Important things you need to know about Choice are:

1. Choice was introduced on 1 July 2005 and with subsequent legislation amendments on 1 July 2006, affects the majority of employees and employers across Australia.

2. Not all employees are eligible for Choice – it’s dependent on various awards and workplace agreements.

3. Eligible employees do not have to make a choice – it is an option.

4. Only complying funds can be chosen by employees as their ‘fund of choice.’

5. Employers must offer eligible employees a default fund into which their SG contributions will be paid if the employee does not nominate a ‘fund of choice.’ Complying default funds have to offer a minimum level of death only cover at $0.50 per employee per week, or according to an age-based scale.

6. Eligible employees may choose a new super fund at anytime, however their employer can refuse to accept a nomination if one has already been made within the previous 12 months.

7. Choice does not apply to all super contributions, only employer SG payments. Any contributions beyond SG – ie salary sacrifice, voluntary, additional employer or spouse – do not fall under Choice rules.

8. All existing eligible employees must be provided with a standard choice form within 28 days of a request being made. All new eligible employees must be supplied with a standard choice form within 28 days of commencing employment.

9. If an employer does not implement Choice, substantial penalties apply.