How to choose a fund for your employees

Employers must nominate a super fund for any employees who don’t make a choice

The super fund you choose will be called the default fund.

Why choose an industry fund?

Industry funds are run only to benefit members and don’t pay:

  • Commissions to advisers, financial planners, sales agents, insurance companies; or
  • Dividends to shareholders.

Industry funds generally have lower fees and better long-term investment returns than other types of super funds. Therefore, investing your super with an industry fund like AustralianSuper, with lower fees and strong performance, can make a big difference to how much money you retire with.

Rules about choosing a default fund for your employees

The fund you choose must be a complying fund that offers a minimum standard of life insurance cover.

If you’re covered by an industry award:

  • Most modern awards have a superannuation clause that nominates one or more default fund. However, if an award covering your employees doesn’t nominate a particular default fund, you can choose a fund to be the default fund.
  • If the award nominates more than one fund, you can choose one of those funds listed as your default fund.

From 1 January 2014, the fund you choose must have a MySuper Authorised product.

AustralianSuper is listed in over 70 awards.

If your employees are covered by an Enterprise Agreement:

  • If a default fund is named in your Enterprise Agreement, you must contribute to the nominated fund.

If your employees aren’t covered by either an award or enterprise agreement:

  • You must nominate a default fund. You can do this as an administrative action or you can negotiate an enterprise agreement setting out all of your employees’ terms and conditions of employment, in which you also name a default fund.

Consider AustralianSuper – we deliver more benefits to your employees through low fees and strong, long-term investment performance. AustralianSuper is MySuper Authorised and can accept all Superannuation Guarantee contributions from employers.


* Super AppleCheck is provided by research consultant Chant West Financial Services. While AustralianSuper has paid Chant West a fee for making the service available to you, AustralianSuper has no influence over the research results and ratings and does not accept responsibility for any loss or damage caused by the service.

Chant West may provide AustralianSuper with a copy of the personal information that you provide to access AppleCheck. AustralianSuper may use this information to contact you and provide further details about the products and services we offer. In all other respects, AustralianSuper will treat this personal information in accordance with our Privacy Policy.

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