Choice of Fund

On 1 July 2005 changes to superannuation came into effect that gave many Australian employees the ability to choose which fund their employer's future Superannuation Guarantee contributions are paid into. 

If you are an employer, we have a separate page that covers your obligations under the Choice of Super legislation.

Am I eligible for Choice of Superannuation Fund?

If you are eligible your employer should have given you a Standard Choice Form that gave you the option to choose where you super contributions would go.  The form should have also stated where they would contribute your super (the default fund) if you did not make a choice.   If you started working at your current employer after 1 July 2005 your employer is required to give you a copy of the Standard Choice Form within 28 days of you starting work.

You are eligible to choose the fund for super contributions unless:

• your super is paid under a state award or industrial agreement.*
• your super is paid under a certified agreement or an Australian Workplace Agreement.
• you’re a federal or state public sector employee excluded from choice by law or special regulations.
• you’re in a particular type of ‘defined benefit’ fund or you’ve already reached a certain level of benefit in that fund.

* From 1 July 2006 employers have to offer their employees a choice of fund if they are making contributions under a state award which has been brought into the Federal workplace relations system as a result of the WorkChoices reforms. These agreements are known as a notional agreement preserving state awards. For more information visit http://www.superchoice.gov.au

If you are not sure what award or industrial agreement, if any, you are covered by, you can check with your employer or the WageNet website. You can also phone the workplace relations department in your state or territory.

Do I have to choose a superannuation fund?

As an employee, you do not have to choose your own superannuation fund. If you don't, your superannuation contributions will be paid into a fund chosen by your employer (their default fund).  The details of that fund will have been printed on the Standard Choice Form that your employer gave to you.  While you can choose a fund at anytime, your employer only has to accept one choice from you in a 12-month period.

How do I choose my own superannuation fund?

Before making a choice you should compare the features and benefits of your current fund, the fund chosen by your employer and any other funds you are considering. Don’t make decisions lightly and always consider getting expert, licensed financial advice when making superannuation or retirement plans.

When you are investigating potential super funds for your contributions, there are a number of questions that you should keep in the back of your mind:

• Does the fund provide consistent and competitive long-term returns?
• Is there an adequate range of investment options to suit your changing needs?
• What are the fees and charges?
• How flexible are the insurance options?
• What other services do they provide you?
• Where do fund profits go?
• Do they pay third party commissions?

If you want to choose your own superannuation fund, you must complete Part B of the Standard Choice Form.  You can complete Part B on the copy your employer gave you.  Or, if you want LUCRF Super to be your choice of fund, you can also download our version of the Standard Choice Form, finish Part B, sign it and give it to your employer.

Your chosen fund must be a complying superannuation fund and your employer must be able to make contributions to that fund.  If you want LUCRF Super to be your chosen fund, you can download our Notice of Compliance and submit it together with your signed Standard Choice Form.

How often can you choose a superannuation fund?

Your employer has to accept only one choice of fund from you every 12 months, although some employers may allow you to change funds more frequently.

What does my employer have to do after I make a choice?

Your employer must begin to pay into your chosen fund within two months of you making your choice.

What if my employer doesn’t give me a choice or disregards my choice?

First talk to your employer, and if all else fails, contact the Tax Office on 13 10 20.

Want to learn more?

The Australian Government maintains an extensive website that covers all aspects of the Choice of Fund legislation. You can access the website at www.superchoice.gov.au.

• Other Documents

• Standard Choice Form for Members

  If you wish to choose LUCRF Super under Choice of Fund legislation, you can complete this form or the one your employer provides.

  Download »  

• Notice of Compliance

  This notice serves as a declaration that LUCRF Super is a complying fund.

  Download »  
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