Employee super fund changes coming from 1 November 2021…
When your business hires a new employee, the Choice of Fund form is used to identify where they want their superannuation to be directed. If the employee does not identify a super fund, generally the employer directs their superannuation into a default fund.
From 1 November 2021, where an employee does not identify a super fund, the employer is required to request details of the employee’s existing superannuation fund or ‘stapled’ fund from the ATO.
This request is made through the ATO’s online services through the ‘Employee Commencement Form’.
If the ATO confirms no other fund exists for the employee, contributions can be directed to the employer’s default fund or a fund specified under a workplace determination or an enterprise agreement (if the determination was made before 1 January 2021).
Process to follow from 1 November 2021:
1. Offer new employees a choice of super fund
There is no change to this step of your super obligations. You give your eligible new employees a Super Standard Choice Form and pay their super to the nominated account.
2. Request stapled super fund details
If your employee doesn’t choose a fund, you need to request their stapled super fund details from the ATO. As your tax agent, we are able to do this on your behalf at your request.
You will then pay employee’s super using the stapled super fund details.
3. Pay super into a default fund
If your employee doesn’t choose a super fund and the ATO does not find a stapled fund, then you will pay into a default fund or another fund that meets the necessary obligations.
Click here to read the full details of this new process on the ATO website.
If you need to speak to a professional about your superannuation obligations or your own super fund, you can book a Superannuation Consultation with one of our qualified team members, or contact our office.