What does it mean if my account is “inactive”?
You’re deemed ‘inactive’ when your account has received no contributions or rollovers in the last 16 months. This can affect you in a few different ways.
1) Inactive low-balance accounts under $6,000, with no insurance.
From 1 July 2019, customers with inactive low-balance accounts will have their funds automatically transferred to the Australian Tax Office (ATO). This process will occur every 6 months. The ATO will then try to merge any inactive amount of super into your active super account (if you have one, and if the total of the combined balance is greater than $6,000). If the ATO can’t combine your balance automatically, it will remain with the ATO until you claim it.
Your account will become active again if you;
- give a written notice to the ATO or Kogan Super that you are not inactive;
- make a contribution or consolidate other super into your account;
- make a change to your investment options;
- make changes to your insurance cover; or
- make or amend a binding death benefit nomination.
For super accounts with a balance below $6,000, there will be a cap of 3% on administration and investment fees, to maximise your savings in retirement.
2) Inactive accounts with insurance.
From 1 July 2019, insurance cover in your super account will be switched off if you haven’t made any contributions to the account for 16 months, or elected to keep your insurance. You’ll no longer be charged premiums if your insurance cover is switched off.. These changes are aimed to make sure customers aren’t paying unnecessary premiums for cover they may not want.