What is a stapled super fund (AKA SSF) (AKA Stapled Super)?
A stapled super fund is an existing super account linked, or ‘stapled’, to an employee so it follows them as they change jobs.
New changes to superannuation legislation – Nov 2021
In brief:
- Currently, if an employee does not nominate a superannuation fund, the employer may contribute to a default fund (provided they have complied with the procedural requirements).
- The default fund might be one nominated in an enterprise agreement, or the employer’s nominated default fund.
- For employees commencing from 1 November 2021, the default fund cannot be used until after the employer has checked with the ATO and obtained a notification that the employee does not have a stapled fund. If there is a stapled fund, contributions must be made to that fund (unless the employee subsequently nominates another fund).
What should you do from 1 November 2021?
From 1 November 2021, if employees do not choose a super fund when they commence, most employers will have to check with the ATO to see if their employee has an existing super account, known as a ‘stapled super fund’.
The employer must pay the employee’s super guarantee contributions into that existing super account.
This will affect the legality of clauses in contracts and in some enterprise agreements that permit a default fund to be used at the employer’s election. Employers need to act on this.
What is a stapled super fund (AKA SSF) (AKA Stapled Super)?
A stapled super fund is an existing super account linked, or ‘stapled’, to an employee so it follows them as they change jobs.
When a new employee starts, you need to:
- offer them a choice of superannuation fund if they are eligible to choose
- request their stapled fund details from us if they do not choose a fund.
This includes employees who aren’t eligible to choose a fund, such as:
- temporary residents
- employees covered by an enterprise agreement or workplace determination made before 1 January 2021.
You then pay their super contributions into one of the following:
- the super fund the employee chooses
- the stapled super fund we have provided to you
- your default fund (or another that meets the ‘choice of fund’ rules) if you can’t pay into either of the above.
Before you can request an employee’s stapled fund details, you need to submit a Tax file number declaration or a Single Touch Payroll event to establish an employment relationship.
While monitoring the requests, we’ve seen circumstances where employers are requesting stapled super fund details incorrectly. Ensure you only request details for a new employee who’s started on or after 1 November.
Need more help?
Contact us for a discussion today.
+61 2 8011 4699
