Generally, this will be a super fund compliance statement. When this occurs, an employer must ensure that this direction is accompanied by written evidence that the chosen fund is able to accept the super guarantee payments. Otherwise, an employee for super guarantee purposes may provide their employer with a written notice of where to direct future super payments. A completed standard choice form with adequate information is enough for an employer to make super payments and satisfy their obligations. The easiest way for an employer to meet their super guarantee obligations is by providing a new employee with the ATO’s superannuation standard choice form when they commence employment. While some individuals may want to have multiple super accounts as a method of diversification, for many this can result in unintended consequences such as:Įnsuring super guarantee obligations are met This additional step in super guarantee requirements attempts to ensure that individuals have less chance of inadvertently having multiple super accounts. The ATO has stated that its online system should be able to provide stapled super fund details within minutes, and the employee themselves will be notified. The quickest way to find the stapled fund is for the employee’s TFN to be provided, although this is not mandatory. Inside ATO online services, the new employee’s details will need to be provided in the request.
As a tax practitioner, you may have access to this request for your clients. The stapled super fund request facility will be located with ATO online services.
Generally, where an individual holds an existing eligible super account, this will be the nominated stapled account.Īn eligible stapled super account will have to be with a complying superannuation scheme, with the individual listed as a current member. When the ATO is requested to provide an employer with a stapled super fund for an individual, the super account will be selected based on information it periodically receives from reports from regulated funds. The term stapled fund is used to describe a single default super account that is attached to an individual. If neither of these 2 things happen, from 1 November 2021 an employer will need to ask the ATO whether their new employee has a “stapled” super fund. a fund chosen by an employee after the employer initiates the choice process by giving a standard choice form to the employee.a particular fund after an employee initiates the choice process by giving written notice to the employer proposing the fund, or.To comply with the choice of fund rules, an employer must make contributions to either: Failure to comply with the rules may result in an increased superannuation guarantee charge being levied against the employer. When an employer takes on a new staff member, including contractors that come within the scope for super guarantee liability, they must abide by the choice of fund rules. The new step forms part of the “choice of fund” rules that generally come into play when a new employee is hired. The newly enacted legislation introduces a new step to an employer’s super guarantee obligations from 1 November 2021. Individuals with multiple super accounts can have their retirement savings eroded by excess fees being charged against their accounts. One measure in this legislation is part of a broader intention to remove multiple super accounts for individuals. In June 2021, the “Your Future, Your Super” legislation was enacted by federal parliament in an effort to improve outcomes for individuals in the Australian superannuation system.
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