Keep in mind that as an employer you cannot legally provide your employees with advice about which super to invest in (unless you’re licensed by ASIC to provide financial advice). By preparing early you’ll be ready to request stapled super funds if needed. In preparation for the introduction of stapled super funds on 1 November 2021, you can view and update the access levels of your business’ authorised representatives (for example, your accountant) in the ATO’s online services. Impacts of stapled super funds for employersĪs an employer, you’ll be able to request stapled super fund details for new employees using the ATO’s online services for business. As fewer superannuation funds are being opened, employees are less likely to generate ‘lost super’ as they transition through various jobs and careers leading up to their retirement. This change aims to reduce the number of additional super accounts opened each time an employee starts a new job. If a new employee does not have a stapled fund and they do not choose a fund, the employee's super can be paid into the employer's default fund.įrom 1 November 2021, if you have new employees who don't choose a specific super fund, you may need to request their 'stapled super fund' details from the Australian Taxation Office. You change the employer-nominated fund into which you pay the employee’s contributionsĪ stapled super fund is an existing account that is linked, or 'stapled' to an individual employee, so it follows them as they change jobs.You are not able to contribute to their chosen fun, of it’s no longer compliant.It’s also worth noting an employee will not be able to choose their superfund themselves if they hold a temporary working visa, or if their superfund undergoes a merger or acquisition.Īs an employer, you’re required to provide a new employee with a superannuation standard choice form within 28 days of their start date. The employee may not elect a superfund of their choice as they don’t have one yet (if they’re new to the workforce), or for other reasons. Over the past year the rules governing superannuation funds have experienced a lot of changes and amendments that may have an impact on how you, as an employer, deal with super.Ĭurrently, if a new employee doesn’t provide you with details of their choice of superannuation fund, then you may be paying contributions into a default superannuation fund of your choice. We’ll explore what a stapled super fund is and how it will impact you as an employer. Are you aware of the changes to “choice of fund” rules? Do you know how stapled super funds will impact you as an employer?įrom 1 November 2021, if you have new employees who don't choose a specific super fund, you may need to request their 'stapled super fund' details from the Australian Taxation Office.
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