New super obligations passed into law Jun 23, 2021
The Government has passed the ‘Your Future, Your Super’ legislation into law, and new super obligations will now be in place from 1 November 2021.
This has been delayed from the originally proposed start date of 1 July 2021.
The new ‘Your Future, Your Super’ rules will see super fund accounts ‘stapled’ to individuals from 1 November. The intention is to avoid the creation of multiple accounts when people change jobs.
Under the new rules, businesses will need to find the details of the current super fund of every new staff member and pay their contributions into their existing fund.
The ATO will be creating a portal to assist businesses with finding their employees’ super accounts. Payroll officers will need to access this portal to set up a new employee with their super contributions.
ATO assistant commissioner Larissa Evans said checking the ATO portal for an employee’s old account would take “minutes”.
“An employer would effectively authenticate and log in [to the ATO website], they would submit a request for their employee which would include details of the employee like their name, date of birth and address”, Ms Evans said.
A new account can only be set up with a business’ default fund if they don’t already have a super account (for example, if they are new to the workforce). This default fund could end up being the Fund they use for the rest of their life.
The team at Intrust Super will keep our business clients up to date about how to manage their administrative processes going forward.
In the meantime, if you need any assistance to ensure your payroll systems are prepared for the change, we’d love to help with a free Business Super Health Check! This brief, 15-minute discussion could result in hours of weekly savings in payroll and admin processes once the new rules take effect.