What superannuation details does your employer need?

A new job can be exciting, nerve-wracking, daunting and just a bit overwhelming, all at the same time. You’ll most likely have your bank account details at your fingertips – no one wants to risk missing out on that first new-job pay cycle. But it can pay off in the long run to also think about what you might do with your superannuation account before you walk in to start your new job.

Are you entitled to super?

Your employer generally must pay a percentage of your earnings into a complying super fund on your behalf. 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 until you reach a certain 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 and working part-time at 30 or less hours per week
• You’re not a resident of Australia and 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 in receipt of pay or allowances for this work (continuous full time service is excepted)
• 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 choices about your super when you start a new job:

1. Tell your new employer to pay your employer super contributions into an existing super account you already have with another super fund which the Australian Taxation Office (ATO) may have selected as your stapled fund
2. Tell your new employer to pay your employer super contributions into a new super fund of your choice.
3. Open a new super account with your new employer’s default super fund. Your new employer will then pay your super contributions into this new account.

It’s important to note that if you’re moving to a new job and have an existing super account that the ATO has selected as your stapled fund, your employer will be required to make super contributions into your stapled fund, unless you opt to choose another fund.

Read more: Super stapling: what does it mean?

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

Your employer will give you a ‘standard choice form’ when you start your new job. By law, they have 28 days from your first day to give this form to you. You can also request a standard choice form at any time during your employment, in which case your employer will 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 stapled fund (if you have one), or you can choose either a 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 – about everything from which bank account you want your pay to go into, to whether or not to join a social club.

You might want to take the time to consider your super options before completing the ‘standard choice form’ to accept either your current stapled fund or the super fund your employer nominates. You may also choose another super fund that you prefer.

What details do you need to provide your employer to stay with your current super fund?

If you want to stay with your current super fund you can let your new employer know. Many super funds can generate a pre-filled form that you can have emailed to yourself or directly to your new employer that contains all of the fund information and account details your new employer needs.

You can also tell your new employer to pay your super into your existing stapled super account through the standard choice form. You’ll need to know your super fund’s name, Australian Business Number (ABN), address and phone number, and your TFN, super account name and membership number.

These can be found on the last annual statement you received from your fund or on their website.

You will also usually need to provide a letter 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.

Some funds make it easy for you to provide your employer with the information you need to give them 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 that you would like your super to be paid into their default fund. You can specify this on the standard choice form your employer gives you when you start your new job.

If you already have a super fund, why might you consider nominating the same fund?

If you choose to open a new super account with your new employer’s default super fund, your existing super account will remain, unless you combine it with your new account in the default super fund.

You’ll then be paying fees on both the old and new super accounts. You may also end up paying premiums for insurance cover 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 isn’t right for everyone, so the pros and cons should be carefully weighed up.

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, doing a little homework to look into your existing super fund could be a good idea.

Super funds can vary considerably in the fees they charge, the 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 how they compare to the other options you have, including your employer’s default option.

What else should you consider if you join your new 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 and 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 new fund’s options.

It’s worth reading this and spending some time considering which of these options to take up. Specifically, when considering insurance, it’s important to consider whether you already have adequate insurance and whether you need to retain, increase or cancel the insurance cover provided you in this new account.

Why might you consider joining a new super fund?

There is another for what to do with your super – join a new super fund altogether. You can do this at any time, and starting your “forever career” or just the start of a new year may both 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 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.

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 in retirement.

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