Evidence-backed. Sourced from the Treasury, ATO, and APRA. General information only — not financial advice. Consult a licensed adviser for your situation. Last updated: June 2026.
⚡ Key Takeaways
- Since 1 November 2021, your existing super fund is “stapled” to you — meaning it automatically follows you to new jobs unless you actively choose otherwise.
- Stapling was designed to prevent the proliferation of multiple accounts. It has prevented an estimated 6 million unintended new accounts. [1]
- The problem: if your original fund is underperforming or high-fee, you’re now anchored to it for every future job unless you actively switch.
- Being stapled to a poor fund for 30 years can cost you $50,000–$150,000 in retirement — without you ever making an active choice to stay there.
- You can check your stapled fund in myGov, and switch at any time. Exit fees are banned.
The Super Stapling Trap: Could You Be Stuck to the Wrong Fund? (2026)
Australia’s super stapling rules were introduced with the best of intentions: stop the proliferation of multiple super accounts that were draining retirement savings through duplicate fees and insurance. The reform has largely worked — millions of unintended accounts have been prevented. But stapling has created a new problem: if your original fund is underperforming or high-fee, you’re now automatically anchored to it every time you change jobs. Understanding how stapling works — and how to get unstuck — could be worth tens of thousands of dollars.
General information only. Not financial advice. Consult a licensed financial adviser for advice specific to your situation.
Table of Contents
- What is super stapling and how does it work?
- The intended benefit: stopping duplicate accounts
- The trap: what if your stapled fund is bad?
- How to check which fund you’re stapled to
- How to switch — and escape the trap
- Frequently asked questions
What Is Super Stapling and How Does It Work?
Super stapling was introduced by the Treasury Laws Amendment (Your Future, Your Super) Act 2021, effective from 1 November 2021. [2] Under the old rules, every new employer defaulted new employees into a fund — often their own preferred fund — creating multiple small accounts. Under the stapling rules, new employers must first check whether a new employee already has a super fund (via the ATO’s online lookup). If they do, the employer must pay contributions to that existing fund — not create a new one. [3]
Your “stapled fund” is determined as follows: if you have one existing fund, that’s it. If you have multiple existing funds, the ATO uses a hierarchy of rules to determine which is the stapled fund — generally based on which received contributions most recently. [3]
The Intended Benefit: Stopping Duplicate Accounts
Before stapling, the average Australian worker who changed jobs multiple times could end up with five, eight, or more super accounts. Each charged its own administration fee. Each may have applied its own (often duplicated) insurance premiums. And small accounts eroded from fees faster than they grew.
The ATO estimated that in the two years following the introduction of stapling, over six million new unintended accounts were prevented from being created. [1] Each prevented account means one fewer set of fees, one fewer insurance duplication, one fewer account to track and consolidate later. For this purpose, the reform has been genuinely effective.
The Trap: What If Your Stapled Fund Is Bad?
Here is the problem stapling didn’t solve: it anchors you to whatever fund you happened to join first — often when you were a teenager getting your first job, without the financial literacy to choose well. In Australia, the most common “first fund” is whichever one your first employer defaulted you into. That fund may be perfectly good. Or it may be: [4]
- A fund that has failed or come close to failing APRA’s annual performance test
- A higher-fee fund with below-benchmark returns
- A fund that was appropriate for your first employer’s industry but not your current one
- A fund with insurance cover and conditions that no longer match your life situation
Under the old rules, changing jobs often created a new account in a new fund — which had the side effect of sometimes introducing members to better, employer-preferred funds. Under stapling, your first fund follows you everywhere. The passive default now locks in your original choice — good or bad — for your entire working life unless you actively intervene.
The dollar impact: if your stapled fund charges 0.5% more per year than the best-performing alternative, on a $100,000 balance that’s $500 per year compounding forward. Over 30 years at 7% gross returns, the compounded cost exceeds $55,000. Add in underperformance and the figure climbs further. ASIC Moneysmart’s modelling of a 1% total fee gap over 30 years on a $100,000 balance puts the lifetime cost at over $100,000. [5]
How to Check Which Fund You’re Stapled To
- Log into myGov and link the ATO if you haven’t already.
- Go to Super and select Manage. You will see all super accounts associated with your tax file number, including which one the ATO has designated as your stapled fund.
- Note the fund name and look it up on APRA’s performance tool. Compare its total fee and 5/10-year net returns against comparable options.
How to Switch — and Escape the Trap
You are never trapped permanently. Stapling means your existing fund is the default — but you can always actively choose a different fund. Here’s how: [3]
- Choose a new fund by comparing options on APRA’s tool and Moneysmart’s calculator.
- Join the new fund online — most industry funds allow this in under 10 minutes.
- Tell your current employer your new fund details by completing a Superannuation standard choice form (ATO form NAT 13080). Your employer must then pay future contributions to your chosen fund within 2 months. [3]
- Roll over your old balance via myGov → ATO → Super → Manage. Check insurance before rolling over.
- Once you’ve actively chosen a fund, that choice overrides the stapled fund for all future contributions — but you need to repeat step 3 each time you change employer.
Frequently Asked Questions
What is super stapling?
Since 1 November 2021, your existing super fund is automatically attached to you when you change jobs. Your new employer must pay super to your existing fund, not create a new one — unless you actively choose a different fund.
Can I change my stapled fund?
Yes, at any time. Complete the ATO’s standard choice form (NAT 13080) and give it to your employer. They must honour your choice within 2 months. Then roll your old balance via myGov.
How do I find which fund I’m stapled to?
Log into myGov → ATO → Super → Manage. You’ll see all accounts and which is designated as your stapled fund. Look it up on APRA’s performance tool to check if it’s worth keeping.
Can my employer refuse my fund choice?
Generally no. A valid ATO standard choice form legally compels your employer to pay to your chosen complying fund within 2 months. Non-compliance makes them liable for the Super Guarantee Charge.
🔍 The Fine Print Verdict
Stapling solved a real problem — duplicate accounts are genuinely bad for retirement outcomes. But it solved it by locking in your original fund choice, which may have been made at 16 with no financial knowledge, by an employer who defaulted you into a mediocre fund. The reform assumes your first fund is good enough. It often isn’t. The solution is simple: check which fund you’re stapled to, look it up on APRA’s tool, and if it’s consistently underperforming or high-fee, actively choose a better one.
Check your stapled fund now: myGov → ATO → Super → Manage → Look it up on APRA’s tool → Switch if the evidence warrants it.
Sources
- ATO, Your Future, Your Super — Stapling implementation report 2022–23. ato.gov.au
- Treasury Laws Amendment (Your Future, Your Super) Act 2021. legislation.gov.au
- ATO, Stapled super funds for employers. ato.gov.au
- APRA, 2025 superannuation performance test results, August 2025. apra.gov.au
- ASIC Moneysmart, Super fees calculator. moneysmart.gov.au
Disclaimer: The Fine Print 🇦🇺 provides general financial information only. Content is not financial advice. Always consider seeking independent licensed financial advice before acting. Content accurate as at June 2026.