Choice of Fund
Most employees can choose their own super fund. But some can’t, and many don’t.
As their employer, you must nominate a default super fund for the times when your employees can’t or don’t choose their own fund.
Since 1 January 2014, all employers who make contributions into a default super fund must pay those contributions into a MySuper Authorised Fund.
First Super is a complying fund and is MySuper Authorised.
Some employees are employed under a certain industrial award or agreement and may not be eligible to choose a superannuation fund under an existing arrangement. However, since 1 January 2021, you cannot force employees into an employer’s chosen super fund under new enterprise bargaining agreements (EBAs) and workplace determinations.
Please refer to the relevant industrial award or agreement for details. (See Fair Work Australia for more information) Where this is not applicable, it’s up to you to choose a fund.
Nominating First Super as your default fund
Nominating First Super as your default fund is simple. You can provide the Standard Choice Form to your employees to complete.
Some important things you need to know
Under Choice of Fund laws you need to do the following:
- Provide a Standard Choice Form to new employees within 28 days of them commencing work
- Commence Superannuation Guarantee contributions within two months of receiving written notice of an employee’s chosen fund
- Make super contributions by the cut-off dates. If you haven’t received the completed ‘Standard Choice’ form from new employees, you must pay super into their stapled fund. If they don’t have a stapled fund, their super contributions can be paid into your default fund.
- Upon request from an employee, you must accept up to one change of fund every 12 months.