SUPER STAPLING
NEW RULES TO AVOID MULTIPLE, COSTLY SUPER ACCOUNTS What is super stapling? From 1 November 2021, employees will become ‘stapled’ to an existing super account of theirs. This means that when a new employee doesn’t choose a super fund, their employer must pay super contributions into their existing account (stapled fund). HOW WILL IT WORK? Employers must offer their employees a choice of super fund
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Where a new employee hasn’t
most recently. Where there is
chosen a fund and doesn’t have a
more than one active fund rules
stapled fund, super contributions
will be applied to select the most
must be made to a new account in
appropriate fund, for example, the
the workplace default super fund.
fund with the biggest balance.
WHY THE CHANGE? reduce the chance of workers
DO STILL NEED TO HAVE THEIR OWN DEFAULT OR PREFERRED FUNDS?
accumulating multiple super
Yes. If a new staff member
accounts after moving from one
is not already a member of a
job to another. Having more than
superannuation fund, then their
one super account can be costly
employer is generally required to
for employees, as it can mean they
offer them choice of fund and if
are paying multiple sets of fees and
they don't choose a fund they will
insurance premiums.
sign them up to the company's
The new rules are designed to
to meet their superannuation
CAN EMPLOYEES CHOOSE TO CHANGE THEIR SUPER FUND?
obligations by providing new
Absolutely. Employees will always
employees with a superannuation
have the ability to change funds if
Standard Choice form (either a
they wish. If they do, their new fund
hardcopy or through the ATO via
will become their stapled fund.
myGov) within 28 days of starting
Employees will still need to notify
at the company.
their employer if they do change
From 1 November 2021, if an
super funds.
employee doesn’t choose a fund, employers must use an ATO database to check if the employee has a stapled (existing) fund. If a stapled fund exists, super contributions must be paid into that fund.
WHAT IF MY EMPLOYEE ALREADY HAS MORE THAN ONE SUPER ACCOUNT? If an employee has more than one fund, they will be automatically stapled to the one that has been active (received a contribution)
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default fund, which will then become their stapled fund.
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