As of Monday 1 November, “Stapled Superannuation” rules will commence for all new employees.

Stapled Superannuation simply means that existing superannuation accounts will become linked/stapled to individual employees so their fund follows them as they change jobs.

The rule applies when an employer sets up a new employee’s details and the employee doesn’t choose a fund. If this happens, the employer must find and use the employees “stapled” fund rather than creating a new one. 

If you have new employees start with your business after Monday 1 November 2021, you will need to comply with this new ruling.

Here are the steps to follow when setting up a new employee for superannuation purposes:

Step 1. Request Superannuation details from the employee. If they do not have an existing superannuation fund, you may offer them a choice of super fund.

Step 2. If the employee doesn’t choose a super fund (but has had a super fund in the past) you will need to request their stapled super fund from the ATO online services following instructions found here.

Step 3. Once your new employee has either elected a super fund, or you have located their stapled super fund, you can begin paying super into their fund.

Please note: As an employer, you can only set up an employee with a default fund if your employee doesn’t choose a super fund AND the ATO has advised that the individual does not have a stapled super fund.

For further information please visit the ATO website.