Don’t be alarmed... Your account has been ‘stapled’ to you1 min 30 sec read
In another major change to our super system, from 1 November 2021, any employee with an existing super account will have it ‘stapled’ to them if they change jobs, based on rules set out by the Australian Taxation Office (ATO).
What this means is that if you were to change jobs and didn’t tell your new employer where you wanted your super paid (by completing a Choice of Fund form), the employer is now required to contact the ATO to find out your ‘stapled’ super account, and pay your employer super contributions to that account, rather than create a new one for you.
The new rules are aimed at reducing the number of super accounts established each time an employee starts a new job. Figures from the ATO show that there are around 6 million multiple accounts held by 4.4 million Australians. These multiple accounts charge $450 million in fees a year—meaning many people are paying more fees than they need to.
The Government expects these changes to increase Australians’ super savings by about $2.8 billion in the next ten years, simply due to avoiding the duplication of fees and lost returns.
The changes were recommended by the recent Royal Commission and were included in the measures introduced through the Your Future, Your Super reforms, along with the annual performance test and the YourSuper comparison tool.
What does it mean for you?
If you’re starting a new job, you can choose to take us with you and provide your new employer with a completed choice of fund form. This takes the pressure off your new employer having to go through the stapling process. This way, your super stays in one place, you’re not paying fees to maintain multiple accounts and you can continue to enjoy great member benefits, including the GoalTrackerTM program.
After all, super is all about making active choices that help you to achieve your retirement income goal.
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