Stapling — what does it mean for you and your employees?

21 Oct 2021 5 min read

As part of the Your Future, Your Super (YFYS) reforms, stapling will start on 1 November 2021. From this date, employers will need to use a new process to choose the correct super fund for new employees. Read on to learn what stapling is and what you need to do.

What is ‘stapling’?

Stapling is the process of linking a super account to a member (or employee). A stapled account will follow that member from job to job, preventing employees from picking up a new super fund each time they change jobs.

An employee can still choose their preferred super account by completing a Choice of fund form.

However, if they don’t do this, you’ll need to log in to Australian Taxation Office (ATO) online services and enter their details (including their tax file number) to obtain their stapled fund.

If an employee completes the Choice of fund form, their choice always takes priority over a stapled super account. If they do this at the start of their employment, you won’t need to get their stapled fund from the ATO. If an employee provides a Choice of fund form at a later date, that choice must then be used, regardless of the stapled account.

If your employee is with NGS, they can opt to use our prefilled Superannuation choice form.

Download NGS choice form Download ATO choice form

How do I know which super account to pay to?

The process for selecting the right super fund is as follows:

The process for selecting the right super fund

  1. First, provide a Choice of fund form to your new employee (required).
  2. If they complete their form, pay their contributions to the super account they nominated.
  3. If they do not complete their form, you’ll need to obtain their stapled fund using the ATO’s search tool (available through ATO online services from 1 November 2021). If your employee doesn’t have a super fund, the ATO will let you know, and you’ll need to open an account for them with your default fund.

Note: Only the ATO can determine a stapled fund, and you must use the ATO search tool even if your employee thinks they know who their stapled fund is. Your employee should complete a Choice of fund form if they want to choose an account other than their existing stapled fund or the employer default fund.

Stapling FAQs

When does stapling start?

Do I have to provide a Choice of fund form?

How do I know which super account is my employee’s stapled account?

What if my employee has multiple super accounts?

How does the ATO choose the stapled account?

What if my employee doesn’t have a super account?

Do I still need a default super fund?

I’m paying to my employee’s stapled account, but now they’ve provided a Choice of fund form. What do I do?

I have lots of new employees starting — is there a quicker way to find stapled accounts?

The stapled account rejected my contribution payment — what should I do?

What happens if I’m not ready in time for stapling?

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