In the FY20/21 Federal Budget, the government announced a series of super reforms – Your Future, Your Super, which includes superannuation ‘stapling’ for employers. This information sheet is to keep you updated on how to prepare your business for these changes and make sure you stay compliant.
What is Superannuation ‘Stapling’
Stapling is where new employees who do not exercise a ‘choice of fund’, will automatically keep their existing super fund (if applicable). This reform is aimed at reducing the number of people paying fees on duplicate accounts, helping them to maximise their superannuation savings.
When does ‘stapling’ begin?
‘Stapling’ will commence from 1 November 2021.
How does this impact employers?
Where a new employee provides you with details of a super fund to use (by completing a standard choice form), you must make payments into their selected account and stapling will have no effect.
However, where a new employee does not return a standard choice form or otherwise doesn’t provide you with directions on the fund they would like you to make payments to, you must log into the Australian Tax Office’s online service and submit the employee’s details to identify if they have a ‘stapled’ super account available.
After completing a search of their records, the ATO will provide you with one of two responses. They may advise that your new employee does have an existing ‘stapled’ fund and will include details of this account. You are them required to make their superannuation payments to this account.
Alternatively, they may advise that your new employee doesn’t have an existing stapled super fund, then you must create a new account with your nominated default super fund.
Will this affect existing employees?
No, existing employees are not affected by these changes. You can continue contributing into their existing super fund.
Where can I find the ‘Standard Choice Form’?
Where employers utilise Single Touch Payroll enabled software, their employees will receive the Standard Choice Form through their MyGov account. Employers can also provide their employees with a printed copy of the Standard Choice Form found on the Australian Tax Office website.
Alternatively, employers who elect to use Christian Super as their default super fund can provide their employees with Christian Super’s prepopulated Choice of Fund form.