Lost members register - for superannuation providers

Who is a lost member?

A lost member is a member of a super fund who:

• is an inactive member – they are inactive if they joined, as a standard employer-sponsored member, more than two years ago, and there have been no contributions or rollover amounts in the last five years
• transferred from another super provider as a lost member and you haven’t found or been advised of a new address, or
• cannot be contacted – you may not have been advised of your member’s address or mail sent to your member’s last known address has been returned unclaimed. If one piece of mail is returned to you unclaimed by the member, you may choose to report the member as lost. However if you receive two pieces of mail unclaimed by the member you are required to report the member as lost.

Unless

• The fund or the member has confirmed the member's current address within the past 2 years or the member is permanently excluded from becoming a lost member.

A member can be permanently excluded from becoming a lost member if they:

• are an inactive member of the fund, but indicate by a positive act, for example, deferring a benefit, that they wish to remain a member
• contact you and indicate that they want to remain a member, or
• are a member of an SMSF.

First Home Saver Account

Legislation to implement First Home Saver Accounts was recently passed by Parliament and has become law. Account providers can offer the accounts from 1 October 2008 to assist Australians to save deposits for their first home.

For the first $5,000 that the account holder contributes into the account each financial year, the government will generally contribute 17% of that amount. There will be an account balance cap of $75,000 for the 2008-09 financial year, which will be indexed over the life of the account.

Earnings on First Home Saver Accounts will be taxed at 15%, payable by the account provider. Account holders must make contributions of at least $1,000 over four separate financial years before they can withdraw the money from the account to purchase or build their first home. The withdrawals will be tax-free.

To be entitled to have a First Home Saver Account you must be at least 18 years of age and under 65 and have never owned a dwelling in Australia or Norfolk Island that was your main residence.

Government's priorities for superannuation: minister

The minister for superannuation and corporate law, senator Nick Sherry, has outlined the government's priorities in the area of superannuation.

Senator Sherry said the government was currently looking at using a Management Expense Ratio (MER) approach in relation to first home saver account product disclosure statements.

He said issuers will be required to disclose both the overall cost of an investment (in dollar terms) and the overall cost ratio, which is the average annual overall cost as a percentage of the average annual balance.

Indexation of Australian Government super schemes review announced

The minister for superannuation and corporate law has announced that the government will review the pension indexation arrangements for Australian Government superannuation schemes.

Changes to pension income and assets tests effective from July

The Department of Veterans' Affairs has released a document which summarises increases to the social security pension assets test and income test thresholds (PDF - 58KB) effective from 1 July 2008. Benefits affected include Income Support Supplement and Service Pension.

All super funds must lodge income tax returns

The ATO has reminded practitioners that all superannuation funds must lodge an income tax return regardless of their income. It says super funds cannot lodge a 'return not necessary' or 'further return not necessary' advice. If the superannuation fund is wound up, the fund must lodge a final income tax return.

Tax-free super for terminally ill

Amending regulations have been registered to support recent changes made to the ITAA 1997 by the Tax Laws Amendment (2008 Measures No 2) Act 2008 to provide for the tax-free treatment of superannuation lump sums paid to persons who have a terminal medical condition.

Education tax refund about to start

The treasurer says parents across Australia should keep their receipts for education expenses from 1 July 2008 to make the most of the benefits available under the government's Education Tax Refund.

Mr Swan said that, by keeping their receipts, eligible families will be able to claim a 50 per cent refund every year for key education expenses up to:

• $750 for each child undertaking primary studies (maximum refund of $375 per child, per year)

• $1,500 for each child undertaking secondary studies (maximum refund of $750 per child, per year)