Super stapling explained: The complete employer guide

Hiring someone new should feel exciting, not complicated by super compliance. But with super stapling in effect, onboarding now comes with an extra layer of responsibility. Employers must offer choice of fund and if a new starter doesn’t choose a fund, request their stapled fund details from the ATO and pay contributions to that account.

In short, if an employee doesn’t choose a new fund, their existing super account generally follows them from job to job. From here, it’s up to you to make sure contributions are received by, and can be allocated by the member’s account.

Missing this step can create compliance risks and unnecessary admin, so it’s important to get it right from the start. While super stapling is designed to protect employees’ retirement savings, it also means employers need clear, reliable processes in place.

This article breaks down what super stapling is and how to put in systems for managing the process. We’ll walk you through how super stapling works, what your obligations are and the practical steps you can take to avoid costly mistakes.

What is a ‘stapled super fund’?

A stapled super fund is a single existing super account linked to an individual employee that follows them from job to job.

Before stapling was introduced, employees often accumulated multiple super accounts every time they changed jobs. This led to “zombie” accounts; inactive funds that slowly eroded an employee’s retirement savings through duplicate fees and insurance premiums.

The stapling system stops this by making sure that unless an employee explicitly chooses a new fund, their old fund remains attached (or stapled) to them.

Why do super funds need to be stapled to employees?

The government introduced these reforms to protect employees’ retirement savings. By stapling a fund to a person:

• Fees are reduced: Employees don’t pay administration fees across multiple accounts.
• Savings grow faster: Compound interest works better in a single, larger pot.
• Simplicity: It removes the admin burden from employees having to consolidate funds later.

For employers, however, it adds a critical step to the onboarding workflow. You can’t simply default to your fund unless the employee chooses that fund or the ATO confirms there’s no stapled fund. 

The 3-step rule: When to check for a stapled fund

You don’t always need to request a stapled super fund. You only need to check if a new employee does not choose their own super fund.

Step 1: Offering a ‘Choice of Fund’

When a new employee starts, you must still provide them with a Standard Choice Form (or an equivalent digital form).

If the employee completes this form and nominates a specific super fund, your job is done. You simply pay into the fund they chose. The stapling process stops immediately.

Step 2: How to request a stapled super fund from the ATO

If your new hire doesn’t return the choice form, you can’t just use your default fund. You must ask the ATO if a stapled fund exists.

There are three ways to do this.

Important: You can only request stapled super fund details after you have established an employment relationship with the employee. In practice, this usually means you have submitted a Tax File Number (TFN) declaration from the employee or you’ve lodged a Single Touch Payroll (STP) pay event that includes them. The ATO uses this information to confirm the employment relationship before releasing stapled fund details. Attempting to request stapled details before this step may result in the request being declined.

Method 1: Single request (ATO Online Services)

This is the manual method suitable for small businesses hiring infrequently.

1. Log in to ATO Online Services for Business.
2. Navigate to the Employee super account screen via the Employees menu and select Request to open the form
3. Manually enter the employee’s:
   • TFN: you can enter an exemption code where an employee can’t provide their TFN, but this could result in processing delays
   • full name, including ‘other given name’ if known
   • date of birth
   • address (residential or postal) if TFN not given.
4. View the on-screen result immediately.

With this method, it’s important to be aware that manual handling increases the risk of incorrect fund/account details, which may lead to rejected or unallocated contributions.

From 1 July 2026, under Payday Super, super contributions will generally need to be received by the fund and able to be allocated within 7 business days of payday. If a payment is delayed, rejected or returned and not successfully processed within that timeframe, it may result in a Superannuation Guarantee (SG) shortfall and exposure to the Superannuation Guarantee Charge (SGC), including nominal interest and the administrative uplift.

Method 2: Bulk request (XLSX file upload)

For mid-sized businesses with batch hiring (like seasonal staff), you can upload a spreadsheet.

1. Download the ATO’s specific Excel template.
2. Fill in details for up to 100 employees.
3. Upload the file via the ‘File transfer’ function in Online Services.
4. Wait for the processed file to be returned (usually within minutes to days depending on system load).

