>> Education >> News & Updates
News & Updates

Big Changes to Employer Super Payments

Post Date:05/02/2010 | Author: Dylan Mann

What happens from 1 January 2010?

From this date, an employer must use as its default super fund for award employees one that complies with the applicable award(s). This means:

 

For non-award employees, existing default fund arrangements are unaffected.  Contributions to a default fund first contributed to prior to 12 September 2008 are unaffected.   Otherwise (ie. where a default fund not named in an award was first contributed to on or after 12 September 2008), an employer must:

Super plans contributed to on or after 12 September 2008?

Unless named in the relevant award, plans first contributed to on or after 12 September 2008 cannot be used as an employer’s default fund. The plan itself is not required by law to be wound?up or transferred; however further contributions for award employees may only be made to it if the employee chooses that fund under choice of fund. Contributions for non?award employees can continue to be made.

  1. Choose as a new default fund one named in the relevant award.
  2. Provide a standard choice form to all employees for whom the employer contributes to the default fund. This form must include details of the new default fund.
  3. Make super guarantee contributions either to a fund chosen by the employee or to the new default fund if no choice is made.

     

On 1 January 2010 the employer super landscape altered with the commencement of the federal Government’s modernawards which generally specify default super fund arrangements for all award-covered employees. With the broader application of modern awards to both employers and employees, this change requires a different approach for giving corporate super and choice of fund advice.

Back      Top
Customer Feedback
Read what our clients say about our service and the changes we have made in their life.
Read More>>
Upcoming events
Read More>>


Home  |   Link  |   Privacy Policy  |   Terms of Use
Ring us on 1300 882-456 to speak to a financial adviser or make an appointment.
Copyright © 2008 4FinancialAdvice All Rights Reserved.