Choice of Fund

Choice of Fund commenced on the 1st July 2005. This means that from this date certain working Australians will be able to choose which fund their employer pays their superannuation contributions into. From 1 July 2008 it has been proposed that a large number of Australian workers will be able to nominate their preferred choice superannuation fund.

Currently Employees who are not able to exercise choice are those:

1. Employees where contributions are being made " under or in accordance with" certain Agreements under the Industrial Relations Act or,
2. Employees where contributions are being made in accordance with a State industrial award and the employer is not an incorporated business.

In summary, Choice of fund must be offered to:

	employees under federal awards
	employees under former state awards (known under WorkChoices as 'notional agreement preserving state awards')
	employees covered by another award or industrial agreement that doesn't require superannuation support

From 1 July 2006, employees who become eligible for Choice of superannuation fund must be given a Standard choice form upon request.

You must give a Standard choice form to eligible employees within 28 days:

	of their start date (for newly eligible employees this takes affect after 1 July 2006)
	if you change your employer fund
	if you become aware that you are unable to contribute to an employee's chosen fund or that is no longer a complying fund

Please note: if you are already providing Choice of fund via the Standard choice form to your existing employees nothing changes.

For a detailed explanation of the member choice legislation either from an employer perspective refer to the Guide for Employers.