Here’s what you need to know from 1 November 2021.
As part of the ‘Your Future, Your Super’ changes announced in the 2020-21 Federal Budget, the government has implemented new measures designed to enhance our superannuation system.
One of the changes, that came into effect on 1 November, means Australians' super accounts will be ‘stapled’ to them when they change jobs. This means when a new employee starts with an employer, if the employee does not nominate where their super is to be paid, then their employer will be required to pay super contributions into the employee's existing super account.
An employer now needs to source information from the Australian Taxation Office (ATO) about their new employee’s existing superannuation fund so they can make payments into that account if the employee has not nominated a different fund.
If an employer has people working in high risk occupations, they should consider encouraging employees to check that the insurance they have through their existing super fund covers them for the work they do in their new job, as not all default insurance arrangements will cover them.
Default arrangements will continue to be used where a new employee does not nominate a fund and does not have an existing super fund. New employees also have the choice to nominate their new employer’s default fund over an existing fund.
This reform has been implemented to reduce the number of duplicate super accounts and unnecessary fees paid by workers. It’s also expected to save Australians $17.9 billion over 10 years1.
Ultimately people should be better off in retirement, as they won’t be paying unnecessary fees for additional super accounts and this money can be used, saved, or invested for the future.
If you’d like more information about stapled super accounts, you can contact our employer helpline on 1300 369 901 (select option 3).
1 Source: treasury.gov.au/publication/p2020-super
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