NOTE: we do our best to share general resources so you can do your own research but keep in mind this information doesn’t consider your personal circumstances, objectives of needs. When it comes to investing in your super, you should consider if it’s appropriate, read PDS and TMDs and reach out to a financial advisor and tax accountant. When investing, there may be tax implications and you should get advice from a licensed tax adviser and financial advisor.
Should you consolidate your Super?
The vast majority of Australians who have more than one Super account would benefit from combining them. In total, multiple accounts cost $2.6b in additional fees every year. Consolidating Super to one account also reduces paperwork and makes it easier to manage, so for most of us consolidating is a no-brainer.
The one big exception is if you are in a defined benefit fund (one where your retirement benefits are calculated using your average salary over the last few years before you retire). Also, if you have medical conditions, your insurance premiums may be impacted. There are however options to get insurance outside of superannuation, which may provide more specialised coverage, depending on your needs. If these are relevant to you, research carefully by reading the PDS and TMD, and get insurance and financial advice before leaving.
Before you get started on this guide
- Know which fund you want to consolidate your accounts into
- Confirm employer contributions are going into the consolidation account
- Confirm the insurance option in the consolidation account is appropriate
Step 1: Login or create a myGov account.
myGov is a secure way to access government services online with one login and one password, run by the Australian Government.
You can link lots of your online services to your myGov account, including your ATO account, which is where you go to consolidate your Super.
There are other tools run by super funds but we suggest this one as they don’t try to sell you anything. To open an account just follow the usual process. If you’ve created a Facebook, eBay or Gmail you’ll figure this one out 😉
Step 2: then link the ATO to your account.
Your ATO account is where consolidate your Super, so now we need to link that to your myGov account.
Once you have logged in, on your myGov dashboard click ‘Link another service’.
Then click ‘Australian Tax Office’ under the ‘Link a service’ section.
Then enter your 9-digit Tax File Number and agree to the T’s & C’s.
Then select ‘Superannuation account details’ as a verification method and enter your superannuation account details from your current super fund (you can select other methods too).
Find your Super details on any of your statements.
The super fund ABN is an 11-digit number usually found in the small print at the bottom of any of your statements. Your member account number is usually in the ‘Your Details’ section.
Then select ‘Bank account details’ as a second verification method (or select an alternative method).
Enter your 6-digit BSB (black rectangle) and 6- to 9-digit Account Number (purple rectangle) and click ‘Next’.
You should see the ‘You have successfully linked…’ banner below the ‘Services’ title.
Step 3: Consolidate your Super using the ATO’s consolidation tool
Last step! Let’s make the magic happen… 💸
Click ‘Australian Taxation Office’.
You’ll then be taken to the ATO’s website and your ATO online account.
p.s. don’t forget to lodge your tax return! 😂
Click on the ‘Super’ tab, then choose ‘Manage’, then choose ‘Transfer Super’.
This is the money page, here you can:
- see details of all your super accounts, including any you have forgotten about
- see details of all your super, including super the ATO is holding on your behalf
- see the ATO’s resources and suggestions for Super consolidation
As you can see, I have three Superannuation accounts (I opened two accounts to write this article)
Choose the fund(s) you want to transfer your money from (called the ‘transferring fund’) and the fund you want to transfer your money to (called the ‘receiving fund’) from the funds listed.
*note that none of these super funds are being endorsed by myself or Pearler. They are just here for illustrated purposes as an example. In fact, Pearler has its own super fund, Pearler Super, which is also an option for those seeking a super fund.
Then confirm your personal details and authorise. Click ‘Submit’ once you have finished the review to consolidate your Super!
You will then see this confirmation page. Your multiple accounts should be moved into one account within three days.
To be absolutely certain it worked, log back into your account after 3 days and it should have only one balance remaining.
Congratulations! 👏 🎉 You’ve potentially saved thousands of dollars in less than 15 minutes, that’s a pretty good hourly rate…
Are there other personal finance ‘How-To’s’ that you would like step-by-step guides for? Let me know by commenting below and subscribe for updates when they come out. Cheers!
At Pearler, we pride ourselves on the quality of the general financial advice we give. Please note though, that this information is general in nature and has not been tailored for you. It does not consider your personal circumstances, objectives, financial situation or needs. Before acting on the information, you should consider its appropriateness. Before you make a decision about Pearler Super, you should also consider the Pearler Super product disclosure statement (PDS) and target market determination (TMD). You may also wish to consider consulting a financial adviser.
