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? Please do not hesitate to get in touch with us via your Banks Group representative, (03) 9810 0700 or firstname.lastname@example.org.