Friday 21, Jan 2022

Your Future, Your Super

What does “Your Future, Your Super” legislation mean for your business?

In June 2021, the Federal Government passed the “Your Future, Your Super” (YFYS) legislation. This legislation included significant changes for both superannuation funds and Australian businesses.

Most of these changes came into effect on July 1, 2021, while the “member stapling” provision was delayed until November 1, 2021.

There are two key provisions that may impact you and your employees.

1. Member stapling, what is it and how does it impact me?

The member stapling provision is designed to ensure additional, unintended super accounts are not created when Australians switch jobs.

For employers, this means that during the onboarding of new employees, if they have not made a choice of superannuation fund, you will need to visit the ATO online services for business, before you can default them into your default fund.  When you visit ATO online services you will need to select the ‘Employee super account’ tab to check if your new employee has an eligible superfund. If they do, you must place them in that fund. If this process does not return an eligible fund for the employee, they can then be defaulted into your default superfund.

You can find more details on member stapling and what it means for your organisation on the ATO website.

2. What is the annual performance test?

Conducted by APRA and first released on 31 August 2021, the performance test is designed to allow Australians to compare their superfund’s performance against the performance of other competitors. The comparison test compares fees from the past financial year and returns over the last 8 years (only 7 years were used for the initial test in August 2021).

Superfunds can fail the performance test, and in 2021 13 funds failed the test. The first year they do so they are required to write to their members, informing them of this underperformance. This may result in some of your employees asking to switch their superfund.

If a superfund fails the performance test two years in a row, they will be barred from accepting new members. If your default superfund is in this position you will be unable to default new employees into said fund.

Support for you and your employees

Aware Super has created a handy flyer that explains the YFYS legislation and how it impacts your employees.  Feel free to share it with them.

We thank the Aware Super team for this guest article.


Aware Super supports their participating employers to understand and navigate the changing world of superannuation. If you have any super related questions or would like to discuss how Aware Super can support your organisation, contact Philip Seubert via email here.

The information contained in this article is given in good faith and has been derived from sources believed to be reliable and accurate. No warranty as to the accuracy or completeness of this information is given and no responsibility is accepted by Aware Super Pty Ltd (ABN 11 118 202 672, AFSL 293340) or its employees for any loss or damage arising from reliance on the information provided.