In the world of superannuation, Stapled Super Funds have changed the game, making things simpler for employers and employees. Let’s break down what you need to know about Stapled Super Funds and how they affect your money.
Understanding Stapled Super Funds:
In the past, changing jobs often meant dealing with different super accounts and fees. But things changed in 2020. Now, your Super Fund is “stapled” to you. This means it stays with you even if you switch jobs unless you decide to change it.
The main idea behind Stapled Super Funds is to make things easier. It reduces fees and stops the need to open new accounts with every job change. This new system started on July 1, 2021.
How to Deal with Stapling:
For employers, it’s important to check if a new employee already has a Super Fund using the Australian Taxation Office (ATO) database. If they have one, contributions should go to that fund, unless the employee asks for a change.
Stapled Super Fund details should be requested for new employees who started on or after November 1, 2021, especially if:
1. You need to pay a super guarantee.
2. Employees can choose a super fund but haven’t picked one.
Exceptions apply for employees who can’t choose their own Super Fund, like temporary residents or those covered by agreements made before 2021.
Taking Control of Your Money:
Even with Stapled Super Funds, employees must stay on top of their superannuation. Check your fund’s returns and fees regularly, especially when changing jobs or getting your annual statement.
As an employee, being proactive about understanding and managing your superannuation can make a big difference to your financial well-being.
How Amaze Accounting Can Help:
If you have questions or need help finding your employees’ Stapled Super Funds, Amaze Accounting is here. We are registered tax agent in Sydney. We can use the Tax Portal to get the information you need. Reach out to us through email or visit our website. We’re dedicated to helping you make smart decisions about your money.