Choice of Fund - Members / Employees

Choice of Fund will impact many Employees in Australia in some way or other.

If you have a question about Choice of Fund, please email us at info@auswide.com.au or scroll through the frequently asked questions and answers below. Auswide is pleased to assist our Members and we will endeavour to answer your question within 24 hours.

Please be assured that we respect and protect your privacy at all times. All questions submitted and our answers will be stored having regard to your expectation that all information provided is treated as strictly private and confidential.

Related Downloads

• Download Auswide's Statement of Compliance.

Questions & Answers

1. Do I have to choose?

Not all employees are entitled to exercise Choice.

If you are employed under the following conditions you may choose your superannuation fund under the new law:

• Federal Awards;
• State Awards, Certified Agreements or Australian Workplace Agreements that do not have superannuation clauses;
• Certain members of defined benefits superannuation funds;
• Those employed under a private, non-award agreement negotiated between employee and employer.

Choice is not available to you if you are employed under the following conditions:

• Where superannuation contributions are made under or in accordance with State Award, Certified Agreement or an Australian Workplace Agreement;
• Most Public Sector employees;
• Some members of defined benefits superannuation funds.

Back to Top

2. How does it work?

From 1 July 2005 your employer will notify you of your right to choose a fund by providing you with a Standard Choice form. This form will ask you to nominate a complying superannuation fund. If you don't complete this form within 28 days your contributions will be paid to a fund chosen by your employer.

If you join a new employer after July 1 2005, you must be given the Standard Choice form within 28 days of starting work. Furthermore, you may also request a form any time after 1 July 2005.

Back to Top

3. What is a complying superannuation fund?

A Complying Superannuation Fund is one that can accept Superannuation Guarantee (SG) contributions from your employer. You can search the Register of Complying Superannuation Funds by accessing the ATO website www.ato.gov.au or APRA's website www.apra.gov.au

Back to Top

4. How do I know what is the right fund for me?

Choosing the right fund is a complex decision and it is natural to feel a bit overwhelmed at first. You need to select a fund that best meets your circumstances and seek independent financial advice if necessary.  There are a number of issues to consider before you choose a fund:

• What are the fees and charges? Are there any entry or exit fees? Are you charged a low flat administration fee per week or a percentage of your account balance? What are the investment manager's fees?
• What is the level of insurance provided by the fund? What are the insurance premiums? If you have a health problem, will you receive automatic insurance cover under the fund or will you have to provide evidence of good health?
• Can you choose your own investment strategy?
• What has the fund earned for members in the last 12 months and in the last 5 years?
• Is there an interactive informative website?
• How often do you receive statements and reports?
• Obtain the fund's Product Disclosure Statement and consider all the features and benefits before making any decisions.

If you are already a member of a superannuation fund, there may be consequences of changing to a new fund.  Take the time to find out more about the fund you are already in. You may discover that staying where you are is the right choice!

Back to Top

5. What happens if I don't want to make a choice?

The law only offers you to make a choice - it does not compel you to exercise that choice.

If you don't make a choice within 28 days of receiving the choice form, your employer will place you in their default or employer fund. This may not be your current fund.

Back to Top

6. How often can I choose my fund?

The legislation requires employers to only facilitate one choice per eligible employee in any 12 month period but it is up to your employer if they want to allow you to change funds more often.

Back to Top

7. What type of contributions are subject to Choice?

Choice applies to Superannuation Guarantee contributions only.  Additional contributions may be paid to any other superannuation fund or the same fund.

Back to Top