What are the penalties for the employer not complying with choice of fund?
An employer who fails to offer a choice to employees or who contributes to a fund other than one chosen by an employee will be subject to a financial penalty. The amount of this penalty will be effectively 25% of any contributions made to a fund other than one chosen by an employee, up to a maximum of $500 per employee per quarter. Like the existing SG penalties, this extra amount will be collected by the ATO and paid to the fund of the relevant employee, and will not be tax deductible to the employer.