New stapled superannuation fund rules have been implemented from the 1st November 2020. Superannuation stapling is a new measure which was introduced to reform the superannuation system announced by the federal budget 2020/21.
The imposed measures mean that an individual/ employees superannuation account is stapled to them when they change jobs. This removes the need to create new superannuation accounts each time a person changes their employment.
It is important to consider that the new rules require employers to use the “stapled super fund” details for new employees who do not choose a fund. These rules will only apply to new employees who commence after 1st November 2021.
Typically, an employer must provide an employee with a superannuation standard choice form within 28 days of commencing work. Now, if a new employee does not choose a fund, the employer will be able to check if the employee has an existing stapled fund. As an employer you will be able to do this by logging into ATO online services an accessing the ’stapled superfund request service’.
If the employee has a stapled fund, the employer will be required to contribute to that specific stapled fund. If an employer contributes funds into their default fund and not the employees stapled fund, they may be subject to the choice shortfall penalty.
There is no need to request stapled super fund details from the ATO for any existing employees.
Further information on employer obligations with regards to stapled super funds can be found here on the ATO’s website.
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