On the 1st of November 2021 stapled superannuation was rolled out in Australia.
A stapled super fund is an existing super account that is linked, or 'stapled', to an individual employee so it follows them as they change jobs.
This aims to reduce account fees, avoid paying multiple insurance fees whilst maximising the employee’s investment potential. It also avoids new super accounts being opened every time an employee starts a new job.
This means that from the 1st November, if you have a new employee start, and they don't choose a super fund, employers will need to request their ‘stapled super fund’ details from ATO.
You will need to request stapled super fund details for new employees who start on or after 1 November 2021, when:
• You need to make super guarantee payments for that employee and they are eligible to choose a super fund, but don't.
• This includes contractors who you pay mainly for their labour and who are employees for super guarantee purposes.
You may need to request stapled super fund details for some employees who aren't eligible to choose their own super fund.
This includes employees that are:
1. Temporary residents
2. Covered by an enterprise agreement or workplace determination made before 1 January 2021.
If your new employee chooses a super account they already have, or chooses your default fund, you do not need to request stapled super fund details for them.
Once an employee tells you their choice of super fund, you have 2 months to start paying contributions into that fund.
If you have received a choice of SUPER FUND FORM from a new employee from 1 November 2021, you must contribute before this time.
If you don’t pay to the employee's choice fund, you should pay into their stapled super fund, or your employer nominated account - if the ATO advises you that they do not have a stapled super fund.
For more information please clinic on ATO STAPLED SUPER
Alternatively, email us on [email protected] or call us on 1800 MYABIC