What is stapling
All new employees to your business are now linked or ‘stapled’ to one super fund. They’ll take this fund from job to job unless they actively choose a different super fund.
Stapling impacts new employees who don’t actively choose a super fund when they start work.
The Federal Government introduced stapling to prevent a new super account being opened every time someone starts a new job. Limiting the number of super accounts may help reduce the account fees they may be charged.
How stapling works
If your new employee:
- Wants their super paid to a particular fund, they need to complete a Standard Choice of Fund form (like our Choice of super fund form) and provide you with a copy
- Doesn’t actively choose their own super fund you’ll need to request an employee’s stapled super fund details from the ATO and pay their Superannuation Guarantee (SG) contributions to that fund
You don’t need to offer a choice of super fund to employees who are temporary residents or those covered by an enterprise agreement or workplace determination made before 1 January 2021. However, you’ll still need to request their stapled super fund details.
What you need to do
Frequently asked questions
Stapling is a process that will link a person to one super fund and the stapled super fund (or account) will follow the person from job to job, unless they actively choose a different fund.
Stapling encourages people to have one super fund so they’re not paying multiple fees and can maximise their retirement savings.
Stapling only impacts new employees to your business who onboard after 1 November 2021. It doesn’t impact the super arrangements for employees who started before 1 November 2021.
You don’t need to offer a choice of super fund to employees who are temporary residents or those covered by an enterprise agreement or workplace determination made before 1 January 2021.
By law, you need to provide new employees with a Standard Choice of Fund form (like our Choice of super fund: standard choice form) within 28 days of joining.
You can also provide a Product Disclosure Statement (and related documents) for your default arrangement if you like. However, you can't recommend that your new employee joins your default arrangement.
Yes. New employees can choose to join your default super fund or nominate their preferred super fund by completing a Standard Choice of Fund form (like our Choice of super fund: standard choice form) – this is known as an active choice.
Yes. Your new employee can choose your default fund (such as the Media Super division of Cbus) on their completed Choice of Fund form and then you can make contributions to your default fund.
Your employees can change super funds at any time by providing you with a completed Choice of Fund form (like our Choice of super fund: standard choice form).
You must use the ATO’s Online services for business.
You’ll need to enter the new employee’s following details to determine their stapled super fund:
- Tax File Number (TFN)
- Full name
- Date of birth, and
- Address details
Once you’ve determined the new employee’s stapled fund, you must make contributions to that account.
If your new employee has more than one super fund, the ATO will determine which is the employee’s stapled fund based on a set of rules. These may include factors such as when the account was created, how recently contributions were made and the account balance.
If your new employee doesn’t have a super fund, they can choose their own super fund by completing a Choice of Fund form (like our Choice of super fund: standard choice form).
If they don’t have a super fund and don’t make an active choice of fund, you must pay their super into your default super fund.
Yes. If a new employee doesn’t have a super fund and doesn’t complete a Standard Choice of Fund form (like our Choice of super fund: standard choice form), you’ll pay their contributions into your default fund.
