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(Australian Associated Press)
Fund administrator Link Group says the federal government’s attempt to reunite people with money languishing in unused superannuation accounts would have cost it as much as $55 million in revenue if it had been enacted this year.
The measure announced in last week’s budget is to transfer balances of less than $6,000 from inactive super accounts to the Australian Taxation Office, which will then try to return the money to its owner.
While the proposed date for analysis of super accounts is July 1, 2019, Link Group says the move would have cost as much as $55 million if it was enacted on April 30 this year.
The hit would likely have been mitigated by some members opting to keep their accounts after being contacted by the funds.
Link Group – which says it believes the industry was not consulted about the move – does not anticipate any drop in the number of member accounts before the 2020 financial year.
Industry consultation is now under way and expected to be completed within two weeks.
“Link Group will work closely with all of our clients to assist them to prepare for these measures should the legislation change as proposed,” Link said on Tuesday in a statement.
At 1021 AEST, shares in Link Group were 60 cents, or 8.8 per cent, higher at $7.39.
That’s still more than 13 per cent lower than at the close of trade immediately before last week’s budget announcement.