Frequently Asked Questions (FAQs)

Your choice of fund will be one of the most important decisions you make about your super. Both your employer’s contributions and your own additional voluntary contributions will go into your fund.

• What is fund choice?

  Most employees are able to choose their own super fund into which compulsory contributions are paid, unless:

  • your super is paid under a state award or industrial agreement
  • your super is paid under certain workplace agreements, including an Australian Workplace Agreement. (AWA) and collective agreements (although choice can also be provided under these awards or agreements)
  • you are a federal or state public sector employee excluded from choice by law or regulations
  • you are in a particular type of defined benefit fund or you have already reached a maximum benefit in that defined benefit scheme.

  If you are not sure what award or industrial agreement, if any, you are covered by, phone the workplace relations department in your state or territory.

  
  

• How do I choose a fund?

  There are different types of superannuation funds, but they can generally be divided into three groups:

  • Industry super funds, which are run only to benefit members and, on average, have lower fees than commercial or retail super funds.
  • Employer-run funds which are often subsidised by the employer.
  • Commercial or retail super funds which, on average, charge higher fees than the average Industry SupeFund.*

  *Based on a sample of 16 Industry SuperFunds and a sample of 16 retail super funds as at 30 June 2010 (Source - Research by SuperRatings, commissioned by Industry Fund Services Pty Ltd ACN 007 016 195, AFSL 232514)

  When choosing a superannuation fund, it is important to ensure you choose a fund that meets your needs.

  Some of the factors you should consider are:

  • Does the fund have a good track record?
  • What fees am I charged?
  • Does the fund pay commissions to financial planners?
  • Does the fund offer a range of investment options?
  • Is the death and disability insurance cover competitive?
  • How will the fund help you with decisions about your super?

   

• How do I choose an Industry SuperFund?

  Whatever your type of work, there is an Industry SuperFund to suit you. In fact, under Super Choice legislation, anyone eligible to choose can consider joining an Industry SuperFund
  

Your choice of fund will be one of the most important decisions you make about your super. Both your employer’s contributions and your own additional voluntary contributions will go into your fund.

• How much super should my employer pay?

  Generally, if you earn $450 a month or more and you are aged over 18 and under 70, the law requires your employer to pay super guarantee (SG) of 9 per cent of your ordinary time earnings into a super fund on your behalf.

  Your ordinary time earnings are a component of your gross salary, and include ordinary time pay, shift allowances, commissions, and some bonuses but usually not overtime payments.

  So if your ordinary time earnings are $1,000 a month, your employer contribution to your super fund each month should be $90.

  Ideally, this amount should be paid into your super fund of choice at the same time you receive your pay.

  
  

• How do I know if my employer is paying my super guarantee (SG) contributions?

  Super funds are obliged to send every member an annual statement of their super account.

  This statement records your account balance at July 1, employer and employee contributions, investment earnings, fees and finally a year-end balance. Employers must state on your pay slip how much super is paid, although not necessarily into which fund it is being directed.

  While many employers pay super contributions into your fund on a regular basis, the law requires only that contributions are paid to the fund quarterly.

  If the employer fails to pay your contributions to your fund, you may not be notified of this until the following year when your fund statement reflects zero contribution received.

  If you are concerned about whether your super contributions are being paid, talk to your employer to ensure he or she has your correct fund details. You can also check with your fund to determine what contributions have been received. Many funds offer website access to your account, which makes checking contributions received very easy.

  If contributions due to have been made are missing, or the amount is below 9 per cent of your pay, raise it with your employer. If unsatisfied with the response, phone the Australian Taxation Office on 13 10 20 for advice.

• Can I take my super with me when I change jobs?

  Yes, but read this checklist first.

  Retirement benefits

  Some funds, especially defined benefit funds, may limit or reduce what you can transfer. In those circumstances, it may be better to stay in the fund until you retire.

  Insurance benefits

  Make sure you stay covered. Will cover be automatic? How long does your old fund cover you, and when does cover start in your new fund? Will you be required to undergo a medical to get new cover?

  Costs

  Check termination fees from the old fund and contribution fees into the new one. These come out of your account and reduce benefits. Some products, which existed before compulsory super was introduced, have penalty fees for exiting the fund. These were typically sold by a life insurance company as long-term savings products.

  Employer contributions

  For most people, super will be built up through contributions made by their employers over their working life. But you need to monitor that the correct contributions are paid and that the fees charged are appropriate.

  
  

You can build your super by making your own contributions to your super fund. This can be done in a number of ways.

• Am I covered for super if I am a contractor?

  You are considered to be an employee for SG purposes if you, as a contractor:\

  • are renumerated wholly or principally for your personal labour* and skills.
  • must perform the contractual work personally, and
  • are paid by reference to hours worked, rather than for the amount of work performed.

  The above applies even if you quote an Australian Business Number (ABN) in the course of payment for your services.

  * Labour, in this sense, does not mean just physical labour. It includes artistic and mental effort, as well.

  Check with your super fund or the Australian Taxation Office for more details.

• How do I find my lost super?

  In today’s work environment, where many of us change jobs frequently, it is easy to lose track of your accumulated super simply because you are too busy.

  This is particularly the case if several employers have paid super contributions on your behalf into different funds and you have not kept track of where the contributions have gone. If you work casually, part time, move around a lot, change addresses and don’t keep all your super fund statements, it can be difficult to keep a handle on where your super money is.

  The amounts of lost super are not small: a Government press release dated 5 January 2009 stated that as at 30 June 2008 the amount of lost super was $12.9 billion. Some of that might be yours.

  If you think you are missing some of your super accumulations, phone the ATO’s SuperSeeker on 13 28 65, or visit the ‘super’ page on the ATO website at www.ato.gov.au. The SuperSeeker tool allows you to search the lost members’ register, which holds details of lost super accounts, including the name of the super fund that reported the lost account. With either option, you will need to provide your name, date of birth and tax file number.

  Once you have the name of your lost fund/s make direct contact with it. At this point, reclaiming your super is similar to organising a transfer to consolidate your accounts. You can also ask your super fund to conduct an inquiry using SuperMatch. The maximum time period in which this transfer must occur is 30 days.

  Superannuation funds may also transfer small and inactive super accounts to an eligible rollover fund (ERF). With more than 1.8 million accounts, the largest of these special types of funds is AUSfund, Australia’s Unclaimed Super Fund.

  You can check if they have any of your super by undertaking a super search. You will need to provide your name and date of birth. If they have super for you, they will transfer it to your fund of choice – at no charge.

  Combining super accounts

  If you have little bits of super scattered across different accounts with different funds then it's generally a good idea to combine all your accounts. Combining small or inactive accounts:

  • reduces the risk of becoming a lost member
  • can save you fees
  • reduces the risk of paying for multiple insurance policies
  • helps keep track of your super.

  Unclaimed monies

  You can also search for other unclaimed money through the Australian Securities and Investments Commission website.

  All other unclaimed monies (bank, insurance, shares etc) can be checked on the Unclaimed Money Register in each state or territory.

  All have online search facilities.