As published in The Q Review Summer 2021/22 Magazine.  Follow the link to Subscribe and receive your FREE copy each quarter!

In Part 1 we discussed Cryptocurrencies and Tax, as well as Tax Obligations when using Contractors.  In this Part 2 we continue with…

Latest in Superannuation – Employer Obligations

Super Stapling

A Stapled Super Fund is an existing super account which is linked – or ‘stapled’ – to an individual and follows them as they change jobs.

Working Australians will now be attached to one super fund for life, unless they choose otherwise!

For some time now, the very vast majority of employers have been required to offer Super Choice to their employees.

If the employee failed to exercise their right to choose a super fund, the employer was required to contribute to their ‘Default Fund”.

Under new rules as of November 2021, if an employee fails to nominate a suitable super fund, instead of automatically resorting to their Default Fund, employers are now required to search the ATO’s online systems in an attempt to identify the employee’s ‘Stapled Super Fund’.

If such a fund is identified, the employer MUST contribute to this fund (largely without exception)!

You can read more about Super Stapling in a previous Blog post here –> New Employer Obligations regarding Employee Super (Effective 1 November 2021) – CapitalQ

Latest in Superannuation – Self-Managed Super Funds (‘SMSF”)

ESA Requirement for Super Rollovers

From 1 October 2021, to rollover any super to, or from, your SMSF, you will need to use SuperStream.

SuperStream is a data and payment standard used for digital transactions within the super industry.

To use SuperStream your SMSF must hold an active Electronic Service Address or ESA.

This is a special type of internet address (similar to an email address) that helps SuperStream transactions find the correct destination.

As of 1 October 2021, if your SMSF does not have an active ESA, your fund will not be able to rollover funds in or out.

Therefore, these changes will impact your SMSF if your members want to:

  • rollover funds into your SMSF from another super fund,
  • rollover funds from your SMSF to another super fund (ie. when members leave the SMSF or an SMSF is being wound up),
  • receive and action certain release authorities, including First Home Super Saver (“FHSS”) scheme transactions, in a prompt efficient manner (ie. avoiding paper forms).

There are a number of ways to obtain an ESA, but for CapitalQ Community Members the easiest way is through us.

The system we use to prepare the annual financial statements and return includes an ESA for each of our SMSF clients as an included part of the service

Check out Part 1 in this Blog series here – Latest in Tax and Super – Part 1 – CapitalQ.