Rules change soon – What are your Obligations? 

Earlier this year we wrote of some upcoming changes to superannuation legislation.  The last of which, the stapling of superannuation funds comes into force today. 

What is it 

Originally proposed in the 2020 budget, Superfund ‘stapling’ comes into force today, Monday 1 November 2021.  As the name suggests the idea of stapling means that superannuation funds are ‘attached’ to you as you move from employer to employer. 

What is the purpose?

In the past, when you joined a new employer they may have given you a choice of nominating your superannuation or they may have opened one for you with their default fund.  

Some government initiatives and more financial education around superannuation has seen a decline in multiple accounts. However there are still  over 25% of working Australians* with multiple super accounts. 

By holding multiple accounts members end up duplicating fees, unnecessarily eroding their retirement savings.

Number of super accounts2017201820192020
4 or more accounts5%5%4%2%

What is the Change?

When a new employee starts, employers need to request for the employees stapled super fund details. 

If the employee does not provide details of a stapled account, the employer must contact the ATO to request any details if they exist. This can be done near instantly on the ATO portal. You would have needed to submit a TFN declaration or Single Touch Payroll submission to prove the employment relationship. 

Should the first two steps come up with nothing, the employer can pay into a default fund if the employee does not elect a fund themselves. 

Are there Penalties?

The superannuation regime is quite strict when it comes to non-compliance. In saying that, the ATO understands like with any new legislation, mistakes and misunderstandings can occur.

Should you have any doubts, it would be prudent to seek assistance as soon as possible. The ATO should be your first point of reference. Failing that, your accountant or financial adviser may be able to provide some guidance.  

If an employer doesn’t meet their superannuation obligations, they may be hit with additional penalties. 


Authorised Representative of RI Advice Group Pty Ltd ABN 23 001 774 125 AFSL 238429. The information provided in this document, including any tax information, is general information only. It does not constitute personal advice. It has been prepared without taking into account any of your individual objectives, financial situation or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser.

Discovery Wealth Advisers

Author Discovery Wealth Advisers

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