The Federal Government has sought to ease employer concerns that the new choice of fund regime will bring with it additional administrative burdens.
The Assistant Treasurer, Mal Brough issued a statement claiming the Government would be seeking to minimise the burden on employers in complying with their choice obligations.
Pointing to the fact that some superannuation funds require employers to become a ‘participating employer’ before they can make contributions to the fund, imposing additional obligations, the minister said the new choice legislation would contain no such compulsion.
“Employees can only choose a fund which will accept contributions from their employer at the time the employee chooses that fund,” he said.
“A fund which requires the employer to become a participating employer before they will accept contributions does not satisfy this requirement.”
Brough said the Government would be amending legislation to amend certain employer from having to choose a default fund.
“Some employers have never had to select a default fund as all their employees are required to choose a fund as a condition of employment,” he said.
He said the Government would be legislating to exempt these employers from being compelled to choose a default fund under the choice regime.
