Super choice rules will change from 1 November

The ATO are changing how Super Choice works from 1 November this year.

You’ll have an extra step to take if you have new employees who start from 1 November 2021 and they don’t choose a super fund.

You may now need to request their ‘stapled super fund’ details from the ATO

A stapled super fund is an existing super account of an employee that follows them as they change jobs.

What you need to know

You may need to request stapled super fund details when:

•             your new employee starts on or after 1 November 2021

•             you need to make super guarantee payments for that employee, and

•             your employee is eligible to choose a super fund but doesn’t

The request for Stapled super fund details can be done in your ATO Online services for business account, or by us as your tax agent.

What you need to do from 1 November 2021

Step 1: Offer your eligible employees a choice of super fund

You need to give your eligible new employees a Super standard choice form and pay their super into the account they tell you on the form. Most employees are eligible to choose what fund their super goes into. https://www.ato.gov.au/Forms/Superannuation-(super)-standard-choice-form/

Step 2: Request stapled super fund details

If your employee doesn’t choose a super fund, you may need to log into your Online services and go to ‘Employee Super Accounts’ to request their stapled super fund details.  To set up Online services, you can go to here https://www.ato.gov.au/general/online-services/in-detail/using-access-manager/using-access-manager/

If you don’t have one of these, or aren’t sure how, you can contact us as your tax agent to help.

The ATO will then provide your employee’s stapled super fund details after they confirm that you are their employer, and you will need to pay into this fund for them.

Step 3: Pay super into a default fund if no stapled super fund exists

If the employee doesn’t choose a super fund, and the ATO say that they don’t have a stapled super fund, the old rules still apply and you will need to pay their super into your default fund.

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