Previously, if your business took on an employee and they didn’t choose a super fund, you could pay their super guarantee contributions into your business’s chosen default fund.
That changed 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).
Is super the right investment vehicle for you? Reach out to your trusted adviser or feel free to contact BG Private Clients today at (03) 9810 0700 for a consultation.
IMPORTANT INFORMATION: The information and opinions contained in this presentation 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. Any individual making any investment or borrowing decisions should make their own assessment taking into account their own particular circumstances. The information and opinions herein do not constitute any recommendation to borrow funds or purchase, sell or hold any particular investment. It is recommended that no financial product or financial service be acquired or disposed of, credit contract entered into 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 may change without notice. I do not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, I do not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither I. nor my 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.