Aussie rules may benefit us

By MARK FRYER

Hold the jokes about Aussies bearing gifts - a campaign being mounted by the Australian superannuation industry could be a windfall for many New Zealanders.

The campaign aims to reunite Australian workers and ex-workers with their "lost" superannuation savings.

Given New Zealanders' fondness for flitting across the Tasman to pick up work, that group will include many people who are now resident in this country.

And there's some serious money at stake; those behind the campaign say about A$6.9 billion ($7.77 billion) is sitting in superannuation accounts waiting to be reunited with its rightful owners, and that about one in three Australian workers has lost touch with some of their super savings.

As many New Zealanders who have worked in Australia already know, for the past decade employers have been required to make superannuation contributions on behalf of their staff, these days at a rate of 9 per cent of earnings.

That money, plus anything the worker contributes, goes into a super fund where it accumulates until retirement, in most cases.

However, problems can arise when people stop working, get another job, change names, or move - back to New Zealand, for example. And if you do several different jobs, it's easy to end up with lots of small amounts in lots of different super accounts, which are hard to keep track of.

That money isn't "lost" in the sense that it disappears; it will be kept in your name, waiting for you to claim it when you are entitled to.

However, there are some good reasons for keeping in touch with your Australian super savings.

For one thing, you may be able to consolidate several small accounts into one larger one, thus saving on fees, which can have a big impact on your earnings over the long term.

You may also be able to choose which of your existing super funds you want to have manage your money. And you'll be kept informed about your savings.

The unclaimed super campaign is being run by some of the major super funds, the Australian Taxation Office (ATO), and the Australian Preservation Fund, which is one of the funds where "lost" super goes until it is reclaimed. If you have worked in Australia and want to check on your entitlements, you can call the campaign on 0061-1300-737-736 to ask for a brochure, or visit its website (www.unclaimedsuper.com.au).

You may be included in the "lost" category if your super fund doesn't have your address, mail has been returned unclaimed, or no contributions have been made on your behalf for two years.

In that case your money can be transferred to something called an eligible rollover fund, set up for the purpose of managing lost super entitlements.

The unclaimed super campaign's service is free but you'll have to be quick, since it only runs until the end of this month, although it will continue to receive application forms after that time.

However, there are other ways to pursue your Australian super savings.

If you know the name of your current super scheme, you can get in touch and ask them to search for your name through the "SuperMatch" system, run by the Australian Tax Office (ATO) which records details of lost superannuation entitlements.

Alternatively, get in touch with the ATO directly by phone (0061-13-10-20) and ask to be sent a Lost Members Register enquiry form. Or you can download the form from the ATO website (www.ato.gov.au/super - click on "Lost Members Register").

None of this will allow you to get your hands on your money any sooner. In most cases, Australian superannuation savings are only paid out when you retire and when you've reached the minimum age. That age ranges from 55 (if you were born before July 1, 1960) to 60 (if your birth date was after June 30, 1964).

There are some exceptions but they're limited; the money will be paid out if you die, are permanently disabled, can prove severe financial hardship or make a case on compassionate grounds.

Some foreigners who work in Australia can get back their super contributions as they depart, but that favour isn't extended to New Zealanders.

But, even if you can't get your super any sooner, by acting now you may be able to make it grow faster and you'll be more likely to remember to collect it in 10, 20 or 30 years, when the Australians finally release their hold on your money.

* To contact Personal Finance Editor Mark Fryer write to: Weekend Herald, PO Box 32, Auckland.

Email: mark_fryer@nzherald.co.nz

Ph: (09) 373-6400 ext 8833. Fax: (09) 373-6423.