Introduction
Superannuation laws may override award or agreement requirements for an employer to make contributions to a particular superannuation fund.
Content
Choice of fund and ‘stapled’ funds
Individual employees generally have the opportunity to choose their own superannuation fund.
For further information about whether an employee is eligible to choose their own fund visit the ATO website: Offer employees a choice of super fund.
From 1 November 2021, if a new employee does not choose a fund the employer will generally be required to check if the employee has a 'stapled superannuation fund'. A stapled fund is an existing superannuation account linked, or ‘stapled’, to an individual employee so it follows them as they change jobs.
For further information visit the ATO website: Request stapled super fund details for employees.
If an employee does not have a stapled fund, in many cases an employer can sign an employee up, and make contributions, to a ‘default fund’ named in a modern award or enterprise agreement. A superannuation product must be registered as a MySuper product to be a default fund.
Annual performance test – closed MySuper products
The Australian Prudential Regulation Authority (APRA), which regulates Australia's financial system, is required to conduct an annual performance test of MySuper products by 31 August each year. The first performance tests were conducted in 2021.
When a MySuper product fails the annual performance test for 2 consecutive years, an employer cannot sign a new employee up to that product from 31 August in the year of the second test until it passes a future performance test. This means that an employer cannot make contributions to those MySuper products for an employee who is not already a member of the product by 31 August, even if that MySuper product is nominated in the employee’s award or agreement.
Annual performance test results - closed MySuper products
The following MySuper products were closed to new members from 31 August in the year they failed the performance test for the second consecutive time.
| Super Fund | MySuper Product | Closed to new members from |
|---|---|---|
| Australian Catholic Superannuation and Retirement Fund | Australian Catholic Superannuation and Retirement Fund | 31 August 2022 |
| Energy Industries Superannuation Scheme-Pool A | Energy Industries Superannuation Scheme-Pool A | 31 August 2022 |
| Retirement Wrap | BT Super (MySuper) | 31 August 2022 |
| AMG MySuper | AMG MySuper | 31 August 2022 |
In 2023, AMG MySuper failed the annual performance test for a third time and remained closed to new members. No MySuper product failed the performance test for a second consecutive time that year.
In 2024, no funds failed the annual performance test for a second consecutive time (or more). As at 31 August 2024, APRA advises there are no MySuper products that are currently prevented from taking on new members.
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