Enterprise agreement funds¶

Most employees can choose the super fund their super is paid into. But sometimes a workplace agreement gets in the way. An enterprise agreement or a workplace determination is a formal agreement that sets the terms of employment for a group of employees. Some of these agreements name the super fund (or funds) that an employee's super can be paid into.

Where that is the case, it can affect or limit an employee's choice of fund.

In one line

Some enterprise agreements or workplace determinations name the super fund an employee's super can be paid into — which can affect choice of fund, so check the agreement.

Why this matters¶

If you are an employee, you may assume you can always pick your own fund. That is not always true — an agreement that covers you might name the fund. If you are an employer, paying into the wrong fund can mean paying against an arrangement that does not apply. Knowing where an agreement sets the fund saves both sides trouble.

What you will learn¶

How an agreement can name a super fund
How this can affect an employee's choice of fund
Where to check for the answer

Understanding the concept¶

An enterprise agreement or workplace determination sets out the terms for a group of employees. The ATO explains that whether an employee can choose their own super fund depends partly on the agreement that covers them.

Some agreements name the super fund the employer must pay into. Where an agreement applies and sets the fund arrangements, the employer follows those arrangements. This can mean an employee does not get to choose their own fund, or that their choice is limited to the fund(s) the agreement allows.

The ATO notes that the date the agreement was made can matter to whether a choice of fund is offered. Because the detail depends on the specific agreement, the reliable step is to read the agreement itself and check the ATO's choice-of-fund guidance.

For accountants & bookkeepers

The ATO's choice-of-fund rules turn on the instrument covering the employee. Whether an employee is eligible to choose can depend on the type of agreement and when it was made. Rather than assume, confirm against the specific agreement and the ATO's current guidance for the employee in question, and keep a record of the basis for the fund used.

Example¶

Nina runs a small business and takes on a new team member, Priya, who is covered by an enterprise agreement. Before paying super, Nina checks the agreement to see whether it names a super fund. It does. Nina follows the fund arrangement the agreement sets, rather than asking Priya to nominate a different fund. If the agreement had not named a fund, Nina would instead offer Priya a choice of fund in the usual way.

Common mistakes¶

Assuming every employee can always choose their own fund — an agreement may set it.
Ignoring the agreement and paying into a fund it does not allow.
Guessing the rule from memory instead of reading the agreement and ATO guidance.

How this works in myaccountant¶

In the app — myaccountant stores each employee's super fund details and uses them when you pay super. It does not read your enterprise agreement for you, so confirm the correct fund from the agreement first, then record that fund against the employee so payments go to the right place.

Key points¶

An enterprise agreement or workplace determination can name the super fund.
Where an agreement applies, the employer follows the fund arrangements it sets.
This can affect or limit an employee's choice of fund.
The date an agreement was made can matter to whether a choice is offered.
The reliable step is to read the agreement and check the ATO's guidance.

Learn next¶

General information only — not tax, super or financial advice.

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