Choice of Fund Obligations
The choice of super fund legislation gives employees the right to choose their super fund and has encouraged people to take more control of their super and financial future.
|Your obligations as an employer:|
|Who is eligible for choice of fund?|
It is mandatory for employers to offer Choice of Super Fund to any employees:
You are not required to offer Choice of Super Fund if you are already paying super contributions for your employees under, or in accordance with:
Note: if the award or agreement does not mention a specific fund, you must comply with Choice of Super Fund. If you do not provide Choice of Super Fund by providing your employee with a Standard Choice Form (including a completed Part B) within 28 days of an employee starting, you may be subject to Choice Liability for not complying with this requirement.
|Nominating a default fund|
|Employees do not have to choose their own superannuation fund, even if they are eligible to choose. If they do not advise you of a chosen fund, you should pay contributions to the Fund you have chosen as your Employer (or default) fund, provided it is a complying fund offering at least the minimum level of insurance arrangements, such as Club Plus Super.
|When to provide a Choice Form|
If your new employee is eligible to choose a super fund, you should provide them with a standard Choice of Fund form within 28 days from the day they started working for you.
You also have to provide a standard Choice of Fund form within 28 days if:
For more information on your Choice of Fund obligations visit the ATO website or call our employer hotline on 1800 210 098, Monday to Friday from 8am to 6pm AEST. Alternatively click here to submit an enquiry.