How to complete a Super Form

April 6, 2021

TRANSCRIPT:

Hi guys, it’s Michelle Knight from Little Miss Bookkeeping.

Today I wanted to run through a form you might already be familiar with, and that is how to complete your super form or a superannuation standard choice form which you’ll complete when you start a new job.

As an accountant, I do see these get completed incorrectly. So I thought it would be a good idea to just quickly run through some of the details. If you’re interested in learning more, please keep watching!

So typically you will complete your super form when you commence a new job and you will generally be given this at the same time as your TFN Declaration. I’ve created another video going through this little baby. Your new employer will give you these forms together. So you’ll complete these both at the same time.

The reason why you would these forms is so employer can pay super into the right super fund. Now there are all different types of super funds, industry funds, self-managed super funds. And it’s essentially directing your employer to put your super in the right account. So, what I’m going to do is quickly run through this pack, and then specifically the three pages that you will complete and send back to your employer.

Okay, so what I’ve got in front of me is the super form which is about seven pages long, I believe, the first few pages, again, like the TFN declaration, is just some information about how to complete the form and information to direct you where to find out some more info. So, I’m just going to quickly go through these just as an FYI and then we’ll get to the nitty gritty part of the superannuation standard choice form or in short, your super form.

 

The form itself is typically three pages long. So you will complete all three pages and I just wanted to run through each section of the page and what that sort of means in layman’s terms, because again, ATO forms can be a little bit confusing. The terminology you might know as another term, so, let’s just break that down right here, right now.

When you get your super form, you’ll tick one of these three boxes. The first one in layman’s terms is you’re going to nominate a super fund. I remember years and years ago, when I first completed this form as a 14/15 year old, I’m thinking “What’s an AFRA fund retirement savings account? Okay, I’m not sure if I have one of them. Self managed super fund, I definitely don’t have one of them”. Or you can get your employer to put it in a default fund of their choosing. So long story short, if you have any sort of industry fund already set up, you can go ahead and tick this box and then complete sections two, three, and five.

If you have a self managed super fund, you can go ahead and tick this box and complete sections two, four, and five. Now, just be aware that some industry funds have this terminology code called “part self-managed”. I’ve had conversations or heard of conversations with people saying, “Oh no, Michelle, my super is self-managed. It’s with Sunsuper and they let me part self-manage my superfund”. So I know some industry funds allow you to do that or retail funds, but at the end of the day, that is not a self managed super fund by default, according to this form. So just be aware that even though your fund may allow you to select different investments or select different portfolios, it’s actually not a full self-managed super fund. And you will know if you have a self managed super fund, they’re not cheap, they’re not easy to set up, you’ve got a lot of compliance during the year and typically you should have a lot of super to roll into a self-managed super fund. So you will know if you have one of these. More often than not, if you’re not sure, you probably don’t have one.

And then lastly, if you don’t have a super fund already and you just want to get your employer to choose a default fund, you can tick this. This would be most common in situations where you might be a teenager, young adult and it’s your first employer ever, you might just go “can you just set up a super for me?” and that’s all cool. So that’s the third option there.

 

If we go down to section two, you’ll have to complete this. Name and TFN, if you have some sort of employee identification number, typically a lot of people don’t fill this out because they don’t have one, but in the case that you might, you can complete that.

So let’s get to section three. Now, retail industry funds, we’re talking the guys like Sunsuper, Rest, BUSSQ, all those really common funds that you have heard of, you’re already apart of it, your friends are apart of it. This is where you’ll complete the details. So, you’ll have to find the ABN, the name, and then all these other details. Now, the most important ones as an accountant that we’ll need to align is the fund ABN, the name, the USI and member number. And this is really important because, some super funds have lots and lots and lots of different, I don’t know if the right term is portfolios, but different types of super options with different USI numbers. For example, Sunsuper, I think only has one where they have just one USI. There are big super funds that have lots and lots of different USI’s. I think maybe Rest I was setting up a payroll for a new client and setting up the super settings for the employees and if this section is completed incorrectly, it gets really frustrating and confusing as the payroll person.

 

And then the member number is equally as important. So, for example, back in the day, I used to be apart of Sunsuper. I would find the ABN online. You can usually do a Google search for them. It’s typically quite easy to find on their website. And if not, if you have online access to your super, you should be able to find those details pretty easily. So if you’re really unsure, I would suggest getting in contact with your Superfund directly.

So for example, if you Google “Sunsuper” it would actually give you your ABN, write in Sunsuper, they’ll have some standard address and the USI connected to your super fund and the member number. I’ll make a really important point as to why the member number is so important for the payroll person.

If this number is wrong and it comes to paying your super, what sometimes happens, and this really varies based on the fund, and if this number is not correct and doesn’t quite match the person who’s listed on the top of the form, it can sometimes bounce, so it’s sometimes rejected by the fund. And it gets really frustrating for business owners, bookkeepers, accountants because we don’t like to see super bounce cause then the business owner is going to have to repay it. Then we fall into issues of super not being paid on time and penalties and interest and that sort of thing. So, this is why I stress to you getting this information right, and if you’re not sure, finding out. Don’t just leave it blank or write in “Rest Super” and leave everything else blank, that’s just not going to help anyone. And it’s going to make the bookkeeper or payroll person pull the hair out, trust me. Cause that’s what I have to do sometimes.

 

Let’s go to the next page. So, if you have a self-managed super fund, you will complete this form. And I always get whoever’s claiming this form just to provide some additional info, confirm that these details are correct. Because, you’ve got to ensure that the super is being paid into the right super fund.

And because self managed super funds are set up personally, and they’re all sort of like private funds. We don’t want it not getting into the right bank account, if that makes sense. And I’ll just point out one of the things that people don’t complete, don’t understand or don’t get right, which makes it again really frustrating for the payroll person when they’re setting up super funds in the backend of an accounting software. If they don’t have all the data, they’re gonna pull their hair out. And it’s just not a fun time. The biggest mistake that I see when people are completing this section of the form when they have a self-managed super fund, is that they don’t know their ESA or their electronic service address. The best place to check this is to ask your accountant or ask the person who set up your self managed super fund, because this is really important.

For example, when you set up a self managed super fund up in the backend of Xero, if you don’t have any ESA, it kind of doesn’t let you set it up. This all comes back to the compliance and making sure any super contributions go through a clearing house, and this is important, so please put the right details in there, from me and all the bookkeepers and accountants and payroll people, get that right!

 

And then the last bit is you will sign the form, date it and that’s pretty much it. Let’s quickly jump onto the last page and that will be for your employer to complete. So no problems there. As you’ve probably noticed, if you’ve completed this section there is no where for you to complete anything else because your employer is just going to pick a default fund and you’ll have super set up. And I’m sure once the first round of super has been paid into your account, you’ll probably get a nice little letter from whatever superfund that is, saying “Hi, welcome to X super fund, here’s your member number and details and how to contact us” and maybe set up your online account.

So, that’s pretty much how to complete your superannuation standard choice form in a nutshell, if you have any specific questions around this, I do suggest you speak to a tax professional because everyones circumstances are different.

I hope this video was helpful. If you did enjoy it, do please give it a thumbs up and subscribe to my channel. It does help me provide valuable content to you. Thanks for watching and I’ll see you in the next video.

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Nothing makes me happier than implementing time-saving tools and systems that help small businesses get ahead. Instead of being a cog in a large corporation, freelance consulting lets me be the adaptive Bookkeeper on the Sunshine Coast you need. Whatever your financial situation, I’ll help you find new approaches to cut unnecessary costs and alleviate undue pressure. If you’re ready to watch your business grow, let’s start a conversation

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