How to change super funds in 5 easy steps

But what are your options if you don’t have choice of fund? 

If you are willing to have two super accounts, you could open a new account with your chosen super fund while your employer’s contributions continue going to their nominated fund. In this case, you can usually transfer most of your balance into your chosen fund, maintaining a minimum amount in the employer account.

Check with your employer’s fund to confirm this is possible and obtain the form you’ll need to transfer part of your balance to a new fund. Then you can go ahead and join the fund you have chosen (refer to step 2 below), complete the form to transfer, and apply for any insurance you want in the new fund.

If you don’t want to maintain two super accounts, unfortunately, you will have to retain all your super with your employer’s fund until you change jobs.

2. Apply to the fund you want to join

Before you can transfer your super balance, you need to become a member of your chosen fund. The simplest way to join is to visit the fund’s website and apply online.

Make sure you:

• Read and understand the product disclosure statement (PDS), also found on the fund’s website, before joining. If you prefer, the PDS usually contains an application form you can print, complete, and return by mail.
• Have your tax file number (TFN) handy. If your fund doesn’t have your TFN, you will pay higher taxes on your employer’s contributions and won’t be able to make your own voluntary contributions. If you’re employed, you may also need to supply your employer’s ABN.
• Consider the level and type of insurance cover you want to apply for, the investment option(s) you will choose, and your beneficiary nomination. You will need to provide these details during the application process. You may also be offered the option to transfer your existing insurance cover from your current super fund.

If you apply for more than the fund’s standard/basic level of insurance, you will generally need to answer some questions about your health, family history and any dangerous hobbies. For very high levels of cover, a blood test or medical examination could be required. This process is called underwriting.

When you transfer insurance from your previous fund, underwriting is not required for that cover.

3. Wait for confirmation your requested insurance is active

If your current super account has insurance attached, it’s important to make sure you can get the cover you need with your new fund before closing your old account.

When you close a super account and transfer the balance to a new fund, the insurance attached to it does not automatically transfer across with it. If you later find you can’t get approved for the cover you need with your new fund, you could be left uninsured.

Once your cover is in place, you can proceed to the next step. 

4. Ask your employer to contribute to your new fund

If you’re self-employed, not currently working or don’t have choice of fund with your employer, you can skip this step.

For everyone else, it’s a good idea to make sure your employer is contributing to your new fund before closing your old account. If you don’t, contributions might arrive at your prior fund after you have transferred the balance to your new fund. When this happens, the amount will either be returned to your employer or the fund will open a new account for you. Either way, you’re left sorting out the mess.

To direct your employer’s contributions into your new account:

• Download a standard choice form from the ATO’s website, your new fund’s website or ask your employer for one 
• Complete the details and provide the form to your employer’s payroll department.

When that’s done, keep an eye on your payslip or your transactions on your new fund’s website to confirm your employer’s contributions have started to arrive in your new account. When no more contributions are going to your old fund, you can complete the last step.

5. Transfer your balance

Once you’re happy your new account is set up and working as you want, you can go ahead and transfer your balance across from your old fund.

If you will be transferring your whole balance and closing the old account, the simplest method is to use the ATO service through myGov.

Go to my.gov.au, then log in and navigate to the ATO-linked service. If you have not already linked the ATO, you can follow the prompts to make the link.

Once you’re logged into the ATO service, use the super menu to consolidate your accounts. Alternatively, your new fund will be able to transfer your old account for you if you complete a transfer request on their website or fill in their paper rollover form.

If you want to transfer part of your balance, leaving your old account open, it is best to obtain a benefit payment form from the fund you want to transfer money out of. The fund will be able to provide you with the right form and advise you on the minimum balance you need to leave behind to keep the account open. You might choose this option to keep insurance in the old fund or when your employer is going to continue making contributions there.

Congratulations, you’re now equipped to seamlessly change super funds – without skipping any necessary steps or tripping up on unexpected hurdles.