AustralianSuper Fined $27 Million for Not Merging Duplicate Accounts — Check Your Own Super

📅 February 28, 2025 ⏱ 4 min read 👤 Claimsure Staff

Stacks of coins representing duplicate fees eroding super balances

In February 2025, the Federal Court fined AustralianSuper $27 million after it failed to identify and merge multiple accounts held by the same member within the fund. The failures ran for almost nine years and affected about 90,700 members.

The cost to those members was real: roughly $69 million in duplicate administration fees, insurance premiums and lost investment earnings. It is a useful prompt to check whether you are quietly paying for more than one super account.

The key numbers

$27M
Federal Court penalty against AustralianSuper
~90,700
members affected over almost nine years
~$69M
cost in duplicate fees, premiums and lost earnings

Source: ASIC media release 25-017MR, 21 February 2025.

What went wrong

The Federal Court found AustralianSuper did not have adequate policies, processes and systems to identify and merge multiple accounts belonging to the same member within the fund — a failure that ran from 1 July 2013 to 31 March 2023. It breached section 108A of the Superannuation Industry (Supervision) Act. The fund has since remediated all affected members.

Justice Hespe said: "The failures should not have happened. The failures are serious and highly concerning." ASIC Deputy Chair Sarah Court said the conduct "betrayed the trust of its members and did not act in their best financial interests."

Why duplicate accounts quietly cost you

Holding more than one super account usually means paying more than one set of administration fees — and often more than one set of insurance premiums. Add the lost investment earnings on that money, and it adds up over the years. In this case, it cost about 90,700 members roughly $69 million between them.

It happens easily. Every time you start a new job and a new default super account is opened, you can end up with another account you lose track of.

How to check for lost or duplicate super

The good news is that checking is quick and free:

  • log in to myGov and go to the ATO's online services
  • look for lost super, ATO-held super, and any accounts you had forgotten
  • consider consolidating multiple accounts into one to stop paying duplicate fees

One important warning before you consolidate

Closing an old account can cancel valuable insurance attached to it — including life, TPD or income protection cover that might be expensive or difficult to replace, especially if your health has changed. Always check the insurance in each account before you close it.

Our guide on how insurance in super can be switched off without you realising explains why this matters so much — losing cover by accident can be far costlier than a duplicate fee.

Free Claim Check

At ClaimSure, we help people get a clear picture of their super — including lost or duplicate accounts and the insurance attached to them.

We can help you:

  • review your situation in plain English
  • identify relevant super accounts, including lost or forgotten super
  • understand what insurance sits inside each account before you consolidate
Before you merge or close any super account, check what insurance you might lose. A quick review can save you from giving up cover you can't easily get back.

Start with a Free Claim Check

Wondering if any of this applies to your situation? Reach out and we'll review your circumstances together — no obligation, plain English.

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