Are you one of the roughly 4 million Australians who have more than one super account? According to the Australian Taxation Office (ATO), as at 30 June 2026, 16% of people with super have two accounts, 3% have three and 1% have four or more.
Why does this matter? The simple answer is that multiple accounts will cost you more in fees and reduce your retirement savings.
What is the potential cost of having multiple super accounts?
The 2018 Productivity Commission (PC) report into superannuation estimated that a third of all super accounts (about 10 million) were unintended multiple accounts, costing members $2.6 billion a year in unnecessary fees and insurance premiums.
One major problem of multiple super accounts identified by the PC report is so-called ‘zombie’ insurance. These are insurances, like income protection, which can only be claimed through one policy. So if you have multiple accounts you could be paying premiums for insurance that will never pay out.
These costs are exacerbated by foregone compound returns. The PC report cited the example of a worker with two accounts across their working life who will end up over 6% (or $51,000) worse off at retirement compared with a worker holding just one account.
On a positive note, reforms to insurance in super made in 2019 have reduced the impact of ‘zombie’ insurance. If a super account is inactive for 16 months or more the insurance cover it contains must be cancelled unless you tell the fund you want to keep it.
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How do people end up with multiple super accounts?
Many people lose contact with their super funds when they change jobs, move house, or simply forget to update their details. In the past, people also often got a new super account each time they changed their job and they let their new employer choose the fund.
Since 1 November 2021, if you start a new job and don’t choose a super fund, your employer must pay your contributions into your ‘stapled’ fund. Your stapled fund is usually the one that has most recently received super contributions for you.
Before you consolidate your super accounts
There are a few things to consider before you consolidate your super accounts.
1. Check you won’t lose any necessary insurance coverage
There are three main types of insurance products offered through super.
- Death cover, or life insurance, which pays a lump sum or income stream to your beneficiaries if you die.
- Total and permanent disability insurance covers you if you become seriously disabled and are unlikely to work again.
- Income protection insurance pays an income stream if you are temporarily unable to work.
Check you won’t lose any valuable insurance cover from the fund that you are leaving. Some funds offer members insurance cover that can be difficult – and expensive – to obtain elsewhere.
2. Choose which super fund will be your main account
Check the details of each of your accounts to decide which fund best suits your needs and objectives. ASIC’s Moneysmart website makes this suggestion: “When consolidating your super, don’t just choose the fund with the highest balance. The best fund for you may be one of your small accounts, or a completely new fund.”
3. Tell your employer which fund to use
Consolidating your accounts doesn’t change the fund your employer pays your super guarantee contributions into. Once you’ve chosen your main fund, give your employer its details, usually on a super standard choice form, so future contributions go to the right account. Otherwise your employer may keep paying into the fund you’re leaving.
4. Check whether the ATO is holding super for you
The ATO may hold super on your behalf, such as small or inactive accounts your fund has transferred to it, or unclaimed super. Any ATO-held super appears in ATO online services through myGov, where you can ask for it to be transferred into your main fund.
The easiest way to consolidate your super accounts
It is now very easy to consolidate your super accounts if you have a myGov account.
Time needed: 5 minutes
Follow the steps below to quickly and easily consolidate your multiple super accounts.
- Log in or create a myGov account
You can create an account at my.gov.au
- Link your myGov account to the ATO
Learn how to link your myGov account to the ATO.
- Click through to the ATO linked service and select ‘Super’, then ‘Manage’
Records of your super accounts will be displayed. If you have more than one you will have an option to ‘Transfer super’.
- Select the super funds to transfer from and to
The fund to transfer from is called the “transferring fund” and the fund to transfer it to is called the “receiving fund”.
You can only transfer the full balance from one super account to another super fund using myGov. You will need to contact the super fund directly if you wish to transfer part of the balance.
If you do not have a myGov account, you can complete the ATO’s rollover request form. Alternatively, your receiving super fund may also be able to process the transfer for you.
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