Changes to Super Choice Rules 1 November 2021
Changes to Super Choice Rules
From 1 November 2021 the Australian Taxation Office will introduce stapled super funds in an aim to reduce unnecessary account fees by stopping new super accounts being acquired each time an employee starts a new job. These stapled super funds will be linked to an individual employee and follow them throughout their working life.
What does this mean for employers?
Until 31 October 2021, when an employer onboards a new employee, the employer is required to offer new employees a choice of super fund with a superannuation choice form. If your employee nominates a chosen super fund, the employer pays super guarantee contributions to that fund. If the employee doesn't choose a super fund then their super guarantee contributions will go to a default fund which is chosen by the employer.
From 1 November 2021, when an employer onboards a new employee, the employer is still required to offer eligible new employees a choice of super fund by requesting they complete a superannuation choice form. If the new employee chooses not to complete the superannuation choice form, then the employer may need to request their stapled super fund details from the ATO.
How can I get an employee’s stapled super details?
You’ll be able to request these details once you have submitted a TFN Declaration or have filed a Single Touch Payroll (STP) pay event which links that new employee to your business.
To request details of your employees stapled super fund you or your authorized representative should log into the ATO Online Services. You will need to have on hand your employees TFN, full name, date of birth and/or an address. Once a request has been submitted for a stapled super fund you will receive details of the fund within minutes.
If you do not have access to ATO Online Services you will need to contact your authorized representative for the details.
Are existing employees affected?
No, you can continue to pay your Super Guarantee obligations to the current employees chosen super fund. The process of requesting a stapled super fund will only affect new employees who have not provided their chosen fund. If an employee has multiple super accounts the Tax Office will determine which account is the stapled account. Generally, this will be determined by the last account that has received contributions.
Further information
For more information on stapled super funds please find below some helpful links:
If you need assistance with any of the above, please contact our office.
