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 super guarantee law. The ability to choose 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?
Most people can choose the super fund they want their employer contributions paid into, as long as it's a complying fund. A complying fund is an Australian super fund that receives concessional tax treatment because it's regulated under the relevant super legislation and hasn't been issued with a notice of non-compliance.
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
- 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 Fair Work Ombudsman site at www.fairwork.gov.au
- phone the workplace relations department in your state or territory.
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You may not be eligible under the super guarantee law to choose a super fund if:
- your super is paid under a state award or industrial agreement
- your super is paid under certain workplace agreements, including an Australian Workplace Agreement (AWA) (although these awards and agreements may allow for a choice of fund to be made)
- you are in a particular type of defined benefit fund or you have already reached a certain level of benefit in that super fund.
Some federal and state public sector employees are also excluded from choice of super fund.
If you are eligible to choose a fund, your employer should give you a Standard choice form (NAT 13080) within 28 days of when you start work with that employer. The Standard choice form sets out your options for choosing a super 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 super contributions will be paid into the 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 MoneySmart website at www.moneysmart.gov.au or calling 1300 300 630. ASIC regulates financial services and company laws to protect you.
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When choosing a super fund it is a good idea to check whether the super fund accepts both personal contributions and super co-contributions, in case you want to boost your super savings in the future.
You should also check your super fund's product disclosure statement. This document sets out the details of your policy, including whether you have any insurance cover, how much the premiums are and any entry or exit fees that may apply.
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You don't have to choose a super fund if you don't want to. If you don't make a choice, your employer super contributions will be paid into the 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. Your employer must give you the form within 28 days of you giving your employer a written request to do so. If your employer still does not give you a form, phone 13 10 20.
We will investigate all cases where an eligible employee claims that their employer either:
- did not offer them a choice of superannuation fund
- did not act on their choice within two months.
While you can choose a fund at any time, your employer is only required to act on one of your choices in a 12-month period.
Yes. You can choose an SMSF 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, at any time. 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:
- your fund will have to pay extra income tax on certain contributions
- your fund may not be able to accept certain other contributions
- you may miss out on super co-contributions
- it will be harder to keep track of your super.
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From 1 July 2011, super funds can use your TFN to locate your super accounts, making it easier for you to be reunited with your super, whether it is sitting in a lost account or in multiple accounts across various funds.
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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.moneysmart.gov.au or phone 1300 300 630.
For more information:
- visit www.moneysmart.gov.au to help you with general super tips and information on choosing a super fund
- visit www.fairwork.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 need help from the ATO, phone the Translating and Interpreting Service on 13 14 50.
If you are deaf, or have a hearing or speech impairment, phone the ATO through the National Relay Service (NRS) on the numbers listed below:
- TTY users, phone 13 36 77 and ask for the ATO number you need
- Speak and Listen (speech-to-speech relay) users, phone 1300 555 727 and ask for the ATO number you need
- internet relay users, connect to the NRS on www.relayservice.com.au and ask for the ATO number you need.
Last Modified: Tuesday, 19 July 2011