Australian Taxation Office Makes Changes to Choice of Superannuation Fund Rules

From November 1, 2021, employers onboarding new employees may be required to take an additional step if the employee does not choose a super fund. They may now need to request their ‘stapled super fund’ details from the Australian Taxation Office (ATO).

 A stapled super fund is an existing super account of an employee that follows them as they change jobs. This change aims to stop new employees from paying extra account fees for unintended super accounts set up when they start a new job.

Employers may need to request stapled super fund details when:

  • The new employee starts on or after November 1, 2021
  • The employer needs to make super guarantee payments for that employee, and
  • The employee is eligible to choose a super fund but does not

Employers may still need to request stapled super fund details for some employees even if they do not need to offer them a choice of super fund. This includes if the employees are temporary residents or they’re covered by an Enterprise Agreement or Workplace Determination made before January 1, 2021.

Read more about the rule changes here: https://www.ato.gov.au/business/super-for-employers/setting-up-super-for-your-business/offer-employees-a-choice-of-super-fund/

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