How employers can implement stapling

If employers have new staff start on or after 1 November 2021, they may need to request their ‘stapled super fund’ details from the ATO if they don’t nominate a fund for their super guarantee contributions. 

A stapled super fund is an individual’s existing super account which is linked to them and follows them as they change jobs.

The ATO website outlines employers’ obligations to request stapled super fund details.  In summary, they may need to request stapled super fund details when:

• a new employee starts on or after 1 November 2021
• they need to make super guarantee payments for that employee, and
• the employee is eligible to choose a super fund but doesn’t.

Here are the steps employers need to follow for new employees: 

• 1. Offer eligible employees a choice of super fund

  When a new employee is appointed, they need to be asked by their employer which super fund to use for their super guarantee contributions by offering a standard choice form. For more information, see the ATO information on offering choice of fund.

• 2. If the employee does not choose a fund, the employer must request their stapled super fund details from the ATO

  If an employee does not nominate a chosen super fund, the employer may need to log into the ATO online services to request their stapled super fund details.

  If the ATO identifies a stapled super fund for the employee, they must pay their employee’s super guarantee contributions to the stapled super fund.

• 3. If no stapled super fund is identified, the employer can open an account with their default fund

  If an employee does not nominate a fund and the ATO does not identify a stapled fund for the employee, an employer can open an account for the new employee with their default fund.

For more detailed information about employer obligations around stapling and super, visit the ATO website: Request stapled super fund details for employees.

If employers don't meet their choice of super fund obligations, additional penalties may apply.