Super stapling for new construction hires

For a new construction hire who does not choose a super fund, ask the ATO for their stapled fund before paying super. Use your default fund only if the ATO says no stapled fund exists and the worker remains eligible.

What super stapling means

A stapled super fund is an existing super account linked to an individual employee. It follows them when they change jobs.

The rule is meant to stop workers collecting a new super account every time they move employer. That matters in construction, where people often move between builders, subcontractors, labour hire firms and short projects.

Stapling applies to employees who start on or after 1 November 2021. That commencement date remains current as at September 2026.

The order matters. For an eligible new starter, you generally work through these steps:

1. Give the worker a Standard choice form.
2. Use the fund they validly choose.
3. If they make no choice, request their stapled fund from the ATO.
4. If the ATO finds a stapled fund, pay super to that fund.
5. If the ATO reports no stapled fund, use your employer-nominated default fund.

Do not jump straight from “no form returned” to your default fund. That is the mistake stapling rules are designed to prevent.

The numbers payroll needs to know

The super guarantee rate is 12% of ordinary time earnings as at September 2026.

The old $450 monthly earnings threshold is $0 as at September 2026. It was removed from 1 July 2022. A casual who works only a few shifts may still qualify for super.

Workers under 18 generally need to work more than 30 hours in a week as at September 2026 before super guarantee applies for that week. This can catch apprentices and school-based workers whose hours change between projects.

A new eligible employee should generally receive a Standard choice form within 28 days of starting as at September 2026. You may also need to provide another form after certain events, such as when a worker asks for one or their chosen fund can no longer accept contributions.

If you fail the choice rules, the choice liability is generally 25% of the choice shortfall, capped at $500 per notice period as at September 2026. That liability forms part of the super guarantee charge. Late or misdirected super can also create extra administration, interest and reporting work.

Chosen, stapled or default fund

Here is the practical order for a new hire.

Worker’s position	Where super should usually go	Payroll action
Worker gives a valid fund choice	The worker’s chosen fund	Validate the details and record the choice date
Worker makes no choice and the ATO finds a stapled fund	The stapled fund reported by the ATO	Save the ATO result and set up the fund before the first contribution
Worker makes no choice and the ATO finds no stapled fund	Your eligible default fund	Keep the no-fund response and document the default used
Worker’s chosen or stapled fund rejects contributions	Do not quietly redirect the payment	Check the reason, contact the worker where needed and follow the ATO process

A fund named in an award, enterprise agreement or employment contract does not usually let you ignore a valid employee choice or an ATO stapled fund result. Check the instrument and the employee’s choice rights before setting the destination.

A site-friendly onboarding process

Construction onboarding is often rushed. Someone starts at 6:30am, the supervisor sends payroll half a form, and the first pay run is already close. A simple control list helps.

Record these items for every new employee:

• legal name, date of birth, address and tax file number
• employment start date
• whether the worker is eligible for super
• date the choice form was issued
• whether a valid choice was received
• date the stapled fund request was lodged
• the ATO response and fund details
• any rejection, correction or employee contact
• the fund used for the first contribution

Only authorised people should use ATO Online services for business to request stapled fund details. The person making the request must confirm that an employment relationship exists. Do not run speculative checks on applicants who have not become employees.

The ATO may return one stapled fund, advise that no fund exists, or ask for more information. If the person has several accounts, the ATO applies its selection rules. Payroll should not pick whichever account looks easiest.

For more practical controls around starts, pay runs and records, see the payroll operations hub. You can also use the compliance audit checklist to test whether each new starter file contains the required super evidence.

Watch the employer relationship

On a large site, the person directing the work may not be the employer responsible for super.

With labour hire, the labour hire agency is commonly the employer and runs the stapling check. The host builder should not create another super account for that worker unless it separately employs them.

Subcontractors need a closer look. Calling someone a contractor does not settle their super position. A person engaged mainly for their labour may still be treated as an employee for super guarantee purposes. Work out the classification before deciding that stapling does not apply.

The same basic process covers full-time workers, part-time workers, casuals and apprentices when they are eligible. Short engagement length is not, by itself, an exemption.

Common mistakes on construction payroll

Sending super to the default fund too early

No choice form does not automatically mean default fund. Request the stapled fund first.

Treating the induction form as a valid choice

A worker writing only a fund name is often not enough. You need the required information to make the contribution, including the fund identifier and membership details where applicable.

Missing casuals with small pays

There is no longer a $450 monthly threshold. Check every employee, including one-day and weekend hires.

Using an old stapled result for a new employment period

Keep evidence connected to the actual employment relationship. If the person is rehired after their employment ended, treat the new start carefully and check whether a fresh request is required.

Ignoring rejected contributions

A rejected payment has not reached the worker’s fund. Investigate it promptly. Check member details, fund status and any message from the clearing house. Do not assume the money will fix itself in the next batch.

Keep evidence, not just a payroll note

Your file should show why a particular fund received the contribution. Keep the employee’s valid choice, the ATO stapled fund response, or the no-fund result that led to your default fund.

Also keep records of rejected payments and what you did next. A note saying “used default” is weak if nobody can show that the ATO check happened.

Stapling decides where super goes. It does not decide whether the worker is eligible, how ordinary time earnings are calculated, or when the contribution must be made. Those checks still belong in each pay run and super payment process.