As you may be aware, new legislation regarding superannuation will come into place for all new employees starting from 1 November 2021 regarding Stapled Super Funds.

Many of our customers use Simon to collect new employees’ superannuation choice via an electronic form in the Forms element. The electronic Superannuation Choice form in Simon follows specific guidelines provided by the Australian Tax Office (ATO) in relation to the questions that are asked on the form and the options available for employees to select. These forms should not be changed as they risk non conformance with the ATO requirements for electronic capture of forms.

With respect to Super Stapling changes, the ATO has not advised of any changes to these guidelines and has not made any changes to the standard Superannuation Choice form at this stage. This guide is designed to explain how the new Super Stapling legislation fits with the existing Superannuation Choice form in Simon.

 

What is Super Stapling?

According to the ATO, a stapled super fund is an existing super account which is linked, or ‘stapled’, to an individual employee so that it follows them as they change jobs. The change aims to reduce account fees by stopping new super accounts from being opened every time an employee starts a new job.

From 1 November 2021, employers need to offer their eligible employees a choice of super fund and pay their super into the account the employee selects. Employees can continue to choose a super account they already have or choose the employer’s default fund. There is no change to this step of an employer’s super obligations. If an employee has chosen a super fund, their super contributions can be paid to the chosen fund.

If an employee doesn’t choose a super fund, employers may need to log into the ATO online services to request their stapled super fund details.

For more information about Super Stapling, please refer to the ATO.

 

How does Super Stapling affect the Superannuation Choice form in Simon?

When utilised, the Superannuation Choice form in Simon is a mandatory form that employees must complete during their Forms element. This means it’s not possible for an employee to complete their forms without selecting a superannuation fund for their contributions to be paid into, and therefore, super stapling would not apply as it’s only relevant for employees who don’t select a superannuation fund.

As a result of changes brought about by Super Stapling, we understand that some of our customers would like to give employees an option to complete the superannuation choice form.

Keeping in mind that we are unable to make changes to the questions or options included in the standard Superannuation Choice form, below are the changes required in Simon depending on your organisation’s requirements:

If you would like the Superannuation Choice form to remain mandatory, where the employee must select a superannuation fund (Recommended):

No changes are required in Simon.

If you would like the Superannuation Choice form to be optional, where the employee can choose not to provide a superannuation fund:

The below changes will be required:

  • The below text added to the Fieldset Description (the information at the top of the form) under the “Choosing another superannuation fund” heading:

If you choose not to complete this form, your employer may have to pay your superannuation contributions to a ‘stapled super fund’ A stapled super fund is an existing super account which is linked, or ‘stapled’, to you so that it follows you as you change jobs. If a stapled fund cannot be found for you, the Australian Taxation Office will advise your employer whether contributions can be made to an employer’s default fund or another fund that meets the choice of fund rules.

  • The first question on the Superannuation Choice Form (“Where do you want your superannuation contributions paid to?”) changed to “Optional” instead of “Required”. This means the employee will be able to skip the Superannuation Choice form entirely if they choose. If the employee chooses to skip the form, no superannuation information will be recorded in Simon for that employee.

If you would like to change the Superannuation Choice form to optional, please contact our Help team at help@thinksimon.com.au for the change to be made.

 

If the ATO updates their guidelines and/or changes the Superannuation Choice form in relation to Super Stapling, this guide will be updated, and we’ll let you know.

 

This information is provided to subscribers of Simon as a courtesy notification. You should not rely on the contents of this message as being legally sound or reviewed for accuracy. You should seek your own advice before you act on the contents of this guide. For more information about Super Stapling, please refer to the ATO.