Effective from 1 July 2006 Super Choice gives eligible employees the ability to choose the fund into which their super contributions are paid.
As an employer, you’ll need to become familiar with super choice’s legal requirements to continue to meet your obligations.
Here are the four things all employers should know about Super Choice law:
Step 1: Choosing a default fund. If you find that your employees don’t have a super fund then you must pay into your default fund. Find out more about making Hostplus your default fund.Step 2: Understanding your employees’ eligibility. There is more to consider when it comes to paying your employees’ super than their age and salary. To find out more take a look at our Employer Guide.
Existing eligible employees are also entitled to change their choice of fund as often as they wish, however you are only required to accept a new choice from them once in any 12 month period. If your employee asks for a standard choice form you are required to provide this within 28 days of the request. Once again there are record keeping obligations imposed.
Additional obligations apply if you are unable to contribute to an employee’s chosen fund, it is no longer a complying fund or you change your employer nominated fund and pay contributions into that fund.
Step 4: Avoiding penalties. It’s important to note, if you fail to meet your obligations, you will be liable and could be fined. Call us on 1300 467 875 or visit the ATO to learn more.