Choosing a super fund¶

Super (short for superannuation) is money paid towards a person's retirement. When you have staff, you pay super for eligible employees. Most employees can choose which super fund their money goes into, so you offer them that choice when they start.

This lesson walks through the steps — offering a choice, requesting a stapled fund, and using a default fund only as a last step.

In one line

Most employees can choose their own super fund; if they do not choose, you request their stapled fund from the ATO.

Why this matters¶

Super is money you set aside for your staff's retirement, and it has to go to the right fund. Following the correct steps means each person's super lands where it should — either the fund they chose, the fund already linked to them, or a default fund when there is no other.

What you will learn¶

That most employees can choose their own super fund
How you offer a choice of fund
What a stapled fund is and when you request it
When a default fund is used

Understanding the concept¶

The steps run in order:

Offer a choice. The ATO says most employees are eligible to choose their super fund. You give eligible employees a way to tell you their choice — the standard choice process, using the ATO's Superannuation standard choice form. The employee fills in their chosen fund and gives it back to you.
Request a stapled fund. If the employee does not choose a fund, you ask the ATO for their stapled super fund. A stapled fund is an existing super account that is linked, or "stapled", to the person so it follows them from job to job. If they have one, you use it.
Use a default fund. Only if the ATO tells you the employee has no stapled fund do you use your default fund — a fund you have chosen for your business.

So a default fund is the last step, not the first.

For accountants & bookkeepers

The ATO requires employers to give eligible employees a standard choice form within 28 days of their start date, and to keep completed forms. Where no choice is made by the time the first super guarantee contribution is due, the employer requests the stapled fund, and uses the default fund only where the ATO advises no stapled fund exists.

Example¶

Mia starts a new job. Her employer offers her a choice of super fund. Mia does not name a fund, so her employer asks the ATO for her stapled super fund. The ATO returns an existing account linked to Mia, and her employer pays her super into that account. Because Mia had a stapled fund, the employer does not need to use its default fund.

Common mistakes¶

Paying into your default fund straight away — you offer a choice and check for a stapled fund first.
Skipping the stapled-fund request when an employee does not choose — the stapled fund comes before the default fund.
Not offering eligible employees a choice at all — most employees can choose their own fund.

How this works in myaccountant¶

In the app — you record the employee's super fund. If the employee has not chosen a fund, myaccountant can request a stapled super fund from the ATO for you. The super fund you record then flows into your pay runs.

Key points¶

Super is money set aside for your staff's retirement.
Most employees can choose their own super fund.
You offer eligible employees a choice of fund.
If they do not choose, you request their stapled fund from the ATO.
You use a default fund only when there is no stapled fund.

Learn next¶

General information only — not tax, super or financial advice.

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