Superannuation Choice Updates: What Employers Need to Know

Super choice process  – effective 9th April.

A decision issued by the Fair Work Commission on 26 March 2024 has resulted in changes to the superannuation clause in 147 employment awards, effective from the first full pay period on or after 9 April 2024.

This clause brings the awards into line with how Superannuation choice is working in conjunction with NES. The changes require;

• Employers are now obliged to offer super choice to employees, they can’t just pay the super into the fund the employer has set up.
• If the employee does not complete a super choice form (ie pick their own fund), the employer MUST get their stapled fund details from the ATO
• If the employee has no stapled fund ONLY then, can the Employer pay the super into the fund nominated in the specific award for their Industry.

For applicable clause in your award read more at https://www.fairwork.gov.au/employment-conditions/awards/list-of-awards

To apply for stapled fund details use this link https://www.ato.gov.au/businesses-and-organisations/super-for-employers/setting-up-super-for-your-business/offer-employees-a-choice-of-super-fund/request-stapled-super-funds-for-employers

As a reminder under the super guarantee, employers have to pay super contributions of 11% of an employee’s ordinary time earnings when an employee is:

• over 18 years, or
• under 18 years and works over 30 hours a week.
• This applies to all employees regardless whether they are Full time, Part time or casual.

Please remember from January 1, 2025 intentional underpayment of wages by employers will become a criminal offence.

Employers will commit an offence if:

• they’re required to pay an amount to an employee (such as wages), or on behalf of or for the benefit of an employee (such as superannuation) under the Fair Work Act, or an industrial instrument
• they intentionally engage in conduct that results in their failure to pay those amounts to or for the employee on or before the day they’re due to be paid.