A stapled super fund is your existing super account that follows you between jobs.
What is a stapled super fund?
When you start a new job, your employer needs to pay your super into a super fund.
If you don‘t choose a fund, your employer will usually pay your super into the super account you already have. This is called your stapled super fund.
If you don't have a fund yet (for example, in your first job) your employer pays your super into a 'default' super product they chose.
Your stapled super fund links - or staples - to you, not your employer. This means it stays with you as you change jobs.
The government introduced stapling to reduce the number of super accounts people hold, which can help you avoid paying extra fees and insurance costs. It also helps you to keep track of your super and avoid it becoming lost.
Did you know that there’s almost $19 billion in lost and unclaimed superannuation? People have found thousands of dollars they didn’t know they had.
Do you have any lost super? It’s easy to do a search and find out.
How a stapled super fund works
When you start a new job, your employer must let you choose which super fund your super is paid to.
- If you already have an account with a super fund, you can tell your employer to pay into that fund.
- If you don’t choose a fund, your employer is required to check with the Australian Taxation Office (ATO) to see if you have an existing super account.
If the ATO identifies an account, your employer treats it as your stapled super fund and pays into it. The ATO will let you know when your employer contacts them about your super.
You can find out more about how the ATO selects a stapled super fund.
Why stapling matters
Before stapling, people could end up with a new super account each time they changed jobs and did not choose a fund.
Over time, this could lead to multiple accounts. Each account may charge fees and include insurance, which can reduce your super balance.
Stapling helps keep your super in one account. It can make it easier to manage and may save on extra costs.
If you decide to combine your super into one account, don't just transfer it into the account with the highest balance. The best account for you may be one of your small accounts, or an account with a completely new fund. Learn more about choosing a super fund.
You can choose a different super fund anytime
You can choose which super fund your employer pays into. You can do this when you start a job, or later if you decide to change funds.
If you choose a different fund, your employer will pay your super into that fund . You can also combine your super accounts if you have more than one.
You can compare super funds using the ATO's YourSuper comparison tool.
Insurance in your super fund
Many super funds may automatically provide you with default insurance, such as life, total and permanent disability (TPD) and income protection.
The cost and type of insurance can vary between funds. They also depend on your age, balance and the type of work you do.
If you stay with the same super fund as you move between jobs, your insurance will usually stay with that fund.
Your stapled fund’s insurance might not suit your new job or personal situation. Check with your super fund or seek advice if you’re not sure.
See insurance through super for more information.
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