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What is 'Your Future, Your Super'?

Government changes to insurance in super

Protecting super balances from the cost of insurance members may
not need, want or be able to claim on

The ‘Your Future, Your Super’ reforms (YFYS Reforms) were passed in June 2021. They aim to improve the super system for members and to make your super work harder for you, allowing you to live better in retirement. There are four key areas which are explained below.

Super fund 'stapling'

Stapling means you will keep your existing super account if you change jobs, unless you decide to change which fund manages where your super is invested. This is meant to make things easier, your super can follow you from job to job, removing the hassle of maintaining multiple super accounts, with potentially multiple fees and insurance premiums.

From 1 November 2021, a new super account won’t be created automatically every time you start a new job. You can start a new job knowing your employer and the Australian Tax Office (ATO) will ensure your super contributions will be paid into your ‘stapled’ account.

Stapling process explained (PDF, 103KB)

YourSuper comparison tool

The ATO has a new interactive, online YourSuper comparison tool that makes it easy for you to compare super funds and choose who you would prefer to manage your super.

YourSuper tool 

Performance test

A new annual performance test will hold super funds accountable for underperformance. The performance test will compare a product’s investment returns with a benchmark return and fees – enabling members to compare fund performance. The results of the annual performance test will be reflected on the YourSuper website from 1 September each year. The results will be expressed as ‘performing’, ‘underperforming’ or ‘not assessed’.

Whilst performance has always been a primary focus, super funds will now be required to demonstrate with this additional layer of transparency that they’re aiming to provide the best outcome for their members.

How has Plum MySuper been performing?

Members’ best financial interests

The Best Financial Interest requirements are designed to “sharpen the focus” of super trustees, ensuring decisions, such as those on expenses, are in the best financial interests of members. There are also additional requirements for Trustees to make additional information available to members as part of the Annual Member Meeting.

Frequently asked questions

We have set out below some frequently asked questions to help you navigate and keep up to date with the new laws.

  • From 1 November 2021, you will need to undertake a stapled fund search where each new employee from that date does not complete a Super Choice of Fund Form.

    Where a new employee completes a Super Choice of Fund Form and selects to join the employer’s default fund, this will be considered as a valid choice and a stapled fund search is not required.

    Failure to request a stapled super fund for employees, who have not made a choice, will mean an employer will have a Superannuation Guarantee shortfall and be required to report this in their Super Guarantee Charge Statement.

  • If the employee provides you with a completed Super Choice of Fund Form, you must pay to the chosen fund.

    If the employee doesn’t provide you with a completed Super Choice of Fund Form, you must visit the ATO search tool to find a stapled fund for the employee.

    If there’s no stapled fund for the employee, you must pay to your default fund.

    Need more detail? Stapling process explained (PDF, 55KB)

  • From 1 November 2021, if your new employee doesn’t complete a Super Choice of Fund form, an online stapled fund form will be accessible for employers through the ATO’s Online Services.

    Employers will need to enter information about their employees into the form and they will receive an online response once the form is processed. Employers who have not enabled online services will have the ability to access this information over the phone. Please note that the stapled fund measure only applies to employees who commence on or after 1 November 2021.

  • No. The stapled fund search will only be required for new employees joining your company on or after 1 November 2021.

  • No, stapling doesn’t override choice of fund. Your employees can nominate their preferred fund at any time using a Super Choice of Fund Form.

    If an employee hands you a completed, signed Choice of Fund Form, you must pay to their nominated fund.

  • No, the ATO will provide an online search tool, and you will need to enter each employee’s details into the tool to find their stapled account.

    You must do this even if your employee tells you what they think their stapled fund is, unless they complete a Choice of Fund Form.

    The ATO will let you know when the ATO search tool is available.

  • If an employee provides a Super Choice of Fund Form to their employer, and it happens to be the employer‘s default fund, the employer should make contributions in accordance with the employees’ Super Choice of Fund Form. An employer only needs to request stapled fund details for employees who commence on or after 1 November 2021, where no Super Choice of Fund Form is received.

  • The ATO has advised that they are developing a bulk upload solution to help employers complete multiple stapled super fund requests at the same time. This is expected to be available from 1 November 2021.

    The ATO have also informed us that they are working with Digital Service Providers in relation to a solution that can be integrated into payroll software by July 2022.

  • New employees are still free to choose a super fund, including their employer’s default fund. Stapling is only relevant when the employee does not make a choice or complete a Super Choice of Fund Form.

  • The ATO has advised their request service will have inbuilt rules to determine the stapled fund, which includes tie-breaker rules where multiple accounts exist. The basis for these decisions is outlined in the regulations. In the first instance it will be the account that last received an employer contribution. An employer will only have details of one fund returned to them by the ATO. Employees will also be able to see details of their stapled super fund in their myGov account.

  • The ATO has advised that they are working on an automated solution that will interact with the employer’s payroll system when requesting stapled super fund details. The ATO expects this automated solution to be available for use before July 2022.

  • The performance test applies to the MySuper product within the Plum MySuper Fund. This does not relate to other products or investment options your employee might be invested in.

    Many employer plans receive administration fee discounts because of their size. The larger the employer, the larger the number of employees, which generally translates to lower overall fees. It is important to note that the performance test is based on standard fees. If employees are within an employer plan any applicable discounts or employer subsidisation arrangements are not reflected in the results of the test.

  • Decisions employees make about their super can have long-term consequences, directly affecting how much money they have to live on in retirement. This is why it’s important that only people who are appropriately trained and qualified advise on matters relating to super.

  • Information sheet (INFO 89) was issued to provide guidelines to employers around what super trustees, payroll providers, super clearing houses and others who engage with employers or employees can and cannot do or say to employees about choice of super fund. This could include union officials who wish to give information about choice of super fund to union members.

  • The information sheet provides general guidance about:

    • how you can communicate to your employees about super choices without breaking the law
    • what you should avoid saying or doing. Importantly, it highlights that employers should be careful not to provide financial product advice or engage in distributing super products on behalf of others.
  • You can provide factual information about super and super choices, but you cannot give your employees financial product advice and must not act as a distributor of super products.

  • Factual information is information that has no recommendation or opinion element, or any intention (actual or inferred) to influence a person making a decision about their super.

  • One way of providing factual information to your employees is to refer them to Choosing a super fund on Moneysmart.gov.au.

    You can also refer your employees to the YourSuper comparison tool on the ATO website. This comparison tool is a simple way for your employees to compare MySuper products and help them choose a fund that meets their needs.

  • You can tell your employees what your default employer plan is by referring them to the Plum Super ESI hub.

    As well as providing employees with information about your Employer Plan, the ESI hub is designed to help you manage your onboarding process and meet your obligation of providing choice of fund information to your new employees.

    You can also refer your employees to our website (the fund provider) for more information.

1 ChantWest, Multi-Manager Survey June 2021, 13 August 2021, MySuper Growth net returns for period to 30 June 2021, page 11
2 SuperRatings, Fund Crediting Rate Survey June 2021, MySuper Growth net returns for period to 30 June 2021, page 20
3 NULIS analysis based on SuperRatings, Fund Crediting Rate Survey March 2019 to June 2021