Stapled superannuation refers to a super fund that is linked—or "stapled"—to an employee and follows them as they change jobs. Introduced by the Australian Government on 1 November 2021 as part of the Your Future, Your Super reforms, stapled super aims to reduce the number of unintended super accounts created when employees start new employment.
Instead of automatically creating a new super fund account for a new employee, employers must now check if the employee already has a stapled fund and contribute to that fund unless the employee provides different instructions.
Before stapled super came into effect, new employees who didn’t actively choose a super fund often ended up with multiple super accounts. Each account charged separate fees and insurance premiums, which could erode retirement savings over time.
The stapled super system addresses this by:
If a new employee does not nominate a super fund, employers must take the following steps:
Failure to follow this process may result in non-compliance and potential ATO penalties.
To request a stapled super fund from the ATO, you’ll need:
The ATO will usually provide the stapled fund response within minutes if the request is submitted online.
Every employee who has had a super fund in the past will likely have a stapled fund, including:
New workers who have never held a super account and do not nominate one may be set up in your default fund if no stapled fund exists.
The stapled super system has added an extra step to the onboarding process. Platforms like Microkeeper can help businesses automate and streamline onboarding by:
Explore Microkeeper’s Employee Onboarding Software
Can employees change their stapled fund?
Yes. Employees can choose a different fund at any time and notify you using a Standard Choice Form.
What if I contribute to the wrong fund?
You may face compliance issues or penalties. Always wait for ATO confirmation before making contributions.
Does stapled super apply to contractors?
If the contractor is considered an employee for super purposes, then yes, the stapled super rules apply.
Do I need to keep records?
Yes. You must keep records of all stapled fund requests and responses for five years for audit purposes.
Stapled superannuation is a pivotal reform that aims to protect Australian workers’ retirement savings by preventing the creation of unnecessary super accounts. For employers, it adds a compliance responsibility but ultimately contributes to a more efficient and employee-friendly payroll process.
By integrating STP-compliant payroll and onboarding tools like Microkeeper, employers can stay ahead of their obligations and provide a better experience for their staff.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. For more information, consult the Australian Taxation Office or a qualified advisor.
