What is Choice of Fund?
The “Choice of Fund” legislation allows many employees to choose the superannuation fund their employer makes superannuation guarantee (SG) contributions into from 1 July 2005. The Choice of Fund legislation is designed to encourage employees to take a greater interest in their superannuation. Enabling employees to choose where their contributions are applied allows them to take greater control in the accumulation of their retirement savings.
From 1 July 2005 certain working Australians are able to choose which fund their superannuation contributions are paid into. The Choice of Fund legislation applies to Superannuation Guarantee (SG) contributions made by employers on behalf of their employees. If an employee is engaged under a federal award you must offer choice whether or not that award requires contributions to be made to a specific superannuation fund. From 1 July 2006, employers that are corporations and were making superannuation contributions under a state award will have to offer choice to their employees. These employees are now covered by the Federal workplace relations system under an agreement called a ‘notional agreement preserving state awards’. Some state laws also provide for choice of fund under state based arrangements. For more information, you should refer to the specific information on each State and Territory. If you are not sure what award or industrial agreement, if any, your employees are covered
From 1 July 2005 certain working Australians are able to choose which fund their superannuation contributions are paid into. The Choice of Fund legislation applies to Superannuation Guarantee (SG) contributions made by employers on behalf of their employees. If an employee is engaged under a federal award you must offer choice whether or not that award requires contributions to be made to a specific superannuation fund. From 1 July 2006, employers that are corporations and were making superannuation contributions under a state award will have to offer choice to their employees. These employees are now covered by the Federal workplace relations system under an agreement called a ‘notional agreement preserving state awards’. Some state laws also provide for choice of fund under state based arrangements. For more information, you should refer to the specific information on each State and Territory. If you are not sure what award or industrial agreement, if any, you are covered by, you can
Choice of fund legislation that came into effect on 1 July 2005 gives many employees who weren’t previously eligible the opportunity to choose which super fund or retirement savings account receives the superannuation contributions employers make on their behalf. Choice of fund only applies to the compulsory Superannuation Guarantee (SG) contributions employers make on their employees’ behalf after 1 July 2005.
