How to fill out the Superannuation Standard Choice Form as an employee

For your employer to pay you your super entitlements, you need to tell them which super fund you’d like to use.  That’s where the superannuation standard choice form comes in. But what do you need to know before you start?

What is the super standard choice form for?

You can use the superannuation standard choice form to tell your employer which super fund you have chosen. Your contributions will then be paid into that super account. The Australian Taxation Office (ATO) requires all employers to keep a record of that form for all their employees who are paid super.

There are three main situations where you may come across the form:

• when you are entering the workforce for the first time: If you’ve never been paid super before, then you’ll need to fill this form out. Your employer should give you a form.
• when you are transferring super funds: You can ask for a form from your employer if you want to change the fund into which your employer pays your super.
• when changing jobs: You may be given a super choice form to fill out if you are changing employers. If you want to change super funds, then you can fill out the form with your new fund’s details. If you do not plan on changing super funds, you could choose to either fill out the form with the details of your existing super fund or not fill out a form. If you do not fill out a form, your employer will access the details of your stapled super fund through the ATO.

Not everyone is eligible for superannuation. However, if your employer sends you a superannuation standard choice form, that is generally a sign that you are eligible. If in doubt, consult the ‘Am I entitled to super’ tool on the ATO website.

What you need to do before you fill out the form

Before filling out the form you need to do a bit of prep. The process of filling out the form is likely to be smoother if you have taken the following steps:

1. Get a tax file number: if you do not already have a Tax File number (TFN), now is the time to apply for one. While supplying a TFN is not mandatory when selecting a super fund, not supplying a TFN will increase the tax taken from your super contributions. If you already have a TFN, it is a good idea to double check that it is correct before you write it on the form.
2. Find out about the default fund: your employer will have a default super fund that they can set up an account for you with. It is a good idea to investigate the default fund to see if it fits with your values and lifestyle.
3. Compare super funds: once you’ve finished researching the default fund it is wise to investigate how it measures up compared to other top performing super funds. Comparing funds is an important step in picking the fund that works best for you

Please note that the ATO advises that employers should not provide financial advice or recommendations unless they are licensed to do so.

Things to think about when choosing a fund

It is important to pick a super fund that works best for you and your lifestyle. When you are comparing funds you should decide what factors are most important to you. MoneySmart recommends considering factors such as:

• Fees: membership fees and administration costs may eat into your super balance over time
• Investment options: most super funds let you choose between a range of investment options, such as the balanced option or the growth option. These may vary between funds so consider your needs and comfort with risk
• Performance: consider funds that have performed well over longer periods of time. MoneySmart recommends comparing a fund’s investment performance over at least five years
• Insurance:  Life insurance through your super is one type of cover available. Keep in mind the varying types and amount of cover available through different funds and the added fees that might go with it
• Services: Some funds offer financial advice and education tools to members. Consider calling the fund or browse their website to see what other services they may offer as well as any fees that may apply.

Factors to consider when changing super funds

It is important to remember that while your employer must issue you a standard choice form within 28 days of requesting one, they are only required to accept a new choice once every 12 months. Therefore if you plan on changing funds you may want to consider a few more things on top of the previously mentioned factors such as:

• How does the new fund measure up against your old fund?
• What benefits are there in moving funds?
• Are there any risks in moving funds?

How to fill out the form

First things first, you must know whether you are choosing your employer’s default fund or selecting your own fund. This will influence which sections you must fill out. Depending on which super fund option you will have to select the corresponding section and fill out the required details.

• Section A (your details): no matter what fund you choose you will have to fill out this section. In this section you will have to provide your full name, employee number, and TFN.
• Section B (an existing super fund): if you have chosen to create an account with an existing fund that is not your employer’s default fund, you will have to fill out this section. To fill in this section you will need to provide the name, Australian business number (ABN), and unique superannuation identifier (USI) of the super fund. You will also need to prove your member account number and name as it appears on your account. Finally you will need to provide a letter of compliance from your chosen super fund. You may find all of these things on your super fund’s online portal, or contact them if you’re unsure. Sign the declaration.
• Section C (employers default fund): If you have decided to go with your employers default fund you will need to fill out this section. Your employer will fill out the first section with the fund details, all you have to do is check the box to allow an account to be opened for you with the default fund and provide your signature.
• Section D (private self-managed super fund): if you have set up a private self managed super fund (SMSF) you will need to fill out this section. You will have to provide the name, ABN, and electronic service address (ESA) of your SMSF as well as your full name as it appears on your account. Additionally, you will have to provide a bank account name, BSB code, and account number for the SMSF. Finally you will need to attach evidence from the ATO that the SMSF is regulated and provide a signature.

What to do if you get stuck filling out the form

If you are struggling to fill out the superannuation standard choice form, whether it be opening an account or changing funds you can always contact your HR department or super fund for help. If you are under 18 be sure to double check whether you are eligible for super.

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