Stapled superannuation

Stapled superannuation obligations commence from 1 November 2021. Is your business ready?

From 1 November 2021, an employee’s superannuation account will follow them when they change jobs.

When a new employee is appointed on or after 1 November 2021, their employer may have an extra step to take to comply with the choice of superannuation fund rules.

If an employee doesn’t choose a superannuation fund, employers must use the Australian Taxation Office (ATO) portal to request details of the new employee’s “stapled super fund”. A stapled super fund is an existing super account which is linked (or “stapled”), to an individual employee so that it follows them as they change jobs.

If a stapled fund exists, super contributions must be paid into that fund.

The change has come about to reduce the chance of workers accumulating multiple super accounts after moving from one job to another. Having more than one super account can be costly for employees, as it can mean they are paying multiple sets of fees and insurance premiums.

Employees still have the freedom to change their superannuation funds if they wish. If they do, their new fund will become their stapled fund. Employees will still need to notify their employer if they do change super funds.

If an employee has more than one fund, they will be automatically stapled to the one that has been active (received a contribution) most recently. Where there is more than one active fund rules will be applied to select the most appropriate fund, for example, the fund with the biggest balance.

Bottom line? From 1 November 2021, employees will become “stapled” to their existing super accounts. This means that when a new employee doesn’t choose a super fund, their employer must pay super contributions into their existing account (stapled fund).

Choosing a super fund is easy. Choosing the right HR Consultant to make your life easier? Not so much. You want someone with genuine expertise to make your business better, who you can call any time and who doesn’t rip you off. Check out our FAQ page and see why Bare Bones Consulting is more than just a weird name.