New super fund stapling

What it means for you and your employees

On 1 November 2021, ‘fund stapling’, as legislated by the Federal Government, comes into effect. This article provides you with some important information on what you need to do.


What is super fund stapling?

Super fund stapling means that when someone changes jobs, their current super fund follows them to their new job, that is, their current super fund is ‘stapled’ to them. Details of what a stapled fund is, is determined by the Australian Taxation Office (ATO).

What does this mean for you and your employees joining your workplace from 1 November?

The most significant change post 1 November 2021 is that you can only open a new super account for an employee within your staff plan, if they actively select your default fund, or they do not have an existing super fund.

When a new employee joins your workplace, unless they provide you with a completed Choice of Fund form, you will need to check if they have an existing stapled super fund using the ATO online service before opening a new super account for the employee in your staff default super fund.

How the stapling process will work at the ATO


Download a copy of the image on how the stapling process will work at the ATO

Source: Your Future, Your Super, External information session – Australian Taxation Office
Note: process may change prior to 1 November 2021

Why has the Government introduced stapling?

The Government has made this change to reduce the instances where people accumulate multiple super accounts as they change jobs through their working life. This will reduce unnecessary fees and maximise the super people save for their retirement.

How can employees choose to join your default super plan?

Your new employee can still choose a fund, other than their stapled fund, including your staff super plan with us. This can be done either through your online onboarding system or by completing a Choice of Fund form.

Providing your new employees with details of the benefits of joining your default staff super fund will help them make a decision on which fund their contributions will be paid to.  Important considerations are fees, insurance options and investment performance.  They can also seek advice from an appropriately qualified adviser. 

Want to know more?

For more information, you can read our frequently asked questions. Alternatively,  contact your Client Relationship Manager or ClientFirst on 1800 913 118.

More information from the ATO on the stapled fund request process can be found here:

Further details on Your Future, Your Super can be found here:

Important information: IOOF Investment Management Limited (IIML) | ABN 53 006 695 021 | AFSL 230524. This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or seek advice from a financial adviser and seek tax advice from a registered tax agent. Please obtain and consider the PDS before making any decision about whether to acquire a financial product. Information is current at the date of issue and may change.