From 1 July 2006
From 1 July 2006, employees working for corporations who previously could not choose a fund because they were employed under a state award are able to choose a fund. These employees are now covered under a Federal workplace agreement called a ‘notional agreement preserving state awards’.
Choice of superannuation fund started on 1 July 2005. If an employer had eligible employees as at 1 July 2005, they were required to provide the Standard choice form (NAT 13080) to them by 28 July 2005. For new eligible employees starting after 1 July 2005, they must provide the Standard choice form to them within 28 days of their start date. (Refer to a copy of the form below).
Employees do not have to choose a new fund even if they are eligible to do so. Choice of superannuation fund gives them the right to choose a new fund – it is not compulsory. If an employee does not choose a fund, the employer must pay their superannuation guarantee contributions into the employer fund nominated on the Standard choice form.
An employee’s eligibility to choose a superannuation fund generally depends on the type of award or industrial agreement under which they are employed.