Your Future, Your Super
The Your Future, Your Super legislation introduces measures aimed at improving the superannuation system for all Australians. These include the new Annual Performance Test for MySuper products, the Best Financial Interests Duty that requires all super fund trustees to act in the best financial interests of fund members and the introduction of single default superannuation accounts or ‘stapling’.
In addition, on 1 July 2021 the ATO introduced a new ‘YourSuper’ comparison tool to allow individuals to compare key data on MySuper products. The online tool, ‘YourSuper’, enables individuals to compare the fees and performance of MySuper products to help them choose a quality fund that will meet their needs.
What employers need to know
Superannuation fund 'stapling'
The stapling measure will change the way employers set up super payments for new employees:
Many workers join their employer’s default super fund when they start a new job regardless of whether or not they already have an account with another fund. This has caused many Australians to have multiple super fund accounts, which could see them paying multiple fees and insurance premiums, sometimes unnecessarily.
The stapling measure under the Your Future, Your Super reforms aims to reduce the creation of multiple unintended accounts when workers start new jobs as this can result in unnecessary erosion of super balances.* From 1 November 2021, new employees will be ‘stapled’ to their existing, or one of their existing super funds (if they have accounts with multiple funds), unless they choose a diﬀerent fund via the ATO’s Standard Choice (or an equivalent) form. First-time entrants to the workforce will be ‘stapled’ to the first super fund they join. This may be a fund they have chosen, or the default fund nominated by their first employer.
If a new employee has a ‘stapled fund’ and does not nominate a fund of their choice, employers will need to contribute to the employee’s stapled super fund, rather than the employer’s nominated default fund. If the new employee doesn’t have a stapled fund, and they don’t wish to nominate a fund to be stapled to, the employer can join that employee into the employer’s chosen default fund.
New employees can continue to select a super fund of their choice, including the employer’s nominated default fund, and provide this instruction to their employer on commencement.
How will a stapled super fund be selected?
Where an employee has existing eligible super accounts with multiple funds, the ATO will apply ‘tiebreaker’ rules to determine which fund the employee will be stapled to. These rules consider:
- whether the ATO has previously identified an account as a stapled super fund for the particular employee
- how recently contributions have been made to each of the employee's accounts
- the employee's account balances
- how recently each of the employee's accounts were created.
Requesting stapled super fund details
If a new employee doesn’t choose a super fund, employers will need to log into ATO online services to request the employee's stapled super fund details. Employers will be able to request an employee’s stapled super fund after they have submitted a Tax file number declaration or Single Touch Payroll pay event linking them to the employee.
To identify the super fund a new starter is ‘stapled’ to, employers can refer to the ATO’s Request stapled super fund webpage for details.
The ATO will notify your employees of a stapled fund request made by an employer and the fund details they have provided to the employer.
A bulk request form will be available from the ATO if employers need to request stapled super fund details for over 100 new employees at once.
‘New starter’ documents
Statewide Super has developed a new ‘Nominating a Superannuation fund’ form which can be used in conjunction with the ATO Superannuation Standard Choice form for new employees. We have also updated our Induction booklet and all these documents can be located in our Employer Hub.