Recent changes to the “Choice of fund rules” will have substantial effects when a new employee starts to work.
In the past, when a new employee does not provide their superannuation fund to the employer, the employer had a choice to make Super contribution on behalf of the employee to the employer’s default superannuation fund.
Starting from 1 November 2021, if you recruit a new employee and the employee does not choose a specific superannuation fund, the employer may need to request employees stapled super fund information from the ATO.
A Stapled super fund is an account that is linked to an individual and will follow them when they change jobs. The main reason for this change is to minimize the additional superannuation accounts opened each time an employee starts a new job.
Stapled superannuation details for employees can be requested through online services for businesses, tax agents or through a BAS agent.