Super Choice frequently asked questions
Which employees are affected? Which employees are excluded from Super Choice?Will my existing employees be able to choose their super? What happens to employees who start work after 1 July 2005?Can my employees switch between superannuation funds?Can I refuse an employee request to change super funds?How soon must I change funds after receiving an employer's request form? What happens if I don't comply?What happens if an employee does not select a fund?How Westpac can help?
Which employees are affected?
From 1 July 2005, all employees who are not excluded below, will get to choose the super fund for their super guarantee contributions paid after this date.
Which employees are excluded from Super Choice?
- Employees covered by an Australian Workplace Agreement or a certified agreement under the Workplace Relations Act 1996, or a certified agreement under the Industrial Relations Act 1988 or certain employment agreements made under the Victorian Employee Relations Act 1992
- Employees covered by a State Industrial award
- Employees who are unfunded public sector scheme members
Furthermore, special rules apply for:- Members of defined benefit funds
- Commonwealth employees who are members of the CSS or the PSS
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Will my existing employees be able to choose their super?
Yes. Current employees (as at 1 July 2005) need to be given a standard choice form before 29 July 2005, unless covered by one of the exemptions above. If they do not complete the form, their super guarantee contributions will be directed to the employer's default fund.
What happens to employees who start work after 1 July 2005?
For new employees joining your company after 1 July 2005, you have up to 28 days to give them a standard choice form, subject to the exemptions summarised above.
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Can my employees switch between superannuation funds?
As an employer, you are obliged to accept one change every 12 months.
Can I refuse an employee request to change super funds?
Yes, where the employee has provided insufficient information; or has not provided written evidence that the fund is a regulated complying super fund and will accept your employer contributions; or if the employee has already made a change within the previous 12 months.
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How soon must I change funds after receiving an employee's request form?
Employers must make contributions to the employees selected fund within two months of receiving written notice.
What happens if I don't comply?
The Australian Taxation Office penalties apply if you:- Fail to supply the required standard choice form in the minimum timeframe
- Make super guarantee contributions but do not comply with an employee's choice
- Contribute to a non-complying fund
- Do not offer any choice
Generally, the penalty will be calculated as 25% of all non-complying contributions paid, capped at $500 per employee for all quarters within an employer's notice period (this period to be determined by the ATO).
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What happens if an employee does not select a fund?
The employee's super guarantee contributions will be paid into the employers default fund.
A default fund will be any superannuation fund that complies with the superannuation legislation and proposed regulations. It is proposed that these regulations will require a default fund to have minimum levels of death cover.
How Westpac can help?
If you need more information about any of these issues and how you will be affected, call or schedule an appointment with a Westpac Financial Planner.
Alternatively, you can call BT Employer Relations on 1300 553 010.
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