Changes for paying super to employees

In the 2020 – 21 federal Budget, the Government announced the Super Reforms — Your Future, Your Super (YFYS) — measure. This is one of the most significant changes to the way the superannuation system works and has been designed to help protect the retirement savings of working Australians. 

The measure has four key elements: 

A new YourSuper comparison tool for individuals to be able to compare key data on MySuper products. 

From 1 November 2021, where new employees do not choose a super fund, most employers will have 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 (more on this further down).  

A change to the duties of trustees of superannuation funds to act in the best financial interest of their members. 

A new super fund underperformance assessment to be conducted by APRA and published on our website. 

The measures commence on 1 July 2021, except for Schedule 1 (the single default account or “stapled super fund” measure) which commences on 1 November 2021. 

Important info for employers 

As a result of YFYS, every time a person starts a new job, their employer has to offer them two superannuation options. Either having their compulsory superannuation guarantee contributions deposited into the employer’s default super fund, or in an alternative fund of the employee’s choosing. 


From November 2021, the legislation ensures that unless an employee chooses otherwise, their active super account — or the first fund they join when they start work — will follow them throughout their working life, no matter the job or the industry they are working in or if the fund is a poor-performing fund. In other words, the employee has one fund for life. 


In the legislation, this is called “member stapling”, and its purpose is to prevent a person having multiple super funds. Multiple funds have multiple fees and unnecessarily reduce retirement savings. This is the important part — it’s an employer’s responsibility to search and check with the ATO if their new employee has a “stapled” super fund and ensure that future SG contributions are paid into it.

Want to know more?

As an employer, it’s hard to stay on top of the Government’s constantly evolving legislations and legalities. We can help you straighten things out and get a clear picture of your responsibilities to your employees. Contact us to get started.

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