Super changes for New Employees from 1.11.21

From 1st November, if you have any new employees start work with you and they don’t nominate a specific superannuation fund, you may need to request their ‘stapled super fund’ details from the ATO.

As an BAS Agent, we can help you with this.

Choosing a super fund

Most employees are eligible to choose a super fund when starting a new job. However, sometimes an employee might not make a choice. For example, they might omit to complete the form, or they might not know the details of their existing fund or whether they actually have one. This situation could leave the employer at risk of not meeting their superannuation guarantee obligations and incurring penalties.

Employers can request an employee’s ‘stapled fund’ (a fund linked to an individual) details from the ATO, starting from 1st November 2021.

What employers need to do from 1st November – 3 steps

  1. Offer eligible employees and contractors a choice – When a new employee starts work, they can either specify a fund or decide to go with your default fund. Either way, you have an obligation to offer them a choice and pay super contributions into their chosen fund.
  2. If no choice is taken, request details of stapled fund from the ATO – If the employee doesn’t make a choice. You can lodge a request for details of their stapled fund through ATO online services. You will need to provide the employee’s TFN and personal details.
  3. Pay super contributions into the stapled fund – Where the ATO provides details of a stapled fund you must pay super guarantee contributions into it.

Talk to us about super choice and stapled funds

Essentially, you must take all steps you can to allow employees choice of super fund. But in cases where all avenues are exhausted you can use your default fund.

As a BAS Agent, we can lodge ATO requests for stapled funds on your behalf, including bulk requests where there are 100 or more new employees.

Get in touch – we’re happy to help!