CHOICE OF FUND

From 1 July 2005, Federal ‘Choice of Fund’ came into effect, requiring employers to allow their employees to nominate their choice of superannuation fund.
 
Which employees are eligible for choice?

• Employees covered by Federal Awards;
• Employees not covered by an award or registered agreement; and
• Employees employed under a state industrial award or agreement.

Which employees are not eligible for Choice?

• Employees employed under certain Victorian employment agreements; and
• Employees whose super is paid into a Defined Benefit Fund.

You do not have to offer ‘Choice’ to employees for whom contributions are being made under a Certified Agreement, State Agreement, Australian Workplace Agreement (AWA) or a State Award, if the agreement or award specifies a preferred superannuation fund.

Your obligations as their Employer?

Eligible employees must receive a ‘Choice of Superannuation Fund Standard Choice Form’ within 28 days in the following circumstances:

• Employees who commenced work after 1 July 2005; or
• On request; or
• Once you become aware the employee’s chosen fund is not an eligible option.

Full Employer information about ‘Choice of Fund’ is available from the Australian Tax Office website www.ato.gov.au.