The Australian Government has released draft legislation proposing that superannuation trustees be required to consolidate multiple inactive accounts within their funds on an annual basis. The accounts must be of less than $1000 and no contributions, rollovers or transfers may have been made to the account for two years or more.
Consolidation will occur without the requirement for member consent, and trustees will not be allowed to charge fees for this consolidation process. The amendments will not apply to self-managed superannuation funds or defined benefit interests and are proposed to commence on 1 July 2012.
For further information and advice, please contact us.
For more information please visit the link; http://www.treasury.gov.au/contentitem.asp?NavId=002&ContentID=2353