The Australian Tax Office is encouraging retail employers to get up to speed on compulsory changes to default super that commences on 1 January 2014.
Employers will be required to pay superannuation guarantee contributions a fund with a MySuper product or an employee chosen fund.
ATO deputy commissioner of superannuation Alison Lendon said MySuper is a new, simple and cost effective super product that super funds will be offering to employers for use in the new year.
“As an employer, you should check that the default fund you’re currently using provides a MySuper product, or plans to do so by the new year deadline,” she said.
“If your existing default fund does not offer a MySuper product by 1 January 2014, you will need to switch to a fund that does.”
Many superannuation funds have already launched MySuper products, and more will launch products through to the end of the year. Super funds have been contacting employers and advising of the new arrangements.
“We expect that for almost all employers, your existing default fund will offer a MySuper product, so you won’t have to make any changes,” Lendon said.
“However, if you haven’t heard from your super fund or want to know more about their MySuper product, contact your fund before the end of the year.”
The MySuper changes will deliver benefits to both employers and their staff. MySuper products will have a simple set of product features, regardless of who provides them. MySuper products will also ensure members do not pay for any unnecessary features they do not use.