17 March 2021
Stapling is a proposed change to superannuation legislation that, if introduced, will change the way employers administer super for new employees.
As part of the Government’s Your Future, Your Super package, stapling proposes that people will have their existing super account ‘stapled’ to them as they change jobs. It’s designed to stop 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).
Under the proposed changes, from 1 July 2022 searching for an employee’s stapled account will become an automated process between payroll systems and the ATO.
Stapling is currently proposed to be introduced from 1 July 2021. The draft legislation was reviewed by parliament in mid February and has been referred to a senate committee for further consideration and review. The outcome of this committee’s inquiry is due in late April and it is expected that further detail on how stapling will work and need to be administered by employers will be available at that point.
If you have any concerns about this proposed legislation we suggest you raise these with your local member of parliament.
Further information on stapling is available from the Treasury website and your BUSSQ Account Manager is always available to help answer your queries on superannuation legislation.
Source: Your Future, Your Super treasury.gov.au/publication/p2020-super. The information supplied in this email 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).