Understanding Stapling Fund

Understanding Stapling Fund

Contents

What is a Stapled Fund

A stapled super fund is an existing super account which is linked or ‘stapled’ to an employee that will follow them as they change jobs. This aims to eliminate new super accounts being opened each time an employee starts a new job.

From 1 November 2022 if a new employee has not chosen their own super fund or the employers default fund then employers will need to request stapled super fund details for the employee.

If employers do not request stapled super fund details when they should have, they may have to pay the choice shortfall penalty, which is the additional super guarantee charge if they contributed to the default fund without making a stapled super fund request.

Employers must request a stapled super fund for new employees after 1 November if:

  • They need to make super guarantee payments for that employee 
  • They are eligible to choose a super fund, but don’t. This includes contractors who are paid mainly for their labour and who are employees for Super Guarantee purposes. 

Employers will need to request stapled super fund details for some employees who aren’t eligible to choose their own super fund. This includes employees that are: 

  • Temporary residents 
  • Covered by an enterprise agreement or workplace determination made before 1 January 2021. 

If an employee later tells the employer their choice of super fund, the employer has 2 months to start paying contributions into that fund.

How to request stapled super fund details

Firstly, the Employer will need to check that their authorised representatives in ATO online services has Employee Commencement form permission so their payroll and onboarding staff can make stapled super fund requests.

Secondly, the employment relationship must be made which will be processing a pay event through Single Touch Payroll with no superannuation details.

Then the Employer will:

  1. Log into ATO online services
  2. Navigate to the Employee super account screen via the Employees menu and select ‘request’ to open the form
  3. Enter the employee’s details
  4. Read and click the declaration to sign it
  5. Submit their request

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