Changes to Choice of Super Rules

From 1 November 2021, employers will need to check whether employees have a ‘stapled’ fund before making contributions to a default superannuation fund.

Under current rules, employers can add new employees to their default superannuation fund where the person has not chosen a fund.  From 1 November, employers will now be required to contact the Australian Taxation Office (ATO) to check whether the employee has an existing account – known as a ‘stapled fund’ – before paying into their default fund. If the employee has a stapled fund, the employer will be required to make contributions to that fund instead.

The aim of this reform is to prevent individuals from having multiple superannuation funds and to reduce fees associated with setting up new funds each time an employee changes jobs.

Instructions for how to request stapled super fun details for employees can be found on the ATO website.