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Choice of fund
Since 1 July 2005 Choice of Super Fund legislation has given most employees the right to choose their super fund.
Am I eligible for Choice of Superannuation Fund?
If you are eligible your employer should have given you a Choice of Super Fund 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 your Superannuation Guarantee (SG) 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 are a federal or state public sector employee excluded from choice by law or special regulations.
- You are in a particular type of ‘defined benefit’ fund or you have 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.
If you are not sure what award or industrial agreement, if any, you are covered by, you can check with your employer or the Government's Fairwork 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 are usually printed on the Standard Choice Form provided to you by your employer. 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. Consider getting personal financial advice before making a decision about our super. LUCRF Super can provide personalised financial advice, simply call 1300 130 780 to speak to a LUCRF Representative.
When you are comparing potential super funds for your contributions, there are a number of questions that you should consider:
- 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 - to shareholders or members?
- Do they pay third party commissions?
If you want to choose your own superannuation fund, you will need to complete the Standard Choice Form (provided to you by your employer). Alternatively, if you want to choose LUCRF Super, you can also download our pre-populated version of the Choice of Super Fund Form, complete it and give it to your employer (see Related content).
Your chosen fund must be a complying superannuation fund and your employer must be able to make contributions to that fund. Our Choice of Super Fund Form already contains a Notice of Compliance, which your employer may need.
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 necessary, contact the Australian Tax Office (ATO) on 13 10 20.
NOTE: If you are an employer, we have a separate page that covers your obligations under the Choice of Super Fund legislation (See Related content).