From 1 November 2021, when a new team member commences employment, employers should ensure that they take the following steps:
- Provide new eligible team members a Superannuation Standard Choice Forms as usual which allows the person to nominate their preferred superannuation fund (unless the employer is not required to offer the choice of superannuation fund).
- If the person nominates a superannuation fund at this stage, then the required superannuation contributions should be made by the employer to that nominated fund.
- If the new employee doesn’t nominate their preferred superannuation fund, employers must request stapled superannuation fund details via the ATO’s online services platform to establish whether there is a stapled fund for the relevant employee.
- If there is a stapled superannuation fund on record, then superannuation contributions should be made to that fund (provided it can accept contributions).
- If there is no stapled superannuation fund on record, employers can make superannuation contributions into its chosen default fund as usual.
As you may recall, the minimum rate of superannuation contributions increased from 9.5% to 10% as of 1 July 2021 and is due to increase over the next few years until superannuation contributions reach 12%.
If you need any assistance with superannuation, call out to your accountant, bookkeeper or trusted advisor for support and guidance.