Government releases exposure draft on super choice
Exposure draft legislation proposing an extension to superannuation choice, if passed, could enable SMSFs under enterprise agreements to have their SG contributions paid directly to their SMSF.
In an announcement yesterday, Treasury said while most employees currently have the opportunity to choose which superannuation fund their SG contributions are paid into under the Superannuation Guarantee (Administration) Act 1992 (SGAA), there are some exceptions.
“Where an employer makes contributions under, or in accordance with, an enterprise agreement or workplace, employers satisfy the choice of fund requirements in SGAA,” the explanatory statement said.
“These agreements specify a given superannuation fund or a number of superannuation funds that an employer may contribute to for the benefit of the employee.”
Treasury said the proposed legislation, if passed, would enable employees covered under enterprise agreements and workplace determinations made from 1 July to choose their own superannuation fund.
“[Due to] the operation of fair work agreements, employees and employers will continue to be governed by their existing enterprise agreement or workplace determination until the new enterprise agreement or workplace determination that is made from 1 July 2016 begins to apply," Treasury said.
Treasury is currently accepting submissions on the exposure draft legislation.
SMSF Association head of policy Jordan George said the proposed legislation would make it easier for SMSF trustees who are under an award or enterprise bargaining agreement which currently has a nominated super fund.
“They’ll have the choice of having their employee contributions going to their own SMSF rather than having to do a rollover or transfer,” he said.
“We certainly support people having choice of where their super fund contributions go and being engaged with their retirement income.”