Choice of Superannuation Fund Regulations — Draft Regulations and Standard Choice Form

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The Superannuation Legislation Amendment (Choice of Superannuation Funds) Act 2004 (the Choice of Fund Act) gives effect to the Government’s policy to give employees the right to choose which superannuation fund their compulsory superannuation contributions are paid into. The measure takes effect from 1 July 2005.

Employers can meet their obligations under the legislation by entering into a certified agreement or an Australian Workplace Agreement with their employees.

The choice of fund legislation requires a number of matters to be prescribed in the regulations. These include:

• The content of the standard choice form.
• The information an employee choosing a fund must give their employer.
• The minimum level of life insurance to be offered by the default fund.
• The exceptions to the general rule prohibiting a trustee or an associate from providing a benefit to an employer who chooses their fund as the default fund.

Comments received on the choice of fund consultation paper released in November 2004 were taken into account in preparing the draft regulations. Treasury is seeking any further comments from the community before finalising the regulations. The explanatory statement contained on this website will provide guidance on the regulations.

Treasury is also seeking views and suggestions from the community to assist in the development of the standard choice form that employers will have to provide to their employees. The version of the standard choice form contained on this website is only a draft. A final version will be prepared taking into account the comments received in this consultation process, market testing to be conducted by the Australian Taxation Office and the views of a form designer.

All interested parties are invited to make submissions and comment on this paper.

Submission closing date: 14 February 2005

Address written comments to:

General Manager
Superannuation, Retirement and Savings Division
The Treasury
Langton Crescent
PARKES ACT 2600

Email: superannuation@treasury.gov.au

Documents Available:

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