From 1 November 2021, if you have a new employee start that does not choose a super fund you will have an extra step to take to comply with choice of fund rules.
You will need to request their ‘stapled super fund’ details from the ATO.
A stapled super fund is an existing super fund account that is linked/stapled to an individual employee so that it follows them when they change jobs.
This change is aimed to reduce account fees by stopping new super accounts from being opened every time an employee starts a new job.
To be able to request stapled super fund details for a new employee you will first need to lodge either a Single Touch Payroll event or Tax file number Declaration.
You will also need to be an authorised representative of the business in ATO online services to obtain this information.
To make a request from 1 November 2021 you will need to do the following;
- Log into ATO online services.
- Enter your employee’s details, including their:
- TFN – an exemption code can be entered where an employee cannot provide their TFN, but this could result in processing delays
- full name – including ‘other given name’ if known
- date of birth
- address (residential or postal), if TFN not given.
- Receive the response on-screen in online services. The ATO will notify employee of the stapled super fund request and the fund details that were provided.
If you do not meet your choice of super fund obligations penalties may apply.
The information provided in this article is general in nature.
If you have any questions regarding stapled super fund, please contact our office.