MySuper and super choice
3.2 MySuper and Super Choice
From 1 July 2005, choice of superannuation fund legislation has allowed many Australian employees to choose the fund into which their superannuation guarantee (SG) contributions are made.
However, as not all employees will nominate a preferred superannuation fund, employers are required to have in place a default superannuation fund for employees who do not make a fund choice. These default funds are normally chosen by the employer, often in consultant with their employees, or an individual may select the fund endorsed by their employer, industry association or nominated in the industrial awards that sets their employment terms and conditions.
A Superannuation standard choice form is available from the ATO. This form is used by both employers and employees.
Employers can use the form to advise eligible employees of the details of their nominated, default superannuation fund.
Employees can use the form to advise the employer of their choice of superannuation fund. They can either accept the employer's default fund, or provide details of another superannuation fund of their choice, including self-managed super funds. The employer must then make contributions to the nominated superannuation fund.
Since 1 July 2017, all member accounts in default superannuation investment options are required to be invested in a MySuper product. In practice, this means superannuation funds and wealth management groups that wish to compete in the workplace default superannuation market need to apply to the superannuation regulator, the Australian Prudential Regulation Authority (APRA), for authorisation to offer MySuper products.
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Last modified: Tuesday, April 27, 2021