How to Set Up Super for a New Employee Under Payday Super
The Quick Answer
Setting up super for a new employee is three steps. Have a default fund nominated. Give every new hire the choice form on day one. If the form doesn't come back, request their stapled super fund from the ATO before paying into the default fund. From 1 July 2026, you need that workflow to be tight, because super now has to be paid within seven business days of payday instead of quarterly.
The rest of this post is the why, the how, and the bit most people get wrong.
What Changes for New Employee Super Under Payday Super
From 1 July 2026, super has to be paid every payday, not every quarter. We've covered the broader change here.
What it means for hiring is this: the timeline for sorting out a new employee's super details just got a lot shorter.
Under the quarterly system, if a new hire didn't get their super details to you in their first week, you had breathing room. You'd chase the form, lodge a stapled super fund request with the ATO, and sort it before the next quarterly deadline.
Under Payday Super, you'll have your new employee's super to pay within seven business days of their first payday. There's a slightly longer window of 20 business days for the very first contribution to a new fund, but the principle stands. The workflow you use to get their super details sorted needs to be cleaner than it used to be.
The good news? It's not complicated. It's three steps.
Step 1: Nominate a Default Super Fund
Every business that pays employees needs a nominated default super fund. This is the fund that super gets paid into if an employee doesn't choose their own.
If you don't have one set up, sort it now. Your default fund needs to offer a MySuper product and be properly registered. Most modern industry and retail funds qualify.
Once you've picked one, document it so it's the same answer every time you onboard someone.
This is the bit that takes ten minutes to set up and saves you a scramble later.
Step 2: Give Every New Employee the Choice Form on Day One
Within 28 days of a new employee's start date, you're required to give them the ATO's Superannuation Standard Choice Form (or your own version that asks for the same information).
Don't wait the 28 days. Give it to them on day one, as part of your onboarding pack. Most employees will fill it out and hand it back the same week.
The form tells you which super fund they want their super paid into. If they have a fund already, this is the cleanest outcome.
Step 3: If the Form Doesn't Come Back, Request their Stapled Super Fund
If a new employee doesn't return the form, you don't get to default them straight to your nominated fund. You need to check with the ATO first to see if they already have a fund linked to them. That fund is called their stapled super fund.
You do this through ATO online services for business. You'll need the employee's tax file number, their full name and date of birth, and their address if you don't have their TFN.
The ATO usually returns the answer instantly. If they have a stapled super fund on record, you use that one. If they don't, then you can default them to your nominated fund.
This is the step that most often slows people down. If you don't have access to ATOonline services for business, your accountant can run this lookup for you in a few minutes (that's the kind of thing we do for business owners all the time).
Setting Up Super for a New Hire, in Summary
A clean new-employee super setup looks like this:
Default fund nominated, documented, and ready to go
Choice form goes out on day one, every time
If the form doesn't come back inside two weeks, the stapled super request gets done
Three steps. All repeatable. All easy to delegate once they're written down. That's a workflow that holds up under Payday Super without anyone having to think about it.
If your onboarding process isalready this tight, you'll barely feel the change on1 July 2026. If it isn't, the next five weeks are the right time to fix it.
When to Call Us
Most of this is genuinely simple once it's set up. If you'd like us to help you nominate a default fund, run a stapled super check for a new employee, or sense-check your onboarding workflow before 1 July, get in touch with your Kindred accountant.
Not working with us yet? We're the kind of accountants you can actually talk to. Book a discovery call.
FAQ
When does Payday Super start? 1 July 2026.
How quickly do I need to pay super for a new employee? Within seven business days of their first payday under Payday Super. There's a slightly longer window of 20 business days for the very first contribution to a new fund.
What is a stapled super fund? It's the existing super fund the ATO has on record for an employee, linked to them so it follows them between jobs. If a new employee doesn't choose their own fund, you need to check with the ATO for their stapled super fund before defaulting them to your nominated fund.
What if my new employee doesn't have a tax file number yet? You can still lodge a stapled super fund request using their full name, date of birth and address, but processing can be slower. Get the TFN as soon as possible.
Do I have to use the ATO's standard choice form? No. You can use your own form, as long as it captures the same information. Most employers just use the ATO version because it's free, current, and clearly compliant.
What if I don't have access to ATO online services for business? Your registered tax agent can lodge stapled super fund requests on your behalf. If you're a Kindred client, reach out and we'll sort it.
