What superannuation details does your employer need?

Are you entitled to super?

Your employer generally must pay a percentage of your earnings—referred to as a superannuation guarantee—into a complying super fund on your behalf. This rate will usually increase over time. This applies to the majority of full-time, part-time and casual workers in Australia, including temporary Australian residents.

You generally can’t access the money in your super fund until you reach a certain age—known as your preservation age—and (in most cases) retire from working.

Keep in mind that your employer may not be required to make super contributions in a number of circumstances, including the following:

• You’re paid to do private or domestic work for 30 or less hours each week (unless a National Disability Insurance Plan applies)

• You’re under 18 years of age and working 30 or less hours per week

• You’re not a resident of Australia and are employed to do work outside of Australia

• You’re an Australian resident who is paid by a non-resident employer for work done outside of Australia

• You’re a senior foreign executive who holds a certain class of visa or entry permit

• You’re a member of the army, naval or air force reserve, and receive payment or allowances for this work (continuous full time service is often excluded)

• You’re temporarily working in Australia for an overseas employer and you’re covered by the provisions of a bilateral super agreement

What are your super choices when you start a new job?

You generally have three choices surrounding your superannuation when you start a new job:

1. Tell your new employer to pay your super contributions into your existing superannuation account
2. Tell your new employer to pay your super contributions into a new super fund of your choice
3. Open a new super account with your employer’s default super fund. Your new employer will then pay your super contributions into this account

It’s important to note that if you’re moving to a new job and have an existing super account—which may be referred to as your stapled fund by the Australian Taxation Office (ATO)—your employer will be required to make super contributions into this fund, unless you opt to choose another fund.

What does your new employer need to do to pay your super?

Your employer will give you a ‘superannuation standard choice form’ when you start your new job if you don’t have a super fund or are choosing a different fund from your existing stapled fund. If you have an existing super fund you can choose to fill out a standard choice form, but you may not need to, as your employer can request your stapled superannuation information from the ATO.

By law, your employer has 28 days from your first day to give you a standard choice form if you require one. You can also request a form at any time during your employment, in which your employer will again have 28 days to give it to you.

This form asks for details such as your tax file number (TFN) and whether you would like your super to be paid into your existing fund (if you have one), a new fund of your choice or your employer’s default fund.

When you start a new job, there may be a large amount of paperwork to fill in and decisions to make—from which bank account you want your pay to go into, to whether or not you would like to join a work social club. You might want to take the time to consider your super options before making a decision.

What super details do employers need for you to stay with your current super fund?

If you want to stay with your current super fund you can let your new employer know via the superannuation standard choice form, otherwise your employer can request the information from the ATO. If you are filling out a standard choice form, you’ll need to know your super fund’s name, Australian Business Number (ABN), Unique Superannuation Identifier (USI), address and phone number, as well as your own TFN, super account name and membership number.

You will also usually need to provide a letter of compliance from your fund stating they’re a complying fund and that they will accept contributions from your employer. You can generally download this letter from your fund’s website.

Many super funds can also generate a pre-filled form that you can have emailed to yourself or directly to your new employer that contains all of the relevant fund and account information that they will need. Some funds also provide this information through their mobile app.

What details do you need to provide your employer to join the default super fund?

If you decide to go with your employer’s preferred super fund, you can advise your new employer via the standard choice form. If you already have a super fund, why might you consider nominating the same fund as your employer?

Your employer’s default fund may be limited to your specific field of work or workplace and provide certain options that better suit your needs. Their fund could also potentially have lower fees and/or better past performance than your current super fund. If you choose to open a new super account with your employer’s default super fund, your existing super account will remain, unless you combine it with your new account. If you keep your new and old super accounts you’ll be paying fees on both of them. You may also end up paying premiums for insurance cover (such as life insurance, TPD cover and income protection) through both accounts—which you may not need.

If your existing super account meets certain criteria, such as having a balance of less than $6,000 and not including any insurance, that account will be closed by your fund and the balance will be transferred to the ATO if it does not receive any contributions in 16 months. The ATO will then attempt to consolidate your balance into one of your active super accounts. You can also personally choose to consolidate your super. Consolidating super funds may be beneficial, but sometimes isn’t right for everyone, so the pros and cons should be carefully weighed up when making the decision.

While past performance can give an indication of what a fund has been capable of delivering in the past, it is not necessarily indicative of future performance.

Before deciding what to do with your super when starting a new job, checking your existing super fund could be a good idea. Super funds can vary considerably in the fees they charge, the investment returns they earn and the advice and other member services they offer. You may wish to compare the fees and returns of your current super fund to see if you’re happy with them and compare them to the other options you have available, including your employer’s default fund. It may also be worth checking to see if you have any lost super accounts that have not yet been consolidated.

What else to consider if you join your employer’s designated super fund?

Most super funds will provide options for their members, such as automatic death and total and permanent disability (TPD) insurance, as well as the choice of investment options. If you open a new account, your new super fund should send you some information to tell you about your options. It’s worth reading this and spending some time considering which of these options to take up. In the case of insurance through super, It’s important to consider whether you already have adequate coverage and whether you need to retain, increase or cancel the insurance cover provided in this new account.

Why might you consider joining a new super fund?

There is another option for what to do with your super, being to join a new super fund entirely. You can do this at any time—from starting your “forever career” to just starting a new year. Both can be good prompts to assess whether your current super fund is the best long-term choice for you. Some funds take less than five minutes to join through online facilities.

In terms of weighing up different funds, Canstar has identified some of the best-performing funds on its database. Please note that the performance figures of these super funds reflect net investment performance—i.e. returns minus investment tax, investment management fees, the maximum applicable ongoing management fees and membership fees. Please also note that a fund’s past performance should not be taken as an indication of its future performance.

You could also consider Canstar’s Superannuation Star Ratings and Awards which factor in net investment performance as well as many of the other features and services offered by super funds.

Can you get super if you’re under 18?

If you or your child is starting their first job, you may be wondering if you’ll need a superannuation account. If you’re aged under 18 and working more than 30 hours per week, whether casual, part-time or full-time, you will need a superannuation account. Some employers may choose to pay you super even if you work less than 30 hours a week, so it’s often worth checking. If you’re under 15 years old and require a super account, your parent or legal guardian will need to sign off on your membership.

Don’t forget your super is your bank account for the future

Just like providing your bank details for your salary to be paid, selecting the right super account for you—whether that’s your existing fund, a new fund you personally choose or your employer’s nominated one—is an important step. After all, when it comes down to it, the savings you accumulate in your super will likely be very important in helping provide for you financially during retirement.

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