Why does it matter?
When you change your job, don’t forget the accumulated money in your superannuation fund. People think that they will get a cheque to cover this, but in most cases the money is preserved for your retirement and can either be left in the fund or rolled over to another superannuation fund.
This accumulated money is called an "eligible termination payment".
Can I take cash?
The part of the termination payment that is made up of the Superannuation Guarantee (and it's earnings through investment) must be "preserved".
You may be able to withdraw some of your voluntary contributions (you will know which part of the eligible termination payment is made up of each component by looking at the "statement of termination payment" which will be given to you).
Before you withdraw any of your money, you should get professional advice about the tax implications of this.
Use it, don’t lose it
If you change jobs you may well end up with money in another superannuation fund – many employees have money in various funds due to changing jobs on a regular basis.
It is a good idea to have all your payments in one fund – you do this by rolling over your contributions.
Roll-over – why do it?
- It is easier to keep track of your money if it is just in one fund, rather than spread across a number of funds.
- You only pay one set of fees.
- It reduces the amount of paper work you receive and have to read.
- It is easier to control, for example when choosing the type of investment.
Before you roll-over
There are a number of issues you should consider before rolling over your contributions. Depending on the amount and the length of time you have made contributions, you may want to get advice.
- if your current fund will accept roll-overs from other funds;
- if you can move funds out of your current fund, if you want to down the track;
- what fees are involved;
- the “preservation” status of your contributions – moving funds may affect this and change your ability to access your superannuation; and
- if this affects any insurance cover you have through the superannuation fund.
Last Updated – February 2014