Fund Choice

From 1 July 2005 Federal Award employees were given the right to choose their own superannuation fund to receive superannuation guarantee contributions.

From 1 July 2006 employees that are employed by a corporation paying super contributions under a state award were given the right to choose their own super fund.

Under choice of superannuation fund laws most employees are now able to choose their own super fund, with the exception of:

  • Employees covered by a Federal workplace agreement
  • Employees covered under a state award or industrial agreement that are not employed by a corporation
  • Some public servants and individuals working for Government agencies
  • Employees who are members of a particular defined benefit super fund of an employer sponsor

 For more information on the eligibility of your employees to choose their own super fund go to http://www.ato.gov.au or contact your Cbus Coordinator.

New Employees

Under choice of super laws all new eligible employees must be given a Standard Choice Form within 28 days of their start date.

If a new employee does not return a Standard Choice Form with the required information to you then super contributions should be paid to the default fund that was nominated on the Standard Choice Form you provided to them.

Existing Employees

Employees must provide a Standard Choice Form to an employee who has previously been offered choice only if the employee requests a form from you in writing.

The Standard Choice Form must be provided within 28 days of a written request.

Other situations where you must provide a Standard Choice Form to existing employees include where you become aware that you are unable to contribute to an employee's chosen fund, or that the fund is no longer a complying fund and where you change your employer fund.

Information Employees Must Provide

In order to exercise their choice of superfund, an employee must return a completed Standard Choice Form to you, which will include:

  • The full name and contact details of the fund
  • The members account name in the fund and membership number
  • The fund's ABN
  • The fund's Superannuation Product Identification Number (SPIN), if it has one.

In addition the employee must provide you with a written statement, provided by the trustee of the fund that confirms that the fund is a regulated fund and can accept your contributions.

Implementing Choice

Once an eligible employee has provided you with the required information you have two months to arrange to pay contributions into the employee's nominated fund.

If an employee does not return a Standard Choice Form then super contributions should be paid to the super fund nominated on that employee's Standard Choice Form.

There are no requirements for how long an employee has to return a completed Standard Choice Form to the employer in order to implement their choice of fund.

Employer Default Fund

An employer can only nominate one default fund per employee however the default fund does not need to be the same fund for each employee.

To change the Employer Default fund you must provide existing employees with a new Standard Choice Form with the details of the new Employer Default Fund.

Employers Giving Advice

Employees may ask you for advice as to which super fund they should join.

Superannuation is a product that is regulated by the Australian Securities and Investments Commission (ASIC). Organisations such as Cbus, that promote financial services products, are required to have an Australian Financial Services Licence.

An employer may provide factual information in relation to superannuation. This information might include such factually objective matters as:

  • an employer's liability to pay superannuation contributions under an award or the Superannuation Guarantee (Administration) Act 1992 (SGA Act)
  • employees' rights and the employer's obligations under the Choice of Fund arrangements in the SGA Act
  • existing arrangements in relation to where employer superannuation contributions are to be paid
  • how superannuation operates in a general sense (including, for example, the trustee's obligation to provide periodic statements to members or a member's right to make complaints to the fund) or
  • the general tax treatment of superannuation

Where employees request more information about superannuation, including on issues such as investment performance and fees and charges one option for employers is to refer employees to Cbus.

Standard Choice Form

To download a Standard Choice Form with Cbus details pre-printed click here.

We are confident you and your employees will stay with Cbus.

  • Cbus Super, the balanced option, has an average return of 10.6 per cent a year since inception in 1984
  • Cbus is also a property developer, investing in the Australian economy and creating work.
  • If you stay with Cbus it will also eliminate the administrative paperwork and hassles in joining a new fund.

 You should also be aware that it is illegal for funds or agents to offer inducements to employers to switch employee contributions to another fund.

More Information

For more information on superannuation choice of fund go to the Australian Taxation Office website http://www.ato.gov.au/ or contact your Cbus Coordinator.

How to Register
Employers LinkYour Tax File Number