Most changes to superannuation happen at the start of every financial year on 1 July. But there are still changes happening at other times you might not be aware of. Here’s what you need to know as we head into 2022
Super now 'stapled' to you when changing jobs
Start date: 1 November 2021
The Federal Government recently introduced the concept of ‘super stapling’. This makes it easy for employees to keep the same super fund when they change jobs, rather than opening a new super account each time. Not only will this simplify a person’s super situation and paperwork – it should also reduce erosion of people’s super balances through multiple sets of fees. For new employees starting a job from 1 November 2021, if they don’t specify a super fund, their employer can no longer assign them to a default fund. Instead, the employer must use the employee’s ‘stapled super fund’ if they have one. They can check this with the Australian Taxation Office (ATO) by logging into the ATO’s online services and entering their employee’s details. If an employee has more than one super account, the ATO will use a set of rules that consider things like recent contributions and account balance to let the employer know which one to use. If an employee doesn’t have an existing super account and doesn’t choose their own super fund, their employer will open an account for them in a nominated fund. This will then become the employee’s stapled fund if they change jobs in the future
Streamlined payments reporting for easier tax returns
Start date: 1 January 2022
The ATO began Phase 1 of its rollout of Single Touch Payroll reporting in 2019. On 1 January 2022, it will enter Phase 2. This phase will make it easier for employers to report specific payment details made to employees across all income streams, including: ¨ gross income – gross residual, salary sacrifice, bonus and commissions, overtime, director’s fees and paid leave, and ¨ allowances – like car expenses, laundry allowances, meal allowances, travel and accommodation. For employees, this means tax time will be easier than it has been in previous years. All of their information will be on the MyGov website, meaning less paperwork and a more complete digital record. In addition, employees will find it easier to understand how they’re getting paid and identify different payment types for tax and reporting purposes
Visibility of super assets
Start date: 1 April 2022
The Federal Government has passed new laws allowing the ATO to release information about super assets to the Family Court during law proceedings. It highlighted that super is an increasingly significant asset in the property pool for separated Australian couples. The improved visibility of super assets will make it harder for parties to hide or under-disclose their super assets in family law property proceedings. In addition, it will reduce the time, cost and complexity for parties seeking information about their former partner’s super.
Know your super situation – speak with us to find out more
This is an overview of some of the super changes happening before EOFY – it’s not a complete guide and doesn’t take your situation into account. To help navigate the rules and ensure you have the right strategy, it’s best to speak to us.