Have you changed your superannuation process for new employees?

By the leaders at PKF Sydney & Newcastle

26 November 2021

As of 1 November, employees will now be ‘stapled’ to a superannuation fund and there is an obligation for employers to ensure that the right processes are followed to reduce the number of new super accounts opened when employees transition between organisations.

For new employees with an employment history

To date, employers have been sweeping new employees into the organisation’s default superfund if the employee has not chosen their own superfund or completed the super choice form.

Continuing this approach will leave organisations at risk of penalties.

The employer is now obliged to check with the ATO if their employee has an existing super account, known as a 'stapled super fund', to pay the employee's super guarantee into.

New employees with no employment history

For new employees who have no work history and no historical super, the employer can use a default super fund.

As an employer, you must only use a default super fund that you will pay your employee's super into if they have not chosen a fund and do not have a stapled super fund. You may have to pay the choice shortfall penalty (which is the additional super guarantee charge) if you contribute to your default fund without making a stapled super fund request.


The process released by the ATO is currently quite manual and requires the employer accessing the ATO system and entering employee details to receive a response regarding an employee’s super. From there the superfund determined as relevant by the ATO system, will then need to be input into an organisation’s payroll system and super paid as normal.

For further information, contact your local PKF adviser.


Unlocking automations

From April 2022, it is expected that the option to automate communication between an organisation’s payroll system and the ATO will be revealed, thereby saving on business administration costs and increasing capacity within the team.

PKF has a specialised digital team working with clients to incorporate automation software into their business.

Find out more here

Retirement planning

The change is being made to cut down on the number of superfunds held by one person and the fees paid to maintain these super accounts with the end goal, for individuals to end their working lives with more money banked in their super account, to facilitate a comfortable and healthy retirement.

Find out more about retirement planning here