By Nathan Isterling, Head of Product, Otivo
Consolidating super means combining multiple super accounts into one. It can reduce duplicate fees and make retirement savings simpler to manage. The ATO offers a free consolidation service through myGov. As at May 2026, the ATO held billions of dollars in lost and unclaimed super across multiple accounts.
Many Australians have super sitting in more than one account. Each account often charges its own fees. Over time, those duplicate fees can quietly chip away at retirement savings. This guide walks through the consolidation process, the things to check first, and how Otivo can help spot consolidation opportunities. Figures and rules below are current as at May 2026.
Why do Australians end up with multiple super accounts?
Most people don't set out to collect super accounts. It tends to happen by accident across a working life.
Each new job often triggers a new super account. Until 2021, employers usually defaulted new staff into the workplace fund unless told otherwise. Many people never filled in a fund choice form.
From 1 November 2021, the "stapling" rules changed that. New employees keep their existing fund when they change jobs unless they ask for something different. Even so, anyone who started before stapling may still hold several accounts.
Other common reasons include:
- Casual or short-term work that ended before paperwork was sorted
- Changing names after marriage or other life events
- Moving address without telling old funds
- Forgetting old logins and details over time
According to ATO data, billions of dollars sit in lost and unclaimed super. Some belongs to people who don't know it exists. Some sits with funds that have lost contact with the member.
How much can duplicate super accounts cost over time?
Super funds charge fees. Most accounts pay an administration fee, a percentage-based fee, and sometimes insurance premiums. Holding two or three accounts often means paying those fees more than once.
Take a simple illustration. Imagine two accounts, each charging $100 a year in admin fees, plus modest insurance premiums. That's $200 or more leaving super each year without any extra benefit. Over a 30-year working life, those duplicated charges can quietly add up to a meaningful sum.
The exact impact depends on the funds, the fees, the insurance arrangements, and investment performance. Many Australians find the simplest test is to add up the annual fees across all known accounts. If multiple sets of admin fees are coming out, consolidation is worth a closer look.
The other cost is admin friction. Tracking statements, updating addresses, and managing investment choices across accounts takes time. One account is easier to keep an eye on.
How do you consolidate super accounts through myGov?
The ATO's online service through myGov is the most common route. It's free and pulls accounts directly from ATO records. The process takes most people 15 to 30 minutes.
The five steps are:
- Sign in to myGov and link the ATO service if it isn't already linked
- Go to the Super section and view all reported accounts, including any lost super held by the ATO
- Choose the fund you want to keep as the destination account
- Select the other accounts to roll into the destination fund
- Confirm the transfer and wait for the rollover to complete, usually within three business days
An alternative is to contact the receiving fund directly. Most funds have an online consolidation tool that searches for other accounts and arranges the transfer for you. This can be useful if the fund you want to keep already has a smooth online process.
Either way, the destination fund handles the rollover. You don't need to call the losing fund.
What should you check before consolidating super?
Consolidation can be a good move. But it pays to slow down for a few minutes before pressing the button. We call this the four checks before consolidating super.
Check 1: insurance cover inside super
Many super accounts include life, total and permanent disability, or income protection insurance. Closing an account ends the cover attached to it. The new fund may have different cover, different costs, or different eligibility rules.
If existing cover is important — for example, where it's hard to replace due to a health condition — it can be worth checking with both funds before consolidating. Some funds allow new members to apply for matching cover, subject to underwriting.
Check 2: fees and account costs
Compare the annual administration fee and any percentage-based fees across accounts. The aim is to keep the account that fits your overall situation, not just the cheapest. Investment performance over time matters as well as fees.
This is a general check. Discussion of specific funds or specific investment option figures sits outside the scope of this article.
Check 3: exit or withdrawal fees
Most large APRA-regulated super funds no longer charge exit fees, after reforms in 2019. But some legacy products may still apply costs. Check the product disclosure statement before rolling out of an older account.
Check 4: employer contributions flowing to the right fund
If you consolidate before updating your employer, contributions will keep landing in the closed account. To avoid creating a new orphan account, give your employer the destination fund's details using the ATO's standard choice form.
How does Otivo help with super consolidation?
Otivo, holder of AFSL and Australian Credit Licence No. 485665, helps people identify consolidation opportunities as part of broader super advice. The platform can flag where multiple accounts appear in someone's profile and prompt a closer look at fees and insurance before any rollover.
Consolidation also pairs well with other super decisions. People who consolidate often go on to review their investment option, their contribution level, and their insurance inside super. Otivo's super advice modules work through each of these as separate questions.
For people thinking about boosting contributions after consolidating, our salary sacrifice guide covers the basics of using before-tax pay to grow super inside the concessional cap.
What about super held by the ATO?
The ATO holds super on behalf of members in several situations. These include super transferred from inactive low-balance accounts, lost member accounts, and unclaimed super from people who have left Australia or reached a certain age.
ATO-held super doesn't earn investment returns the same way a fund does. It's indexed by the consumer price index. For most working-age Australians, moving ATO-held super back to a chosen fund is one consolidation step worth considering.
The myGov process surfaces ATO-held super alongside fund accounts. You can transfer it to a chosen fund in the same flow.
Frequently asked questions
Does consolidating super affect my employer's contributions?
Not directly. But if your employer keeps paying into the old fund, a new account effectively reopens there. Give your employer the destination fund's details using the ATO's standard choice form before or just after consolidation.
How long does super consolidation take?
Most rollovers between APRA-regulated funds complete within three business days. ATO-held super transfers may take longer. The fund or the ATO will confirm once the transfer is done.
Is there a tax cost to consolidating super?
Rolling super from one fund to another is generally not a taxable event. Some older products may include untaxed elements that affect this, so it's worth checking the product disclosure statement. Tax outcomes depend on personal circumstances.
Can I consolidate super if I have a defined benefit account?
Defined benefit accounts work differently to accumulation accounts. Rolling out of a defined benefit fund often means losing valuable features. Many people in this situation choose not to consolidate that account. Specific defined benefit rules are outside the scope of this article.
Putting it together
Consolidating super is one of the simpler ways many Australians clean up their finances. The myGov service makes the mechanics straightforward. The bigger decisions sit around the edges: insurance, fees, and where employer contributions are flowing. Otivo's super advice tools can help work through the picture in one place.
Disclaimer
The information in this communication is current as at May 2026 and has been prepared by Otivo Pty Ltd ABN 47 602 457 732, AFSL and Australian Credit Licence No. 485665. This content is general information only and has been prepared without taking into account your objectives, financial situation or needs. It is not personal financial or taxation advice and should not be relied on as such. Before acting on any information, you should consider its appropriateness having regard to your personal circumstances. This material must not be reproduced in whole or in part, or posted on any social media platform, without the prior written consent of Otivo Pty Ltd.