Super Choice Rules Will Change from 1 November 2021
Recent changes to the ‘Choice of Super Fund’ rules mean employers may need to take extra steps when setting up a new employee if they do not choose a super fund.
From 1 November 2021 employers may need to request an employee’s ‘stapled super fund’ details from the ATO if they have not been provided with super fund details from their employee. A Stapled Super Fund is an existing super account that is linked to an individual, these changes aim to decrease the number of super accounts and fees for an individual. These changes only affect new employees who start from 1 November and do not affect any current employees.
What you need to do by 1 November 2021
To ensure you are ready to request stapled super fund details with the ATO be sure to check and update your access levels for all authorised representatives in ATO online services.
What you need to do after 1 November 2021
From 1 November all employers should offer all new eligible employees a choice of super form, this can be downloaded from the ATO.
If an employee does not choose a super fund you are required to log into the ATO online services and request their stapled super fund details. This request can only be done after you have submitted a TFN declaration or a Single Touch Payroll Event for the employee, linking the employee to your business. The request should only take a couple of minutes and will appear on-screen.
To request a stapled super fund, you, or your authorised representative, need to:
log into ATO online services.
enter your 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
address (residential or postal), if TFN not given.
The online system will use rules based on the regulations to work out and return a stapled super fund in response to a request.
What to do if the stapled super fund does not accept contributions
If the stapled super fund won’t accept the contributions for the employee you will be required to make a new request for the employee’s stapled super fund. If the same stapled super fund details show please call the ATO on 13 10 20 and they will advise of another stapled super fund or if the employee does not have a stapled super fund.
When to use your default super fund
If an employee has not provided you with super fund details and the ATO advises you that there is no stapled super fund for the new employee, you can pay super contributions into your default super fund. This may occur for people who have never been a member of a super fund.