News
New Super rules for employers
On November 1 2021, new government rules came into effect whereby employees who move jobs will have their superannuation paid into their existing account rather than their new employer’s default fund.
In the 2020-21 federal Budget, the government announced the Super Reforms – Your Future, Your Super measure.
The new rules mean that as an employer, when you take on a new employee, you must verify whether the employee already has a super account, known as a ‘stapled super fund’. Many workers are unknowingly paying more than one set of superannuation fees, because they have multiple accounts and new laws have been implemented to sort this issue.
According to the new rules, new employees who do not actively choose a different super fund when they move jobs, will have their super deposited into their current account (staple fund).
Previously, if someone changed jobs without specifying a super fund, they were automatically placed into their new employer’s chosen My Super fund.
The new rules will mean that SMEs will be required to check whether a new employee has a super account by contacting the Australian Taxation Office (ATO). The standard super choice form will still be used, offering employees the choice of picking an existing super fund or the employers’ default fund. If no fund is chosen, businesses must request their current super account information from the ATO. Previously, employers were able to nominate a default fund on a staff member’s behalf.
Here at TaxAssist Accountants we can help you to manage Your Future, Your Super compliance requirements. It’s important to get this right because failure to understand your obligations and put processes in place, could result in possible penalties and costs of non-compliance. Call us today for a free initial consultation.
Date published 5 Nov 2021
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