ATO reuniting people with their lost super
Surprise cash payouts are about to land in the accounts of millions of Australians - and yours could be in line too.
From Friday, 1 November 2019, an estimated 2.6 million Australians could find a welcome gift from the Australian Taxation Office in their everyday bank account or their superannuation account, all thanks to new changes to superannuation laws.
In a nutshell, the changes mean people with inactive super accounts with balances of less that $6,000 can now have that balance automatically transferred by the ATO into their active super account.
However, if the balance is less than $200, that sum will automatically be sent to their bank account - if the person is aged oer 65, the cash will be sent to their bank account regardless of the total.
The law change means people with multiple super accounts that they may have forgotten about, such as those who have started new jobs who were automatically signed up to a default fund without realising it, will no longer lose out on their hard-earned money.
The ATO has stated that those who are eligible to receive the payment did not need to do anything to claim it, and that the money would include an interest component set to the consumer price index, rather than a market rate of interest. Where possible, they will notify people if payments have been made to them. It is highly encouraged that you ensure your financial instruction details are up to date with the ATO, this can be accessed online via MyGov.
The news comes as the October 31 tax deadline looms, with Australians who have yet to file their latest tax return have just days left to file. However, taxpayers who lodge through a tax agent instead of doing it alone can take advantage of concessional extended deadlines that allow their agent to lodge up until May 15, 2020 without incurring a penalty.
For further information visit the ATO website or contact our office.
The Money Edge | Bundaberg