Super Stapling

Super Stapling

From 1 November 2021, where new employees do not choose a super fund, most employers will need to check with the Australian Taxation Office (‘ATO’) to see whether the employee has an existing super account, known as a ‘stapled super fund’, to pay the employee’s super guarantee into.

This measure was introduced in the 2020-21 Federal Budget as part of the Your Future, Your Super plan to reduce the amount of super funds held by individuals.

 

What does this mean for employers?

In the past, where employees had not chosen a super fund, employers could pay the super guarantee into the employer’s default super fund.

However, from 1 November 2021, employers may need to request stapled super fund details where:

  • a new employee starts on or after 1 November 2021
  • the employer needs to make super guarantee payments for that employee, and
  • the employee is eligible to choose a super fund but doesn’t.

 

What steps does an employer need to take to meet their obligations?

 

Step 1: Offer eligible employees a choice of super fund

Employers must offer their employees a choice of super fund to meet their superannuation obligations.  That is, by providing new employees with a Superannuation Standard Choice Form within 28 days of starting at the company.

If the employee chooses this super fund, an employer must pay the super guarantee into this fund.

 

Step 2: Request stapled super fund details

If an employee does not choose a super fund, before paying super to the employer’s default super fund, employers need to request the employee’s stapled super fund details from the ATO.

Visit the ATO website for directions on how to request the stapled super fund details.

 

Step 3: Pay super into the stapled super fund if requested

 

Step 4: If the employee doesn’t choose a super fund and the ATO has advised that they don’t have a stapled super fund, the employer can proceed to pay the super into their default super fund on the employee’s behalf

 

Resources

  • To read the Treasury Laws Amendment (Your Future, Your Super) Bill 2021 – click here.
  • Superannuation Stapling on the Australian Taxation Office website – click here.

 

Need some help?

Contact us today for more information about your employer obligations!

 

HR Business Assist | P 1300 138 551 | E info@hrbusinessassist.com.au

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