Since 1 July 2005, many employees have been able to choose the super fund or retirement savings account (RSA) that will receive their super contributions under the superannuation guarantee. Choosing a super fund was also extended in July 2006 to include employees working for corporations under former state awards.
Am I eligible to choose a super fund?
You will generally be eligible to choose a super fund if:
- your super is paid under a federal award or a former state award, now known as ‘notional agreement preserving state award’,
- you are employed under another award or agreement that doesn’t require super support, or
- you are not employed under any award or industrial agreement (including contractors paid principally for their labour).
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If you are not sure what award or industrial agreement, if any, you are covered by:
- visit the WageNet website at www.wagenet.gov.au or
- phone the workplace relations department in your state or territory.
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You may not be eligible under the superannuation guarantee to choose a super fund if:
- your super is paid under a state award or industrial agreement, or
- your super is paid under certain workplace agreements including an Australian Workplace Agreement (AWA) (although choice can also be provided under these awards and agreements), or
- you’re in a particular type of defined benefit fund or you’ve already reached a certain level of benefit in that super fund.
Some federal and state public sector employees are also excluded from choice of superannuation.
If you’re eligible to choose a fund, your employer should give you a Standard choice form (NAT 13080) within 28 days of when you start work. The Standard choice form sets out your options for choosing a superannuation fund.
If you receive a Standard choice form from your employer you have two options:
Option 1 – Stay with your employer’s super fund
If you don’t make a choice, your employer’s super contributions will be paid into a fund chosen by your employer.
Option 2 - Choose a new super fund
You can choose the super fund you want your employer super contributions paid to.
You may also be able to choose how your savings are invested. Some fund investment strategies offer higher returns with higher risks, while others offer greater security for your money but with lower returns.
You can find out more about how to compare and choose super funds by visiting the Australian Securities and Investments Commission (ASIC) FIDO website at www.fido.gov.au or calling 1300 300 630. The Australian Securities and Investments Commission (ASIC) regulate financial services and company laws to protect you.
You don’t have to choose a super fund if you don’t want to. If you don’t make a choice, your employer’s super contributions will be paid into a fund chosen by your employer. Your employer's chosen fund may be suitable for your current needs. You can choose a fund later if you like.
If you are eligible and you have not been given the Standard choice form within the required time, ask your employer for one. If your employer still does not give you a form, phone 13 10 20.
The Tax Office will investigate all cases where an eligible employee claims that their employer:
- did not offer them a choice of superannuation fund, or
- did not act on their choice within two months.
While you can choose a fund at anytime, your employer is only required to act on one of your choices in a 12-month period.
Yes. You can choose a self managed super fund as your chosen fund.
If you have more than one super account, consider combining them into one super fund so you pay only one set of fees and costs. It also means you can keep track of your money more easily.
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Ask your super fund if there are any fees or charges for rolling your money over to another fund before you make the decision to do so.
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You can transfer or roll over your super, with some limited exceptions. If you do so, your old super fund has 30 days to make the transfer. The 30 day period starts once you have provided all the required information to your fund. Fund trustees must follow up any incomplete member requests for transfers within 10 working days after receiving the request. If that information has not been received within 10 working days after making the request, the trustee must make reasonable inquiries of the member to obtain the information.
It’s a good idea to give your super fund your tax file number (TFN). If your fund does not have your TFN from 1 July 2007:
- your fund will have to pay extra income tax on certain contributions
- your fund may not be able to accept certain other contributions, and
- you may miss out on super co-contributions.
For more information about providing your TFN to your super fund see tax file numbers and superannuation.
The Australian Securities and Investments Commission (ASIC) regulate financial services and company laws to protect you. Super Decisions has been prepared by ASIC to help super fund members:
- understand more about super
- make better superannuation decisions
- find extra help and information.
To obtain a copy visit www.fido.gov.au or phone 1300 300 630.
For more information:
- visit www.fido.gov.au to help you with general super tips and information on choosing a super fund
- visit www.wagenet.gov.au for information on awards or industrial agreements
- phone our choice of super fund information line on 13 28 64 between 8.00am and 6.00pm Monday to Friday, to speak to a tax officer
- write to us at
If you do not speak English well and want to talk to a tax officer, phone the Translating and Interpreting Service on 13 14 50 for help with your call.
If you have a hearing or speech impairment and have access to appropriate TTY or modem equipment, phone 13 36 77. If you do not have access to TTY or modem equipment, phone the Speech to Speech Relay Service on 1300 555 727.
For more information about superannuation, refer to:
Last Modified: Thursday, 11 December 2008
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