21 Apr 2008
If employees are eligible for choice and do not exercise it or fail to provide all the information that the employer needs to pay contributions to their chosen fund, then the employer must pay SG contributions to an employer nominated fund (also known as the default fund) even if the employee is currently a member of another fund.
A default fund must be a complying fund and offer the minimum level of life insurance set out in the choice of fund regulations. HESTA satis. es these requirements.
Employers must also keep records for at least . ve years showing that they have met their choice obligations including:
- records showing that the Standard choice form has been provided to all eligible employees
- details of employees who do not need to be offered choice of super fund
- confirmations from the super fund showing that contributions have been made to the employee’s chosen fund, and
- records confirming that the default fund is a complying fund that meets the life insurance requirements
Under the choice of fund legislation, super funds cannot provide inducements or incentives to an employer in order to become the employer’s default fund or to make their employees agree to be members of the fund.
So please be aware that if employees don’t return their Standard Choice Form, you must direct future contributions to the default fund even if the employee is currently in another fund.
New earnings base for Super Guarantee
The Tax Office is reminding employers that from 1 July 2008 they have to use ordinary time earnings to calculate super guarantee contributions. Ordinary time earnings are generally what employees earn for their ordinary hours of work. This includes over-award payments, commissions, shift allowances and paid leave. It excludes such things as overtime.
Most employers use ordinary time earnings to calculate super guarantee contributions. However, some employers currently calculate super guarantee contributions on earning bases contained in:
- an industrial award
- an existing employment agreement
- a fund’s trust deed, or
- a law of the Commonwealth, States or Territories
All employers should check their current super contribution arrangements now to make sure they are not using an earnings base other than ordinary time earnings.
Nursing Awards tickets on sale now!
Tickets are now on sale for the HESTA Australian Nursing Awards. The winners will be announced during a gala dinner at Melbourne’s Crown Palladium Ballroom - hosted by Kim Watkins - on Thursday 15 May, 2008. The night will feature a performance by Kate Ceberano. To book your table, visit www.hestanursingawards.com Tickets are discounted when booking a full table of 10. Hurry, as
tickets are selling fast.
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