Beginning November 1, 2021, employers onboarding new employees in Australia may be required to take an additional step if the employee does not choose a super fund. Employers may need to request the employee “stapled super fund” details from the Australian Taxation Office (ATO).
A stapled super fund is an existing super account that follows employees as they change jobs. This new change aims to prevent new employees from paying extra account fees for unintended super accounts set up when they start a new job. Employers may need to request stapled super fund details if they have new employees starting on or after November 1, 2021, if they need to make super guarantee payments for an employee, or if the employee is eligible to choose a super fund but does not select one.
Employers may still need to request stapled super fund details for some employees even if they do not need to offer them a choice of super fund. This includes if the employees are temporary residents, or if they’re covered by an Enterprise Agreement or Workplace Determination made before January 1, 2021.
To learn more about the rule changes, visit: https://www.ato.gov.au/business/super-for-employers/setting-up-super-for-your-business/offer-employees-a-choice-of-super-fund/
If you need help with employment law or managing compliance in Australia, visit Global People Strategist