Choice of fund

Since 2005, most Australians have had the choice of which super fund they want to use. Generally, those that do not have the ability to choose include:

• certain public sector employees;
• where super is paid under a State Award or industrial agreement or certain workplace arrangements (including some Australian Workplace Agreements)*; and
• members of defined benefit schemes (which are discussed later in this module)

If you fall into one of the above categories, or if you decide not to choose your own fund, you will generally be placed into a fund selected by your employer, previously known as a 'default' fund. Since 1 January 2014 this fund must be a low-cost MySuper account. Please note: As part of the ‘Your Future, Your Super’ legislation, from 1 November 2021, when an employee starts a new job but doesn’t nominate a super fund to receive contributions, their employer is required to make contributions to their existing super fund, known as a 'stapled' super fund, if they have one. This is to avoid employees having multiple super funds as a result of changing employment.

To keep their costs low, MySuper products will have a simple set of features, which will often place you in a range of default options, including your investment and any insurance. So, it is therefore worth reviewing what your investment and insurance options are if you are in a MySuper fund selected by your employer to ensure that the account is appropriate for your needs and objectives.

*Please note: As part of the ‘Your Super, Your Choice’ legislation, employees can choose their super fund where they are employed under a workplace determination or enterprise agreement made on or after 1 January 2021.