superchoice_obligations

Employees and act on an employees choice it also

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Unformatted text preview: ines the compliance approaches the Tax Office, Employers also need to choose an employer fund to which the Australian Securities and Investments Commission they will make superannuation guarantee contributions if (ASIC) and the Australian Prudential Regulation Authority an employee does not make a choice. (APRA) will use to ensure people comply with their choice of superannuation fund obligations. EMPLOYEES In this guide, all references to superannuation funds Generally, from 1 July 2005, employees can choose the include retirement savings accounts. fund to receive their future superannuation contributions unless: ■ their superannuation contributions are made under WHAT IS CHOICE OF SUPERANNUATION FUND? a certified agreement or an Australian workplace agreement ■ their superannuation contributions are made Choice of superannuation fund is a new law that under a state award or industrial agreement (visit gives many employees the right to choose which www.superchoice.gov.au for more information), or superannuation fund will receive their employer superannuation contributions. It starts on 1 July 2005. ■ their employer is a sponsor of a particular defined benefit fund and certain conditions are met (for more information, see page six of the booklet Choice of superannuation fund – guide for employers, which is available at www.ato.gov.au/super). WHO DOES CHOICE OF SUPERANNUATION FUND AFFECT? Employers, employees, superannuation funds and their trustees, and financial advisers all have obligations under choice of superannuation fund. The Tax Office, ASIC and APRA will jointly ensure that people comply with their obligations. There will also be public servants and individuals working for government agencies who may not need to be offered choice of superannuation fund. If an employee is engaged under a federal award, they must be offered choice of superannuation fund whether or not that award requires contributions to be made to a specific superannuation fund. Some state laws also provide for choice of sup...
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