A. What to consider as an employer
How Super Choice works
1.9 How Super Choice works
Super Choice allows most employees* to choose the MySuper product or another superannuation fund of their choice. They do not have to use the fund nominated by someone else such as their employer, industrial award, or workplace agreement.
How does Super Choice affect a company?
Super Choice gives employees the option to leave the default MySuper product or fund that was chosen for them and go to another MySuper product or fund, if they choose to.
This does not mean they have to choose or that they even have to look at other options, and it does not mean they need to assume there is something wrong with their employer's default MySuper product.
But equally, it does not mean employees can choose any super fund they want either. They have to already be a member of the super fund they choose, and it has to be willing to accept their super contributions, without difficulty, from their employer.
Also, if an employee decides to exercise their rights under Super Choice and join a different fund, those super funds are not allowed to force the employer to become a 'participating' or registered employer of that fund.
How companies choose default MySuper products
Under Super Choice, employers have to ask their employees at least once a year what MySuper product or super fund they would like to have their super contributions sent to. To help employers handle this, the Australian Taxation Office (ATO) has designed a form for employers to hand to employees to they can nominate their preferred super fund.
A Superannuation (super) standard choice form is available from the ATO website.
|For Employers - if an employee wishes to make a Super Choice election|
|Employees who want to make a Super Choice have to fill in a Super Choice form and provide the following information to their employer:
New super laws will provide public servants in South Australia access to their choice of superannuation fund
There are a few government employees who still do not have access to Super Choice. For example for many years, South Australian public sector workers, including nurses and teachers, were forced to be members of the state's Triple S superannuation scheme administered through Super SA.
The South Australian Government's Statutes Amendment (Fund Selection and Other Superannuation Matters) Bill 2020, will change this, bringing Super SA in line with Commonwealth choice of fund super laws.
This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.
Last modified: Friday, June 11, 2021