Most new employees are eligible to choose the super fund that their employer pays their super guarantee contributions to. From 1 November 2021, if a new employee doesn’t choose a super fund, employers will need to request their ‘stapled super fund’ details from the ATO.
A stapled super fund is an existing super account which is linked, or ‘stapled’, to an individual employee so that it follows them as they change jobs. The change aims to reduce account fees by stopping new super accounts being opened each time they start a new job.
Currently, when a new employee doesn’t choose their own super fund, employers must pay super contributions into their default fund. From 1 November, this will only happen if the ATO is unable to provide details of a stapled super fund or the employee requests on their super choice form that the employer makes contributions into the default fund.
From 1 November, employers will be able to request stapled super fund details for new employees using Online services for business. Employers should now be checking and, if necessary, updating the access levels of their staff that use Online services for business on behalf of the organisation. This will also protect the personal information of employees. More information is available at Request stapled super fund details for employees | Australian Taxation Office (ato.gov.au).