Your Future, Your Super – for members
Your Future, Your Super – for members
We’re here to explain what the Your Future, Your Super reforms, including stapling, mean for you as a member.
Your Future, Your Super (YFYS) contains four main elements. They are:
- Annual performance tests
- Accountability and transparency
Stapling is the process of linking your super account to you so that it follows you from job to job.
You can still nominate your preferred account using a Choice of fund form (like ours, available here). If you don’t, your employer(s) will contact the Australian Taxation Office (ATO) to determine your stapled fund and pay contributions to it.
Stapling came into effect on 1 November 2021. From this date, super will follow you when you move from job to job.
You can choose to change funds at any time, even if your employer has started paying contributions to another fund.
Choosing your preferred fund is easy. Simply complete a Choice of fund form (like ours, available here) and give it to your employer. Your employer must pay contributions to the fund you nominate on this form.
You can, but unless you complete a Choice of fund form, your employer will still be required to check what your stapled fund is. The ATO has a search tool for employers.
The best way to make sure your super is paid to your preferred fund is to complete a Choice of fund form (like ours, available here).
If you have more than one super account, the ATO will select your stapled fund by following a set of prioritisation guidelines. It will nominate a single super account.
You may also wish to consider consolidating your super – we can help you find it and put it in your CareSuper account. Learn more about that on our Consolidating super funds page.
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.
You don’t have to provide any information. The ATO will nominate a single ‘stapled’ super account for you and advise your employer.
If you give your employer a completed Choice of fund form, your employer must pay to your chosen fund.
If you do not give your employer a completed Choice of fund form, your employer must search the ATO for a stapled fund.
If there’s no stapled fund, your employer may pay to their default super fund.
(Confused? It’s a lot to take in. This flow chart should help you out.)
You can nominate a super account at any time using a Choice of fund form (like ours, available here). If you don’t have a super account, and you do not nominate one, your employer must pay your super into their default fund.
You can choose your employer’s default fund. The best way to do this is to complete and return a Choice of fund form and request your employer’s default fund. If your employer’s default fund is CareSuper, you can use our Choice of fund form, available here.
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 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.
- 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.
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.
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.
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.
CareSuper passed the 2020/21 performance test.
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 your 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.
In a short-form summary (single page), funds must provide:
- Total executive remuneration
- Total payments for
- 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 let us know. We’ll get back to you with a response, and will continue to update our FAQs here.