Payroll admin is one of those areas where small changes can create big headaches if they go unnoticed. If you are a business owner managing your own payroll, there is a recent update from the Fair Work Commission that is worth a few minutes of your time.
Default super fund names have been updated across 125 modern awards. Some funds that were previously listed no longer exist under their original names. If your records have not kept up, you could find yourself referencing a fund that has merged, rebranded, or closed entirely.
The good news is this is a straightforward fix. This post will walk you through what a default super fund is, why this update matters, and what to check in your payroll setup today.
What Is a Default Super Fund?
A default super fund is the superannuation fund an employer must contribute to when an employee does not nominate their own fund. Every modern award includes a list of approved default funds that apply to employees covered under that award.
If a new team member starts work and does not make an active super choice, you are required by law to direct their contributions to a fund listed as the default in their relevant award. This is not optional and using an incorrect or outdated fund can create compliance issues for your business.
The Fair Work Commission review was carried out specifically because some of the fund names listed in awards had become inaccurate over time. Funds had merged, changed names, or ceased to operate, but the award wording had not been updated to reflect this. The review has now corrected those inconsistencies across 125 awards.
Looking for a Bowral bookkeeper to help you? Get in contact with us now.
Why This Update Matters for Your Business
For the majority of businesses, nothing changes about how super is calculated or when it needs to be paid. The Superannuation Guarantee rate and payment deadlines remain the same. What has changed is the name of the fund listed as the default in some awards.
Here is why that still matters. If you onboard a new employee and they do not nominate a fund, you need to use the correct default fund listed in their award. If your payroll system, Xero file, or employment contracts still reference an old fund name, you may run into problems when setting that employee up.
A real example of how this plays out: a business owner hires a casual employee who does not submit a super choice form. The employer goes to set up the super contribution in Xero and realises the fund name in their template no longer matches the award. What should be a five minute task turns into an hour of research to find the correct fund details and update the system. Multiply that across a few new hires and it becomes a genuine time drain.
Catching this now, before it affects a real onboarding situation, is a much better outcome.
Tips and Reminders
Taking a little time to review your setup now can save a lot of frustration later. Here is what to check:
- Look up the modern award that covers your employees and confirm which super fund is currently listed as the default
- Review your Xero payroll settings and make sure the fund name and details match what is now listed in the award
- Update any onboarding documents or employment contract templates that reference a specific super fund by name
- Check that your payroll software reflects the current fund details before your next onboarding
- Keep an eye on your super payment deadlines. Contributions for January to March 2026 must be received by the fund by 28 April 2026. Late super payments are not tax deductible, so getting the fund details right matters
If you are not sure which award applies to your employees or whether your Xero setup is current, a bookkeeper can help you work through it quickly.
Is Your Xero File Set Up Correctly?
Many business owners set up Xero themselves or took over a file that was configured by someone else. Over time, payroll settings, super fund details, and employee records can drift out of date. It is not always obvious until something goes wrong.
This is where Xero training or a professional file review can make a real difference. Knowing your file is set up correctly gives you confidence that your payroll is compliant and that super is being directed to the right place every time.
At The Bookkeeping Studio, we are a Xero Platinum Partner and a bookkeeper in Bowral and Bexley, working with small business owners across the Southern Highlands and Australia. We understand the day to day pressures of running a business and we are here to make the numbers side of things feel a whole lot simpler.
Ready to Check Your Xero Setup?
We offer two practical options to help you get on top of your Xero file:
Xero File Health Check for $200 ex GST. We use a 64-point checklist to review your file, identify any issues, and walk you through our findings so you know exactly where things stand.
Xero Training Sessions for $400 ex GST. One on one sessions tailored to your business, run in person or via Zoom, so you can get more out of Xero and manage your books with confidence.
Looking for a bookkeeper in the Southern Highlands? Find out more about our Xero training DIY services now or get in touch and book a call. We would love to help.
