Employers are being warned to get their processes updated with one major change to superannuation payments changing from 1 November 2021. As has been in place for some time, new employees when they start working for an employer get to choose where the employer contributes their super payments. In effect, they can nominate their preferred super fund. This flexibility and requirement will remain the same.
What will change is the requirements of an employer for an employee that has not provided a nominated super fund. For any new employee in this situation from 1 November 2021, their employer will need to contact the ATO to be provided with a “stapled super fund”. This application will need to be made through the Business’ Online ATO Portal.
A stapled super fund is an existing super fund for the employee that changes jobs with them. This process is being introduced as part of a regulatory change to reduce the number of super funds an individual has and to reduce the administration fees they are paying. If the ATO does not have details of a stapled super fund, then payments can continue to be paid to a default fund (as per the current regulations).
If you need assistance with your payroll commitments, please do not hesitate to contact us.