Two business women looking at laptop

Employees now have more super choice

/by

From 1 January 2021, the law relating to employees and their choice of superannuation fund has changed.

New workplace determinations and enterprise agreements made on or after this date must now offer employees the right to choose the super fund to which you pay their compulsory super contributions.

Once a new determination or agreement is in place, you need to offer a choice of a super fund to:

  • existing employees who request to choose their super fund
  • all new employees.

An employee can nominate their fund by completing the standard choice form through ATO online services linked to their myGov account.

Alternatively, you can give your employee a Superannuation (super) standard choice form to complete.

You must then pay the employee’s compulsory super to their nominated fund.

If an employee doesn’t nominate a fund, you can continue to pay their super to the same fund you previously contributed to, or into your default fund.

 

Have a question about employees or super – give our STS expert accountants a call today.

This article was sourced from the ATO Small Business Newsroom.