Your super responsibilities

You play an important role in helping your employees save for the future.

Your super obligations

To help your employees save for their retirement, employers have certain responsibilities.

Are you an employer?

Under super laws, if you employ someone through a verbal or written contract — full-time, part-time or on casual basis — you’re an employer and must pay super for your employees. You may also need to pay super contributions for certain independent contractors. Find out more at the ATO website.

What are your super responsibilities?

As an employer, you must:

How much super do I need to pay?

The amount of super you need to pay your employees is set by the government. From 1 July 2023 the super guarantee (SG) rate is 11% of your employee’s gross salary (increasing from 10.5%), though this may change over time. Find out more.

The SG contribution you make for your employee is in addition to your employee’s salary.

Want to talk to a super expert?

We’re here to help. Give us a call on 1800 005 166.

What's a default super fund?

It’s the fund you pay super into for employees who can't or don't choose their own fund.

As an employer, you must nominate a default super fund for your employees. This is the super fund you’ll pay SG contributions into for any employees who don’t choose a super fund, have an existing super you have to pay into or make a choice that isn’t valid.

Which super funds are eligible to be your default fund?

Your default fund needs to be a complying fund that’s authorised by the Australian Prudential Regulation Authority (APRA) to offer a MySuper product.

A MySuper product needs to offer default death and total and permanent disablement (TPD) insurance on an opt-out basis that meets certain minimum requirements.

Spirit Super is a complying fund and MySuper authorised, so we’re eligible to be your default super fund. Our MySuper authorisation number is 74 559 365 913 178.

We offer many benefits for our members, including default death and TPD insurance that exceeds the minimum requirements. We’re also here to provide you as much or as little support as you need to meet your super responsibilities quickly and easily

Looking for a default super fund?

Well look no further. You can make us your default fund.

Employer responsibilities

Tax file numbers

Pass on your employee’s tax file number to their super fund.

What you need to do

When your employee gives you their tax file number (TFN), you must pass it on to their chosen super fund, either:

  • on the day you first make a super contribution for that employee or
  • within 14 days of receiving it, if not available at the time of the first contribution.

You must also ensure any third parties that manage your payroll or distribute super contributions pass on TFNs to other super funds too.

Tip:

If you don’t provide an employee’s TFN to their super fund, they may pay extra tax on their contributions, won’t be able to make personal contributions and will miss out on government super incentives. You may also face penalties.

How do you give an employee’s TFN to their super fund?

You can provide TFNs through your usual payment method, such as a clearing house or your payroll provider. Simply add your employee’s TFN to their details when you next make a contribution.

To supply a TFN for an employee with a Spirit Super account, give us a call on 1800 005 166.

Records and reporting

Keep records of your super payments for at least five years.

What records do you need to keep?

You need to keep records to show you've satisfied your SG obligations, including details of how much you paid in SG contributions for each employee and how you calculated the amounts.

You'll also need to show that you've offered any eligible employees their choice of super fund.

Even if you're using a clearing house, you'll still need to keep your own records. Make sure you keep your super records for at least five years.

Reporting super contributions

When you're preparing the annual payment summaries for your employees, include the amount of any extra super contributions you've made for them where:

  • the amount is more than your compulsory SG and award obligations and
  • the employee can influence the amount you've contributed.

This is referred to as reportable super contributions. Reportable super contributions (such as salary sacrifice contributions) are part of the income tests for some government benefits and obligations. They aren't included in an employee's assessable income and don't affect how you calculate their super contributions. Find out more at the ATO website.

Your guide to stapling

Australian workers are now 'stapled' to their existing super fund or the first super fund they join.

Australian workers are now 'stapled' to their existing super fund or the first super fund they join.

Stapling legislation, introduced as part of the Australian Government’s Your Future, Your Super reforms, requires employers to make SG contributions to their new employee’s existing super fund unless otherwise instructed. The employee can still choose to join the employer’s default fund or another eligible fund.

Stapling aims to reduce the number of super accounts Australians accrue throughout their working lives and eliminate unnecessary fees for multiple accounts.

How does this affect my business?

When a new employee joins your business and doesn’t provide instructions to pay to a particular super fund, you must check with the ATO to see if the employee has an existing ‘stapled’ super fund. The stapled fund process only applies where the employee doesn’t exercise a choice of fund.

  • If your employee chooses an eligible super fund, you must pay SG contributions into that fund.
  • If your new employee doesn't choose an eligible fund, you must search ATO online services to see if your new employee has an existing super fund. If they do, you must pay SG contributions into that fund.
  • If your employee doesn’t choose a fund and your search of ATO online services shows they don’t have an existing super fund that can accept contributions, you pay SG contributions into your default MySuper fund.

Is it compulsory?

Yes, it applies to all employers.

Note: If you're a Tasmanian State Government employer, the Public Sector Superannuation Reform Act 2016 (section 21) remains compliant, and you don’t need to consider stapling.

Does it apply to all employees or just full-time employees?

Stapling applies to all new employees from 1 November 2021. This includes any full-time, part-time and casual employees who are eligible to earn super.

Does it apply to existing employees too?

No. Stapling doesn't change arrangements for employees who started before 1 November 2021. Employers must continue paying compulsory SG payments into the current nominated fund.

 

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