Employers can no longer make superannuation payments to their default super fund if a new employee does not provide details of their super fund.
Why was this change necessary?
Before 1 November 2021, if a new employee did not nominate a super fund, the employer would make super contribution payments to their default fund.
As a consequence, the new employee could end up with more than one super fund.
This change will limit the number of superannuation accounts opened by employers for people that change employers to start a new job.
When does this change apply?
This change came into effect on 1 November 2021.
What do employers now need to do?
- Help their new employees understand the Super Choice Form. Talk about the benefits of choosing their own super fund and that the ATO can assist them to find their super fund details.
- If the new employee, does not have the details of their super fund, request ‘stapled super fund details’ from the ATO (existing superannuation account linked to an employee/individual).
If you have any questions about the new step in setting up your employees superannuation fund, reach out to a trusted Ulton Advisor or contact our Human Resources Consultant, Christine Guy today.
To read more about this change, please view the Cooper Grace Ward (CGW) Lawyers publication here.
