Blog

Super guarantee and stapled funds: ATO guidelines and transitional approach

October 28, 2021
From 1 November 2021, if new employees start and they don’t choose a super fund, employers may have an extra step to take to comply with choice of fund rules and request the employees’ stapled super fund details from the ATO.

From 1 November 2021 until 31 October 2022, the ATO says it will provide employers with help and assistance to comply with the stapled fund requirements. During this transitional period, the ATO will reduce any choice shortfall to nil if that shortfall arose due to the employer’s lack of knowledge of the stapled fund requirements rather than intentional disregard. This transitional approach applies only to the stapled fund changes to the choice of fund requirements, it does not apply to existing choice rules.

The ATO on Friday 22 October 2021 registered the following instruments in relation to the single default account (stapled fund) regime and additional choice of super fund requirements that apply from 1 November 2021:

  1. Superannuation Guarantee (Administration) – Choice of Fund – Written Guidelines for the Reduction of an Increase in an Employer’s Individual Superannuation Guarantee Shortfall Determination 2021 – provides written guidelines the ATO must have regard to for the purpose of s 19(2E) of the Superannuation Guarantee (Administration) Act 1992 (SGAA) in deciding the level of reduction to apply to an increase in an employer’s individual superannuation guarantee shortfall under s 19(2A).
  2. Superannuation Guarantee (Administration) – Stapled Fund – Guidelines for the Reduction of an Employer’s Individual Superannuation Guarantee Shortfall for Late Contributions Due to Non-acceptance by Notified Stapled Fund Determination 2021 – provides written guidelines the ATO must have regard to for the purpose of making a decision to reduce (including to nil) the amount of an employer’s shortfall for an employee for the quarter in accordance with s 19(2F) of the SGAA.