The consultation with tax agents explored views on the level of awareness their clients have in regard to their superannuation.
The ATO engaged with a small group of tax agents to obtain insights into client superannuation needs. It also surveyed a larger group of tax agents with clients in the individuals market to understand clients’ awareness of their superannuation and ascertain the tools and resources that would assist tax agents to support individuals to undertake a regular super health check.
“The feedback from tax agents was very positive, with a strong view that clients of all ages would benefit from a regular super health check,” the ATO said.
“Most agents surveyed indicated that they would support their clients to undertake a regular super health check, usually at the time of their tax return preparation. Tax agents requested a ‘checklist’ and additional information to support their clients.
“We are aware that clients can perceive superannuation to be complex, and sometimes don’t think about it until they are close to retirement.”
According to the ATO, research shows that up to 70 per cent of individuals do not regularly manage their super or check that it’s in order.
It stated that the regulator would like individuals to have greater awareness about their basic super entitlements and take more ownership and interest in their super earlier and is exploring how it might encourage this.
“Feedback indicated that individuals’ awareness of superannuation could be improved and that tax time interactions would be a good time for a super health check, which tax agents would undertake with their clients if provided with the necessary support from the ATO,” it stated.
The ATO has published a checklist to support clients and tax agents ahead of tax time: Super health check | Australian Taxation Office (ato.gov.au)
The Super Health Check consists of five simple and important steps that clients can do that will help them to manage their super, understand their entitlements, and make better choices for when they retire.
- Check 1: Check your contact details – check your contact details, tax file number (TFN) and bank account are up to date with us and your super fund. This helps prevent lost super and assists us in matching any unclaimed super to you.
- Check 2: Check your super balance and employer contributions – this can also be done anytime through ATO online services or through your super fund.
- Check 3: Check for lost and unclaimed super – to track lost or unclaimed super where you have changed your name, address or job, for example.
- Check 4: Check if you have multiple super accounts and consider consolidating – combining your super may reduce fees and make it easier to manage.
- Check 5: Check your nominated beneficiary – check if you have a valid death beneficiary nomination in place in your super fund as this isn’t covered by your will.
The best way to perform these checks is either on ATO online services through myGov or by contacting the super fund directly. Clients need a myGov account linked to the ATO. Once linked, clients can also use the ATO app.
Clients can check on their superannuation at any time. However, the ATO suggests clients get into the habit of doing a health check each year at the time of preparing their tax return.
