The Stapled Super Fund is here—What does it mean for you?

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From 1 November 2021, employers are required to request their employees’ stapled super fund if they haven’t chosen their own from the ATO. The stapled super fund is a super account linked to the employee and follows them as they change jobs. 

The stapled super fund was put in place in an effort to reduce account fees and prevent the opening of new super accounts every time an employee starts a new job. 

What do I have to do as an employer?

The implementation of the stapled super fund calls for a few changes to your onboarding process. When an employee starts with you, you must provide your new hire with a choice of super fund. The employee will need to complete the Standard Choice Form. If the employee chooses a super fund, you must pay their super on the account they give you.

In cases where your employee does not choose their own super fund, you must request stapled super fund details in the ATO online services. If the employee has no stapled fund, you will need to register the new employee with your default super fund and direct their contributions to that account.

Note that you can’t provide recommendations about super to your employees unless you are licensed by the Australian Securities and Investments Commission (ASIC) to provide financial advice.

Failure to comply with this requirement may result in super guarantee penalties. Send us a message if you have any questions regarding this new requirement.

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