Summary

Effective from 1 November 2021, employers will have an additional step when onboarding new employees who don’t nominate a super fund.

Employers are now required to request an employee’s ‘stapled super fund’ from the ATO rather than nominating a default fund where there is no choice made by the employee.

In Detail

When a new employee joins a business, the employer general provides them with a super choice form to nominate the super fund they’d like their super paid into. Historically, where an employee does not make a choice the employer would use their default fund (often an industry relevant industry fund). The result was that employees would often have multiple super funds that all charged fees and insurance premiums reducing the benefit to them.

The introduction of the super stapling rules means that employees will be attached to one super fund for life unless they choose otherwise and employers must contact the ATO to obtain the details of the stapled super fund where an employee hasn’t nominated a fund.

These rules apply for all new employees commencing after 1 November 2021 unless an employee is not eligible to choose a super fund. 

Requirements for employers

1. Request super details for new employees

You will still need to provide your employee with a ATO superannuation standard choice form so they can nominate the fund they’d like their super paid into. If the employee nominates a super fund you need to use that fund and there is nothing else required. Read on if your employee hasn’t nominated a fund.

2. Contact the ATO to request the employee’s stapled fund details

If your new employee hasn’t nominated a fund you’ll need to request their stapled fund details via ATO online services for business. The request can only be made once an employment relationship has been established.  For this purpose, an employment relationship will have been established once you’ve either a) lodged a TFN declaration form or b) made an STP lodgement with the employee included.

If the employee has a stapled super fund, you can then pay their super into that fund. If the employee hasn’t nominated a fund and doesn’t have a stapled super fund you can then nominate a default fund for your employee.