Business Update – Super Stapling, Director Identification Numbers & more
There’s a fair bit happening as we roll into the end of the year – lots of regulatory changes you should be across, from Superannuation Stapling to ensuring you obtain a Directors Identification Number.
November: Change in Superannuation Rules for new employees
On November 1st, the superannuation experience for working Australians is set to change, for the better. The way employees are onboarded and how their super funds are set up will change.
The government initiative of ‘super stapling’ which is part of the broader Your Future Your Super (YFYS) reforms will come into fruition. This deals with the problem of individuals holding multiple superannuation accounts and the fees that result. Did you know that $30 billion in fees is collected by Superannuation Funds each year? Employees will now have a ‘stapled’ account that follows them as they change jobs, leading to less account duplication, lower fees, and a positive impact on their future super balance.
Super stapling will mean adding an extra step in your onboarding process – this will be when you check for a new employees’ stapled account if they haven’t nominated their own.
- The ATO has created a directory via ATO Online Services.
- After logging in, you’ll need to enter details such as an employees’ TFN, full name, date of birth and address to then receive the details on their stapled fund.
- If the ATO search returns a stapled fund account for your new employee, you’ll need to set this up as normal.
Should you make any other changes to your onboarding process?
With the festive season upon us, it’s worth reviewing your existing onboarding process – it’s an important process and this is a good opportunity to do some regulatory cross-checking. If a new employee hasn’t completed a Superannuation Standard Choice form, employers will need to have their details (including TFN) to find their stapled super account. Does your current process get you all the paperwork and information you need in time?
November: Changes for Directors starting in November: Identification Number Needed
As per our post last week, all Directors of a company will need a director identification number (director ID) from November.
The director identification number is a unique identifier that allows shareholders, creditors, employees, and consumers to know certain details about the directors of a company. All directors are required by law to verify their identity with the Australian Business Registry Services before receiving a director ID.
All directors need to apply for their own ID so while we can’t apply for this on your behalf, we can help you if you have any questions.
You can also follow the steps for application here when it’s available in November.
January: Single Touch Payroll Phase 2
The expansion of Single Touch Payroll, also called STP Phase 2, will minimise the reporting burden for employers who are required to report information about their employees to multiple government agencies. The ATO will now share payroll information with Services Australia in near real-time. This will help Services Australia’s customers, who may be your employees, get the right payment at the right time.
Also, you may no longer need to provide separation certificates when your employees leave. The mandatory start date for Phase 2 reporting is 1 January 2022.