Change to choice of superannuation fund obligations for employers

The Superannuation Guarantee (Administration) Amendment Act 2015 received Royal Assent on 25 June 2015. This Act amends the Superannuation Guarantee (Administration) Act 1992 to remove the obligation for employers to offer a choice of superannuation fund to temporary resident employees, or when superannuation funds merge and applies from 1 July 2015.

These law changes will have the following regulation impact on business:

  • These changes simplify the superannuation choice regime, thereby reducing business compliance costs by simplifying when a standard choice form must be provided to an employee by an employer.
  • Employers will no longer have to provide a standard choice form to a temporary resident employee or where a chosen or a default superannuation fund merges. Previously, an employer that did not provide a standard choice form to employees in these situations may have been liable for the choice shortfall penalty.
  • These changes will reduce the administrative burden for employers. Employers will no longer have to supply the standard choice form to employees in these circumstances, nor will they need to allocate time explaining the importance of completing the form and how to do so.
  • In particular, these changes will reduce compliance costs for businesses operating in industries that employ a high volume of individuals on working holiday visas, such as in hospitality and agriculture.
  • Employees in these situations still retain the right to choose a superannuation fund if they wish to do so. These amendments appropriately balance reducing business compliance costs with providing choice to employees.

Find out more

Superannuation Guarantee (Administration) Amendment Act 2015External Link

Superannuation Guarantee (Administration) Amendment Bill 2015External Link

Explanatory memorandumExternal Link to the Superannuation Guarantee (Administration) Amendment Bill 2015

Superannuation Guarantee (Administration) Act 1992External Link

Minister for Small Business Bruce Billson MP Media ReleaseExternal Link

    Last modified: 04 Aug 2015QC 46589