Stapled Super for Employers

The Australian Tax Office has announced a change to superannuation rules for new employees that will come into effect from the 1st November 2021. What has changed?

From the 1st November 2021, if a new employee has not nominated a super fund, employers will be required to request the employee's 'stapled super fund' from the ATO and pay super into that account.

What is a stapled super fund?

A stapled super fund is an existing super account belonging to an employee that follows them as they change jobs. It can be any eligible fund, including a defined benefit fund. If an employee has multiple super funds, which of those funds becomes the 'stapled super fund' will be determined by the ATO.

In the instance that a stapled super fund is a self-managed super fund, an electronic services address and bank account details will also need to be obtained from the employee.

How do I request a new employee's stapled super fund information?

1. Provide new employees with a 'standard super choice form' to nominate an account and pay superannuation into this fund.

If employee fails to nominate a fund you can request the stapled super fund information from the ATO by:

1. Logging onto the 'Online Services' section of the ATO website. From there go to the 'Employee Super Accounts' section and request the new employee's stapled fund details. Once the ATO has confirmed you as the new employer, they will then release the information, or

2. Ask your accountant or tax agent to do it on your behalf.

The ATO will advise the employee that their stapled super fund has been requested and which details have been provided to you as the new employer. What happens if the stapled super fund cannot accept contributions for the employee?

In this instance, employers should call the ATO to obtain an alternative stapled fund account. Employers may only pay into a 'default fund' if the employee doesn't choose a super fund and it has been determined by the ATO that the employee doesn't have a stapled super fund. For more information on stapled super funds, click here.