Default super funds¶

A default super fund is the super fund you, as the employer, pick for staff who have not chosen a fund of their own. It is sometimes called an employer-nominated fund. You use it only in certain cases, which this lesson explains.

Super (superannuation) is money paid towards a person's retirement. Most staff can choose which fund their super goes into. When someone does not choose, you need a fund to fall back on. That is your default fund.

In one line

A default super fund is the fund you choose for staff who have no fund of their own — but you only use it after the stapled-fund check.

Why this matters¶

Every eligible worker's super has to be paid into a fund. If a new person does not tell you their fund, you still need somewhere to pay it. Knowing the rules helps you pay the right fund and set up your business super the right way from the start.

What you will learn¶

What a default (employer-nominated) super fund is
Why a default fund must be a MySuper product
When the stapled-fund rules let you use your default fund

Understanding the concept¶

There are three places an eligible person's super can go, and the ATO sets an order.

A fund the person chooses. If your worker chooses a fund, you pay their super into that fund.
Their stapled fund. A stapled super fund is an existing super account that is linked to a person, so it follows them from job to job. If the person does not choose a fund, you ask the ATO whether they have a stapled fund. If they do, you pay into it.
Your default fund. You use your default fund only when the person has not chosen a fund and the ATO tells you they have no stapled fund.

Your default fund must be authorised to offer a MySuper product. A MySuper product is a basic super account. Choosing a fund that offers one is part of setting up your default fund correctly, according to the ATO.

For accountants & bookkeepers

The order is: employee choice, then stapled fund, then employer default. You request stapled-fund details through ATO online services once an employment link exists (commonly established by a TFN declaration or an STP pay event). Keep records showing your nominated default fund offers a MySuper product.

Example¶

Priya hires a new team member who does not fill in a super choice. Priya asks the ATO for a stapled fund. The ATO replies that the person already has a stapled fund, so Priya pays their super into that fund. Priya's own default fund is not used this time, because the person had a stapled fund.

Common mistakes¶

Paying into the default fund straight away, before checking for a choice or a stapled fund.
Choosing a default fund that does not offer a MySuper product.
Not keeping a record that your default fund offers a MySuper product.

How this works in myaccountant¶

In the app — you record each employee's super fund, and myaccountant can request a stapled fund from the ATO where one is needed. This helps you pay super to the right fund in the right order.

Key points¶

A default fund is the fund you choose for staff with no fund of their own.
Your default fund must offer a MySuper product.
You use the default fund last, not first.
First comes the person's own choice, then their stapled fund.
You only use the default fund when there is no choice and no stapled fund.

Learn next¶

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

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