From 1 November 2021, employers will need to undertake an extra
step while onboarding new employees to comply with the choice of
superannuation fund rules. Penalties may apply if the choice
requirements are not met.
Under current rules, when onboarding new employees, employers
can add them to their default superannuation fund if the employee
has not chosen a superannuation fund. Going forward, for any new
employees starting from 1 November 2021, employers will be required
to contact the Australian Taxation Office (ATO) if the employee has
not chosen a fund and check whether the employee has a
"stapled fund". If the employee has a stapled fund, the
employer will need to make contributions to that fund as opposed to
the employer's default superannuation fund.
