On 17 June 2021 the Government passed the Your Future Your Super (YFYS) legislation. The three reforms are:
What do the changes mean for employers?
From 1st November 2021, all workers will be linked or ‘stapled’ to their existing super fund. This means that unless they choose otherwise, employees will take their existing super fund with them from job to job.
Keep it simple.
Employers must give new employees the opportunity to choose their own super fund. The simplest way to do this is:
- to include a Choice of Fund form (like our Choice of Fund form) in your new employee Welcome Kit. If they make a choice (which may include your default fund), this form will need to be submitted to your HR/payroll team for processing.
- alternatively, you can direct new starters to our New Member Online registration page, which provides an easy step-by-step guide (which includes filling out a Choice of Form) in just a few minutes.
If your new employee does not actively choose their own fund, then you will be required to contact the Australian Tax Office (ATO) via their online enquiry service to find out whether they have a ‘stapled’ (existing) super fund and manually update your payroll system with their chosen fund’s details.
For any assistance or further information about these new obligations, please call our dedicated employer hotline on 1800 060 215 or email us at info@childcaresuper.com.au. We’ll be happy to help.
Checklist for onboarding new employees
- Offer new employees a ‘Choice of Super Fund’ form within 28 days. New employees can choose to join your default super fund or nominate their preferred super fund by completing a Choice of Fund form (like our Choice of Fund form) and submit this form to your HR/payroll team. Alternatively, your new employee can join our fund by completing the choice of fund form through our New Member Online registration page, which provides an easy step-by-step guide in just a few minutes.
- If your new employee doesn’t choose a super fund, check if they have a ‘stapled’ fund. You can do this online via the ATO Online Services
- If they do have a stapled fund, pay their super into it.
- If they don’t have a stapled fund, pay their super into your default fund
Note: If you have over 100 employees starting at the same time, you won’t be required to complete an individual search for each employee’s stapled fund. The ATO will provide a bulk upload service (via ATO online services) to allow you to make large volume requests.
Frequently Asked Questions
Can employees choose to change their super fund?
Yes. Your employees will always be able to change super funds if they want to. If they do, their new super fund will become their stapled fund. Your employees will need to let you know if they change super funds
What if my employee has more than one super account?
If an employee has more than one super account, they will be automatically stapled to the one that has been active (received a contribution) most recently. If there is more than one active fund, rules will be applied to select the most appropriate fund, eg. the fund with the biggest balance.
Do employers still need to have their own default or preferred funds?
Yes. Employers are legally required to choose a default or ‘preferred’ super fund for employees who do not make their own choice. The introduction of super stapling makes it even more important for employers to actively choose and regularly review their choice of default fund as your fund’s performance will affect your employee’s retirement savings.
What if employees don’t have a stapled super fund?
If your new employee doesn’t have a super fund, they can choose their own super fund by completing a Choice of Fund form (like our
Choice of Fund form). If they don’t have a super fund and don’t make an active choice of fund, you must pay their super into your default arrangement.
What information will be sent to my employees?
If the ATO provides a stapled super fund response to an employer, your employee will be contacted and advised of the request. Employees will receive an SMS if they have a valid mobile number available to the ATO and/or a letter (via myGov or paper).
Why can’t my new employee tell me what their stapled fund is?
Your new employee may have more than one super fund. If this is the case, the ATO will use a set of rules to determine which is their stapled fund. These may include factors such as when the account was created, how recently contributions were made and the account balance.
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We're here to help
We’re here to help you stay on top of these changes to ensure you meet your super obligations. For more information on 'stapling' and other Your Future, Your Super measures, visit ato.gov.au/stapledsuperfund.
If you would like to speak to someone, please contact our friendly team on 1800 060 215 or Contact Us.
It’s important for you to understand that while we are happy to provide you with general information on “stapling”, we cannot provide you with advice specific to your business or any industrial awards covering your business.