Stapled Super Funds For Employers- All You Need To Know

Are you confused about what actually a stapled super fund is? A stapled super fund is an existing super account linked to employees and follows them as they change jobs. Continuing this fund avoids the need of opening an account every time an employee changes a job.

From 1 November 2021, if you have recruited new employees and they are not willing to choose a super fund, an employer can take a step to comply with the choice of fund rules. You may need to request their ‘stapled super fund’ details from the Australian Taxation Office.

When To Request Stapled Super Fund Details?

Employers need to request stapled super fund details for new employees who start on or after 1 November 2021, if:

  • there is a need to make super guarantee payment for that employee
  • they are eligible to choose a super fund but don’t

Also, a request for stapled super fund details can be placed for some employees who aren’t eligible to choose a super fund, including:

  • temporary residents
  • covered by an enterprise agreement or workplace before 1 January 2021.

No request for stapled super fund details will be entertained for an employee who chooses a default fund or super account they already have.

Steps For Requesting Stapled Super Fund Details

You must offer your new employees a choice of super fund before requesting stapled super fund details. Before the ATO provides a response to your request, you’ll need to prove that an employment relationship exists. The steps involved in the procedure include:

  • Offer your employees a choice of super fund
  • Check ATO online services
  • Access manager permissions
  • Establish an employment relationship
  • Submit tax file number declaration

Request Stapled Super Fund Details- ATO Online Services

In response to a stapled super fund request, ATO’s online services use a rule based approach on the regulations to work out and return accurate stapled super fund details to the employer. You don’t have to wait long for the search results, as they are displayed on the screen within minutes.

The eligible employee for whom you have requested the details will be notified about the request and fund details will be shared with them too.

To place an ATO online service request for a stapled super fund, an employer or authorised representative needs to:

  1. Log in to ATO online services.
  2. Navigate to the Employee super account via the ‘Employees’ menu and select ‘Request’ to open.
  3. Enter the employee’s details, including:
  • Tax File Number (TFN)
  • Full name
  • Date of birth
  • Address (residential or postal)
  1. Read and click the declaration to sign it.
  2. Submit your request.

The ATO will be monitoring the requests to make sure they are genuine. Employers who tend to request the information for employees who started before 1 November 2021 may get their access removed to the service.

Making A Bulk Request

If you have more than one new employee hired on or after 1 November 2021, you may need to complete a bulk request form. This form provides the requested stapled super fund details for over 100 new employees at once.

Make sure you have generated an employment relationship link with every new employee before filing a bulk request.

What To Do If A Request Was Made Late?

Since this change is newly introduced, the ATO will help and support employers in the first instance. In case, you contributed to your default fund without making a request for super fund details, you may have to pay the choice shortfall penalty.

To avoid the choice shortfall penalty:

  • you must request the stapled super fund details for an employee as soon as possible
  • you must pay the employee’s full super guarantee contribution to the stapled super fund

If you still haven’t got what stapled super funds is all about, our registered tax accountants at KPG Taxation can help you out. We are a trusted taxation firm proudly assisting both businesses and individuals in managing their cash flow and filing tax returns.

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