The Superannuation Legislation Amendment (Choice of Fund) Bill 2016, introduced in the House of Reps on Thur 17.3.2016, proposes to extend superannuation choice of fund to employees covered by enterprise agreements and workplace determinations made from 1 July 2016. Currently, employers who make contributions in accordance with an enterprise agreement or workplace determination are deemed to comply with the choice rules. The Assistant Treasurer said the proposed measures will extend choice to up to 800,000 employees who currently do not have choice of fund under enterprise agreements and workplace determinations.
DATE OF EFFECT: 1 July 2016.
[LTN 52, 17/3/16] [APH website for Bill]
Extract from the Explanatory Memorandum
Outline of chapter
1.1 This Bill amends the Superannuation Guarantee (Administration) Act 1992 (SGAA) to ensure employees under new workplace determinations or enterprise agreements made from
1 July 2016 have an opportunity to separately choose the superannuation fund for their compulsory employer contributions.
1.2 All legislative references in this Chapter are to the SGAA unless otherwise indicated.
Context of amendments
1.3 An important part of Australia’s superannuation system is the provision of compulsory employer contributions by employers to complying superannuation funds in respect of their employees.
1.4 Currently some employees do not have the opportunity to choose their own superannuation fund. Where an employer makes contributions under, or in accordance with, an enterprise agreement or workplace determination, employers satisfy the choice of fund requirements in the SGAA. These agreements or determinations may specify a given superannuation fund, or a number of superannuation funds, that an employer may contribute to for the benefit of the employee.
Summary of new law
1.5 The amendments will enable employees under workplace determinations or enterprise agreements made from 1 July 2016 to choose their own superannuation fund.
[APH website – EM for the Bill]