Fair Work Amendment Act 2012 (174 of 2012)

Schedule 1   Default superannuation

Fair Work Act 2009

13   At the end of Subdivision C of Division 3 of Part 2-3

Add:

149B Term requiring avoidance of liability to pay superannuation guarantee charge

A modern award must include a term that requires an employer covered by the award to make contributions to a superannuation fund for the benefit of an employee covered by the award so as to avoid liability to pay superannuation guarantee charge under the Superannuation Guarantee Charge Act 1992 in relation to the employee.

149C Default fund terms

(1) A modern award must include a default fund term that complies with section 149D.

(2) A default fund term is a term of a modern award that requires, permits or prohibits an employer covered by the award to make contributions to a superannuation fund for the benefit of an employee (a default fund employee ) who:

(a) is covered by the award; and

(b) has no chosen fund (within the meaning of the Superannuation Guarantee (Administration) Act 1992).

149D Default fund term must provide for contributions to be made to certain funds

Specified superannuation fund offering generic MySuper product

(1) A default fund term of a modern award must require an employer covered by the award to make contributions, for the benefit of a default fund employee, to a superannuation fund that:

(a) offers a generic MySuper product; and

(b) is specified in the default fund term of the award in relation to that product;

if:

(c) the employer will be liable to pay superannuation guarantee charge under the Superannuation Guarantee Charge Act 1992 in relation to the employee if the employer does not make contributions to a superannuation fund for the benefit of the employee; and

(d) the employer is not making contributions to a superannuation fund referred to in subsection (2), (3), (4) or (5) for the benefit of the employee.

Defined Benefits Scheme

(2) A default fund term of a modern award must permit an employer covered by the award to make contributions, for the benefit of a default fund employee, to a superannuation fund in relation to which a default fund employee is a defined benefit member.

Exempt public sector superannuation scheme

(3) A default fund term of a modern award must permit an employer covered by the award to make contributions, for the benefit of a default fund employee, to a superannuation fund that is an exempt public sector superannuation scheme.

State public sector superannuation scheme

(4) A default fund term of a modern award must permit an employer covered by the award to make contributions, for the benefit of a default fund employee, to a superannuation fund that:

(a) is a public sector superannuation scheme (within the meaning of the Superannuation Industry (Supervision) Act 1993); and

(b) a law of a State requires the employer to make contributions to for the benefit of the employee.

Transitionally authorised superannuation fund

(5) A default fund term of a modern award must permit an employer covered by the award to make contributions, for the benefit of a default fund employee, to a superannuation fund in relation to which a transitional authorisation is in operation under section 156K.