You may have read in the financial media about changes happening in the employee superannuation area. In particular, Stapled Superannuation Funds.
So, what is a Stapled Super Fund? A Stapled Super Fund is an existing super account that is linked or ‘stapled’ to an individual employee so that it follows them when they change jobs.
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 change was made to help reduce super fund account fees by stopping new super accounts from being opened 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 “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 a 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 for Business):
– Check and update the access levels of your authorised representatives in ATO online services; and,
– They will need to have the ‘Employee Commencement Form’ permission in order 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 your client manager.
Author – Quang Tat
*Correct as of 15 November 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.