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20 October 2021

The way you pay new employees their super will change from 1 November 2021 under the government's new 'stapling' provisions.

This means all new employees who don't make a choice must be paid super to their existing (stapled) fund. Stapling was designed to reduce the number of accounts that Australians accumulate which is costly with multiple fees and insurance cover. So the idea is that their super follows them from job-to-job.

Potential issues 

However, there are some potential downsides, such as being stapled to a poor-performing fund, or one that doesn't have insurance cover that's fit for purpose. 

Stapled insurance may carry exclusions

It’s important that your employees check what insurance cover is offered through their super, as many funds don't cover dangerous occupations, or they have restrictions on amounts payable. Most manual jobs in transport would fit into this category. The list of jobs in transport that other funds could exclude as a ‘dangerous occupation’ include:

  • truck drivers,
  • loaders,
  • mechanics,
  • engineers,
  • ramp attendants,
  • flight crews, and
  • bus drivers.

If a worker’s occupation is excluded, they may be subject to restrictive definitions which could result in a reduced benefit (or no benefit) being received if they make a claim.

TWUSUPER members don’t need to worry, as TWUSUPER insurance cover was designed for people across the transport industry including:

  • transport and logistics,
  • bus,
  • waste and recycling,
  • couriers, and
  • aviation.

With no occupational exclusions, TWUSUPER members will never be disqualified from making an insurance claim or applying for additional insurance cover because of what they do for a living. Our insurance cover is fit for purpose and can be increased (pending application), decreased or switched off.

Making a choice is best

Employees can still choose to be paid super into a fund other than their stapled fund if they wish. Making an active choice of super fund overrides stapling – but the choice must be the employee's.

Best practice is still to provide new employees with a Choice of Fund form so they can make an active choice about which fund is best for them.

If a new employee wants their super to be paid into a TWUSUPER account you can either give them a printed form pre-filled with TWUSUPER’s details (download the form using the link below) or ask them to fill in and sign the online choice form (using the link below) which they can email back to you.

Pre-filled Choice form (PDF)

Online Choice form - TWUSUPER 

How to find your employee's stapled fund

The ATO will release a search function for businesses to help them locate a new employees ‘stapled’ fund if they don't know which super fund was their main account or the one they wish contributions to be paid into. TWUSUPER will advise employers once this is available through our Employer onboarding resources.

Our employer resources

TWUSUPER is updating its resources for employers around stapling, including forms, information, and induction materials. We will keep you up to date on this important change that affects the people and businesses that keep Australia moving.

Employee onboarding