In last night’s Budget, the government acknowledged there are certain obligations and administrative processes that are “redundant” for superannuation.
The government announced it plans to implement a package of measures that aim to “reduce red tape” for superannuation funds and individuals by removing unnecessary reporting obligations.
The government also plans to streamline lost and unclaimed superannuation administrative arrangements.
“The changes will make it easier for individuals to be reunited with their lost and unclaimed superannuation,” it stated.
Specific details of the measures have not yet, however, been provided.
The measures will take effect on 1 July 2016, and the cost of implementing them will be met from within the existing resources of the ATO.
Previously, the ATO has called on young Australians to be wary of superannuation money and accounts of which they may have lost track.
Forty-five per cent of working Australians aged between 18 and 35 still have more than one super account, according to the tax office.
ATO assistant commissioner of superannuation John Shepherd said young people are often mobile within the workforce and it is not uncommon for them to open a new account when they start a new job instead of taking their preferred fund account with them.
“They might also have super accounts of which they have lost track. For example, they may not have updated their contact details with their funds when they moved house – there are still $5.8 billion worth of accounts in this category,” he said.
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