Stapled Super Fund

(When we say you and your, we mean you as the user of the stapled super fund API in your software.)

Description

From 1 November 2021, there's an extra step employers may need to take to comply with the choice of super fund rules. If a new employee doesn't choose a super fund, most employers will need to request the new employee's 'stapled super fund' details from us to avoid penalties.

A stapled super fund is an existing super account that is linked, or 'stapled', to an individual employee so that it follows them as they change jobs.

Employers must pay super contributions into one of the following:

• the super fund the new employee chooses
• the stapled super fund provided by the ATO if the new employee hasn't chosen a fund
• their default fund (or another fund that meets the choice of fund rules) if they cannot pay into the funds above.

When a new employee starts, employers need to:

• know if the new employee is eligible for choice of super fund – for example, employers don't need to offer choice to
  • temporary residents
  • employees covered by an enterprise agreement or workplace determination made before 1 January 2021
• offer the new employee a choice of super fund if they are eligible.

If a new employee doesn’t choose a fund, employers, or their authorised representatives need to:

• submit a tax file number (TFN) declaration or a Single Touch Payroll (STP) pay event to establish an employment relationship
• request the new employee’s stapled super fund details.

Employers may not be able to do this if they engage a contractor who is an employee for super guarantee purposes and they are unable to submit a TFN declaration or STP pay event. Employers can create the relationship through a secure mail lodgment.

If the employee’s notified stapled super fund advises the employer that they cannot accept any contributions, the employer can make subsequent stapled super fund request for an alternate stapled super fund through this API.

As part of the subsequent requests, employers will need to indicate that they are unable to make contributions to the previously notified stapled super fund for the employee. This will exclude the fund from the future responses. If no other stapled super funds are available, the employer will be advised to use their default industry fund.

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Business usage and process flow

The stapled super fund API is a service that supports you in asking us to identify any stapled fund for an employee who began employment from 1 November 2021.

The service enables employers to comply with their choice of fund obligations under section 32(c) of the Superannuation Guarantee (Administration) Act 1992.

The service consists of two interactions:

1. Stapled super fund request, which enables a business user to submit for a single employee to determine their stapled super fund
   • If the employer or intermediary has had their access to make new requests removed, you will still be able to make an outcome request.
   • If the employer needs to lodge a subsequent stapled super fund request that will exclude previously notified stapled super fund accounts from the decision-making process, as they could not accept contributions from that employer.
2. Outcome request, which enables you to obtain the outcome of a previously made stapled super fund request using the receipt number of the original request
   • Historical request outcomes can also be viewed through ATO online services.
   • Obtain an outcome not provided due to the original stapled super fund request timing out.

See: Stapled super fund business process flow

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Authentication

See: Client Authentication

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Authorisation

Intermediary relationship

The stapled super fund services that an intermediary can use on behalf of clients depend on the relationship with the client. The intermediary must have the appropriate authorisation for the interaction being performed on behalf of the employer recorded in ATO systems:

• A business intermediary must be appointed by a business in Access Manager to use the available services on their behalf.
• Tax agents and BAS agents must be appropriately linked to the employer at an account or client level to use the service on behalf of the employer.
• Payroll service providers must have an account level link created with the employer to use the service on behalf of the employer.

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Declarations

We require a declaration indicating the information contained within the request for stapled fund is true and correct. This declaration must be made by the sender (declarer).

To make a declaration, the sender must be aware of two things:

• the statement they are making
• that it becomes a declaration by them ‘signing’ it.

As a result, in every case that a declaration is required to accompany a transaction, the sender must have displayed to them:

• a specific statement or statements describing what they are about to declare
• an acknowledgment that the declaration is made by signing the statement in a particular way.

The sender must sign by actively confirming what constitutes their ‘signature’ by using a tick-box, send button or similar mechanism.

The wording of the declaration statement varies depending on the sender.

Employer or the authorised representative of the employer (not a tax or BAS agent)

If lodged by employer or the authorised representative of the employer (not a tax or BAS agent) for the purpose of requesting a stapled super fund on behalf of an employer:

I declare:

• I am the employer of the employee or I am authorised to complete and lodge this request for an employee’s stapled fund information with the Commissioner on behalf of the employer.  
• This request has been prepared in accordance with information supplied by the employee.
• The request is for the purposes of complying with the choice of fund requirements that relate to stapled funds.
• The information I have provided is true and correct.

Authorised tax or BAS agent

If lodged by an authorised agent (tax or BAS agent) for the purpose of requesting a stapled super fund on behalf of an employer:

I declare:

• This request has been prepared in accordance with the information provided by the entity whose ABN or WPN appears on this document and who is the employer of the employee.
• The entity has provided me with a declaration stating that the information provided to complete this request is true and correct and is for the purpose of complying with the choice of fund requirements that relate to stapled funds.
• I am authorised to complete and lodge this request for an employee’s stapled fund information with the Commissioner on behalf of the entity.

Payroll agents

Payroll agents use the Authorised tax or BAS agent declaration.

Payroll service providers

To work out which declaration a payroll service provider (PSP) uses in the Stapled super fund API, the PSP has to determine whether they need to register as a tax practitioner to carry out the services for the client.

• If the only service being provided by the PSP to the client is the Stapled super fund API, PSPs are not required to register as a tax practitioner. In that scenario the PSP would use the Employer or the authorised representative of the employer (not a tax or BAS agent) declaration.
• If the PSP is providing services in addition to the Stapled super fund API to the client, then the PSP should check TPB Information Sheet TPB(I) 31/2016 Payroll service providers to see if those other services require the PSP to register as a tax practitioner. If the PSP is required to register as a tax practitioner to provide services to a client, in addition to the Stapled super fund API, then the PSP would use the Authorised tax or BAS agent declaration.

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End User

End users that will submit stapled super fund request using this API product are:

• Reporting party
• Intermediary – not a registered agent
• Intermediary – registered tax agent
• Intermediary – registered BAS agent

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Scopes

ato.super.stapledsuperfund.c,r

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Risk rating

4 - High risk

For more information, see API risk rating.

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Rate limit

Not applicable.

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Test scenarios

The stapled super fund API test scenarios are provided in the sandbox environment to help you in the development of your software.

We recommend testing for an optimal user experience.

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Production requirements

Before you can request production access for this API, you must meet the requirements for production access.

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Constituent APIs

• Stapled Super Fund API

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