Super Choice Rules Will Change from 1 November 2021

From 1 November 2021, if you have new employees start, you may have an extra step to comply with the choice of fund rules if they don’t choose a super fund. You may now need to request their ‘stapled super fund’ details from us.

A stapled super fund is an existing super account that is linked, or 'stapled,' to an individual employee so that it follows them as they change jobs.

If you don't meet your choice of super fund obligations, additional penalties may apply. The change aims to reduce account fees by stopping new super accounts from being opened every time an employee starts a new job. Per the ATO, these are the steps you will need to take from November 1 onwards. 

What you need to do from 1 November 2021

Step 1: Offer a choice of super fund to eligible employees

All new employees must be given a Super standard choice form. You must pay their super into the account of their choosing. In most circumstances, employees are eligible to make a choice on which fund their super is paid into. 

There is no change to this step of your super obligations.

Step 2: Request stapled super fund details

When an employee does not choose a super fund, you’ll need to log into the ATO’s online services portal and request their stapled super fund details in the “Employee Super Accounts” section. Your agent or other tax professional can do this for you.

The ATO will then provide your employees ’ stapled super fund details after confirming you are their employer.
If the ATO provides a stapled super fund result for your employee, you must use these super fund details to pay your employee’s super.

Step 3: Pay super into a default fund

In limited circumstances, you can pay into a default fund or another fund that meets the choice of fund obligations. This can occur when:

• an employee doesn’t choose a super fund, and

• the ATO advises you they don’t have a stapled super fund on record for this employee.

How can halkinbp help?

Our accounting and tax specialists can assist your business in navigating the new super choice process to ensure your business remains compliant with the ATO’s new regulations. If you have questions about how the process works, need assistance with identifying the impact on your business or require support in enacting the new process, we can help. Reach out to our tax and accounting consultants today.