What you should know about changes to super for new employees

From 1 November 2021 a Federal Government initiative called “super stapling” came into effect to address a common problem of employees often having multiple super accounts every time they change jobs. The benefit to employees is that they would have a “stapled” super account that follows them as they change jobs, leading to less duplication and less fees and a higher overall super balance when they retire.

As an employer, here’s what you need to know:

1. From 1 November 2021, super stapling will require an extra step in your new employee onboarding process.
2. You will need to request stapled super fund details for new staff members. Use this Superannuation standard choice form from ATO. This includes contractors who you pay mainly for their labour and are employees for super guarantee purposes.
3. If your new employee chooses a super account they already have, or chooses your default fund, you do not need to request stapled super fund details for them.
4. Once an employee tells you their choice of super fund, you have 2 months to start paying contributions into that fund. 
5. If your employee has chosen a super fund, you can pay super contributions to their chosen fund. If your employee does not choose a super fund, in most circumstances you need to request a stapled super fund.
6. You can’t provide recommendations or advice about super to your employees.
7. The stapled super fund selection will be based on information the ATO hold about the employee’s super fund membership, as reported to them by funds.

Requesting the stapled super fund details from ATO

You’ll be able to request your employee’s stapled super fund details after you have submitted a Tax file number declaration or Single Touch Payroll (STP) pay event, which identifies that you have an employment relationship or link to your employee.

To request a stapled super fund, you, or your authorised representative, need to:

1. Log into ATO online services.
2. Navigate to the ‘Employee super account’ screen via the ‘Employees’ menu and select ‘Request’ to open the form.
3. Enter your employee’s details, including their:
      a.   TFN – an exemption code can be entered where an employee can’t provide their TFN, but this could result in processing delays
      b.   full name – including ‘other given name’ if known
      c.   date of birth
   d.   address (residential or postal), if TFN not given.
4. Read and click the declaration to sign it. You’ll also be able to tick a box under ‘more employees to request?’ to request stapled super fund details for additional employees.

1. Submit your request.

Shortfall penalties (which are an additional super guarantee charge) are payable where employers make contributions to their default fund without making a stapled super fund request.

You can find out more directly from this link at the ATO website.

Please contact our office if you require any assistance with these changes (08) 8531 0577 or admin@weallcount.com.au

General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.