Starting 1 November 2021, there are changes to the rules about superannuation funds of newly hired employees.
Historically, if an employee didn’t provide a superfund, an employer would set them up with a default fund. There is concern about employees who change jobs frequently ending up with duplicate funds and duplicate fees eroding their retirement savings.
The new rules make it so that if an employee doesn’t provide any fund details, the employer is required to contact the ATO to determine if a “Stapled fund” exists for the person. A stapled fund is a complying fund eligible to accept contributions that follows an employee wherever they go. If there is a stapled fund, contributions need to be made there. If there is not a stapled fund, the employer can set up a default fund as they would have done in the past.