If you are looking to employ in the near future, you need to be aware of the “Your Future, Your Super” legislation which has just passed in Parliament.  It will come into effect on 01 November 2021.   

Here is a summary of the key points:

• From this date, where employees do not choose a super fund, most employers will have to check with the ATO if their employee has an existing super account, known as a ‘stapled super fund’, to pay the employee’s super guarantee into.

• This new obligation removes the use of the employer’s default fund if the employee has an existing superfund and aims to stop your new employees paying extra account fees for unintended super accounts set up when they start a new job.

• This does not remove the requirement for each employee to have a superfund, nor does it remove the obligation to provide a Super Choice form. Also note, if an employee has an existing super fund they can still elect the employers default fund (or even another fund), as long as this is on the employees Super Choice Form, then the employer has covered their obligations.

• When onboarding a new employee, if that employee has failed to make a choice of fund, an employer will be in breach of super obligations if they use the default fund without first checking with the ATO that the employee does not already have stapled super account.

Here is our recommended process for new employees from 01 November 2021

1.  This is a summary of information you should obtain from all new employees:

• • Identity/contact details
  • Bank details
  • TFN Declaration
  • Super Choice details

2.  You need to ensure you have provided the following information to all new employees:

• • Super Choice Form (refer to step 2)
  • Fair Work Information Statement
  • Casuals Statement
  • Employment Agreement

3.  The Super Choice Form Process (UPDATED as a result of above legislation):

• • Provide super choice form
  • The employee nominates their Choice of Fund
  • If the employee does not nominate then the employer obtains the “Stapled Fund” from the ATO records in step 4.

4.  Create an employer/employee connection in ATO systems:

• • Lodge an STP report with the new employee included or lodge the TFN Declaration Form.

5.  ATO Online Services: Note, this step must occur after step 4 as employer & employee need to be linked to obtain information:

• • Employer (or Tax/BAS Agent) obtains Stapled Fund information for that employee via Online Services.
  • If there is no stapled/existing fund, only then does the employer pay into a default fund.

6.  Software Process:

• • Enter either the fund nominated on the Superannuation Standard Choice Form, stapled fund, or (last resort) default fund, into software for future Super Guarantee (SG) payments.

For more information visit the ATO website: ato.gov.au/stapledsuperfund

For support onboarding new employees from 01 November (or any time!) contact clientservices@aspire-ca.com.au