Method 3: Automated request via payroll software

This is the standard for modern businesses. If you use software like Employment Hero, the platform handles this via API integration.

When you onboard a new employee digitally:

• The system checks for a stapled fund in the background instantly.
• If found, the fund details populate directly into the payroll profile.
• No manual data entry, no typos and no logging into the ATO portal.

Step 3: Understanding the ATO response

The ATO will generally either return stapled fund details or indicate no stapled fund is available.

If a stapled fund is found

The ATO will provide stapled fund details (e.g. fund name and USI and account/member identifiers where available).

• Action: You must pay contributions into this fund.
• Restriction: You must contribute to the stapled fund unless the employee later makes a valid fund choice.

If no stapled fund is found

This usually happens if the employee is entering the workforce for the first time (e.g., a school leaver or new migrant).

• Action: You can now legally pay into your business’s default super fund (or the fund specified in the relevant modern award).

There’s an even faster way to identify an employee’s super fund with Employment Hero

Beyond standard compliance checks, Employment Hero’s verified member fund service provides an extra layer of efficiency during digital onboarding. By connecting with our partner funds, the system can automatically identify an employee’s existing superannuation accounts. 

Instead of starting with a blank form, new hires are presented with their own verified account details, allowing them to confirm and select an existing fund with a single click. This proactive matching reduces manual data entry errors and helps ensure that super contributions are directed to a valid, active account from the very first pay run.

Preparing for Payday Super

The incoming Payday Super legislation fundamentally changes the risk profile for Australian employers.

The “seven-day trap” for rejected payments

From 1 July 2026, super contributions need to be received by, and able to be allocated by, the fund within seven business days of payday.

Under the quarterly system, employers generally have up to the quarterly due date to ensure contributions are received (otherwise SGC rules may apply). That’s a big safety buffer.

However, once Payday Super is in effect, that buffer disappears.

If you fail to identify the correct stapled fund or manually enter the wrong USI and the payment is rejected, it’s possible that you might not know for 3-5 days. By the time the money returns to your account and you correct the error, the seven-business-day deadline could have passed.

The result? You may become liable for the SGC, which includes the unpaid contribution amount plus interest that compounds daily at the general interest charge rate and an administrative uplift.

Why manual ATO checks are risky in 2026 and beyond

Manual checks are too slow and too fragile for weekly, fortnightly and monthly pay cycles. When you process payroll, you can’t afford to log into the ATO portal, copy-paste numbers and hope you didn’t miss a digit. 

Automated validation and integrated workflows (like HeroClear) can materially reduce manual data-entry errors and speed up issue resolution.

Beyond stapling: Master your complete super obligations

Checking for a stapled super fund makes sure you’re paying the right place. But the new laws require you to pay at the right time.

Managing these two variables manually is a recipe for compliance headaches. From 1 July 2026, businesses need to audit their payroll tech stack. If your current system doesn’t automate stapling checks or offer clearing house validation, you’re exposing your business to unnecessary risk.

Our Payday Super Hub brings everything you need to know into one place. You’ll find clear guidance on your obligations, key dates to plan for, practical checklists and expert insights to help you prepare with confidence. 

You can also use our Payday Super Cash Flow Calculator to estimate the impact on your cash flow and understand how much additional working capital your business may require. Whether you’re reviewing your payroll systems or building out your transition plan, we’ve got everything you need to manage this transition with ease. 

Want to learn more about super stapling? Watch our Business Masterclass: Super Stapling Explained

Looking for more resources? 

• Guide to paying employees correctly
• In-house payroll vs outsourcing payroll
• Payroll tax for interstate employees in Australia
• Common payroll FAQs answered
• Important updates to annualised salary changes
• Buying gifts for employees and fringe benefits tax

Ready to automate your compliance?

Don’t let manual admin put your business at risk. Speak to one of our business specialists today to see how Employment Hero’s Employment Operating System can help streamline your super stapling checks and prepare you for Payday Super.

The information in this article is current as at 23 February 2026 and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The content is general information only, is provided in good faith to assist employers and their employees, and should not be relied on as professional advice. Some information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this article.