Call (07) 4151 8898 

STARTING A NEW JOB? GET YOUR SUPER SORTED FIRST

When you start a new job, your employer will begin making regular contributions to your super. Contributing to super is one of the best ways to build your retirement savings throughout your career. For as long as you’re working, your employer has to help you grow your nest egg by making regular super guarantee (SG) payments into your super account.  So if you’re about to begin a new job, there are a few things you should do to start off your SG arrangements on the right foot.

What to expect from your new employer

Once you start your new job, your employer has 28 days to give you a standard choice form, provided you’re eligible to choose your super fund (which most of us are). This form lets your employer know which super fund to pay your SG contributions into.

When you receive the form, your employer should have already filled out the details of their own ‘default fund’. They’ll also need to give you information about this fund, so you can decide whether or not you want to use it.  If you’re eligible to choose your own fund, your employer could face a penalty if they don’t give you the chance to do so.

If you already have a super fund

If you already have a super account set up in a fund of your choice, you can keep using it for your SG contributions from your new employer — you don’t need to use your employer’s default fund. To do this, simply write these details on the form:

If you nominate a self-managed super fund (SMSF), you’ll also need to confirm that your fund is regulated by the Australian Taxation Office (ATO). You can find and print the compliance status of your SMSF by searching online in the Government’s Super Fund Lookup service at superfundlookup.gov.au.

Once you’ve given all this information to your employer, you should start receiving SG payments in your nominated account within two months.

If you don’t yet have a super fund

If you’re happy for your SG contributions to be paid into your employer’s default fund, simply tick the relevant box on the standard choice form. An account will be set up for you, and you’ll receive all the membership information you need.

Or, you can do some research online and set up a new account with another super provider ― then give these details to your employer.

Your Tax File Number (TFN)

Although it’s not compulsory, it’s a good idea to provide your super fund and your employer with your TFN. This will ensure you don’t end up paying extra tax on super contributions ― and it also makes it easier for your employer to make SG payments to your account.

How to switch your super fund

Once you choose a super fund, it doesn’t mean you’re stuck with the same fund for life. You can change your fund at any time — or once a year while you’re with the same employer — by filling out a transfer form for your new preferred fund.  If you roll over your super from one fund to another, you’ll need to ask your employer for a new standard choice form so you can give them the details of your new fund. Before you switch, make sure you understand what this means for any personal insurance you hold through your super. You should also check if you’ll be charged any fees for leaving your current fund.

If you change jobs

If you move to another employer, it doesn’t mean you have to change your super fund — even if you’ve been using your previous employer’s default fund. You can either:

 

 

Important information This document has been prepared by Count Financial Limited ABN 19 001 974 625, AFSL 227232, (Count) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. ‘Count’ and Count Wealth Accountants® are trading names of Count. Count advisers are authorised representatives of Count. Count is a Professional Partner of the Financial Planning Association of Australia Limited. Information in this document is based on current regulatory requirements and laws, as at 4 May 2016, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance on this document. This document contains general advice. It does not take account of your individual objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision. Taxation considerations are general and based on present taxation laws, rulings and their interpretation and may be subject to change. You should seek professional tax advice before making any decision based on this information. Should you wish to opt out of receiving direct marketing material from your adviser, please notify your adviser by email, phone or in writing.

Recent Posts

VIEW ALL

Subscribe to keep informed!

Sign up for The Money Edge's Money Tips!



First Name
Email Address