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New process from Nov 1 for employers paying super Posted on October 18, 2021
Employers will need to comply with the Federal government’s superannuation reforms that will come into effect on 1 November.
When employing a new person, employers must supply the usual Super standard choice form where the new employee can nominate an existing fund for superannuation to be paid into. The Federal Government has introduced an additional step to take place after this if the new employee does not choose a super fund.
Using online services – ‘Employee Super Accounts’ – employers must, from 1 November, contact the ATO to request the employees ‘stapled superannuation’ account details, that is, an existing superannuation fund for that individual, for super to be paid into on the employees’ behalf. If the employee does not choose a superannuation account AND the ATO does not have/provide the details of a stapled fund, employers may pay superannuation into a default fund.
If the employee/s are temporary residents or they’re covered by an Enterprise Agreement or Workplace Determination made before 1 January 2021, Employers may still need to request stapled super fund details.
The change is intended to reduce the number of fees paid by employees to multiple superannuation funds.
Our team of accountants manage this process on behalf of many employers. If you have any questions, please contact us on [email protected]