Ensuring Compliance with Super Choice Forms in Carpentry

What Are Super Choice Forms?

Super choice forms—also called the superannuation standard choice form—are the official way your employees get to pick which super fund gets their super payments. In carpentry, this can be a bit more complicated because of the mix of workers: full-time, casual, apprentices, and sometimes contractors who might also be eligible for super.

How the Standard Choice Form Works

The standard choice form has a few main parts. Section A is where your employee chooses their own fund, Section B is where you fill in your employer’s default fund details, and Section C is for recording the process. There’s also Section D for extra notes if needed. The form is mandatory for eligible employees, and you need to give it to them within 28 days of starting a new job.

Special Considerations for Carpentry

If your employees are covered by the Building and Construction General On-site Award, they might have specific super funds like Cbus set up for them. But even in these cases, eligible employees still have the right to choose their own fund if they want.

Who Must Be Offered Super Choice in Carpentry

Not every worker in your carpentry business has to be offered the choice form. Understanding who is eligible helps you avoid unnecessary paperwork and potential penalties.

• Eligible employees are those who can pick their own super fund. This usually includes most people working under federal awards, enterprise agreements made after 1 January 2021, or workers not covered by any award. That covers most carpenters, apprentices, and casual workers.

• Apprentices and trainees are generally eligible for choice forms too, though sometimes their super payments are at a different rate. Some awards have special rules for apprentices, so it’s worth checking.

• Contractors can be tricky. If they’re mainly paid for their labour and do the work themselves, they might actually be considered employees for super purposes. That means they could be eligible for super contributions and the choice of super fund.

• Employees on temporary visas aren’t eligible to choose their own super fund, but they still get super payments. They can still request a choice form if they want.

If you’re not sure who’s eligible, the ATO has tools to help you figure it out. It’s better to check than to guess.

Timing Requirements and Deadlines

Staying on top of the timing for super choice forms is critical. Missing deadlines can lead to extra work and penalties, so it’s important to know when to act.

When to Give Out Choice Forms

New employees must be given the standard choice form within 28 days of starting. This starts from their first day on the job, not after a trial or probation period.

Existing employees can ask for a choice form at any time, and you have to give it to them. But you only need to accept a new choice from an existing employee once every 12 months. This stops people from switching funds all the time and making extra work for you.

Keeping and Acting on Records

Keeping records is just as important. You need to keep completed choice forms for five years. This is your proof if the ATO ever checks your records.

When an employee makes a choice, you have two months to act on it. For existing employees, you can keep paying into their current fund during this time, but you need to switch to their new choice by the end of the two months. For new employees who don’t make a choice, you might need to check for a stapled super fund request—this is a fund they’ve had before, which the ATO can tell you about.

If you miss these deadlines, you could end up paying the Superannuation Guarantee Charge, which includes extra interest and fees. That’s money you don’t want to lose.

Default Fund Requirements for Carpentry Employers

Having a good default super fund is a key part of staying compliant. Your default fund is where super payments go for employees who don’t choose their own fund or don’t have a stapled super fund.

Choosing and Managing Your Default Fund

Choosing a default fund means picking a super fund that’s licensed and meets all the rules. Many carpentry businesses use industry funds like Cbus because they’re set up for construction workers and offer good insurance.

Section B of the choice form is where you put your default fund details. You need to include the fund’s name, ABN, and the unique superannuation identifier. You have to fill this out even if you think your employee will pick their own fund.

If you change your default fund, you need to give new choice forms to all affected employees. This can be a big job if you have a lot of workers, so plan ahead.

Record Keeping Obligations for Super Choice

Keeping good records is not just a good idea—it’s the law. You need to keep proof that you’ve given choice forms to eligible employees and that you’ve acted on their choices.

Why Good Records Matter

Completed choice forms must be kept for five years, covering all situations: when employees pick your default fund, choose their own fund, or make no choice at all. As the employer pays super contributions into each worker’s account, it’s important to also keep records of each employee’s super fund details, including the unique superannuation identifier and account details. Supporting documents should clearly show when forms were given out, returned, and any notes about fund choices—this helps track which employee number is linked to which fund and ensures you have all the details if you need to check further information.

Records should be easy to find and read, whether in digital or paper form. Digital copies are fine, but you must be able to access them for the full five years, even if you change your record-keeping system. For each employment record, keep track of the tax file number, benefits, and any changes in super fund details or contributions paid. This makes it easier to update or confirm existing fund information and helps you stay ready for any ATO checks or audits.

Superannuation records need to be kept for at least ten years, as super is a long-term investment for your workers’ retirement savings. In carpentry, where workers often move between jobs and sites, keeping accurate records of employment, super fund details, and contributions paid is especially important. Having everything in order helps protect your business and ensures your employees’ future performance and investment in their retirement is secure.

