In November 2021, a concept called ‘stapling’ was introduced to the workforce in order to cut down on new super accounts being opened for employees every time they switched jobs. So now, because of super stapling, an employee’s super account is ‘stapled’ to them for the entirety of their career unless they actively choose another fund.
Why the Switch to Super Stapling?
Before super stapling was implemented, when an employee started a new job, the employer would open a super account for them in the company’s default fund. If an employee had more than one job, that meant they had more than one super account – and, for most people, that is not a wise financial decision.
Then, stapling came into play. Super stapling allows an employee to have a single super fund to their name, so they don’t end up paying fees and premiums on multiple accounts opened for them by employers.
Completing a Stapled Fund Search
When an employee doesn’t choose a super fund, you’ll need to conduct a stapled fund search. This search will let you know if an employee already has a super fund.
You need to complete a search when:
- A new employee does not complete a Choice of Fund form.
If the employee already has a stapled fund, you’ll need to pay super contributions to that account. If they don’t, you can use your default fund unless specified otherwise.
You do NOT need to complete a search when:
- Your new employee completes a Choice of Fund form and chooses a super fund on their own.
- An employee started working for your service station before 1 November 2021.
How to Search
You can use your ATO online services to complete a super fund search. Just log in, open a request form, enter your employee’s details, and submit. There is no limit to the amount of requests you can make, and there’s even a bulk request option if you need to make a large number of searches at once.
Your Role as the Employer
A super fund is connected to an employee for life, and as their employer, you can help your employees make smart, informed decisions about their fund. You can provide information about super fund options, your own default fund, and encourage them to speak to a financial adviser.
For more help and information on HR compliance, ServoPro members can contact our HR Helpdesk. For more information contact us.