On 17 June 2021 the Government passed the Your Future Your Super (YFYS) legislation. The three major reforms are:

 

 

STAPLING

Stapling

As of 1st of November, unless they actively choose a different super fund employees will become 'stapled' to their existing super account which will follow from job to job.
PERFORMANCE

Performance Test

An annual performance test monitored by APRA compares super fund performance to a number of benchmarks. Currently, the performance test only applies to MySuper funds. Any underperforming MySuper funds will need to notify its members of the underperformance of their fund.
FINANCIAL DUTIES

Best Financial Duties

There will be a requirement moving forward for superannuation trustees to demonstrate that all fund expenditure is in a member's best financial interests.

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:

  1. 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
  2. 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 1300 361 477 or email us at info@guildsuper.com.au. We’ll be happy to help.

How stapling will work

Your new employee…From 1 November 2021, you’ll need to…
Has an existing (stapled) super fund and doesn’t choose a fund when they start employment. Use ATO online services to find the employee’s stapled fund and make contributions to it.
Has no existing (stapled) fund and doesn’t make a choice of fund when they start employment. Provide a Choice of Fund form (like our Choice of Fund form). Or use ATO online services  to find the employee’s stapled fund and if advised that no stapled fund exists, make contributions to your default fund.
Has an existing (stapled) fund but chooses a new fund by submitting a Choice of Fund form. Provide a Choice of Fund form (like our Choice of Fund form) and make contributions to the employee’s chosen fund.

 

 

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. 

More Information

Frequently Asked Questions

Can employees choose to change their super fund?
What if my employee has more than one super account?
Do employers still need to have their own default or preferred funds?
What if employees don’t have a stapled super fund?
What information will be sent to my employees?
How does an employee change their stapled fund?
Why can’t my new employee tell me what their stapled fund is?

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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 dedicated Employer Hotline on 1300 361 477 or send us a message at info@guildsuper.com.au

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.    

 

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