All employees have a choice to supply their employers with super fund details of their chosen choice fund, for their super guarantee obligations to be paid to.

Currently, where an employee does not supply these details to their employer, the employer will set-up a default fund for the super guarantee contributions to be paid to for that employee.

From 1 November 2021 there will be an additional step if an employee does not nominate a chosen super fund with their employer upon commencing employment. This will involve requesting their ‘stapled super fund’ details from the ATO.

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

The change aims to reduce account fees by stopping new super accounts being opened each time an employee starts a new job. Employers will be able to request the stapled super details using Online services for business, and will need to ensure that their authorised representatives have full access the ‘Employee Commencement Form’ permission in order to request a stapled super fund. Employers will be able to request employees stapled super fund details after submitting a Tax file number declaration or Single Touch Payroll pay event.

To request a stapled super fund, employers, or their authorised representative, need to:

• Log into ATO online services.
• Enter their employee's details, including their:
  • TFN - an exemption code can be entered where an employee cannot provide their TFN, but this could result in processing delays
  • Full name - including 'other given name' if known
  • Date of birth
  • Address (residential or postal), if TFN not given.
• The ATO’s online system will use rules based on the regulations to work out and return a stapled super fund in response to a request.

The response will be received on-screen within minutes with details of the stapled super fund that the employer will need to contribute the super guarantee contributions into. If the employee does not have a stapled super fund, employers can then make the compulsory superannuation guarantee contribution into their employer default fund.

If you have any questions in relation to the above, please do not hesitate to get in touch with your Adviser to discuss on 07 4688 8400.