New super step when employing new staff
From 1 November 2021, an employer may be required to add an extra employment step, in relation to Superannuation, so as to comply with “the choice of funds” rules.
Under the existing rules, where a new employee does not choose a specific super fund, an employer can pay the super contributions to their (employer’s) default fund.
However, from 1 November 2021, an employer may be required to request a new employee “stapled super fund” detail if the new employee does not nominate a specific super fund of their choice.
What is a “stapled super fund? It is an existing account which is linked (stapled) to an individual employee, and as a result follows the employee from job to job.
This will help reduce the number of super funds employees accumulate over time particularly those who regularly change jobs.
How do employers’ access super fund details for new employees? Employers will be able to request stapled super fund details for new employees using the ATO’s Online Services for Business www.ato.gov.au/general/online-services/businesses/ .
If you need any assistance or guidance, please contact Balanix Solutions 07 32644783.