The Government has released for public consultation an exposure draft of the Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill 2014: lost member small account threshold and the accompanying explanatory material.
Currently, small lost superannuation accounts, with balances of less than $2,000 must be transferred to the Commissioner of Taxation.
The exposure draft legislation gives effect to the Government’s decision, announced on 6 November 2013, to proceed with the former government’s proposal to increase the lost member small account threshold in two stages. It is proposed that the threshold will increase from $2,000 to $4,000 on 31 December 2015 and then to $6,000 on 31 December 2016. The intent of this policy is to protect the balances of small accounts from erosion by fees and insurance premiums.