Recent amendments to the 'choice of fund' rules mean that employers may need to do something extra when a new employee starts to work for them.
Currently, if a new employee does not choose their own superannuation fund, their employer can pay contributions for them to the employer's default fund. As a result of this policy some employees have several superannuation funds and they are difficult to keep track of.
From 1 November 2021, if a new employee starts work and does not choose a specific superannuation fund, their employer may need to request the employee's "stapled super fund" details from the Australian Tax Office.
A stapled super fund is an existing account which is linked (stapled) to an individual employee, so it follows them as they change jobs.
This change aims to reduce the number of additional superannuation accounts opened each time an individual commences a new job.
Businesses will be able to request stapled super duns details for new employees using Online services for business, or by asking their registered tax agent to do this for them.
To get ready for this change, employers should check and update the access levels of their business representatives in their Online Services Accounts.