Stapled Super Funds in 2025: Key Rules, Benefits & What Aussies Should Know

Since the introduction of stapled super funds in November 2021, the way Australians interact with their superannuation has changed significantly. Fast-forward to 2025, and these changes are now deeply embedded in the workforce, impacting millions of employees and thousands of employers. But what exactly is a stapled super fund, and how does it affect your financial future? Let’s break down the essentials, highlight recent regulatory tweaks, and explore how to make the most of your super in this new era.

What Is a Stapled Super Fund?

A stapled super fund is an existing superannuation account that ‘follows’ an employee as they change jobs. Instead of being signed up for a new default super fund every time you start a new role, your main fund is ‘stapled’ to you. This reform was designed to prevent the erosion of retirement savings by multiple account fees and insurance premiums, which were all too common under the old system.

• Introduced: 1 November 2021, under the Your Future, Your Super reforms.

• How it works: When you start a new job, your employer must check with the ATO to find your stapled super fund before creating a new super account for you.

• Why it matters: Reduces duplicate accounts, preserves savings, and makes super easier to manage.

As of 2025, this process has become standard practice across Australia, with the ATO’s digital systems making it smoother than ever for both employers and employees.

2025 Policy Updates: What’s Changed?

This year, several refinements have come into effect, sharpening the stapled fund system and addressing some early teething issues:

• Improved ATO Integration: Employers now have streamlined digital access to check for stapled funds, cutting down onboarding time and paperwork.

• Increased Compliance Monitoring: The ATO is conducting more frequent spot-checks and audits on employer compliance, with higher penalties for failing to use the correct stapled fund.

• Greater Transparency for Employees: Workers receive real-time notifications from the ATO when their stapled fund is used or if an employer requests to open a new account.

• Choice of Fund Remains: Employees still have the right to choose a different super fund at any point – stapling simply sets a default, not a restriction.

The government has also launched public awareness campaigns to educate younger workers and recent migrants, who are statistically more likely to end up with multiple super accounts.

How Stapled Super Funds Affect You: Benefits & Pitfalls

For most Australians, the stapled fund system offers clear upsides, but there are still some traps to avoid. Here’s how it could play out in real life:

Benefits

• Fewer Fees: By keeping your super in one account, you avoid paying multiple sets of administration and insurance fees, which can drain your balance over time.

• Less Paperwork: You no longer need to fill out super forms every time you change jobs – your fund details are automatically provided to your new employer.

• Easier Management: With just one fund, tracking your performance, consolidating contributions, and managing insurance is much simpler.

Potential Pitfalls

• Old or Underperforming Funds: If your stapled fund isn’t competitive (for example, it has high fees or poor investment returns), you could miss out on better growth elsewhere. The stapled system doesn’t ‘upgrade’ you to a better fund automatically.

• Insurance Gaps: Some funds cancel insurance cover when no contributions are received for a period. If you switch jobs and contributions pause, check your insurance status.

• Employer Non-Compliance: While ATO monitoring is stricter in 2025, mistakes still happen. Always check your super statements after starting a new job.

Example: Emma, a 26-year-old retail worker, changed jobs three times in two years. Thanks to stapling, she kept her industry super fund throughout, saving an estimated $300 per year in duplicate fees. However, after reviewing her fund’s performance using the ATO’s YourSuper Comparison Tool, she realised she could switch to a better-performing fund with lower fees – something stapling doesn’t do automatically. Emma made the change, boosting her projected retirement savings by thousands.

Making the Most of Your Stapled Super Fund

Stapled super is a set-and-forget system, but a little attention can go a long way. Here’s how to stay on top:

• Review Your Fund Regularly: Use the ATO’s online tools or your super fund’s portal to check fees, returns, and insurance cover at least once a year.

• Take Charge of Fund Choice: If your current fund isn’t the best fit, submit a choice of fund form to your employer and move your stapled fund to a better provider.

• Check for Insurance Gaps: If you have a break in employment, make sure your insurance cover doesn’t lapse.

• Stay Alert for ATO Notifications: The ATO now sends alerts when your stapled fund is accessed or changed – don’t ignore these messages.

With the right approach, the stapled super fund system can help you maximise your retirement savings with less hassle than ever before.