The recent holiday period and gift-giving has left many of us a little short of cash, so it can be comforting to learn that billions of dollars in unclaimed money are being held by various government agencies, just waiting to be claimed by their rightful owners

The largest pool of unclaimed funds is lost superannuation. The Australian Taxation Office (ATO) is holding more than $17.8 billion in superannuation for fund members who have become uncontactable.¹

Next, there is more than $2.3 billion from inactive bank accounts and life insurance policies that have not been claimed for over seven years. These funds are administered by the Australian Securities and Investments Commission (ASIC).²

Meanwhile, Services Australia is holding over $241 million in unclaimed Medicare benefits. These unclaimed funds typically result from patients not providing their current bank details to Medicare.³

Finally, all state and territory governments hold unclaimed money from various sources, including deceased estates, share dividends, salaries and wages, cheques, trust money, overpayments, and sales proceeds.

It’s important to note that searching the various government databases is free. While it may take some time and require digging up old paperwork to prove you once held an account, the process is accessible to anyone. Be cautious of businesses that offer to search these databases for a fee, as you can perform the search yourself at no cost.

Are you missing super?

It can be easy to lose track of your super if you’ve changed jobs several times and your employers have paid your compulsory super into different funds.

As a result, you might end up with several super accounts, each holding a small balance. According to the ATO, nearly four million people have more than one super account. ⁴

To address this issue, the ATO has introduced a “super health check” tool to help you search for any lost accounts and update your contact details. You can access this tool here.

The health check also allows you to confirm that your employer contributions are being made as expected. The ATO has ramped up audits and reviews of employers to ensure that compulsory super is being paid to employees.

While more than 92 per cent of super entitlements are paid without ATO intervention, the ATO reports that in the past year alone, it has recovered $932 million in unpaid super owed to 797,000 employees. ⁵

Employers are required to pay super in full, on time, and to the correct fund each quarter by the 28th day of October, January, April, and July, the ATO states.

Finding money in old accounts

Tracking down long-forgotten bank accounts, shares, investments, and life insurance policies is possible with ASIC’s unclaimed money tool.

To use the tool, enter your name in the search field and try variations, including initials and last name, first and last name, and your full name.

If you find a record that seems familiar, you can lodge a claim by providing proof that connects you to the account listed. ASIC states that you can expect a response within 60 days.

Don’t forget to check state and territory government websites for unclaimed money from various other sources. Funds can sometimes be found in unexpected places. For instance, missing share dividends might be lodged with an agency in the state where the company is based. You can view a list of these agencies’ websites here.

Finding your Medicare benefits

If you are not receiving the Medicare benefits, you’re entitled to, it is likely that your bank account details are either not lodged with Medicare or they are incorrect.

You’ll need to set up a MyGov account then link your Medicare account. From there you can check that your details are correct.

It may take a bit of time to find your information and track down proof of old accounts, but it could pay off with an unexpected windfall.

Your financial adviser can help you track down lost super, unclaimed bank accounts, and other forgotten funds while providing guidance on how to make the most of them. If you know someone who could use expert help in managing their finances, consider referring them to one of our trusted financial advisers. It’s a simple step that could lead to a valuable financial boost!

 

Sources

i Total lost (fund-held) and ATO-held super | Australian Taxation Office

ii Unclaimed money | ASIC

iii Check now: Aussies owed $241 million in unpaid Medicare benefits. | Department of Social Services Ministers

iv Trend towards single accounts | Australian Taxation Office

v Super action sees over $900 million super returned | Australian Taxation Office