Managing your employees’ super – important changes to super choice laws

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Australian employers have a responsibility to choose a default super fund for their employees and ensure they are making the correct Super Guarantee contributions. It’s important you understand changes to super choice laws to ensure you continue to meet your obligations.

Workplace determinations and enterprise agreements

From 1 January 2021, employers must provide all new employees with a Standard Choice form when they join the workplace. Existing workers can make their own choice of fund when their existing workplace agreement expires after 1 January 2021.

The law is not retrospective, so existing agreements (agreed before 1 January 2021) are not affected by the changes. Workers under existing workplace agreements will stay locked into those arrangements until the next agreement is negotiated after 1 January 2021.

Visit the ATO website for full details.

The Super Guarantee and salary sacrifice

Since 1 January 2020, minimum Super Guarantee (SG) contributions are calculated on an employee’s Ordinary Time Earnings (OTE) before an salary sacrifice contributions.

Any amounts that an employee salary sacrifices to super do not reduce your SG contributions as an employer – you must contribute at least 9.5% (currently) of any employee’s OTE to their nominated super fund.

Find out more about how much you need to contribute and salary sacrifice.

We’re here to help

The dedicated Employer Helpline team can help you with questions about these changes, your super responsibilities and admin, and troubleshoot any issues you're having making payments. Call 1800 640 886 and follow the prompts. You'll need your ABN and the email address registered to your account.

The Employer Helpline is available Monday to Friday between 9.00am and 5.00pm (AEST/AEDT), except national public holidays.

For more information about your responsibilities, visit the Employer section of our website.