In the 2020-21 Federal Budget, the government announced the super reforms – Your Future, Your Super.
One of the key elements of this reform is the introduction of Stapled Superannuation from the 1st November 2021. If you have new employees start with you from that date, you will need to comply with the updated Choice of Fund rules and request the employees ‘stapled super fund’ details from the ATO if they do not provide you with their Choice of Fund details.
The stapled super fund is an existing super account that is already linked or ‘stapled’ to an individual employee so that it follows them as they change jobs. This change aims to reduce account fees by stopping new super accounts being opened every time an employee starts a new job.
Prior to 1 November, if an employee does not advise their choice of superfund to be used for them, you will set them up in your nominated Default Fund.
From 1 November onwards, you will be required to check online with the ATO for the details of their stapled fund and you will be required to use that fund for them. If you cannot find any details for them, you are then able to set them up in your Default Fund.
If you do not comply with this new provision, penalties may apply.
It should be noted that before you make a request for stapled super information from the ATO, you must have already lodged either of the following with the ATO:
- A Single Touch Payroll event that includes that employees’ details; or
- A tax file number declaration for that employee.
So how do you make a request for stapled super information for new employees?
You can use Access Manager or the ATO Online Services for Business Portal if you have access to either of these platforms. If those options are not available to you then your accountant can complete the request online for you.
The information you will be required to enter includes:
- The employees TFN – if you do not yet have this, an exemption code can be entered but it may delay the processing of your request
- Full name, including ‘other given name’ if known
- Date of birth
- Address (residential or postal) if TFN is not known.
Once completed you will receive confirmation onscreen that you should print and keep on file. Your employee will also be notified that you have requested their stapled super information and the details that the ATO provided.
If you need to add more than 100 new employees at once, a bulk request form will be available.
We will provide more guidance on this as the date draws closer and it becomes available. If you have any questions, please contact us on 03 52216399 or email us at firstname.lastname@example.org for further assistance.
Disclaimer: this information is of a general nature and should not be viewed as representing financial advice. Users of this information are encouraged to seek further advice if they are unclear as to the meaning of anything contained in this article. Davidsons accepts no responsibility for any loss suffered as a result of any party using or relying on this article.