Since 1 November 2021, if you hire a new employee and they don’t pick a super fund, you cannot just default them into your usual employer fund. You need to ask the ATO whether the employee already has a “stapled” super fund and pay their super into that one. 

What a stapled super fund is 

A stapled super fund is an existing super account linked to the employee. It follows them from job to job, so they do not end up with a new account (and a new set of fees) every time they change employers. 

When you need to request stapled details 

You need to request stapled super fund details from the ATO when: 

• You are about to pay super for a new employee, and 

• They have not given you a choice of fund. 

This applies to employees, and to independent contractors who are treated as employees for super purposes. 

How to request it 

The request is made through ATO Online Services for Business. You need to have an employment relationship established first, which usually means either a TFN declaration or an STP pay event has been lodged. The result comes back within minutes in most cases. 

Your registered tax or BAS agent can also make the request on your behalf through Online Services for Agents. 

Full steps from the ATO are here: Stapled super funds for employers

If the employee chooses a fund of their own after you have already requested stapled details, you have 2 months to switch contributions over to their chosen fund. 

What happens if you get it wrong 

If you pay super into a fund the employee did not choose, without requesting their stapled fund first, you are exposed to the choice shortfall penalty. 

For super relating to quarters up until 30 June 2026 

The choice shortfall penalty is 25% of the SG shortfall, capped at $500 per employee per notice period. 

For super relating to periods from 1 July 2026 (under payday super) 

The choice shortfall penalty is 25% of the non-compliant contributions, capped at $1,200 per employee per notice period. 

Key takeaway 

If you are onboarding new staff, build the stapled super fund check into your process before the first super payment is due.