From 1 November 2021, if you have new employees start, you may have an extra step to take to comply with choice of fund rules if they don't choose a super fund. You may now need to request their 'stapled super fund' details from the 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.
This change aims to reduce the number of additional super accounts opened each time they start a new job.
What you need to do from 1 November 2021
You may need to request stapled super fund details when:
- your new employee starts on or after 1 November 2021
- you need to make super guarantee payments for that employee, and
- your employee is eligible to choose a super fund but doesn't.
You don't need to offer a choice of super fund to some employees, but you may still need to request their stapled super fund details. This includes employees that are either:
- temporary residents
- covered by an enterprise agreement or workplace determination made before 1 January 2021.
Step 1: Offer your eligible employees a choice of super fund
You need to give your eligible new employees a Super standard choice form and pay their super into the account they tell you on the form. Most employees are eligible to choose what fund their super goes into.
There is no change to this step of your super obligations.
You cannot provide recommendations or advice about super to your employees, unless you are licensed by the Australian Securities & Investments Commission (ASIC) to provide financial advice.
Step 2: Request stapled super fund details
If your employee doesn't choose a super fund, you may need to log into ATO Online services and go to 'Employee Super Accounts' to request their stapled super fund details. We can also do this for you.
The ATO will provide your employee's stapled super fund details after they have confirmed that you are their employer.
If the ATO provide a stapled super fund result for your employee, you must pay your employee's super using the stapled super fund details the ATO provide you.
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 your employees don't have a stapled super fund.
To make sure you are ready to request stapled super fund details, we recommend that you check the access levels of your authorised person in ATO online services.
If an authorised person doesn't have full access in ATO online services, they will need to have the 'Employee Commencement Form' permission in order to request a stapled super fund. If, on the other hand, they have no need to access this service, you should remove this permission in order to protect your employees' personal information.
More information about the new stapled super fund rules can be found here, or contact us on 1300 885 761 to discuss.