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Once your DIY Super Fund is established, we apply for it to become a complying fund. Any complying fund can accept mandated contributions (9% Compulsory) from your existing employer. With choice of Superannuation from 1st July 2005, you can decide to choose your DIY Super Fund to receive employer compulsory Super contributions.
Some employers may not agree to contribute Salary Sacrifice portion to your DIY Super Fund, which would mean that your employer will contribute 9% (compulsory) to your DIY Super Fund and balance to the fund of their choice, as they are not forced by legislation to take your instruction for any amount over the compulsory 9% portion or in other words, you cannot choose where your Salary Sacrifice Super contribution is paid by your Employer
Our experience has shown that following employers may not readily agree to contribute Salary Sacrifice portion of employees Super to their DIY Super Funds
1) Federal & State Governments |
2) Banks |
3) Large Employers |
This would mean additional work for your employer; we have noticed that these employers run their own fund; it is in their benefit that contributions go into their funds instead to a fund of your choice. Should you face this situation, we suggest the following:-
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Before you choose your DIY Super Fund to receive all contributions and roll out balance from your current Superannaution fund into your DIY Super fund, please remember to organize your Life Insurance through your DIY Super Fund. We can recommend an Insurance Broker if required.