Changes to super & onboarding new employees from 1 November 2021

On 1 November 2021, the ATO will be changing their rules regarding superannuation and onboarding new employees. Employers are no longer allowed to pay to default fund without first checking if the new employee has a ‘stapled super fund’. If the employee has a ‘stapled super fund’, employers must pay the employee’s super guarantee contributions to the stapled super fund details provided.

Employers should still provide the Super Standard Choice form when onboarding a new employee. If the new employee elects a superfund on the form, you can continue to process the superannuation as you have previously been doing as there will be no need to check for a ‘stapled super fund’. However, when an employee selects ‘The super fund nominated by my employer’ – the employer must first check if the employee has a ‘stapled super fund’ before opting to the employer’s default fund. The requirement to check for a stapled super fund also applies if a new employee doesn’t complete the Super Standard Choice form at all.

What is a ‘stapled super fund’?

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. The introduction of super stapling is designed to reduce the number of super accounts people may collect throughout their working life.

How can I find and use the stapled super information?

Once an employer has submitted either a Tax file number declaration or Single Touch Payroll pay event linking the new employee, you will be able to request the employee’s stapled super fund details from the ATO using either the ATO online services or a tax agent (HQB). Once the request is submitted, you will receive an on-screen response within minutes. This service will not be available until 1 November 2021.

If you require any assistance with this process, please don’t hesitate to contact our office.

– James Davis

Posted 18.10.2021

This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.