How to Change Super Funds in Australia

Superannuation is a system in Australia designed to help individuals save for their retirement years. This mandatory savings scheme ensures that a portion of earnings is set aside and invested over a working life. Individuals have the flexibility to choose and change the super fund where these contributions are held. This process allows for greater control over one’s retirement savings journey.

Preparing for a Super Fund Transfer

Before initiating any transfer, it is important to gather comprehensive information about your existing superannuation account. This includes identifying your current account number, the total balance held, and details of any insurance coverage you currently possess through the fund. Reviewing the fees being charged by your current fund, such as administration or investment fees, and understanding your current investment options is also a useful step. It is particularly important to check existing insurance policies, including life cover, Total and Permanent Disability (TPD), and income protection, as these may be impacted or lost upon transferring funds.

Selecting a new super fund requires careful consideration of several factors. Fees are a significant component, encompassing various charges like administration fees, investment fees, and potentially indirect costs. Some funds may also charge a buy/sell spread, which is the difference between buying and selling prices of underlying investments, or switching fees if you change investment options within the fund. Comparing these varied fee structures across different funds can help identify a more cost-effective option for your retirement savings.

Investment options offered by a new fund should align with your financial goals and risk tolerance. Funds typically provide a range of choices, from diversified options like ‘Growth,’ ‘Balanced,’ or ‘Conservative’ portfolios, to more specific sector-based or ethical investment strategies. While past performance is not an indicator of future results, reviewing a fund’s historical performance over a longer term, such as five years, can offer insights into its management approach. Understanding the available investment classes, such as shares, property, or fixed interest, helps in assessing their suitability for your financial plan.

Evaluating the insurance offerings of a potential new fund is an important step, as policies often differ between providers. Most super funds offer default insurance cover, typically including life insurance (death cover) and TPD insurance, and sometimes income protection. It is essential to compare the level of cover, premiums, and any terms or conditions, such as exclusions for pre-existing conditions, to ensure the new fund’s insurance meets your needs. If you have specific insurance requirements, you may need to apply for tailored coverage with the new fund, which could involve medical underwriting.

Finally, ensure you have all necessary details ready for the transfer process. This includes your Tax File Number (TFN), which is used by the Australian Taxation Office (ATO) to identify your super accounts. You will also need the details of your current super fund(s) and the specific details of your chosen new super fund, including its Australian Business Number (ABN) and Unique Superannuation Identifier (USI). The USI is a specific code used by the SuperStream system to accurately direct contributions and transfers to the correct super fund product.

Executing the Super Fund Transfer

The most common and often simplest method for transferring super funds is through the ATO’s online services via myGov. To use this, you must first log into your myGov account and ensure it is linked to the Australian Taxation Office. Once linked, you can navigate to the “Super” section, where you will find options to manage and transfer your superannuation. This online service allows you to view all your identified super accounts and initiate a whole balance transfer to your chosen fund, using your Tax File Number to match funds.

Alternatively, you can contact your chosen new super fund directly to facilitate the transfer. Many super funds offer services to help members consolidate their accounts. This process typically involves providing the new fund with details of your existing super account(s), including the fund name, account number, and your personal identification details. The new fund will then usually manage the rollover request on your behalf, often requiring you to complete their specific forms or online processes.

While less common for initiating a transfer out, some existing super funds may also have a process for members to request a rollover of their benefits to another fund. This usually involves completing a specific rollover initiation request form provided by your current fund. However, using the ATO online services or directly contacting the new fund is generally a more streamlined approach for transferring your entire super balance.

During the execution of the transfer, it is important to double-check all details provided to ensure accuracy. The transfer process itself is typically electronic and generally tax-free for direct rollovers between complying superannuation funds. Super funds generally aim to make payments to members within five business days of receiving an approved transfer request from the ATO, though some transfers may take longer, potentially up to a couple of weeks, depending on the funds involved or if further verification is required.

After the Super Fund Transfer is Complete

After initiating a super fund transfer, it is important to confirm that the funds have successfully moved to your chosen account. You can verify the transfer by checking your statements from both your old and new super funds, which should reflect the outgoing and incoming balances. Regularly checking your superannuation details through ATO online services via your myGov account is also an effective way to track the status of your consolidated super. Transfers typically complete within a few days to a couple of weeks, though specific timeframes can vary.

Consolidating multiple super accounts into a single fund offers several advantages, including potentially reducing the total fees you pay across different accounts. It also simplifies the management of your retirement savings by providing a single point of contact and unified statements. This consolidation can also help prevent your super from becoming “lost” if you change jobs or addresses without updating all your fund details.

Upon receiving your first statement from the new super fund, it is advisable to review it carefully to ensure all details are correct. Verify that the transferred balance is accurate and that your chosen investment options have been correctly applied. This review helps confirm that your superannuation is being managed according to your preferences and that no discrepancies exist after the transfer.

If you suspect you have other old, forgotten super accounts, you can check for “lost superannuation” through ATO online services via myGov. The ATO holds billions of dollars in unclaimed and lost super, often due to individuals changing jobs or addresses without updating their details. Once identified, any lost super can generally be consolidated into your preferred active fund through the same ATO online service, further streamlining your retirement savings.

Finally, remember to provide your new super fund details to your employer to ensure all future superannuation guarantee contributions are directed to the correct account. This step is important to maintain continuous contributions to your chosen fund. You can typically do this by providing your employer with a standard choice form, available from the ATO or your new fund, detailing your updated superannuation information.