Effective 1 November 2021, an extra step is now required when onboarding new employees without a nominated super fund.
When a new employee starts on or after 1 November 2021, if the employee does not choose a super fund, you must request the details of the employee’s stapled super fund from the Australian Tax Office (ATO) through ATO online services. If the information is provided by the ATO, this stapled super fund is then used to make Superannuation Guarantee payments for that employee.
A stapled super fund is an existing super account linked, or ‘stapled’, to an employee. The aim is that the super account follows an individual when they change jobs, to avoid new accounts being opened every time an employee starts a new job and multiple account fees that come with having multiple super accounts.
Before requesting the stapled super fund details, the employer must have established an employment relationship link which is completed by submitting a Tax File Number declaration or Single Touch Payroll pay event.
Discussing superannuation funds with employees
Australian Securities and Investments Commission (ASIC) has also updated its guidance on what employers can and cannot discuss with employees about their choice of superannuation fund. Employers are not allowed to give financial product advice or mislead employees about superannuation products, which includes discussing the merits or shortcomings of an employee’s stapled super fund.
For more information, please contact your local William Buck Superannuation advisor.