Superannuation Stapling and Choice of Fund: What Nanny Employers Must Know

Most families who employ a nanny expect to sort out pay rates, tax and maybe a written agreement. Super tends to feel like an afterthought.

Except it isn't quite that simple, especially if your nanny doesn't get around to telling you which fund to pay into. That's when choice of fund and stapled super funds actually start to matter, and getting them wrong can leave you out of step with the ATO.

Your nanny might already have a fund, even if they haven't said so

Here's the bit that catches a lot of employers off guard: your nanny may already have a super account from a previous job, and Australia's rules are built to keep her attached to it.

That's the idea behind a stapled super fund. Rather than every new employer opening a fresh account, an employee's existing fund effectively "staples" itself to them and follows them from job to job. If your nanny worked in retail, hospitality or childcare before coming to you, there's a good chance one's already sitting in the background.

The ATO expects employers to request these stapled fund details when a new employee hasn't made their own choice. For anyone managing nanny superannuation compliance, that's a step worth knowing about before it becomes a problem.

Start by giving your nanny the choice

Before stapling even comes into it, most eligible employees have the right to choose their own super fund, and your nanny is no exception.

As the employer, it's on you to give her that opportunity, usually through the ATO's Standard Choice Form or something that covers the same information. New employees generally need to receive this within 28 days of starting, unless they've already handed over their fund details another way. It's also worth holding onto those records for five years, just in case.

One thing worth being upfront about: you can offer the choice, but you can't steer it. The ATO is clear that employers aren't in a position to recommend a fund or nudge an employee toward one, even with good intentions.

So what happens if she doesn't choose one?

This is where a lot of household employers get stuck.

If your nanny is entitled to choose a fund and simply doesn't, you can't just default to whatever fund is easiest for you. Instead, you're generally expected to request her stapled fund details from the ATO.

There's a sequence to it, and it looks roughly like this:

1. Offer your nanny the chance to choose her own fund.
2. If she picks a valid one, pay her super there.
3. If she doesn't, request her stapled fund details through the ATO where required.
4. If a stapled fund comes back, contributions generally need to go into that account.
5. If there's no stapled fund on file, an eligible default fund can usually be used instead.

Written out like that, it looks tidy enough. In practice, it depends on having the right employee details on record, the correct ATO reporting done first, and payroll set up to actually act on whatever comes back.

Why this is worth getting right

Employing someone in your own home doesn't feel like running a business, but plenty of the same obligations still apply. Payroll, PAYG withholding, Single Touch Payroll and super all sit on your plate, even if your entire "workforce" is one nanny.

Timing has also become a bigger deal. Payday Super started on 1 July 2026, which means super now needs to move in line with each pay run rather than being sorted out once a quarter. The ATO has also shut down the Small Business Superannuation Clearing House, so relying on old habits or outdated tools isn't really an option anymore.