Under Australian laws, all employers are required to pay compulsory superannuation payments to eligible employees. The Australian Taxation Office provides information on employer requirements to provide superannuation to employees.
Choice of superannuation fund
Private sector and local government employers in the WA state industrial relations system who are covered by a WA award or industrial agreement that requires superannuation contributions to be paid have specific obligations under state laws to provide a choice of superannuation fund to employees.
State system employers whose employees are award free, or are covered by a WA or industrial agreement that does not require superannuation contributions to be paid may have obligations under national laws in relation to choice of fund. Visit the Australian Taxation Office website for details.
When a state system employer is required under state laws to provide choice of superannuation fund, as soon as possible after commencing work the employer must provide the employee with either:
- a notification of a standard choice form (as per Schedule 1 of the Industrial Relations (Superannuation) Regulations 1997),
- a written notice setting out all the information contained in the standard choice form.
Employees who initially choose not to nominate a superannuation fund retain a right to do so later on. Once employees have notified their employer about their chosen fund, the compulsory superannuation guarantee contributions must be paid into the nominated fund.
Once a fund has been selected it can only be changed with the employer's consent, although employers cannot unreasonably refuse an employee's request to change their superannuation fund.
An employer (or any other person) must not persuade or attempt to persuade another person to nominate a particular superannuation fund by threats or intimidation. Employers who fail to pay contributions into the nominated fund could face penalties.
Where employees do not nominate a superannuation fund, employers must pay contributions into a fund that is a complying fund under the national Superannuation Guarantee (Administration) Act 1992. If a WA award or industrial agreement specifies a complying fund, then it must be paid into that fund.
