From 1 November 2021, Employers will be required to request information from the ATO for any new employee that does not nominate a superannuation fund on their Superannuation Standard Choice Form.
This update provides a summary of the new requirements.
WHAT IS A ‘STAPLED SUPER FUND’?
A stapled super fund is the existing super account that is linked or ‘stapled’ to an employee which follows them from job to job.
This is the account where employers will be required to make super contributions for the employee if they do not nominate a superannuation fund on their Superannuation Standard Choice Form.
WHY HAS THIS BEEN INTRODUCED?
Ideally, an employee will have the same super account for life unless they choose not to.
By ‘stapling’ a super account to an individual, the ATO is aiming to ensure that employees do not acquire multiple super accounts throughout their working life. It also aims to maximise retirement savings and reduce account fees that may be incurred by having multiple super accounts open.
WHO IS RESPONSIBLE FOR REQUESTING THE STAPLED FUND DETAILS?
From 1 November 2021, the employer or authorised employees (eg. HR or payroll department) will be responsible for requesting the details of the stapled super fund when a new employee commences employment.
This will only be required if the employee is eligible to nominate a superannuation fund on their Superannuation Standard Choice Form but doesn’t.
HOW DO I REQUEST THE STAPLED FUND DETAILS?
Requests can be made online through ATO Online Services for Business by the employer or your tax practitioner. Results will be available within minutes.
WHEN DO I HAVE TO REQUEST THE STAPLED FUND DETAILS?
You will only be required to request stapled super fund details when an employee does not nominate a superannuation fund when completing their Superannuation Standard Choice form.
If the ATO advises the employer that the new employee does not have a super stapled fund, then the employer can pay the employee’s super contributions to the businesses default fund.
WHERE TO FIND MORE INFORMATION
You can find more information about these changes on the ATO website.
All businesses are also encouraged to seek guidance specific to their circumstances from their Accountant or Tax Practitioner.
For more guidance about this update, or to find out how Edwards HR can support your business, contact our team today!
Emma Edwards – 0459 818 011 or firstname.lastname@example.org
Alicia Hansen – 0497 497 342 or email@example.com
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