Common Compliance Mistakes in Carpentry

The construction industry, including carpentry, has a lot of super compliance issues. Understanding these common mistakes can help you avoid costly errors and penalties.

• Missing the 28-day deadline for giving out choice forms. This is the biggest mistake, and it can cost you.

• Getting contractor status wrong. If you treat someone as a contractor but they’re really an employee for super purposes, you could be in trouble.

• Not keeping good records. If you can’t prove you’ve done the right thing, the ATO won’t take your word for it.

• Not acting on employee choices within two months. If an employee picks a new fund, you need to switch their super payments.

• Not updating your systems when the super rate changes. The rate went up to 12% in July 2025—make sure you’re paying the right amount.

• Paying late super directly to the fund instead of through the ATO. Once super is late, you need to pay it to the ATO with interest and fees, not just to the fund.

These mistakes can add up fast, so it’s worth getting things right from the start.

Penalties and Consequences of Non-Compliance

Getting super choice forms wrong can be expensive. Here’s what can happen if you don’t follow the rules.

• Superannuation Guarantee Charge: If you pay super late or to the wrong fund, you’ll have to pay extra charges, interest, and fees.

• Choice liability penalties: If you don’t offer the choice form or don’t pay super to the right fund, you could be fined up to $500 per employee per quarter.

• Interest adds up fast: Even a short delay can mean big interest payments.

• You lose tax deductions: If you have to pay the Superannuation Guarantee Charge, you can’t claim a tax deduction for those payments.

• Court cases and director penalties: If you keep making mistakes, you could end up in court or personally liable for unpaid super.

Setting Up Effective Compliance Systems

Good systems make it easier to stay compliant. Here are some practical steps you can take to keep your business running smoothly.

• Set up reminders for when new employees start, so you don’t forget to give them the choice form.

• Use digital forms if you can. Many super funds now let you fill out and sign forms online, which makes record keeping easier.

• Check contractor status with a simple checklist based on ATO advice.

• Keep all your records in one place, either on paper or digitally. Make sure you can find everything if the ATO asks.

• Review your compliance regularly. Check that new employees have been given forms, that choices have been acted on, and that your records are up to date.

• Train your staff so everyone knows what to do. This is especially important if you have site supervisors or office staff handling payroll.

• Get professional advice if you’re not sure. An accountant or payroll service can save you a lot of time and money.

Integration with Payroll and Business Systems

Making super choice part of your everyday business makes it easier to stay compliant and keep things running smoothly.

• Use payroll software that can handle super payments, track who’s been given choice forms, and remind you when things are due.

• Include super choice in your onboarding process. Make it a standard step for every new employee.

• Track multiple super funds if you have workers in different funds. A good system will help you keep track of who’s in what fund.

• Generate reports to see who needs forms, which forms are overdue, and which choices need to be acted on.

• Make sure your system is SuperStream compliant. All employers need to pay and report super electronically.

• Back up your records so you don’t lose anything if your system crashes.

• Update your systems when rules change. The super rate went up in July 2025—make sure your payroll system knows that.

Managing Changes and Updates

Super rules change all the time, so you need to stay on top of things to keep your business compliant.

• Watch for rate changes. The super rate went up to 12% in July 2025. Make sure you’re paying the right amount.

• Use the latest forms. The ATO updates the standard choice form from time to time. Using the newest version is best practice.

• Stay informed about new rules. The “stapling” rule means you might need to check if a new employee has an existing super fund from a previous job.

• Process fund changes quickly. If an employee wants to change super funds, you have two months to do it.

• Update your default fund details if you change funds. You’ll need to give new choice forms to all affected employees.

• Watch for award changes. Construction awards can change, and that might affect your super obligations.

• Keep your technology up to date. Software updates often include changes to super rules.

Working with Professional Advisors

If you’re not sure about super choice forms, it’s worth getting help from people who know the industry.

• Accountants and payroll services who know the construction industry can help you set up good systems and keep you compliant.

• Legal advisors can help if you have tricky contractor situations or if you’re facing compliance action.

• Industry associations often have resources and advice for members.

• Super fund reps can help with forms, payments, and record keeping, especially if you use industry funds like Cbus.

• Tech providers can help you set up and maintain good record-keeping systems.

Getting the right advice can save you a lot of time and money. Ready to get your super choice forms sorted so you can focus on your carpentry business? Our team understands the challenges you face and can help you set up systems that keep you compliant without drowning in paperwork. Contact us today to talk about how we can take the stress out of super choice obligations and protect your business from costly mistakes.