What?
From 1 November 2021, employers will need to change their onboarding and payroll processes to comply with the new ‘super stapling’ requirements.
What’s super stapling?
A stapled super fund is an existing super account linked, or ‘stapled’, to an individual employee so it follows them as they change jobs. This aims to reduce account fees, avoiding new super accounts being opened every time an employee starts a new job. If you don’t meet your choice of super fund obligations, additional penalties may apply.
What does that mean for employers?
When a new employee commences on or after 1 November 2021, and they do not exercise choice of fund, the employer will need to check if the employee has an existing stapled fund. This is done by logging into ATO online services and providing some basic information about the employee.
Generally, if the employee does not exercise choice and has a stapled fund, the employer will be required to contribute to the employee’s stapled fund to meet their Superannuation Guarantee (SG) obligations.
Are the ATO being lenient?
Yes, in the first 12 months (1 November 2021 to 31 October 2022), the ATO will generally not penalise the employer if it is the employer’s first occasion of non-compliance with the stapled fund rules arising from a lack of knowledge of the new requirements.
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