Is your Super Fund Stapled? Before you may have to change or create a new Super Fund every time you change jobs, but not anymore.
In the 2020 budget, it was included that the Super accounts will now be “stapled” to the members. This means that the Super Fund of an existing individual employee will now be bonded or “stapled” with him or her forever. Even if he changes jobs unless he requests it to be changed. And if you are a new employee or you simply don’t have a Super yet, you need to choose one, or your employer can create an account for you with their default fund.
A Super Fund or Superannuation is the pension program created by a company for its employees’ benefit.
If you’re an employer, you must use an Australian Taxation Office (ATO) database to check if your new employee has an existing Super Fund. If there is then you must send his contributions to that fund unless a change is requested.
The main role of Stapled Super Funds is to reduce account fees and avoid new super accounts being opened every time an employee starts a new job. This new system has been implemented since July 1, 2021.
When should you request Stapled Super Fund details:
Stapled Super Fund details should only be requested for new employees who started on or after November 1, 2021, if:
You need to make super guarantee payments for that employee
They are eligible to choose a super fund but didn’t.
And if your new employee isn’t eligible to choose their own Super Fund, like temporary residents, and employees who are covered by an enterprise agreement or workplace determination made before 1 January 2021.
With Stapled Super Funds fewer accounts will be created however, this is no guarantee that employees are getting the best outcomes from their Super Fund by staying with their current fund. As an employee, you should make it your responsibility to regularly check and review your fund’s investment returns. You should make sure that they are strong and that the fees are competitive. The best time to do this is when you change jobs and/or when you receive your annual statement from your existing fund.
Have any questions, concerns, about Stabled Super Funds? Do you need help finding the Stapled Super Fund of your employee? Sharbara Accounting Services can help you. We can use the Tax Portal and help you find the information you need. You can send us an email or go to our website.
