Employers are required to provide their employees with a minimum level of superannuation support known as the Superannuation Guarantee (SG). In addition to making the required SG contributions for their employees, employers must also pay these contributions into either the employee’s chosen fund (if they are eligible to choose a fund) or, for employees who commence employment on or after November 1, 2021, into the employee’s ‘stapled fund’ (if one exists).
The concept of a stapled fund was introduced as part of the Your Future, Your Super Reforms. Whilst most reforms in this package commenced on July 1, 2021, the stapling requirements were deferred until November 1, 2021, so that the results of the first APRA annual performance test were available. The intent was to allow employees to get a better grasp of the performance of certain superannuation products.
In this Technical Journal, we look at recent developments in the SG and choice of fund space (including the new stapling requirements) and discuss how you can assist your employee and employer clients in these areas.
