Super will be ‘stapled’ from November 1 - What does that mean for you?

In November, new changes to super will mean that working Aussies will only be attached to ONE super fund (for life) unless they choose otherwise. It’s an attempt to reduce the number of super accounts people acquire throughout their working life. 

The introduction of “Super Stapling” was one of the changes to super that was included in the budget last October, whereby super accounts will now be ‘stapled’ to members. In the past it was highly likely that you had a new super account created for you when you joined a new employer - some places strongly endorsing their preferred fund - even if you already had an account with a different fund. 

This new system has more benefits than just the prevention of multiple superannuation accounts, though, it means lower fees and an overall positive impact on our future super balances.

The current superannuation system has resulted in an estimated six million unintended multiple accounts which can be a big drain on members’ superannuation savings (Xero). 

Employers, however, will need to be on top of what these changes mean to their recruitment process. And with silly season in full swing (holiday hiring season is fast approaching!) it’s important that business owners and management get up to scratch on this process change. 

How will it impact me as an employer? 

Unless a state or industrial award prescribes where super must be paid, you (as an employer), will have changes in how you onboard new employees and pay their super. 

Getting Ready

To make sure you're ready to request stapled super fund details, check and update the access levels of your authorised representatives in ATO online services.

If an authorised representative doesn't: 

• have full access in ATO online services, they will need to have the 'Employee Commencement Form' permission in order to request a stapled super fund 
• need to access this service, you should remove this permission for them to protect your employees’ personal information. 

Learn more about getting ready and using the ATO online services here. 

What to do from November 1 2021?

Super stapling begins on 1 November 2021. This means if you have a new employee starting either on or after that date, and they do not nominate a fund by completing a Superannuation Standard Choice Form, you (the employer) will need to search for the employee’s ‘stapled’ fund using ATO Services. A new account can only be created with the employer's default fund once it is confirmed by the ATO that it cannot identify a stapled fund for the employee. 

1. Offer your eligible employees a choice of super fund to pay their super into (most employees are eligible). There is no change to this step of your super obligations. If your employee has chosen a super fund, you can pay super contributions to the chosen fund. 
2. If your employee doesn’t elect a chosen super fund, you may need to log into ATO online services to request their stapled super fund details (we can also do this for you if we are your tax agent). You’ll be able to request your employee’s stapled super fund after you have submitted a Tax file number declaration or Single Touch Payroll pay event linking you to them. 

Check out the ATO website here for detailed instructions. 

How will it impact me as an employee? 

If you are an employee, this means that when you change jobs your super fund will still be the same fund you had at your last job, unless you take an action to make a change. If you have never had a super account before you will need to choose one, or your employer will create an account for you with their default fund (Prime Super). 

Want more information? 

The ATO has more details available on super stapling for employers. We will also keep you in the loop of any changes, but you can always contact us if you are ever stuck!