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Q&As

What can I do to assist my employer clients?
What can I do to assist my individual clients?
What happens if an employer does not comply with Choice?
What can I do for employers, employees and individuals that are not affected by Choice?
Where can my clients and I get further information on Choice?

Q: What can I do to assist my employer clients?

Identify whether the employer is affected by Choice.

Provide the employer with a pre-populated standard choice form.
Ensure the employer has processes in place to action each completed form within two months of receipt.
The employer must pay super contributions into ‘eligible’ funds chosen by employees or into the default fund, if no choice is made.
The employer must provide a standard choice form to all new employees within 28 days.
The employer should ensure existing employees are aware of their super options in the Choice environment.

Q: What can I do to assist my individual clients?

You may have three categories of individual clients affected by Choice:

Those who have opted for a personal super arrangement;
Those who currently have a corporate super fund arrangement; or
Those who have both a personal super fund and corporate super fund arrangement.

Your clients may not be affected by Choice at all however, now is still a good time for you to assist your clients in reviewing their current super arrangements. Consider the following actions:

For both business super and personal super clients

Contact clients and suggest it may be time to re-assess their overall financial plan.
Identify clients who may be in unsuitable super fund arrangements – now is the time to re-assess.
Identify clients who may have multiple super funds – now is the time to consider consolidating.
Determine if there are any clients under-insured.
Do clients have additional savings that could be invested outside of super?

For business super plan members only

Maintain a regular presence at employer sites
Offer to run seminars for employees on-site to discuss their options under Choice, and
Attend employer sites to make yourself available to employees for guidance.

Q: What happens if an employer does not comply with Choice?

Put simply, penalties will apply.

If an employer fails to comply with Choice of Fund requirements, they may be charged penalties, including $500 plus interest and administration fees per quarter per employee, which could mean potential penalties of up to $2000 per year per employee.

Q: What can I do for employers, employees and individuals that are not affected by Choice?
Even if Choice doesn’t apply to some of your clients, it still presents an opportunity to re-engage your clients. Consider the following steps:

Target your client base to identify high value opportunities. Such opportunities may include:
- individuals with high valued super funds
- employers who are in poor performing super funds
- employers who are likely to review existing super funds, and
- clients who have no insurance or who are under-insured.

Enhance client relationships by initiating contact via:
- an introductory letter, or
- a telephone call.

Present the different type of super funds available to clients and provide general information on:
- why super is important
- how much super is enough
- pros/cons of corporate super, personal super, SMSFs
- insurance cover – why it is important, what are the options, and
- why salary packaging is an option.

Consider reviewing your existing service level agreements:
- Do they need to be enhanced?
- Do they include super?

Q: Where can I get further information on Choice?
AXA

By calling 1800 655 655 and selecting option 4 for adviser services.
Your business development representative.

Government Choice website at: www.superchoice.gov.au

ATO at: www.ato.gov.au



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