Super Stapling Reforms Passed Ahead of Payday Super

The Federal Government has passed new legislation aimed at improving the superannuation system ahead of the introduction of Payday Super. The Supporting Choice in Superannuation and Other Measures Bill 2025 is designed to streamline how super funds are selected during employee onboarding, while also addressing the long-standing issue of duplicate super accounts.

A key feature of the reforms is that employers and their agents will now be able to request an employee’s stapled super fund details from the ATO earlier in the onboarding process. This change is intended to make it easier for employers to incorporate stapled fund checks into their onboarding workflows and to provide employees with clearer information about their existing fund when they commence employment. In turn, this should improve the accuracy of super contributions and reduce the likelihood of new accounts being created unnecessarily.

The legislation also introduces restrictions on superannuation product advertising during onboarding. Outside of limited exceptions—such as an employee’s stapled fund, the employer’s default fund, or an eligible MySuper product—super funds will no longer be able to promote their products at this stage. This measure is aimed at reducing conflicted sales practices and ensuring employees can make more informed, unbiased decisions.

While the reforms have been broadly welcomed, there are concerns around how effectively they will operate in practice. In particular, industry groups have questioned whether the ATO’s systems are sufficiently equipped to handle the volume of stapled fund requests expected under the new regime. If these systems struggle to respond reliably, there is a risk that employees could be defaulted into new funds, potentially increasing the number of duplicate accounts rather than reducing them.

Overall, the changes represent a step toward a more streamlined and member-focused superannuation system. However, their success will depend heavily on the reliability of supporting systems and how well employers integrate these requirements into their onboarding processes as Payday Super approaches.

If you have any questions in relation to the matters discussed in this blog, please get in touch with us.