Super Stapling – Are You Ready?

Wednesday November 10, 2021

This month, Australian employers are adjusting to the new “super stapling” superannuation requirements, which came into play on November 1.

Super stapling replaced the existing default superannuation system, in which a new employee’s contributions were paid to a default super product selected by their employer.

Under the super stapling reforms, a new employer must pay contributions into the employee’s selected stapled fund, unless the member chooses for their contributions to go to a different fund.

What is super stapling?

Announced in the 2020 Federal Budget, super stapling is aimed at tackling the problem of unintended multiple accounts. The ATO estimates there are approximately six million unintended multiple accounts in the super system charging $450 million in fees.

What do employers need to do?

  1. Offer new employees, including contractors who are employees for superannuation purposes, a choice of super fund ( and pay their super the specified account. Most employees are eligible to choose what fund their super goes into.
  2. If your new employee doesn’t choose a super fund, check whether they have a stapled fund with the ATO: If an employee has more than one fund, they will be automatically stapled to the one that has received a contribution most recently.
  3. If your new employee has a stapled fund, pay their super into it. If they don’t, pay super into your business’s default fund or the fund named by the employee.

What about existing employees?

Th stapled fund rules only apply to new employees who commence work on or after 1 November 2021.

Do I need to comply?

Yes – you will be breaching Superannuation Guarantee obligations by not complying.

Can I offer superannuation advice?

You can’t provide recommendations or advice about super to your employees, unless you are licensed by the Australian Securities & Investments Commission (ASIC) to provide financial advice but if you would like help with any HR issues please reach out to the HR Dept.


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