Choice of fund

Choice of fund legislation means that eligible employees can choose their own super fund.

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Which employees can choose a fund?

Individuals who can choose a fund are those who are employed under:
  • a federal award.
  • a former state award now known as a notional agreement preserving state award (NAPSA).
  • an award or industrial agreement that does not require super contributions.

Employees that are not employed under any state award or industrial agreement (including contractors who are regarded as eligible employees for super purposes) can also choose a fund.

Which employees can't choose a fund?

Individuals who can't choose a fund are those who are employed under:
  • a state industrial award.
  • a preserved state agreement.
  • a federal industrial agreement such as an Australian workplace agreement (AWA).
  • a pre-reform AWA, a pre-reform certified agreement or a collective agreement.
  • an old industrial relations agreement or an individual transitional employment agreement (ITEA).
  • a workplace determination or enterprise agreement (these are defined terms in federal industrial relations law).

Employees who are in certain types of defined benefit funds or who have already reached a certain level in a defined benefit fund are also not eligible. Some federal and state public sector employees are similarly excluded.

What must you do for employees who don't make a choice?

If your employee has not chosen a fund or has not provided sufficient information, you must select a default fund, notify the employee and submit all Super Guarantee (SG) contributions into this fund.

This default fund must offer an authorised MySuper product.

How do you meet your choice of fund obligations?

You can meet your employer obligations by:

  • identifying eligible employees.
  • providing them with the Standard Choice Form within 28 days of their start date or within 28 days of the employee requesting a choice form.
  • paying SG contributions into an employee's chosen fund within two months of being notified of their fund choice.
  • keeping records for at least five years on an employee's fund choices and payment obligations.