From 1 November 2021, important changes have been made to superannuation laws that affect how employers comply with their superannuation obligations.  

These changes relate to the introduction of ‘stapled’ superannuation accounts. These are super accounts that are automatically linked to the employee and are relevant where the employee does not nominate their choice of superannuation account.  

Superannuation stapling affects employees that commence after 1 November 2021. No changes are required to superannuation contributions for existing employees.  

Super stapling: 
Superannuation stapling creates a single default account that follows an employee from one job to the next. The ATO will determine an employee’s stapled superannuation account based on the information it collects on super contributions for that employee.  

Stapled superannuation accounts are relevant where an employee does not specify the account for their superannuation contributions. If the employee doesn’t nominate an account, the employer will need to inquire with the ATO to determine the employee’s stapled account. The ATO will notify the employer if the employee has a stapled superannuation account. If so, the employer will need to make contributions to that super account.  

Superannuation stapling has been introduced to limit the creation of multiple superannuation accounts that result in employees having multiple sets of fees and insurance premiums, which erode their savings at retirement.  
 
What do employers need to do? 
The action required by employers depends on whether the new employee nominates their superannuation account.  

The employee chooses an account- if the employee nominates their preferred superannuation account using the standard choice form, the employer must make contributions to the fund chosen by the employee.  

The employee does not choose an account – if the employee does not choose a super account, an employer will need to contact the ATO to determine if the employee has a stapled account. If they do, the employer will need to make contributions to this account. If the ATO notifies that the employee doesn’t have a stapled fund, the employer must create an account with their nominated ‘default’ superannuation fund.  
 
Enterprise agreements: 
We acknowledge that some of our members may have enterprise agreements requiring contributions to a particular superannuation fund.  

For any enterprise agreements made after 1 January 2021 that require contributions into a particular fund, employees are required to provide employees with a standard choice form notwithstanding the terms of the enterprise agreement. If no fund is selected, the employer must see if the employee has a stapled account with the ATO. If the employee does not have a stapled super account, contributions can be made into the fund specified in the enterprise agreement.

There is no obligation to provide the employee with a standard choice form for enterprise agreements made before 1 January 2021 that require contributions to a particular fund. Still, the employer must now inquire with the ATO whether the employee has a stapled account.  If the employee does not have a stapled super account, contributions can be made into the fund specified in the enterprise agreement. 
 
Contracts of employment: 
Employers may need to review and update employment contracts that deal with superannuation obligations to ensure they are still compliant with the stapled superannuation changes.  
 
Further information: 
For further information on superannuation stapling, the ATO has further information here. 

If members wish to discuss their circumstances, they can contact the MBV EIR team on (03) 9411 4555.