From 1 November 2021, most employers may have an extra step to take to comply with choice of fund rules if:
- they have a new employee start, and
- the employee does not choose a super fund
The employer may now have to request their new employees ‘stapled super fund’ details from the ATO.
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.
The change aims to stop new super accounts from being opened every time an employee starts a new job.
Step for the employer to take:
- Offer the new employee choice of super fund (as usual)
If they don’t nominate a super fund of choice, check if the employee has a stapled super fund:
- Establish the employment relationship – submit a TFN declaration or STP pay event for the new employee
- Request stapled super fund details in ATO online services
To request a stapled super fund, you, or your authorised representative, need to:
- Log into ATO online services for business.
- Navigate to the ‘Employee super account’ screen via the ‘Employees’ menu and select ‘Request’ to open the form.
- Enter your employee’s details, including their:
TFN – an exemption code can be entered where an employee can’t provide their TFN, but this could result in processing delays
full name – including ‘other given name’ if known
date of birth
address (residential or postal), if TFN not given.
- Read and click the declaration to sign it. You’ll also be able to tick a box under ‘more employees to request?’ to request stapled super fund details for additional employees.
- Submit your request.
You should be notified (on screen) of the stapled super fund request within minutes.
Check ATO online services and Access Manager permissions – whoever is making these requests will need full access in ATO online services, or custom access including ‘Employee Commencement Form’ permission.
Note that this requirement applies to contractors as well as employees, where there is a requirement to pay contractors superannuation. Contractor’s stapled super fund details will need to be requested using the secure mail function in ATO Online services, given there is no STP pay event to link a contractor to the employer.
For further information from the ATO, click here.
To download the ATO reference guide for employers, click here.