Did you know? At 30 June 2020, over 12 million Australians had one super account, with around four million people holding two or more super accounts.* (Source: ATO)
Changes coming into effective from 1st November 2021 regarding new employees’ choice of super fund aims to reduce account fees by stopping new super accounts from being opened every time an employee starts a new job.
It’s important for employers to be aware of stapled super funds, the changes and their obligations. Read below to learn more about understanding stapled super funds including:
- What is a stapled super fund?
- As an employer, how do I prepare for the stapled super fund changes?
- When may employers have to request stapled super fund details?
What is a stapled super fund?
A stapled super fund is an existing super account which is linked, or ‘stapled’, to an individual employee so that it follows them as they change jobs. From 1st November 2021, if a new employee doesn’t nominate a super fund, employers may have to contact the ATO to request that details of the new employees stapled super fund. Employers who fail to do this, may be penalised.
As an employer, how do I prepare for the stapled super fund changes?
From 1st November 2021, employers may need to contact the ATO to request a new employees stapled super fund details. For this reason, it’s important to check and update the access levels of your authorised representatives in ATO online services.
You must ensure your authorised representatives have full access in ATO online services and have the ‘Employee Commencement Form’ permission to request a new employees stapled super fund. To protect your employee’s personal information, it is also important to ensure that any authorised representative who doesn’t need to access this service has their permission removed.
When may employers have to request stapled super fund details?
Stapled super fund changes come into effective from 1st November 2021. After this date, you may need to request stapled super fund details when a new employee, that you need to make super guarantee payments for, commences employment and although eligible to choose a super fund, they don’t.
Employers don’t need to offer a choice of super fund to some employees, but may still need to request their stapled super fund details. This includes employees that are either temporary residents or covered by an enterprise agreement or workplace determination made before 1 January 2021.
Bookkeeping Matters can assist your business with the bookkeeping requirements of employee’s superannuation contributions and stapled super funds.
Bookkeeping Matters work across all industries, including yours, to deliver orderly books and peace of mind, knowing your financials are under control. Years of experience has taught us what’s important to small and medium sized businesses. We use this insight to deliver flexible, efficient, tailor-made solutions to businesses like yours, right across Australia.
We are ready to get to work and help with your bookkeeping needs.
Call June at Bookkeeping Matters today on 0423 003 552.
Disclaimer: The information in this article is general information only.
* Note: Figures are based on member data reported by funds to us for the year ending 30 June 2020. Percentages have been rounded to the nearest whole number. As a result, totals may not add up to 100%.