Important Superannuation Changes for Employers
From 1 November 2021, if you have new employees starting in your business, you may have an extra step to take to comply with choice of fund rules if the employee does not choose a super fund. You will now need to request the employee’s ‘stapled super fund’ details from the Australian Tax Office (ATO). A stapled super fund is an existing super account which is linked, or 'stapled', to an individual employee so that it follows them as they change jobs. These new changes aim to reduce account fees by stopping new super accounts being opened every time an employee starts a new job.
The requirements are as follows:
Step 1: Offer your eligible employees a choice of super fund
You need to give your eligible new employees a Super Standard Choice Form (available from the ATO website) and pay their super into the account they nominate on the form. There is no change to this step of your super obligations.
Step 2: Request stapled super fund details
If your employee doesn’t choose a super fund, you may need assistance from your registered tax agent to request their stapled super fund details. The ATO will provide your employee’s stapled super fund details after they have confirmed that you are their employer. You must pay your employee’s super using the stapled super fund details the ATO provides if the employee has not nominated another fund.
Step 3: Pay super into a default fund
You can pay into a default fund, or another fund that meets the choice of fund obligations if:
· Your employee doesn’t choose a super fund; and
· The ATO have advised you that they don’t have a stapled super fund.
For further information please view full details at the ATO website or contact us directly for assistance.