What do Stapled Super Funds mean for your organisation?
- Published: October 11, 2021
- Author: Asparq
Did you know that from 1 November 2021 if new employees who join your organisation don’t nominate a superannuation fund, you may need to request their ‘stapled super fund’ details from the ATO to avoid incurring penalties?
Although most employees are eligible to choose a super fund when they begin a new job, sometimes they may not make a choice. This may be due to a simple form omission, lack of details of their existing fund, or indeed they may not be aware if they have a super fund. This can leave you, their employer, at risk of not meeting their superannuation guarantee obligations and incurring penalties.
What employers need to do from 1st November:
- Offer eligible employees and contractors a choice – when a new employee joins your organisation, they must be able to either nominate a fund or go with your default fund.
- If no choice is taken, request details of their stapled fund from the ATO – you can lodge a request for details of their stapled fund through ATO online services.
- Pay super contributions into the stapled fund – where the ATO provides details of a stapled fund you must pay super guarantee contributions into that fund.
It’s up to you, the employer, to take all the steps you can to allow employees a choice of super fund. When all avenues are exhausted you can use your default fund.
At Asparq we are here to help. To find out how we can lodge ATO requests for stapled funds on your behalf, or to learn more about super choice and stapled funds contact us today. Our team will give you the direction you need.
The information contained herein is of a general nature only and is not intended to be relied upon nor is it a substitute for appropriate professional advice. Whilst all care has been taken in the preparation of the material, it is not guaranteed to be accurate. Individual circumstances are different and as such require specific examination. Asparq cannot accept liability for any loss or damage of any kind arising out of the use of or reliance upon all or any part of this material. Additional information may be made available upon request.