Once a mainstay of the Australian superannuation system, eligible rollover funds (ERFs) have been phased out in recent years. Yet, the legacy of ERFs and the rules governing lost or inactive super continue to impact millions of Australians. As we head through 2025, understanding what ERFs were, why they mattered, and how current policy handles lost super can help you protect your retirement nest egg.
What Was an Eligible Rollover Fund?
An eligible rollover fund (ERF) was a type of superannuation fund designed to receive small, lost, or inactive super balances on behalf of members. Employers or super funds would transfer money into an ERF when an account became inactive, the member couldn’t be contacted, or certain thresholds were met. The ERF would then hold and manage these balances until the member claimed them or transferred them elsewhere.
Key features of ERFs included:
- No member contributions or rollovers in (other than lost/inactive balances)
- Low or no fees, but limited investment options
- No insurance cover for members
- Funds held until claimed, transferred, or the member was located
For many Australians, an ERF was the last stop before their forgotten super balances were lost to time—or, in some cases, to fees and erosion.
The End of ERFs: Why They’re Almost Gone in 2025
The phasing out of ERFs is part of a broader push to help Australians reunite with lost super and improve retirement outcomes. The most significant recent changes include:
- Superannuation (Unclaimed Money and Lost Members) Act 2019: Increased the thresholds for inactive low-balance accounts to be transferred to the Australian Taxation Office (ATO), rather than to ERFs.
- ‘Protecting Your Super’ reforms: From 1 July 2019, accounts with balances under $6,000 and no activity for 16 months are transferred to the ATO, not an ERF.
- 2023-2025 transition: The vast majority of ERFs have now wound up, and their remaining balances have been sent to the ATO for safekeeping.
As of 2025, there are no active ERFs receiving new balances. If you lose track of your super, it’s now almost certainly held by the ATO, not an ERF.
What Happens to Lost or Inactive Super Now?
With ERFs out of the picture, the ATO has become the central hub for lost and unclaimed super. Here’s how the process works in 2025:
- Super accounts with a balance under $6,000 and no activity for 16 months are transferred to the ATO.
- The ATO attempts to reunite lost super with active accounts using data matching.
- You can search for and consolidate lost super via myGov or the ATO’s online services.
- No fees are charged by the ATO, and interest is paid on held balances.
This system is designed to prevent fees from eroding small balances and to make it easier for Australians to track down all their super in one place. In 2025, the ATO reports record numbers of reunifications, thanks to improved data matching and streamlined digital services.
Real-World Example: Jane’s Lost Super Journey
Jane worked casual jobs during her uni years, accumulating several small super balances. After moving interstate and changing jobs, she lost track of two old super accounts. In 2024, those accounts were transferred to the ATO under the Protecting Your Super rules. In early 2025, Jane logs into myGov, discovers $3,200 in lost super, and consolidates it into her main fund with a few clicks. Thanks to the new system, Jane avoids unnecessary fees and boosts her retirement savings without the hassle once associated with ERFs.
How to Keep Your Super on Track
To avoid your super being transferred to the ATO (or, in the past, to an ERF), consider these tips:
- Consolidate your super into one active account
- Regularly check your super balance and contact details
- Make contributions or rollovers to keep your account active
- Keep your myGov account up to date for easy access
Staying engaged with your super is the best way to maximise your retirement outcome, especially as policy changes continue to shape the landscape in 2025 and beyond.
