Your super and changing jobs – what to consider

Starting a new job can be so exciting. A fresh start, new things to learn, a new role to play. It’s also a chance to consider your superannuation and whether you will continue to contribute to the same super fund.
Since 1 November 2021, the government introduced stapling legislation requiring employers to make super guarantee (SG) contributions to their new employee’s existing super fund, unless you tell them you would like to change funds. Stapling was introduced to reduce the number of superannuation accounts that people have and accrue over their working lifetime, to help reduce the likelihood of paying unnecessary fees from multiple super accounts. The MoneySmart website has more information here. 

Here are some things to think about when you’re changing jobs:

• Super fund choices
  Your new job may be a good time to review your current superannuation fund and ensure that they’re performing for you.    
  If you’re staying with your current fund, or you decide to go with a new fund, you’ll need to let your new employer know.  Your employer should provide you with a superannuation standard choice form, or you can access the form from the Australian Taxation Office (ATO) here. 
  It’s worth noting that not all employees are eligible to choose their fund for superannuation guarantee contributions.  
  If you don’t choose or you’re not eligible to choose a super fund, you employer will need to check with the ATO who your complying super fund is.  
• Who can and can’t choose a super fund?
  The ATO provides an overview of who can and can’t choose their own superannuation fund.  More information is available on the ATO website here.
• Do some research about the super fund your employer chooses
  Your new employer may have a fund that they offer for their employees.  Before you consider the super fund that your employer recommends, make sure it’s the right fund for you.  Consider the insurance options and check the fees the fund charges and compare these to what you have with your current provider.  A good place to find some of the information you will need is on your annual statement or if your current provider has a website or online portal, check there for information on your superannuation, insurance and investment arrangements.
• What happens to your insurance if you change funds?
  If you change employers, your insurance cover may change, or your insurance costs may increase.  It’s important to check and make sure what benefits are available to you before you transfer to a new fund, to ensure that you’re aware of the impact of the change.  You’ll also need to make sure that if you are changing funds, that your insurance can be transferred as well.  Investigate this before you cancel any existing arrangements.  
• Compare the fees and charges 
  All super funds have fees and charges and these will likely vary.  How fees are calculated will depend on the fund. Before switching super providers, it’s important to check how much the funds charge and compare them, to make sure you’re happy with what you may have to pay for the new fund.  And if you’re not sure, reach out to your current super provider and ask.  You can find  information on your annual member statement from your current provider about the fees and charges you are currently paying. If not, you can simply call your super fund who should be able to provide you with this information.  

It’s important to remember that even though you will likely have a stapled superannuation account where your SG contributions are currently being paid, you can still change superannuation providers.  And considering superannuation will likely be one of your biggest investments (outside your home if you own one), it’s important to make sure you’re happy with your super provider. But remember to do your research too, before making any decisions.