New laws will change onboarding for employers.
On 1 November 2021, superannuation laws will change how employers are required to set up new starters at their workplace. Specifically, where they’ll pay their super.
Here’s what you need to know so your onboarding processes can continue seamlessly.
What is superannuation stapling?
As part of Your Future, Your Super legislation, the Federal Government is trying to stop employees picking up additional super accounts when they change jobs. The end goal is to prevent multiple accounts and cut back fees. To do this, they will ‘staple’ an employee’s existing super fund to them, so if they move jobs, they won’t need to change their super.
This is different to the current rules, where a new employee can be automatically joined to your default workplace super.
What do you need to do?
From 1 November onwards, when a new employee commences at your workplace, you’ll need to use the Australian Tax Office’s (ATO) online services to look for their stapled fund. This will mean submitting a request with some employee details, and you should receive a response within minutes.
For employers who regularly onboard multiple new employees, there should be a solution in place by 1 November to submit multiple requests at once. And during 2022, superannuation stapling should be integrated into payroll software.
If your new worker has no stapled fund – for example, if it’s their first job – you can join them to your workplace super fund. So, it’s important to still have a default super plan in place.
Do employees still have choice of fund?
Yes, if your employee completes a Choice of Fund form, you still need to honour that choice and pay super into the fund they’ve asked you to.
How can first super help you?
First Super is an industry super fund, with long-standing relationships with members and employers in the timber industry.
We offer the sort of hands-on service other funds don’t, with local Member and Employer Services Coordinators, and Business Development Managers ready to steer you through any super changes and your obligations.
To find out more about the changing laws, go to firstsuper.com.au/superannuation-stapling, where you can also sign up for our EmployersFIRST e-newsletter to stay up to date as more information becomes available.
To join First Super as an employer, visit firstsuper.com.au/join or call our Employer Services Team on 1300 943 171.
First Super Pty Limited (ABN 42 053 498 472, AFSL 223988) as trustee of First Super (ABN 56 286 625 181). You can obtain a Product Disclosure Statement by calling 1300 360 988 or visiting www.firstsuper.com.au/pds and should consider it before making any investment decision.
