Super is an important part of the onboarding process for new starters with your employee’s right to choose a super fund a key focus. As an employer and valued business partner, we’re here to help make onboarding easier.
Always provide your new starter with a Standard Choice form
Employers are required to offer new starters who are eligible to choose their super fund an ATO Superannuation standard choice form within 28 days of their commencement date . If they don’t complete and return the form, you will need to check whether they have a stapled fund and pay their super into it.
Why your new employees should provide their personal contact details
When a new employee starts their job, it’s important you get their personal email address and mobile number to set up their super account – rather than using a work email and mobile number. This ensures their contact information remains up to date, even if they change jobs.
Using employees’ personal contact details also helps prevent fraud, according to the Federal Government’s MoneySmart website:
‘Make sure your super fund has your correct mobile number, email and postal address. This will help them get in touch with you if there's any suspicious activity on your account.’
Getting it right from the start
Including new employees’ personal email addresses and mobile numbers for their first SG contribution is the best way to ensure your new starters can access their new super fund from the beginning.
It also allows members to receive information about their superannuation benefits, beneficiaries, insurance arrangements, offers and important dates – and to be contacted directly if required. Also – by using electronic communications, it lowers costs for the Fund and reduces the environmental impact of paper waste.
Why a personal email address and mobile phone number are better
With today’s agile job market, people can move jobs quite frequently and it’s easy for employees to forget what they’ve used their work email address for. Using employees’ personal contact details ensures they can always access their account, even if they change jobs. It also means that employees can update their residential address, so important hard copy updates get mailed to the right address.
Provide your new starter with information they need to make an informed choice
Which super fund to join is always your employee’s choice to make. You can help them make an informed choice by giving them access to information and resources like the video below that provides a quick overview of superannuation and why it’s important.
Superannu... What? You've heard the term, you've seen it on your pay slips, but what does superannuation actually mean?
Super or superannuation is money set aside while you're working that you can access later on when you retire so you can enjoy life when you stop working.
So how does it work?
When you have a job, your employer pays your salary and puts some of that money, 10.5% or more, into a super account where it is invested for you until you retire.
These investments are managed by expert teams who invest your super in a range of assets and stocks to deliver the best possible long-term returns.
You can choose which super fund you want your money going into or you can go with your employer's choice. This choice could make a big difference to how much super you end up with so it's important to compare super funds.
When comparing funds, you should consider each super fund's long-term investment performance and fees to ensure it can deliver the most for your future.
It's also a good idea to consider having one super account so you're not paying multiple fees. You can consolidate your super if you have multiple accounts and remember to take it with you when you change jobs.
Most funds provide insurance cover along with your super account. This will offer a basic level of protection in the event of injury, illness or death. It can also help protect you and your loved ones financially.
The idea of retirement might seem a long way off but there are a few things you can do now to ensure your future is taken care of.
One, make sure your super fund has your tax file number or TFN so you don't pay more tax than you need to.
Two, tell your employer which fund you want your super paid to.
Three, keep your details up-to-date so your super fund can contact you with important information about your account.
Being in control of your super is super important. That's why AustralianSuper offers expert advice, education, and resources when and where you need it; online, face-to-face or over the phone.
To learn more, visit australiansuper.com
Find out more about how super works with AustralianSuper.
For a quick overview of AustralianSuper download ‘Shaping your future together’ or for more detail they can check out our ‘Day One’ online resource.
For information about super funds, they can use the Government’s YourSuper comparison tool.
If your new starter needs financial advice, you can refer them to a licensed financial adviser.