaving the money with the ATO isn't an option.

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @suz2,

 

I appreciate what you have advised and will do my best to answer all your questions. If your son was here under a temporary resident visa then he can apply through the departing Australia super payment (DASP) online. The super funds are obligated to send balances to the ATO for a variety of reasons. In the past they were only required to send low balances and sometimes balances above this, left unattended in a fund, would be reduced to zero due to fees and charges and there was nothing for the individual to claim.

 

Whilst the monies do not earn any interest with us, they are not subject to super fund fees or charges either. This gives the person the opportunity to move the super balance into a super fund of their choice or request release depending on their circumstances. Your son could speak to the fund he wants to use in the future in relation to their fees and charges.

 

Whilst we administer the tax and super laws, we do not write the legislation. If you are concerned with current legislation you could voice this with your local MP.

 

If you have further questions please let us know.

 

Links-

Eligibility for DASP. 

Super funds obligations with unclaimed super.

 

All the best.

1 REPLY 1

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @suz2,

 

I appreciate what you have advised and will do my best to answer all your questions. If your son was here under a temporary resident visa then he can apply through the departing Australia super payment (DASP) online. The super funds are obligated to send balances to the ATO for a variety of reasons. In the past they were only required to send low balances and sometimes balances above this, left unattended in a fund, would be reduced to zero due to fees and charges and there was nothing for the individual to claim.

 

Whilst the monies do not earn any interest with us, they are not subject to super fund fees or charges either. This gives the person the opportunity to move the super balance into a super fund of their choice or request release depending on their circumstances. Your son could speak to the fund he wants to use in the future in relation to their fees and charges.

 

Whilst we administer the tax and super laws, we do not write the legislation. If you are concerned with current legislation you could voice this with your local MP.

 

If you have further questions please let us know.

 

Links-

Eligibility for DASP. 

Super funds obligations with unclaimed super.

 

All the best.