Super is now following new employees

The ATO is reminding employers that, as of 1 November 2021, there is an extra step they may need to take to comply with the choice of super fund rules.

If a new employee does not choose a super fund, most employers will need to request the employee’s ‘stapled super fund’ details from the ATO to avoid penalties.

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.

When a new employee starts, employers need to:

• offer eligible employees a choice of super fund;

• if the new employee does not choose a super fund, the employer will need to request stapled super fund details using Online services for business; and

• pay super contributions into one of the following: 

– the super fund they choose; 

– the stapled super fund the ATO provides if they have not chosen a fund; or 

– the employer’s default fund (or another fund that meets the choice of fund rules) if the employer cannot pay into the two above.

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