Employers are required to offer eligible employees a choice of super fund when they start work. This is usually done by providing a Standard Choice Form* (or a compliant digital equivalent). If an employee completes the form and nominates a super fund, employers must pay super contributions into that fund. It’s only when an employee does not make a choice that the stapled super process comes into play.
Superannuation standard choice form – ATO Website [ click here ]
What is stapled super?
A stapled super fund is an existing superannuation account that is linked (or “stapled”) to an employee and follows them as they move from job to job.
The purpose of stapled super is to:
• Reduce multiple super accounts being created
• Minimise duplicated fees and insurance
• Help employees keep their retirement savings consolidated
If a new employee does not choose a super fund, employers are generally required to pay super contributions into the employee’s stapled super fund, which is identified through the ATO system.
When must employees be shown their existing super fund?
Recent legislative changes to super fund stapling are intended to improve employee choice, while keeping employer onboarding obligations the same.
Under associated changes around advertising of super funds, there is a requirement that new employees must be shown information about their existing super fund, if they have one, alongside any other advertising of information about alternative funds. This helps prevent employees from unintentionally or inadvertently opening new super accounts.
Employees are not required to be shown their existing super fund in every onboarding scenario. The obligation applies only if information or advertising about alternative super funds is provided during the onboarding process.
According to the ATO:
• If super funds are promoted or advertised (often through onboarding or payroll software), employees must be shown details of their existing super fund alongside that information, where one exists
• Superannuation software providers are restricted from promoting alternative funds unless existing super details can also be displayed
This requirement exists to help employees avoid inadvertently opening new super accounts when they already have one.
✅ Important clarification for employers:
If your onboarding process does not involve advertising or promoting super funds, this requirement is not triggered. The ATO has explicitly stated that these changes do not introduce additional steps for employers.
If no fund is chosen, stapled super must be requested through the ATO. When a new employee does not nominate a super fund, employers must request the employee’s stapled super fund details directly from the ATO.
This step is critical because:
• The ATO verifies there is a genuine employer–employee relationship
• Super fund information is only released after appropriate checks
• The process helps protect employees from fraud and misdirected super payments
Attempting to shortcut this process can expose employers to compliance risk.
