Superannuation Stapling and What Employers Need To Do From 1 November 2021

What is super stapling, and what do employers need to do from 1 November 2021?

Super stapling was introduced to prevent an employee from having multiple super accounts, thus avoid paying unnecessary administrative costs that are associated with each super account. Basically, super stapling enables an employee’s super account to follow them from job to job for life, unless they later decide to have a different super account.

 From 1 November 2021 if a new employee does not nominate a super fund on the super choice form, then employers are required to check with the ATO to see if that employee has a stapled super fund, and pay super into that fund. If there isn’t a stapled fund, then the employer can make super contributions for that employee into their default fund as a last resort.

 If you are an employer and use a payroll provider or a payroll software, then you should check that super stapling is available through these services. For employers that use a manual system for payroll, please make sure that you are aware of this requirement, and contact the ATO to obtain details of your new employee’s stapled super account if they do not nominate a super fund.

If you need more information, or if we can assist with super stapling, then please contact our friendly team at H & M Accountants