There is a common misconception that switching super funds is a difficult process – but in fact, you don’t even have to contact your old fund.
If you’re ready to make the switch, here are three simple steps to guide you through the process.
Step 1: Open a new super fund
Most super funds have an online join process on their website, so gone are the days of paper forms!
It’s not uncommon that you’ll be asked your personal details including your Tax File Number (TFN). This is because any employer contributions are generally taxed at 15% if you add your TFN. While it’s not compulsory to provide the fund with your TFN, if you don’t, those contributions could be taxed at 47%. Most of the time you can skip this while joining, but it can be a good idea to come back and add it to your account to avoid incurring extra tax.
Step 2: Tell your employer
Tell your employer your new super fund details. This is important as employers are required to pay your super by the quarterly deadlines, so they will keep making contributions into your old fund until you update them.
You can complete the ATO’s super nomination form or the super fund might have a pre-filled form for you to pass onto your employer. For example, Engineering Super has a Tell My Employer feature, so you can enter your employer or payroll officer’s email. This will send an email with all the details they need to pay your super.
Step 3: Consolidate your super accounts
It can be a good idea to consider consolidating your super accounts to avoid paying duplicate fees. This is really easy and you don’t even have to contact your old super fund.
You can combine your super accounts into one using the ATO service on your myGov account. Your super accounts will appear and you’ll be able to choose which account to combine your super into.
There are no exit fees charged when you change super funds. But it’s important to consider how switching and consolidating your super funds might impact you, such as any insurance cover you hold with the funds. It’s a good idea to check the super fund’s Product Disclosure Statement (PDS) for information about the fund’s features.