New ‘stapled fund’ super guarantee payments rule
Currently, if your business takes on an employee and they don’t choose a super fund, you can pay their super guarantee contributions into your business’s chosen default fund.
That changes on 1 November 2021.
From that date, if a new employee doesn’t choose a fund, you’ll have to contact the Australian Taxation Office (ATO) to confirm whether the employee has an existing super fund.
This ‘stapled super fund’ is linked (or ‘stapled’) to the employee, so it follows them when they change jobs.
Only if the ATO confirms the employee doesn’t already have a super account will you be able to pay their super into your business’s default fund.
As part of the federal government’s super reforms, the new rule is designed to prevent the unintended creation of multiple super accounts.
Multiple accounts result in unnecessary fees and insurance premiums, eroding members’ retirement savings.
How to request stapled super fund details
If your employee doesn’t choose a super fund, you’ll need to:
- Log into the ATO’s online services for business
- Enter your employee’s details (you’ll need to have already submitted a Tax file number declaration or Single Touch Payroll pay event linking you to them).
- Within minutes, the result of your stapled super fund request will be shown on your screen.
For more information, visit the ATO’s ‘Request stapled super fund details for employees’ web page or call them on 13 10 20 (Mon–Fri, 8am to 6pm).
Get expert advice
Need help understanding or meeting your business’s superannuation guarantee obligations?
IMPORTANT INFORMATION: This blog has been prepared by Modoras Accounting (QLD) Pty. Ltd. ABN 81 601 145 215. The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Accounting (QLD) Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog can change without notice. Modoras Accounting (QLD) Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Accounting (QLD) Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Accounting (QLD) Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication. Liability limited by a scheme approved under Professional Standards Legislation.