21 June 2021
Stapling is an amendment to superannuation legislation that will change the way employers administer super for new employees.
Stapling will apply to employees starting employment on or after 1 November 2021. From this date employees will have their existing super account ‘stapled’ to them as they change jobs, stopping the creation of multiple accounts that reduce employee’s retirement savings.
Stapling will change the process an employer needs to follow to setup super for a new employee who doesn’t return a choice of fund form.
When a choice of fund form isn’t returned, employers will need to log into the ATO’s online service, enter the employee’s details to find their stapled super account and pay the employee’s super into that account.
Employers will still need their default fund to create accounts for employees who don’t choose a fund or don’t have an existing super fund (e.g. an employee starting their first job).
Searching for an employee’s stapled account will become an automated process between payroll systems and the ATO in 2022.
Stapling will need to be applied to new employees starting work from 1 November 2021.
BUSSQ ran an webinar with guest speakers from the ATO to help employers prepare for this change. The webinar explains how stapling will need to be administered by employers and how the new requirements will work in conjunction with EBA agreements. Watch the webinar now.
Source: Your Future, Your Super treasury.gov.au/publication/p2020-super. This information is general advice only and does not take into account or consider your personal objectives, financial situation or needs. Prepared by BUSS (Queensland) Pty Ltd (ABN 15 065 081 281, AFSL 237860) as Trustee for BUSSQ (BUSSQ Fund, ABN 85 571 332 201).