1. How often can my employee choose a fund?
Your employee can choose a fund as often as they want but you only have to accept one choice in every 12 month period. |
| 2. Do I need to hand out a Choice of Fund form every 12 months?
No. If you have already offered a choice to your employees, generally you only need to hand out new forms:
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To new eligible employees starting work
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To existing employees if they request a form from you
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If you are unable to contribute to an employee’s chosen fund, or it is no longer a complying fund
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If you change your employer nominated fund. |
| 3. I employ contractors and seasonal workers. How often do I need to provide them a Standard Choice form?
You only need to provide a Choice of Fund form to an employee when they first start work with you. Refer to the form when they work for you again. |
4. Do I have to make super contributions for casual employees?
- You generally need to make super contributions for casual employees between the ages of 18-69 if you pay them more than $450 before tax per month, or if it is specified in their award/workplace agreement.
- If you do not have a super obligation under an industrial award or workplace agreement, you do not have to contribute for employees who: Earn less than $450 before tax per month, are aged 75 or over, or under age 18, and working 30 hours or less a week.
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5. Do I have to accept my employee’s choice?
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If your employee’s Standard Choice form does not have all the required information, you do not have to accept it. You must pay superannuation contributions to your employer nominated fund for that employee, until they give you the required information.
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If you hire an employee under a registered collective agreement, you are not obligated to offer choice.
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You cannot refuse your employee’s choice based on how the contributions are to be made (for example, electronically). |
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6. Can my employee choose a self managed superannuation fund as their chosen fund?
Yes. Your employee should also provide you with evidence from the Australian Taxation Office (ATO) that it is a complying super fund. |
| 7. Can I pass on administration fees to my employee?
No. You will be subject to the Superannuation Guarantee (SG) charge if you do so. |
| 8. Do directors need to be offered a choice?
Directors are considered employees for Superannuation Guarantee (SG) purposes. If the director is a new eligible employee, you must provide them with a Standard Choice form. |
| 9. What records do I need to keep?
You must keep records that show you’ve met your Super Choice obligations. Your records must be in English, and kept for at least five years. These include:
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Records showing you have provided a Standard Choice form to all eligible employees
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Details of employees who do not have to be offered a choice of super fund
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Super fund receipts or documentation showing you have made super contributions to your employees’ chosen fund
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Records confirming your employer nominated fund is a complying fund and meets the life insurance requirements. |
Contact our Member Services team on (03) 9911 3222 (regional callers 1300 300 820) if you have more questions. Alternatively, contact the Australian Tax Office on 13 10 20 to clarify any tax matters on your SG obligations.
