Stapling adds another (sometimes complicated) step in the onboarding process – but we have a range of resources available to support you.
When a new employee joins your organisation, not only are they starting a new job – their move also provides them with an important opportunity to consider if their current super fund is right for them.
Effective 1 November 2021, to prevent having accounts in multiple super funds when changing jobs, Your Future, Your Super (stapling) legislation ties employees to their current super fund (if they have one) – unless they make a choice to change.
Each year, APRA conducts an annual performance test to help members compare super funds. The comparison includes administration fees over the past financial year and investment performance over the long term.
Throughout the 2020/2021 financial year, HESTA’s investment options have performed strongly.
as at 30 June 2021
* Investments may go up or down. Past performance is not a reliable indicator of future performance. The returns shown are net of investment fees, indirect costs and taxes.
**Balanced Growth is the default option for HESTA Super, while a blend of Balanced Growth and Conservative is the default strategy for the HESTA Income Stream.
All employers have their own way of onboarding new employees. But we do have a range of resources available to support you in the onboarding process and beyond—including our new onboarding video to help your new employees make an informed choice about their super.
Our new onboarding video introduces HESTA to your new employee and shows them how to make a super choice.
Your employees can choose HESTA using our pre-populated Standard Choice form.
Stapling aims to help reduce the creation of multiple super accounts, particularly when employees change jobs. When employees start a new job, they can still tell their employers to pay their super into their chosen fund using a standard choice form. However, if an employee doesn’t actively choose a fund, employers must contact the ATO to see if their new employee has an existing super fund. If they do, this will be their ‘stapled’ account – and the one the employer must contribute their super to.
The requirements set down by stapling apply to all employers from 1 November 2021 - creating a new step for you when onboarding new employees. You don’t need to do anything for existing employees. If they want to change funds, the process remains the same as always. They simply need to provide you with a Choice of Fund form if they wish to change super funds.
If your new employee has completed all of their onboarding documentation without making a choice and has commenced employment with you, you can then begin the process of checking for a stapled fund with the ATO.
Yes, you can use the ATO Standard Choice form or our HESTA branded version, which has been pre-populated with HESTA’s details if we are your default fund. Your employee can use either form to let you know which fund they want to choose.
Download our Standard Choice form (pdf)
If your new employee doesn’t return the choice of fund form you provided as part of their onboarding pack, you must apply to the ATO to see if they have an existing super fund. Our stapling process map (see above) outlines the steps you need to take. More information can be found on the ATO website.
When the ATO has let you know the fund your new employee is ‘stapled’ to, they’ll also provide you with the fund’s USI and ABN.
No, the clearing house will operate as normal. There’s no change to the way employers deal with HESTA.
While the ATO online service isn’t yet available, they are expecting it to be operational mid-2022.
It’s really important that you take care not to contravene new anti-hawking legislation, particularly when engaging with new employees about their choice of fund. This “hawking prohibition” aims to protect consumers from unsolicited offers of financial products.
Find out more.
Correct, the employee has effectively chosen your default fund. It doesn’t matter what fund they’ve previously been contributing to - you must pay super to the fund nominated on their choice form.
It’s important to contact your new employee as soon as possible to ask them to re-supply their chosen fund details. You may need to apply to the ATO for an extension to your superannuation contribution obligations, but you won’t be penalised if the delay is caused by the employee.
No, you must wait until you have the information you need to pay the employee’s super to their stapled fund. You should be notified of the result of the stapled fund request on screen within minutes. If you submit a bulk request for 100 or more new employees at once — using an ATO xls or xlsx file available on the ATO website from 1 November 2021 — the ATO’s service standard is 5 business days.
You may need to apply to the ATO for an extension on your superannuation contribution obligations, but you won’t be penalised if the delay is out of your control.
If there’s an error in the process, HESTA (and all other super funds) will return funds. We won’t have the ability to look for a member’s stapled fund via MyGov. Only an employer can request this information.