Since 1 July 2005, many Australians are now able to choose which super fund will receive their employer SG contributions. Under the law, all employers must offer eligible employees a choice of superannuation funds.
Three key steps to Super Choice
1. Identify eligible employee
- Not everyone is eligible
- Don’t do anything for non-eligible employees
- Offer super choice to all new eligible employees
2. Offer employees a choice of their superannuation fund
- Give all employees a Standard Choice Form within 28 days of commencing work with your business
- Make sure you complete the employer section of the form
- The ‘Employer Fund’ is where you pay employee super guarantee contributions if your employee doesn’t choose (e.g. Vision Super)
3. Act on their choice
- You have two months from the day an employee chooses a new fund to switch future super guarantee contributions to that fund
- If no fund is nominated, your employee’s super guarantee payments must be made to your Employer Fund
More information on choice of fund can be found by visiting the ATO’s super choice website www.superchoice.gov.au
