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Super stapling came into force on 1 November 2021, effectively attaching all employees to their existing super accounts.

Previously, if a new employee did not provide their super information when starting a job, employers were able to start new accounts for them with their workplace default superannuation fund. This rule change means that employers will now need to refer to the Australian Taxation Office (ATO) for their new employee’s ‘stapled’ fund information if the employee does not nominate their preferred super.

The purpose of this change is to lower the chances of people accumulating new super accounts, and having to pay multiple fees and insurance premiums, every time they switched jobs.

How the ATO selects a stapled super fund

The ATO will select an employee’s stapled super fund based on information it holds about their membership, as reported by any super fund they are a member of.

Only eligible funds can be selected as an employee’s stapled super. To be eligible for selection, a fund must be an open retirement savings account (RSA), a complying superannuation fund, or a complying superannuation scheme in the same financial year as the stapled super fund request is made. Additionally, the employee must be a member of the fund/scheme, or holder of that RSA, when the request is made.

If an employee has multiple eligible accounts, the ATO will apply ‘tiebreaker’ rules to select the stapled super fund. These consider:

  • whether the ATO have previously identified an account as a stapled super fund
  • how recently contributions have been made to each of the accounts
  • the account balances
  • how recently each of the accounts were created.

Please note, regardless of ‘tiebreaker’ rules, employees are still able to nominate their preferred fund and are encouraged to do so using a super standard choice form.

Employers, employees, and super stapling

Every time a person starts a new job, they are entitled to nominate their preferred super fund. If they do not, their employer must contact the ATO and request details of their existing/stapled super fund to pay super into.

If an employee does not nominate a super account and does not have a stapled fund, the employer can contribute into their default superannuation fund, which will then become the employee’s stapled super.

Employers must abide by this change to comply with the choice of fund rules.

Need more information?

Visit the ATO website to learn more about stapled super funds.

Important information

This information was prepared by Resolution Life Australasia Limited ABN 84 079 300 379, AFSL No. 233671 (Resolution Life). A copy of the Product Disclosure Statement can be obtained by contacting Resolution Life. This general advice has been prepared without taking into account your particular financial needs, circumstances or objectives. You should consider the appropriateness of this information in light of your circumstances. This advice is based on our understanding of current law as at September 2022, and is based on its continuance unless stated otherwise. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. Resolution Life do not actively monitor breach of superannuation contribution caps. You should keep track of the contributions made to your account in respect of the caps applicable to you. You should obtain professional advice before acting on the information contained in this communication. Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information. Resolution Life is also not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.

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