New rules commence on 1 November 2021 regarding Stapled Super Funds for new employees who are eligible to choose a fund.
From 1 November 2021, where no choice is made of a superannuation fund by a new employee, the employer can no longer use their default fund. Instead, there is a requirement that the employer must use the employee’s 'stapled super fund'. The employer will be required to source the name of the superannuation fund from the Australian Taxation Office (ATO).
We note the following pointers:
What is a stapled fund?
A stapled super fund is a superannuation fund account that an employee already has, which the individual can continue to use when changing jobs as it will be ‘stapled’ to them.
How do I find the fund name?
The ATO has stated on their website that from 1 November 2021, an employer will be able to request stapled super fund details for new employees using online services for business. Your tax agent can also do this for you.
What action do I need to take now?
Check and update the access levels of your staff that use online services for business (i.e. the old business portal) to ensure the appropriate staff have access and that the personal information of employees will be protected. Employees will need to have the 'Employee Commencement Form' permission in order to request a stapled super fund. Further, you will need to review policies, procedures and systems to have them ready in time for the 1 November start-date, to be able to implement the new rules.
What to know more? Please contact your BDO adviser.