Super choice rules will change from 1 November

Where no choice is made of a superannuation fund by a new employee, the employer can no longer use their default fund.

There is a requirement that the employer must use the employee’s ‘stapled super fund’. The employer will be required to source the name of the superannuation fund from the Australian Taxation Office (ATO). This change aims to stop your new employees paying extra account fees for unintended super accounts set up when they start a new job.

What you need to know

What is a Stapled Super Fund

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.

How to request stapled super fund details

If the employee doesn’t choose a super fund, the employer may need to log into the ATO’s online services to request the stapled super fund details; alternatively one of our experienced accountants can assist.

The employer will be able to request the employee’s stapled super fund after submitting a Tax file number declaration or Single Touch Payroll pay event. There is no limit to the number of requests which can be made.

To request a stapled super fund:

1. log into ATO online services.
2. enter the employee’s details, including their:
   • TFN – an exemption code can be entered where an employee cannot provide their TFN, but this could result in processing delays
   • full name – including ‘other given name’ if known
   • date of birth
   • address (residential or postal), if TFN not given.
3. The ATO’s online system will use rules based on the regulations to work out and return a stapled super fund in response to a request, which should be received within minutes.

What action do I need to take now?

To make sure you’re ready to request stapled super fund details, check and update the access levels of your authorised representatives in ATO online services.

If an authorised representative doesn’t:

• have full access in ATO online services, they will need to have the ‘Employee Commencement Form’ permission in order to request a stapled super fund
• need to access this service, you should remove this permission for them to protect your employees’ personal information.