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Choice of fund

Most employees are able to choose their own super fund for their Superannuation Guarantee contributions. As an employer, you need to nominate a default fund for those eligible employees who don’t make a choice.

The Standard Choice form

For those employees who are eligible, you must provide the Standard Choice form, which is an Australian Tax Office form, to employees within 28 days of their start date, or within 28 days of an existing employee requesting one.

You do not need to provide the Standard Choice form to employees holding a temporary visa, although they remain eligible to choose their own super fund.

If you change your default fund, you will need to give the Standard Choice form to your employees who are in the old default fund.

You also need to keep a record of providing the Standard Choice form within the required time frame, as well as the completed Standard Choice form and any additional documentation given to you by the employee for a period of five years. Your employees can choose a fund by either completing Part A of the Standard Choice form or by providing you with the equivalent information in writing.

It’s important your employees provide all the required information when nominating a superannuation fund. If your employee is nominating an APRA regulated fund or retirement savings account, they can obtain the information required from their current fund. If your employee is nominating a self-managed super fund (SMSF), it’s important they provide the SMSF electronic service address (ESA), bank account information and supporting documentation, so that you can make contributions. An ESA is the electronic address used to send contribution data in a compliant format. For more information about paying SMSFs, including how your employees can obtain and ESA, refer to the ATO.

Default super funds

If an employee is eligible to make a choice but doesn’t, or doesn’t provide a valid choice form, you must make the choice for them by submitting their contributions to your default super fund. Your default fund needs to be a complying fund that offers a minimum level of life insurance and must be MySuper authorised. MySuper was introduced by the Federal Government as part of its Stronger Super reforms and was designed to give consumers access to a simple, low-fee super product that is easy to compare with Default super contributions must be made to a MySuper authorised fund.

If you’ve chosen Sunsuper as your default fund you can rest assured that Sunsuper meets all of these requirements. In fact, Sunsuper was the first fund in Australia to be awarded a MySuper licence.

Modern Awards

Modern Awards came into effect in January 2010. Superannuation is an important part of Modern Awards, and each award will usually list a number of MySuper funds which you can pay default super contributions to. Modern Awards only apply to employees covered by the national workplace relations system, and may not cover managers or higher-income earners. If your employees fall under a Modern Award, you can use Sunsuper as your default fund if:

  • Sunsuper is listed as a default superannuation fund in the Modern Award that applies to you, or
  • Sunsuper is not listed as a default superannuation fund in the Modern Award but you were contributing to us for the benefit of your employees before 12 September 2008.

For more information on the superannuation guarantee call the ATO on 13 10 20, or visit the ATO website.