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Super Choice

Understanding Super Choice legislation

Effective 1 July 2005, the legislation provides your employees with:

  • Greater choice to choose where their super guarantee contributions are paid
  • Greater flexibility to keep their super together in one fund, even if they change jobs.

What does it mean for employers?

  • For employees who have not selected a fund, employers must choose a complying default fund for employee contributions
  • Employers have 28 days to provide the employee with a standard choice form.

Employee request to change super funds

Employers are obliged to accept one change every 12 months. The contributions must be paid into the selected fund within two months of receiving written notice.

You are not obliged to accept a request to change funds where an employee has:

  • Provided insufficient information
  • Not provided written evidence that the fund is a regulated complying super fund and will accept your employer contributions
  • Already made a change within the previous 12 months.

What happens if an employer does not comply?

The Australian Taxation Office will apply penalties if you:

  • Fail to supply the required standard choice form in the minimum timeframe
  • Make super guarantee contributions but do not comply with the employee’s choice
  • Contribute to a non-complying fund
  • Do not offer any choice.

Employees excluded from Super Choice

Employees covered by an exemption are those who are unfunded public sector scheme members or those covered by:

  • An Australian Workplace Agreement
  • A certified agreement under the Workplace Relations Act 1996
  • A certified agreement under the Industrial Relations Act 1988
  • Certain agreements made under the Victoria Employee Relations Act 1992.