Stapling – good news for workers

The Australian Government has introduced super reforms for the 2020 – 2021 budget, called ‘Your Future, Your Super’. With these new laws, they expect to save Australians $17.9 billion over 10 years*.

Part of the reforms is the introduction of ‘super stapling’, which refers to how your nominated super account is attached (‘stapled’) to you.

Previously, if you changed jobs, your new employer could set up a super account for you with their default super fund, which may be a different fund from yours. Now, with stapling, employers are generally required to pay your super into your existing stapled account.

The idea behind stapling is to prevent people from having multiple super accounts, paying multiple fees and insurances.

The forecast over ten years is that stapling will reduce multiple accounts by 2.1 million, saving workers about $2.8 billion in duplicate fees, insurance and lost earnings*

Choose your account

The introduction of super stapling makes it even more important for you to actively choose a super fund best suited to your circumstances and needs.

To choose the super fund that your employer contributes to simply speak to them about how you can advise your nominated super account.

If you start with a new employer on or after 1 November 2021 and don’t choose a fund, your employer will generally pay your contributions to the account that has been stapled to you.

Comparing super fund performance

As well as the introduction of stapling with ‘Your Future, Your Super’, the YourSuper Comparison Tool has been introduced. This tool could help you see how your super fund is performing and choose a well-performing fund. By changing from an under-performing fund to a wellperforming fund:

> A working Australian in their 20s could have around $87,000 more when they retire*

> A 50-year-old working Australian could have around $60,000 more when they retire*

It’s good to see the benefits these changes will bring to employees across Australia. For members who choose for their super, you can be confident you’re with one of Australia’s top performing funds^. Our goal will always be to help you achieve your best retirement outcome.

To read more, visit australiansuper.com/ superannuation-articles

*Your Future, Your Super – Reforms to make your super work harder for you.

^ AustralianSuper Balanced investment option returns as compared to the SuperRatings Fund Crediting Rate Survey — SR50 and SRP50 Balanced (60–76) Index at 31 December 2021. Returns from equivalent investment options of the ARF and STA super funds are used for periods before 1 July 2006. Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns.

Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns. This document has been prepared and issued in February 2022 and is subject to change. This article may include general financial advice which doesn’t take into account your personal objectives, situation or needs. Before making a decision consider if the information is right for you and read the relevant Product Disclosure Statement, available at australiansuper.com/pds or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/tmd AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.