‘Stapled’ superannuation – what does it mean for your business?

With the passage through Parliament of the Your Future, Your Super legislation, an employee’s superannuation account will follow them from job to job unless they make an active choice to nominate a different fund. If a new employee does not choose a preferred super fund, the employer will have to check with the ATO whether the employee has an existing superannuation account, known as a ‘stapled super fund’, to pay the employee’s superannuation into. This requirement is effective from 1 November 2021.

The Your Future, Your Super legislation creates new rules for allocating superannuation accounts to new employees who do not nominate a superannuation fund when they complete the Standard Choice Form.

If a new employee nominates a fund using the Standard Choice Form, there is no change to current arrangements. This means the employer will pay superannuation contributions into the employee’s chosen fund.

Who does ‘stapled’ superannuation apply to?

New employees who start employment on or after 1 November 2021 who do not nominate a preferred superannuation fund.

What does an employer need to do?

If a new employee who starts employment on or after 1 November 2021 does not nominate a fund, the employer must contact the Australian Tax Office (ATO) and ask if the employee already has an existing or ‘stapled’ superannuation account.

If the ATO identifies a stapled account, the employer must pay contributions into that account.

What if the employee does not have a ‘stapled’ account?

If the ATO reports that the new employee does not have an existing ‘stapled’ account, the employer must create an account and make contributions into the employer’s nominated default superannuation fund (which is what occurs now when a new employee does not nominate a fund).

Does ‘stapled’ superannuation apply to current employees?

The ‘stapled’ superannuation measures do not apply to existing employees who commenced employment prior to 1 November 2021.

Where to find more information

More information is available on the ATO website.

Further advice or assistance

For further advice or assistance on this topic, or any workplace relations matter, Employment Plus clients who have placed two or more candidates have free access to the Ai Group Workplace Advice Line.

Call 1300 862 217 8.30am – 5.15pm AEST Mon-Fri