Compliance & Legal

Stapled Superannuation

What Is Stapled Superannuation?

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.

🔗 ATO – Stapled Super Funds

Why Was Stapled Super Introduced?

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:

  • Preventing account duplication
  • Protecting retirement savings
  • Improving the long-term financial outcomes for Australian workers

How Does Stapled Super Work for Employers?

If a new employee does not nominate a super fund, employers must take the following steps:

  1. Offer a Standard Choice Form
    Give the new employee a Superannuation Standard Choice Form. If they complete and return it, you use their nominated fund.
  2. Check for a Stapled Fund via the ATO
    If the employee does not choose a fund, you must log in to the ATO’s Online Services for Business and request the employee’s stapled super fund.
  3. Contribute to the Stapled Fund
    Once you receive the fund details from the ATO, contribute your super guarantee (SG) payments to that account.
  4. Default Fund as Last Resort
    You may only use your company’s default super fund if:
    • The ATO reports that no stapled fund exists, and
    • The employee hasn’t made a choice

Failure to follow this process may result in non-compliance and potential ATO penalties.

What Employers Need to Request a Stapled Fund

To request a stapled super fund from the ATO, you’ll need:

  • Your employee’s full name, date of birth, and address
  • Their TFN (Tax File Number) (if available)
  • Their start date with your business

The ATO will usually provide the stapled fund response within minutes if the request is submitted online.

Who Gets a Stapled Super Fund?

Every employee who has had a super fund in the past will likely have a stapled fund, including:

  • Full-time, part-time, and casual workers
  • Temporary residents
  • Contractors deemed employees for superannuation purposes

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.

Benefits of Stapled Super

For Employees

  • Prevents the creation of multiple super accounts
  • Saves money on fees and duplicate insurance premiums
  • Helps grow retirement savings over time

For Employers

  • Supports compliance with superannuation legislation
  • Demonstrates care for employee financial wellbeing
  • Reduces administrative overhead associated with managing multiple super fund accounts

Stapled Super and Onboarding

The stapled super system has added an extra step to the onboarding process. Platforms like Microkeeper can help businesses automate and streamline onboarding by:

  • Capturing employee details efficiently
  • Generating and distributing the Superannuation Standard Choice Form
  • Recording chosen or stapled fund information
  • Integrating with ATO-compliant systems for ongoing SG contributions

Explore Microkeeper’s Employee Onboarding Software

FAQs About Stapled Super

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.

Common Mistakes to Avoid

  • Failing to request a stapled fund when no choice is provided
  • Delaying super payments while waiting for ATO responses
  • Using your default fund prematurely
  • Not educating new staff about their super options

Final Thoughts

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.