Your Future, Your Super – for employers

Your Future, Your Super – for employers

Stapling will start soon
Find out what this means for you and your new employees.

We’re here to explain what the Your Future, Your Super reforms, including stapling, mean for you as an employer.

Stapling
What is ‘stapling’?

Stapling is the process of linking super accounts to members. A stapled account will follow a member from job to job.

Your employees can still nominate their preferred super account using a Choice of fund form (like ours, available here). 

If they don’t make a choice, you will be required to contact the Australian Taxation Office (ATO) to ask for each employee’s stapled fund, and to pay contributions to it.

When does stapling commence?

Stapling will commence on 1 November 2021. From 1 November 2021, you will need to take these new steps to determine the correct super fund for new employees.

Does stapling override choice of fund?

No, stapling doesn’t override choice of fund. Your employees can nominate their preferred fund at any time using a Choice of fund form (like ours, available here). 

If an employee hands you a completed, signed Choice of fund form, you must pay to their nominated fund.

Will the information for stapling be provided to me?

No. If your employee does not nominate a fund using a Choice of fund form, you will need to seek out the information from the ATO. The ATO will host a search tool, and you will need to enter each employee’s details into the tool to find each stapled account.

You must do this even if your employee tells you what they think their stapled fund is, unless they complete a Choice of fund form.

We will share a link to the ATO search tool here when it is available.

What if the employee has more than one super account?

The ATO will select the stapled fund by following a set of prioritisation guidelines. It will nominate a single super account.

How will the ATO prioritise funds?

When someone has more than one fund, the ATO will consider such ‘tiebreaker’ factors as the date of account creation, recency of contributions and account balance.

The ATO will nominate a single ‘stapled’ super account. You will not have to select a fund or prioritise.

How do I choose the correct super fund?

If the employee provides you with a completed Choice of fund form, you must pay to the chosen fund.

If the employee doesn’t provide you with a completed Choice of fund form, you must visit the ATO search tool to find a stapled fund for the employee.

If there’s no stapled fund for the member, you must pay to your default fund.

(Confused? It’s a lot to take in. This flow chart should help you out.)

What if an employee doesn’t have a super account?

If an employee doesn’t have a super account – perhaps this is their first job – and doesn’t nominate one with a Choice of fund form (like ours, available here), you must pay their super into your default fund. 

(Still choosing a default fund? Learn more about partnering with CareSuper here.)

Do I still need a default fund?

Yes, you still need a default fund. If a new employee starts on or after 1 November 2021, and neither nominates a fund nor has an existing fund, you will pay their contributions to your default fund.

What funds can be stapled?

A super fund must meet certain criteria in order to be stapled to a member.

  • It must be a complying fund.
  • The employee must be a member of the fund.
  • The fund must be able to accept contributions from the employer.
  • The ATO must be able to disclose information about the member or their fund to the employer.

A stapled fund does not have to be a MySuper fund; that is, it doesn’t have to be the low-cost, simple super solution employers choose as their default product. However, if you’re looking for a MySuper fund, the CareSuper MySuper option is our Balanced (MySuper) option.

YourSuper comparison tool
What is ‘YourSuper’?

YourSuper is a new, interactive online comparison tool that provides a table of simple super products ranked by fees and investment returns, with links to fund websites.

YourSuper is hosted by the ATO here: YourSuper comparison tool.

YourSuper:

  • Provides a table of simple super products (MySuper products) ranked by investment returns and fees
  • Links you to super fund websites where you can choose a MySuper product
  • Links to your myGov account to show your current super accounts and prompt you to consider consolidating accounts if you have more than one.
Annual performance tests
How will the annual performance tests be conducted?

The Australian Prudential Regulation Authority (APRA) will conduct the annual performance test and notify each fund by 1 September each year. They will advise:

  • The actual return versus the benchmark return on average (over seven years when 2021 results are available and over eight years thereafter)
  • Net investment performance after administration vs benchmark performance – median fees will be used.

That’s a lot of words – let’s break it down. The actual return is the return delivered by the fund. The benchmark is set by APRA. Each year, APRA will create an individual benchmark for every MySuper product, taking into account its asset allocation, fees, tax and other relevant assumptions.

The test will be set in line with regulations by the Government and administered by APRA. APRA will publish the results of the test. 

CareSuper is one of Australia’s leading super funds, with a track record of outperformance over the long term. You can see details of our investment performance on our Investment performance page.

What will the performance test apply to?

For the first year, the annual performance test will apply only to MySuper products (the low-cost, simple super solution employers choose as their default product). From 1 July 2022, more products will be included in the performance test.

We’ll include more information here as it becomes available.

What happens if a fund fails the test?

If a fund fails the test – if the actual return is more than 0.5% below the benchmark – APRA will advise the fund.

The fund will then have 28 days to advise all of the members in the relevant investment option, using the heading and subject line ‘Important notice about your super product’s performance’. The notice will advise the member how they can change to a super product that may perform better and will direct members to the YourSuper comparison tool.

The notice will also be published on the fund’s website.

If a fund fails the test for two consecutive years, it will not be able to accept new members until it has again passed the test.

Accountability
How will super funds be held accountable under Your Future, Your Super?

From 1 July 2021:

  • Super trustees are required to comply with a new duty to act in the best financial interests of members
  • Trustees will provide members with key information regarding how they manage and spend their money in advance of Annual Members’ Meetings.

CareSuper is an Industry SuperFund. We don’t have shareholders and don’t pay dividends. We operate the fund only to benefit members and act in their best financial interests.

What information must super funds provide to members in advance of Annual Members’ Meetings?

In a short-form summary (single page), funds must provide:

  • Total executive remuneration
  • Total payments for
    - Promotion
    - Marketing
    - Sponsorship
    - Political donations
    - Industrial body payments
    - Related party payments.

The above statement will also be published on the fund’s website. We will include a link to our statements here when our first one is live.

At CareSuper, we already publish much of this information, including financial statements and staff and board remuneration, in our annual reports. You can view our annual reports on our Forms & publications page.
 

Where can I find more information about YFYS?

We will continue to update this page as more information becomes available. In the meantime, you can read the government’s information on Your Future, Your Super here.

Got a question about Your Future, Your Super or stapling that wasn’t addressed here? Please contact our team or email us at cpt@caresuper.com.au. We’ll get back to you with a response, and will continue to update our FAQs here.