Get ready to provide employees super choice
Recent amendments to the law will give more Australians the opportunity to choose their own superannuation fund – preventing them from being locked into a specific super fund under the terms of an enterprise bargaining agreement.
New workplace determinations and enterprise agreements made on or after 1 January 2021 must provide employees the right to choose the super fund to which their employer makes compulsory super contributions.
This means some existing members of your super fund may choose to exercise this right and change to a different super fund. There are 4 steps to follow:
- Identify which employees are eligible to choose. Click here for more information.
- Provide eligible employees with a Standard choice form. More information and links to standard choice forms can be found here.
- Pay into your employees default fund until the choice form is returned. If your employees don’t choose a fund or haven’t provided the necessary information, and a super contribution is due, you must make the payment for them into your employer-nominated fund by the due date.
- Act on your employees choice. Once an employee advises you of their choice of super fund, you have two months to start paying contributions into that fund. You may be penalised if you don’t offer your eligible employees a choice of fund or you don’t pay their super to their chosen fund.
Need help or more advice? Please contact us.