As a reminder, from 1 January 2021 the law relating to employees and their choice of superannuation fund has changed.
New workplace determinations and enterprise agreements made on or after this date must now offer employees the right to choose the superannuation fund to which employers pay their compulsory superannuation contributions.
Under the new Treasury Laws Amendment (Your Superannuation, Your Choice) Bill, the choice of fund rules will apply to employees covered by workplace determinations and Enterprise Agreements made on or after 1 January 2021.
Enterprise Agreements written and approved prior to 1 January 2021 can still have provisions that limit superannuation choice.
Once a new determination or agreement is in place, you need to offer choice of super fund to:
- existing employees who request to choose their super fund
- all new employees.
Employers should give their employees a Superannuation (super) standard choice form to complete.
Alternatively, an employee can nominate their fund by completing the standard choice form through ATO online services linked to their myGov account.
Employers must then pay the employee’s compulsory super to their nominated fund.
If an employee doesn’t nominate a fund, employers can continue to pay their super to the same fund previously contributed to, or into the company’s default fund.
As part of the next steps, affected employers can:
- Offer their employees a choice of fund CLICK HERE to learn more
- Provide a superannuation standard choice form CLICK HERE to learn more.
CLICK HERE to access the Treasury Laws Amendment (Your Superannuation, Your Choice).