Employers – New Stapled Super Obligations

On 1 November 2021, employers will need to request details of an employee’s “stapled super fund”  from the ATO, if the employee does not nominate a choice super fund.

What is “stapled super fund”?

A stapled super fund is an existing super fund account that is linked (“stapled”) to an individual employee.

This stapled super fund account follows the employee if they change jobs.  It is intended that all contributions for the individual go into this stapled super fund account which will avoid a new account being set up each time an employee starts a new job.

When do you need to request stapled super fund details?

As an employer, you will need to request stapled super fund details for new employees who start on or after 1 November 2021, when:

  • you need to make super guarantee payments for that employee; and
  • they are eligible to choose a super fund, but don’t.

You may also need to request stapled super fund details for some employees who are ineligible to choose their own super fund (temporary residents and employees covered by an enterprise agreement or workplace determination made before 1 January 2021).

How do you request stapled super fund details?

Before you can request stapled super fund details using the ATO online services, you need to have offered all eligible employees a choice of super fund.

You (or your authorised representative, including tax agent) can request stapled super fund details using the ATO online services. 

You will only be able to request your employee’s stapled super fund details after you have submitted a tax file number declaration or single touch payroll pay event, which identifies your employment relationship with your employee.

What happens if you haven’t made a request for an employee’s stapled super fund when you should have?

You may be liable for a superannuation choice shortfall penalty if you contributed an employee’s superannuation to your default fund (without making a stapled super fund request).

Steps to take from 1 November 2021 for new employees

From 1 November 2021, you need to take the following steps for all new employees:

  1. Provide your eligible employees with a Choice of Superannuation Form.
  2. Establish your employment relationship with the employee by submitting a tax file number declaration or single touch payroll event.
  3. If your employee does not choose their own superannuation fund (using the Choice form), you must request details of their stapled super fund from the ATO.
  4. Once you receive the stapled super fund details for your employee, you must make superannuation contributions for this employee into this stapled fund.

You may incur shortfall penalties if you make contributions into a default fund without making a stapled super fund request.

For more information

Please do not hesitate to contact us if you require any further information about the new stapled super fund requirements.

DISCLAIMER: The information in this article is general in nature and is not a substitute for professional advice.  Accordingly, neither TJN Accountants nor any member or employee of TJN Accountants accepts any responsibility for any loss, however caused, as a result of reliance on this general information.  We recommend that our formal advice be sought before acting in any of the areas.  The article is issued as a helpful guide to clients and for their private information.  Therefore it should be regarded as confidential and not be made available to any person without our consent.