The Best Super Fund for Electricians

For electrical business owners, sole traders and employees, your choice of super may be one of the most impactful financial decisions of your careers. However, it can be a minefield assessing the different insurance options, fees and long-term benefits. Choosing a superannuation fund that understands the specific risks and insurance requirements of being an electrician is just one way you can set yourself up for long-term financial success.

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1. How a super fund works 
2. Super fund requirements for electrician business owners 
3. Tips for electricians choosing a super fund 
4. The best Australian superannuation providers for electricians 

1. How a super fund works 

There are different requirements and benefits for electrician superfunds depending on your employment type. 

For employees

• Contributions: Your employer is required to contribute a minimum of 11% of your earnings into your choice of superannuation account as part of the Superannuation Guarantee.
• Salary: Super contributions are usually part of your salary package, either as an additional benefit or included within your total salary.
• Investment choices: As an employee, you can choose your investment strategy within your super fund, ranging from conservative to aggressive, depending on your retirement savings goals and risk tolerance.
• Additional contributions: You always have the option to contribute more to your super fund to increase your retirement savings.

For sole traders

• Voluntary contributions: Unlike employees, as a sole trader, you need to voluntarily contribute to your super fund since you don't have an employer to make contributions on your behalf.
• Investments: Sole traders can select their investment strategy in the super fund, tailoring it to your financial goals. 
• Tax benefits: Making contributions to a super fund can provide sole traders with tax advantages, reducing your taxable income.

For employers

• Superannuation guarantee: As an employer, you must contribute at least 11% of your employee's earnings into a super fund.
• Compliance: Employers must ensure they comply with superannuation laws, including timing your contributions to avoid penalties.

If you're ever confused about how to invest or what you should be doing, employees and sole traders can get advice and support from their respective unions or trade associations. The super system is designed to be flexible, allowing contributors to adjust their investment strategies and contribution amounts as their career and their financial situation change.

2. Super fund requirements for electrician business owners

All Australian businesses have responsibilities when it comes to superannuation. For tax and super purposes, 'employees' include apprentices, trainees and some contractor arrangements. Even if you have only one or two employees you are required to: 

• Pay your employees super.
• Give your employees their choice of super fund.
• Decide on your business’s super fund of choice.
• Know when and how to make payments.
• Keep up with legislation and super changes.

Things to note are: 

• The amount you must pay may be different if there's an Industrial or Enterprise Bargaining Agreement (EBA) or Award.
• You must provide a new employee with a Choice of Fund form within 28 days of them starting. 
• Fresh hires have the option to select a superannuation fund of their choice or opt for the default super fund.
• If an employee has a specific choice of super fund, you have two months to start paying contributions into their chosen fund. 
• If your new employee doesn't have a specific preference, you must allocate their super contributions to the company's default super fund. 

3. Tips for electricians choosing a super fund

• Insurance for electricians

As an electrician, it's important to look for funds that offer tailored insurance options for the risks associated with electrical work. This could include coverage for death, TPD,  income protection cover for injury or if an unexpected global incident occurs. 

• Investment strategies

Different investment styles come with their own risks and benefits. When picking your choice of investing style, consider whether you prefer a more conservative or aggressive investment approach. Many super funds also let you pick investments that align with your ethical values, such as supporting local infrastructure or environmental sustainability efforts.

• Fees and performance

Compare the fees and historical performance of each fund to ensure you're choosing a cost-effective option with strong returns.

• Support 

Some funds offer financial advice services, which can be beneficial in making informed decisions about your superannuation. Also, consider the average customer rating, as this could indicate how efficient they are at supporting their clients. 

4. The best Australian superannuation providers for electricians 

• Cbus

  Initially built to support the building and construction industries, Cbus is built on providing comprehensive insurance options for those in higher-risk occupations. In particular, members can apply for up to $5 million in Death cover and up to $3 million in Total and Permanent Disablement (TPD) cover, while Income Protection is available to cover 85% of your salary for 2 or 5 years. Overall, Cbus' Growth (MySuper) investment option has demonstrated strong long-term performance - with an average annual return of 8.89%.
  
  

• Australian Super

  Among the top 20 largest pension funds in the world, there’s safety in numbers when joining Australian Super. Due to their size, they offer a huge range of investment options, including fighting climate change and modern slavery and supporting diversity in the workplace.  With over $315 billion in assets globally, there are plenty of options to tailor your investment to your priorities. They offer Income Protection, TPD, and Life Insurance coverage, plus access to financial advisers, educational webinars, and planning tools to help members make the most of their super​. 
  
  

• HostPlus

  HostPlus is recognised for its history of strong long-term performance, offering members a wide range of investment choices, including low-fee indexed investment options.​​ HostPlus has received several awards for both its service and performance, including the 2023 Fund of the Year. Members can choose from a life stage fund, 12 pre-mixed investment portfolios, or 9 single asset class options, including three socially responsible options​​. They also provide default death and total permanent disablement (TPD) cover for eligible members, with insurance premiums waived for new parents on parental leave for 12 months​​. 
  
  

• ElectricSuper

  ElectricSuper is a profit-to-members industry super fund supporting Australian workers involved in the supply of electricity, as part of the following companies: SA Power Networks, ElectraNet or AGL. As a profit-to-members fund, it focuses on benefiting its members rather than shareholders. Their insurance options include Death & TPD insurance, and Income Protection Insurance, designed to provide financial protection at low premiums. They offer over-the-phone financial advice to help members make informed decisions about their super. Their dedication to building a practical community among members includes face-to-face meetings, worksite visits, and video conferencing.
  
  

• Brighter Super

  Recognised by Money magazine as the 'Best-Value Income Protection in Super for Men 2023,' Brighter Super stands out as a not-for-profit, 100% member-owned super fund tailored specifically for those in the energy and electrical industry. It has competitive fees and personalised services, including award-winning income protection insurance, which covers 80% of salary plus 10% towards super with a minimal waiting period of just 14 days.This insurance not only encompasses basic salary but also considers components like overtime and bonuses.  It is also one of the few super fund accounts that allows Kiwi's coming over from New Zealand to transfer their KiwiSaver. 

When picking a super fund as an electrician, it's crucial to carefully evaluate the investment options, fees, returns, and ethical policies of each provider. Make sure their insurance covers the specific risks tied to electrical work, check your options and select a fund that matches your career goals and personal principles. Should your financial status shift, consider switching to a fund that's more in line with your current needs.

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