The government has just passed the Your Future, Your Super legislation and it will come into effect on 1st November 2021.
From that date, where employees do not choose a super fund, most employers will have to check with the ATO if their employee has an existing super account, known as a ‘stapled super fund’, to pay the employee’s super guarantee into.
If the employee does not return a superannuation standard choice form:
- The employer must make super payments into an existing (“Stapled”) superfund of a new employee, if they have one, as from start date of legislation (proposed to be 1st November 2021);
- An employer (or their agent) will need to:
- Access ATO Online services; and,
- Enter key information about an employee (Name, Tax File Number, Date of Birth).
- ATO will return details of existing fund that must be used by the employer; and,
- If no existing fund is returned by the ATO system, then the existing super choice obligations remain in place (i.e. pay into the default fund of the employer).
For more information on this upcoming change see the ATO link here.
If you have any queries in this regard, don’t hesitate to contact your client manager.
Kreston Stanley Williamson Team
*Correct as of 29 September 2021
*Disclaimer – this article has been produced by Kreston Stanley Williamson as a service to 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 contained in this article, it is imperative you seek specific advice relating to your particular circumstances. Liability limited by a scheme approved under professional standards legislation.