Wealth Creation

When was the last time you did a Super Health Check?

When was the last time you did a Super Health Check?

The MB+M team reiterate the ATO’s advice to do a super health check this tax time.

This tax time, the ATO is encouraging everyone to conduct a super health check. This is 6 simple checks to make your superannuation easier to manage.

The super health check is designed for you to complete yourself without your tax specialist. The best way to perform these checks is via myGov or contacting your super fund directly. If you use myGov, it needs to be linked to the ATO.

1 – Check your contact details

Why you should do it
Check your contact details and tax file number (TFN) are up to date with the ATO and your super fund. This helps prevent lost super and assists the ATO in matching any unclaimed money to you. It’s also important to ensure your bank account details are up to date.

How to do it
Log on to ATO online services through myGov.
In the top menu, select My Profile. From the drop‑down options, select either:

  • Personal details to update your name, contact number, email and home address
  • Financial institution details to update your bank account and
  • To update your contact details and TFN with your fund, see their website or contact them directly.

2 – Check your super balance + employer contributions

Why you should do it
It’s important to check your superannuation balance each year to see how much you have and keep track of your employer contributions. You can do this anytime on ATO online services or through your fund.

Your employer should pay your super at least every 3 months. They may choose to do it more frequently, such as your regular pay cycle.
From 1 July 2022 to 30 June 2023, your employer should pay at least 10.5% of your salary into your super.
From 1 July 2023 to 30 June 2024, the rate increases to 11%. If you’re under 18, you need to work more than 30 hours a week to be eligible for it.

How to do it
Log on to ATO online services through myGov. From the top menu, select Super and then either:

  • Fund details to see all your super accounts and balances and the most recent data reported by your fund
  • Information then Employer contributions to see the total year-to-date employer contributions in a selected year – select Transactions to see each contribution separately.

For help calculating the amount of super your employer should be paying, use the ATO’s Estimate my super tool

If you do not receive super contributions or the amounts are incorrect:
• contact your employer and request an update
• report it to the ATO

3 – Check for lost + unclaimed superannuation

Why you should do it
You may have lost track of some of your super when you changed your name, address or job, for example. This is why it’s important to ensure your fund has your current details.

Lost super is when your fund has lost touch with you, or your account is inactive. This money is held by your fund. Unclaimed super is when your fund transfers lost money to the ATO. All your accounts including lost and ATO-held super are displayed on ATO online services.

How to do it
Log on to ATO online services through myGov.
From the top menu, select Super. Then select either:

  • Fund details to check for lost super – if you want to keep your super with the same fund, contact them directly to update your details
  • Manage and then Transfer super to transfer this lost super to an eligible super account – or ask your fund to complete the transfer for you
  • Manage and then Transfer super to transfer ATO held super to an eligible account
  • Manage and then Withdraw ATO-held super to have your super paid directly to you if the amount is less than $200 or you are over 65

4 – Check if you have multiple super accounts + consider consolidating

Why you should do it
If you’ve had more than one job, you may have more than one superannuation account. It’s important to know how many super accounts you have. Combining your superannuation may reduce fees and make it easier to manage.

If you decide to consolidate your super, it’s important to choose the fund that’s right for you. You should check that it provides better value, and the insurance cover suits your needs, which may change throughout your life. To see which fund is the best option for you, visit MoneySmart. If you are unsure of what to do, contact your super fund or seek independent financial advice.

How to do it
Log on to ATO online services through myGov.
From the top menu, select Super then either:

  • Fund details to see all your super accounts and balances
  • Manage and then Transfer super to consolidate your accounts, then
    • select the fund you want to close (transfer)
    • select the fund you want your money transferred to from the accounts listed
    • confirm your selection and submit a request

5 – Check your nominated beneficiary

Why you should do it
Take the time to ensure you have a valid death beneficiary nomination in place with your super fund as this isn’t covered by your will. This means your loved ones will not be put through unnecessary difficulties to finalise your estate.

Most binding nominations expire every 3 years. Some super funds have an option where nominations do not expire and remain in place until they are revoked.

If you don’t nominate a beneficiary, your fund may not know who your benefit should be paid to. In these cases, they will follow the law. This usually means they pay it to one or more of your dependents or your legal personal representative.

How to do it
To check or nominate your death beneficiary:

  • Refer to your super fund’s website or contact them to check if you already have a valid nomination in place.
  • To update it, complete the form from your fund, sign and date in the presence of 2 witnesses

If you are unsure, contact your super fund or seek independent financial or legal advice from a qualified estate planner at MB+M

6 – Check your insurance

Why you should do it
It is worthwhile to also check your insurance connected to your superannuation. Some important things to check are:

  • if you have any insurance
  • if you do, what you are paying for

How to do it
To find out what insurance you have you can:

  • call your fund
  • access your super account online
  • check your super fund’s annual statement and the PDS

You can do the superannuation health check at any time, but it is a good idea to get into the habit of doing it annually around tax time so you don’t forget! Your super is one of the biggest assets you’ll accumulate in your lifetime, it’s important you keep it safe.

Get in touch with us and book an appointment if you’re interested in a review of your superannuation.

Source

Published 7 September 2023.
The information provided in this article is general in nature only and does not constitute financial advice.