Did you know that since 1st July 2005, most employees are able to choose their super fund?

This is a great initiative for employees, as it gives you the chance to easily keep your super in one place and avoid the costs associated with having multiple super funds (as was very common in the past).

You can generally choose your super fund if you are one of the following:

• employed under a federal award
• employed under a former state award, now known as a ‘notional agreement preserving state award’
• employed under another award or agreement that doesn’t require super support
• not employed under any state award or industrial agreement (including contractors paid principally for their labour).

While you can make a choice of super fund as often as you like, your employer is only obligated to accept one election every 12 months.

You can download a Standard Choice Form from the ATO website here, alternatively most super funds have a pre-filled form on their website, along with the other requirements such as a statement that the super fund is a complying fund and instructions on how your employer is able to make a contribution on your behalf (refer to the standard choice form for information on these requirements).

So have a think about where your super is going, and if you think it’s time for a change…make the choice!

P.S. For any small business who feel the choice of super fund concept creates additional burden…have a read of our previous post Policies and Procedures, and contact The Tax Chic for assistance.

Regards

*Super = superannuation