Super stapling explained
From 1 November 2021, your existing active super account will be ‘stapled’ to you and follow you when you move from job to job.
When you start a new job, your employer may need to request your stapled super fund details from the ATO. Your employer will still offer you a choice of super fund and you can still change super funds at any time.
What is super stapling?
A stapled super fund is as an existing active super account which is linked, or ‘stapled’, to you as an individual employee so that it follows you as you change jobs.
This is different to the previous system where you were automatically placed in your new employer’s default fund if you didn't make an active choice. This is how many people have ended up with multiple super accounts.
The Federal Government has introduced super stapling with the aim of reducing account fees by stopping new super accounts being opened each time you start a new job.
What happens when you start a new job
Employers make contributions to your super account on your behalf. Under the super guarantee (SG), employers are required to pay the equivalent of 10% of your ordinary time earnings into your super account.
If you’re eligible, your new employer will offer you a choice of super fund and pay SG contributions into the account you nominate. You can give your employer your current super fund details, choose to join their default fund or not make a choice at all.
From 1 November 2021, if you don’t choose a fund, your employer will contact the ATO to request your stapled fund details. The ATO will notify you that a request has been made for your stapled fund details. Your SG contributions will be paid to your stapled fund if you don’t make a choice.
If your stapled fund can’t accept contributions, your employer will contact the ATO to request an alternative fund. If there’s no alternative fund, your employer will pay contributions on your behalf into their default fund or another fund that meets choice of fund rules.
If you’re a contractor, you could be treated as an employee for SG purposes. If your employer needs to pay you super but you don’t nominate a fund, they will request your stapled fund from the ATO.
Can I change funds?
You can still change funds at any time if you choose. If you decide to change funds, your new account will become your stapled fund. When you start your next job, your new employer will pay your contributions into that existing, active super account.
Consider consolidating your super
If you currently have multiple super accounts, you may want to consolidate* these into a single account before you start a new job. Consolidating your super is an easy and effective way to reduce unnecessary fees, meaning you could have more money in retirement. Having all your super in one account also makes it easier to keep track of and manage your retirement savings.
We’re here to help
If you have questions about super stapling and what it means for you, or consolidating your super, our team is here to help. Give the Helpline a call on 1800 640 886 between 8.00am and 7.00pm AEDT/AEST on weekdays to get started.
*Before making a decision to combine your superannuation, you should consider any costs, change to insurance cover or loss of benefits that may apply and, if necessary, consult a qualified financial adviser.