Super stapling - News

From 1 November 2021, your superannuation could follow you when you change jobs. This will help you avoid having multiple super funds and paying unnecessary fees.

As a part of the Your Future Your Super legislation, your existing super fund could be ‘stapled’ to you for the duration of your working life. Even if you do have a stapled account, you can still notify your new employer about your chosen super fund (which can be different to your stapled fund) into which you want your super to be paid.

The great thing about this change is that it helps you stay in control and keep track of your super.

It aims to prevent unintended multiple superannuation accounts from being created when you change jobs, and to stop your super savings from being eaten away because of fees and charges paid on your multiple super funds.

Every time you start a new job after 1 November 2021:

If you don’t provide your new employer with a ‘choice of super’ form, which tells your employer where you want your super contributions to go, then your new employer will check with the ATO to see whether you have a ‘stapled fund’. If you do have a stapled fund, your employer will pay your super into your stapled fund account.

If you don’t have a stapled fund account, then your employer may choose to pay your super into their default fund.

Are you one of the 4 million Aussies with more than one super fund?

According to the ATO, around 4 million Australians held more than one super fund account, as at 30 June 2020*

Having multiple super accounts could mean you are paying unnecessary fees and charges and most importantly reducing your overall retirement savings.

* Source: Australian Taxation Office (ATO). Figures are based on member data reported by funds to ATO for the year ending 30 June 2020. Visit ato.com.au for more information. This information is current as at October 2021.