Super choice rules will change from 1 November

Stapled super fund requirements for new employees

Employers may need to take an additional step when onboarding new staff who do not nominate their own super fund. In these situations, you may need to request the employee’s stapled super fund details from the Australian Taxation Office (ATO).

A stapled super fund is an existing super account linked to an employee that follows them when they change jobs.

This system helps prevent employees from accumulating multiple unintended super accounts and paying unnecessary account fees.

When employers need to request super fund details

Employers may need to request these details when:

• a new employee starts work
• super guarantee contributions are required for that employee, and
• the employee is eligible to choose a super fund but does not nominate one

In some situations, employers may still need to obtain an employee’s existing super account even if they are not required to offer a choice of super fund. This can apply where employees are temporary residents or are covered by an Enterprise Agreement or Workplace Determination made before 1 January 2021.

Authorised representatives can obtain these details through the ATO’s Online services for business. Access permissions should be reviewed regularly to ensure employee personal information remains protected.

Employers must also meet their choice of super fund obligations by the relevant quarterly due dates to avoid potential penalties.

Steps employers should follow

Step 1: Offer eligible employees a choice of super fund

Employers must provide eligible new employees with a Superannuation Standard Choice Form. Contributions must then be paid into the fund nominated by the employee.

This step remains a standard requirement for employer superannuation obligations.

Step 2: Request stapled super fund details

If an employee does not nominate a fund, employers may need to access the ATO’s Online services and navigate to ‘Employee Super Accounts’ to obtain the employee’s fund details. If you require assistance with this process, please contact our team.

Once the employment relationship is confirmed, the ATO will provide the relevant account information.

Where an existing account is identified, employers must make super contributions to that fund.

Step 3: Pay super into a default fund

Employers may instead pay contributions into a default fund, or another fund that meets the choice of fund requirements, if:

• the employee does not nominate a super fund, and
• the ATO confirms that the employee does not have an existing account.

If you would like assistance managing super obligations or payroll compliance, please get in touch.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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