fbpx

New Superannuation Standard Choice Form

Information For Employers & Employees

Employees use the Super Choice Form to choose the superannuation fund into which their employer will pay their superannuation contributions. Employers must provide a standard choice form to employees at the commencement of employment.

The Super Choice Form is required by law, and employers are legally required to make superannuation contributions on behalf of their employees. Employees can complete the form to ensure that their superannuation contributions are paid into a fund that meets their needs and preferences.

For any new employees starting from 1st November 2021, employers will be required to contact the Australian Taxation Office (ATO ) if the employee has not chosen a superannuation fund to confirm and check whether the employee has a “stapled fund”.

A “stapled fund” is an existing superannuation account linked, or in other words “stapled”, to an individual employee so that it follows them as they change jobs. If the employee has a stapled fund, the employer will need to contribute to that fund, not the employer’s default superannuation fund.

These provisions were introduced to reduce instances of employees having multiple superannuation fund accounts and help to reduce the compliance fees associated with setting up new fund accounts each time an employee moves between jobs.

Information for Employers

If an employee doesn’t return this form:

If your employee starts work on or after 1st November 2021, most employers must request the employee’s stapled super fund details before making a super contribution.

If an employee doesn’t provide you with the correct details or the fund can’t accept your contributions, you will need to request their stapled super fund details from the ATO. Note: you cannot request stapled super fund details from the ATO until you have lodged at least one pay event via Single Touch Payroll, for that employee.

If the ATO advises that the employee does not have a stapled super fund, you can make the payment to your nominated default super fund.

For more information, visit ATO – Request stapled super fund details for employees.

Information for Employees

If you choose not to complete this form:

If you are a new employee and choose not to complete this form, your employer will check with the ATO if you have an existing super fund. If you do, your super can be paid into this fund, called your “stapled super fund.”

If you have multiple funds, the ATO will choose one of them as your stapled fund – it may not be the fund you would prefer.

If the ATO is unable to identify a stapled fund, your employer will be advised to pay your super into their default super fund listed in Section C.

If you started your current employment before 1st November 2021, your employer will pay your super into their default super fund listed in Section C.

For more information about stapled super funds, visit ATO – Super.

For help from a professional bookkeeper or BAS Agent, contact our offices today.

We are exclusive partners with Bankwest providing support for small business, webinars and exclusive offers for Bankwest customers.