You may have come across recent discussion about changes in the employee superannuation area in the financial media. In particular, Stapled Superannuation Funds.
So, in the realm of accountants in Sydney, what exactly is a Stapled Super Fund? A Stapled Super Fund refers to an already established super account that is interconnected or ‘stapled’ to a specific employee, ensuring continuity even when the individual switches employment positions.
Effective from 1 November 2021, if a new employee has not chosen a super fund (generally by returning the superannuation “Standard Choice Form”), then the employer MUST obtain the “Stapled Fund” details from the ATO and not just pay the Superannuation Guarantee (SG) into the employee’s default fund.
The recent change aimed to address and help reduce super fund account fees by stopping new super accounts from opening every time an employee starts a new job. If the employer does not comply with this new Stapled Super Fund rules, then the ATO could impose a “Choice Shortfall” penalty on the employer. More information on Stapled Super Fund can be found here.
Steps to help guide you (the employer) in obtaining the new employee’s stapled fund details:
- Lodge a TFN Declaration or an STP Pay event (ATO is considering if information can be requested without any of this information is filed).
- Log into ATO Online Services (for Agents or Business):
- Check and update the access levels of your authorised representatives in ATO online services; and,
- They must have the ‘Employee Commencement Form’ permission to request a stapled super fund.
- Request Stapled Fund details by providing the information below.
- Enter the 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; and,
- Address (residential or postal), if TFN not given; and,
- Once the employer has received this information, they can use it to pay the SG to the relevant Stapled Fund of the new employee.
If you have any queries in relation to the above, don’t hesitate to contact us.
Author: Quang Tat
*Correct as of 15 November 2021
Disclaimer – Kreston Stanley Williamson has produced this article to serve its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas in this article, you must seek advice about your circumstances. Liability is limited by a scheme approved under professional standards legislation.
