STAPLED SUPER FUNDS

Nyssa Gower
November 10, 2021

STAPLED SUPER

From 1 November 2021, employees have their existing super funds “Stapled” to them – Stapled Super Funds

This means that if employees do not provide super fund details to their employers, employers are able to discover the employee’s Stapled Super Fund from the ATO

WHY IS THIS GOOD?

· Reduces individuals having multiple superfunds, thereby reducing their super account fees

· As an employer, you are no longer stuck waiting for your employee to give you their super details, resulting in super being paid late and therefore not tax deductible

WHAT IF I DON’T PAY SUPER ON TIME?

Did you know that directors are personally liable for unpaid SGC?

If you pay late, you are required to complete late payment forms, pay additional admin fees, interest and penalties of up to 200% of the outstanding super amount.

https://www.ato.gov.au/Business/Super-for-employers/Missed-and-late-super-guarantee-payments/Super-guarantee-penalties/

FOOL PROOFING

When you have a new employee start, pay their super with their first payslip

· Gives you additional time to fix their super details if it bounces back

· Ensures you’re going to get a tax deduction for the SGC

· Only disadvantage is cashflow – but the advantages outweigh the inconvenience

Pay within 7 days at the end of month (if cashflow allows); or

Set up calendar reminders to pay within 28 days at end of quarter

HOW CAN I MAKE SGC WORK FOR ME?

Paying your employees super is a tax deduction for your business. Make sure you pay it on time and for the June quarter, pay it before 30 June. Remember – Super is only deductible when paid on time.

FACT SHEET

PDF Fact Sheet

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