Increased Employer Obligations for New Employee Super Funds
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From 1 November 2021, if you have new employees start and they don't choose a super fund, you may have an extra step to take to comply with choice of fund rules. You may need to request their ‘stapled super fund’ details from the Australian Tax Office (ATO). This includes contractors who you pay mainly for their labour and who are employees for super guarantee purposes.
What is a ‘stapled super fund’?
A stapled super fund is an existing super account linked, or 'stapled', to an individual employee so it follows them as they change jobs. This aims to reduce account fees, avoiding new super accounts being opened every time an employee starts a new job.
When do you need to make this request?
Before the ATO can provide a response, they need to confirm that an employment relationship exists- that is, you have a signed contract with the new employee and they have been offered a choice of super fund. Then you can request stapled super fund details using ATO online services.
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.
What if I don’t request stapled fund details when I should?
Beware - you may have to pay the choice shortfall penalty (which is the additional super guarantee charge) if you contributed to your default fund without making a stapled super fund request.