your future your super legislation passed

As you may be aware, the Federal Government’s Treasury Laws Amendment (Your Future Your Super) Bill has been passed by Parliament and will come into effect from 1 November 2021. 

The legislation introduces several changes to the super system, including a ‘stapling’ mechanism which aims to help reduce the creation of multiple superannuation accounts, particularly as workers change jobs.

From 1 November, when you onboard a new employee, they can tell you to pay their super into their chosen super fund by using the Standard Choice Form. As an employer, if you receive this form, you must make payments into this account.

However, if an employee doesn’t return the choice of fund form, you must contact the ATO to see if the employee has an existing super fund. This will be their ‘stapled’ account. This can only be requested once an employee has commenced employment.

If the ATO advises you that no account has been identified for your employee and the employee hasn’t chosen a fund, you must create a new account for them with your default super fund.

The regulations that sit behind the legislation are still in draft stages and could change. However, they are due to be implemented on 1 November 2021.

The ATO is developing a system to automate this process, expected to be ready in mid-2022. We expect further clarification from regulators and the ATO on how stapling will be implemented in the coming months.

We’ll keep you informed of all changes as they roll out and provide additional resources to help you feel well prepared to meet all requirements from of 1 November.. 

_{While every attempt has been made to ensure the accuracy and reliability of the information, it is not guaranteed in any way.}