7 November 2024
Navigating super can be challenging, particularly when your employees have all nominated different super funds. As an employer, it's essential to understand your obligations and use the available tools to make this process smoother, including timely and accurate super contributions and simplifying procedures.
Clearing houses
A clearing house is a service that allows you to make super contributions to multiple super funds through a single payment. You register your employees' super fund details and contribution amounts with the clearing house, which then distributes the contributions to the relevant funds.
Default funds
Employers must also have a default fund, which is used for employees who do not choose their own super fund. The default fund must meet specific government standards known as MySuper. MySuper products are designed to be simple and cost-effective, providing a basic level of insurance and investment options. When selecting a default fund, consider factors such as fees, performance, and the services offered to ensure it meets the needs of your employees.
Information and resources
It's important to communicate clearly with your employees about their super options. You can give your employees information about choosing a fund, such as:
- Why they need to choose a super fund
- The process of choosing a super fund
- Your obligations to pay super guarantee and provide a default fund, and
- How they nominate their chosen fund.
You cannot provide recommendations or advice about super to your employees, unless you are licensed by the Australian Securities & Investments Commission (ASIC) to provide financial advice.
Examples of recommendations or advice include:
- Which super fund employees should choose
- Their level of super contributions, and
- Consolidating their super.
For more information on how you can communicate to your employees about superannuation choices without breaking the law, visit ASIC’s Communicating with employees about choice of superannuation fund: What you can and cannot do.
If your employee would like further information about how they can find their super fund details and complete the choice form, encourage them to visit Getting your super started.
Stay informed
In addition to using a clearing house and having a default fund, employers should stay informed about super laws and regulations. Policies can change, and staying up to date with the latest information can help you ensure compliance and avoid penalties. Regularly check the Australian Taxation Office (ATO) website or businesses that have registered with AustralianSuper may receive quarterly news updates and educational resources to assist with understanding super responsibilities.
Help and advice
If you need help or guidance, there are several resources available to help you navigate the complexities of super and ensure you’re meeting your obligations
Learn moreThis information may be general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement available at australiansuper.com/PDS or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD.
AustralianSuper Pty Ltd, ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.