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Stapled Super Funds
What is a Stapled Super Fund?
As part of the Australian Government’s “Your Future, Your Super” 2021 Federal budget measures, a set of reforms were announced to the superannuation system.
“Super that follows you”
From 01 November 2021, Stapled Superfunds took effect. Simply this means all employees hired on or after 01 November 2021, that do not select a fund on the Superannuation Standard Choice Form, will have superannuation guarantee contributions (SGC) from employers paid to their linked superannuation fund.
Why are Stapled Super Funds being introduced?
This reform aims to minimise the creation of unintended multiple super accounts, reducing account fees and insurance premiums, maximising potential retirement income.
What is the impact of this change?
Employers must provide new employees the Superannuation Standard Choice Form where eligible employees select the superannuation fund of their choice and all future SGC contributions must be made to the selected account.
Employers can no longer use their company nominated or default super fund in the event newly hired employees do not nominate a fund on the Standard Choice Form. Instead, employers are mandated to request Stapled Super Fund details from the Australian Taxation Office (ATO) to remain compliant with the new rules.
What Action Do I Need to Take Now?
For new employees who do not provide superannuation fund details, you will need to submit an online Stapled Super Fund request for new employees through your ATO Online Services portal.
Where to next?
These changes must be communicated to new employees.
If you require assistance updating onboarding policies, procedures, processes or templates contact us at Catalyst Central … firstname.lastname@example.org
If you are concerned about your single touch payroll (STP) obligations, you should discuss these changes with your nominated Accountant.