To prevent the creation of unnecessary superannuation accounts, the government has introduced a system as part of new ‘Your Future, Your Super’ legislation, whereby super accounts will now be ‘stapled’ to members. This means that employees will keep their existing super fund (if they have one) when they change jobs unless they choose a super fund themselves. This change came into effect from 1 November 2021.

Here are some changes for superannuation that will affect employers, and some steps you can take to remain compliant with these new obligations.

  • Employers still use the same form, which includes the sections where:

    • Employers must record the date the choice is made

    • Employers must record the date the choice is enacted.

  • If the employee nominates a super fund on the form, including nominating the employer default fund, no further action is required.

  • If no choice is made, the employer must contact the ATO to obtain details of the stapled fund account (SFA).

  • To be able to request the employee’s staple fund, the employee must have a relationship with the ATO; i.e they must have submitted the first Single Touch Payroll pay event with the Tax File Number details.

  • If the employee already has an existing super fund, and does not nominate any super fund in the Standard Choice Form, a new account can only be created with the employer's default fund, once it is confirmed by the ATO that it cannot identify a stapled fund for the employee.

Payroll software like Breathe will prompt you with reminder alerts for an employee’s missing superannuation information on the payroll dashboard. This helps the employer remind the employees that the Superannuation Standard Choice form needs to be completed.

Next Steps

  1. To make sure you're ready to request stapled super fund details, check and update the access levels of your authorised representatives in ATO online services.

  2. Offer your new employees a choice of super fund and pay their super into the account they tell you.

  3. If your new employee doesn’t choose a super fund, you may need to log into ATO online services to request their stapled super fund details. A tax practitioner can also do this for you. You should receive the response on-screen within minutes.

  4. If the ATO provides a stapled super fund result for your employee, super guarantee contributions are to be paid to that fund.

  5. If the ATO advises you that they don’t have a stapled super fund, you may pay super guarantee contributions for that employee into your default fund.

For more detailed information including what to do in circumstances where the stapled fund rejects contributions, visit the ATO webpage Request stapled super fund details for employees.

Disclaimer: This document contains general information and is also not intended to constitute legal or taxation advice.

If you need legal or taxation advice, we recommend you speak to a qualified adviser.

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