Superannuation is an essential part of the Australian workforce. It is a system where a percentage of an employee’s salary is contributed to a retirement fund. This fund, also known as a superannuation fund, is designed to provide financial support to employees after their retirement. Every employee in Australia has a unique superannuation number, which is used to identify their superannuation account. But what happens to your superannuation number when you change jobs? Let’s explore.
What is a Superannuation Number?
A superannuation number is a unique identifier given to every employee in Australia. It is issued by the Australian Taxation Office (ATO) and is used to track an employee’s superannuation contributions and balance. The number is a combination of the employee’s date of birth and a unique number issued by the ATO.
When an employee starts a new job, their employer will request their superannuation details, including their superannuation number. This information is used to set up a new superannuation account for the employee, and contributions from their new employer will be directed to this account.
What Happens to Your Superannuation Number When You Change Jobs?
When an employee changes jobs, their superannuation number remains the same. This means that the employee’s superannuation contributions will continue to be directed to the same account, even if the employee changes employers. However, if the employee wants to change their superannuation fund, they can do so by completing a choice of fund form.
A choice of fund form is a document that allows an employee to nominate a specific superannuation fund to receive their employer’s superannuation contributions. The form must be completed and submitted to the employee’s new employer, who will then direct the contributions to the nominated fund.
It is important to note that some employers have preferred superannuation funds that they use for their employees. In these cases, the employee may need to complete a choice of fund form to nominate their preferred fund.
What Happens if You Don’t Nominate a Superannuation Fund?
If an employee does not nominate a specific superannuation fund, their employer will generally direct their superannuation contributions to a default fund. A default fund is a superannuation fund that has been selected by the employer as the default option for employees who do not nominate a specific fund.
The default fund may not necessarily be the most appropriate fund for the employee, and the fees and charges associated with the fund may be higher than other options. For this reason, it is important for employees to nominate a specific superannuation fund that suits their needs.
Can You Have Multiple Superannuation Accounts?
It is possible for an employee to have multiple superannuation accounts if they have worked for multiple employers throughout their career. However, having multiple accounts can result in higher fees and charges and can make it difficult to keep track of superannuation balances.
To avoid having multiple accounts, employees can consolidate their superannuation into a single account. This involves transferring the balances from multiple accounts into a single account. Consolidating superannuation can help to reduce fees and charges and make it easier to keep track of superannuation balances.
Employees can consolidate their superannuation by completing a rollover form and submitting it to their chosen superannuation fund. The form will instruct the superannuation fund to transfer the balance from the employee’s other superannuation accounts into their chosen fund.
Conclusion
In conclusion, your superannuation number does not change when you change jobs, and your superannuation contributions will continue to be directed to the same account. However, if you want to change your superannuation fund, you can do so by completing a choice of fund form and nominating your preferred fund. It is important to nominate a specific fund to ensure that your superannuation contributions are directed to a fund that suits your needs.