Super Choice Rules are Changing for Employers

Historically we have all experienced having an employee that doesn’t know or cannot remember their super details. You ask, and ask again and eventually it comes time to pay the super bill and they still haven’t given you the details. So you ask them to choose a fund that they would like you to put the super into, sometimes they just choose one at random other times they tell you they don’t care and ask you to pick one.

On the whole it’s very frustrating, this is their money, their future retirement but it’s your problem to make sure it gets there. Finally, it’s time to pay and if you still don’t have the details you use the default fund listed in their employment terms, after all if you don’t pay the super on time you don’t get a deduction.

Come 1st November this process will be slightly different and arguably improved. Instead of just asking the employee repeatedly for the same details you will now be obliged to request the stapled super fund details from the ATO. The process is accessed via Online Services with the ATO, and as your tax agent we can request the details for you. In theory the need for using default super funds should all but disappear unless the employee is new to the work force.

As with previous requirements you are required to honour the employee’s super choice so if you access details from the ATO they are the super fund details you must use.

If you have any questions, or would like to know more about the above, please contact John or Renee. We are here to help.