Institute of Certified Bookkeepers

Stapled Fund Process for Contractors

From 1st November 2021, if a business has new employees start and that employee does not choose a super fund, there is an extra step to take to comply with choice of fund rules. An employer should request an employee’s ‘stapled super fund’ details from the ATO.

A stapled super fund is an existing super account linked, or ‘stapled’, to an individual so it follows them as they change jobs. This includes contractors who you pay mainly for their labour and who are employees for super guarantee purposes. For all things Stapled Funds see: ICB – Stapled Funds

Contractors

If a business pays contractors mainly for their labour, they are employees for superannuation guarantee (SG) purposes, and a business may need to pay super to a fund for them.

It doesn’t matter if the contractor has an Australian business number (ABN).

An employer will need to request stapled super fund details for contractors who start on or after 1st November 2021 when:

Before you can request a contractor’s stapled super fund details, you need to establish an employment relationship.

Employing contractors entitled to super guarantee contributions:

Employers will need to request a contractor’s stapled super fund details using the secure mail function in ATO Online services.

When you submit the request, you will need to include:

  • Topic: Superannuation
  • Subject: Other
  • Description: include reference to ‘Stapled super fund request for contractor’
  • The written contract signed by both parties for the contracting arrangement.
  • A completed and signed Contractor stapled super fund request form.

Employers or their authorised representatives can use this form:

  • To request a stapled super fund for a contractor to pay their super guarantee contributions.
  • For contractors engaged from 1st November 2021.

How to complete this form:

To be valid the form must include the following:

  • Contractor details.
  • Employer details.
  • Details of authorised person or nominated representative making the declaration.
  • The approved form is also required to be signed and dated.

How to submit this form:

An employer or authorised representative will need to:

  • Request a contractor’s stapled super fund details using the secure mail function in ATO Online services.
  • Attach the completed contractor stapled super fund request form.
  • This form can also be printed, completed on paper, and mailed to the ATO.

Source: ATO – Contractor Stapled Super Fund Request Form

References

  • 20th December 2021
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