Choosing a default fund for your employees

Employers are required to make Superannuation Guarantee (SG) contributions for their eligible employees into a complying super fund or retirement savings account (RSA) at least four times a year.

But what if your employee doesn’t have a super fund or doesn’t want to choose their own fund?

For new employees starting work on or after 1 November 2021, you need to check with the ATO to find out if the employee has a stapled fund. If they do, you must contribute to that fund. For longer-standing employees or those who do not have a stapled fund selecting a fund becomes your job, but you need to know the rules.

Default funds: What are they?

These days most employees can choose their own super fund, but you must select an employer-nominated super fund – also known as a default fund – for the contributions of employees who are either not eligible to choose or don’t choose a fund and don’t have a stapled fund.