To assist in reducing the number of multiple super accounts in the system, lowering costs and making it easier to keep track of your super throughout your working life, the federal government introduced super account ‘stapling’ as part of its YFYS reforms package.

Essentially, this means that instead of having a new super account opened by your new employer each time you change jobs, you’ll now be ‘stapled’ to your current super fund (or the first fund you join when you first start work) which will automatically move with you from job to job. That is, unless you actively choose to change from your stapled fund to a new one in the future.

When it comes to your insurance cover, stapling won’t really be an issue, unless you change the type of work you do. Jobs in heavy or dangerous industries, such as construction or mining, attract higher insurance premiums because the risk of injury or death is higher. Occupations in low-risk environments, such as offices, will generally attract lower premiums.

This means, for example, that if you joined the workforce as a labourer and you’re stapled to your first fund, you may be charged higher premiums that applied to your first job even if you change to a lower-risk job in a café or hotel.

On the other hand, if you move from a low-risk job to one that’s high risk, your insurance may not cover you for certain activities that are part of your new role.

If you change jobs in the future, check that the insurance cover in your existing fund continues to provide the level of cover you need, especially if your new job involves a different occupational category and risk. If it doesn’t, speak to your fund about your change in circumstances and whether your existing fund can help ensure you’re appropriately covered and how any changes might affect your premiums.

Being stapled to a fund doesn’t and shouldn’t mean that your super is a ‘set and forget’ thing. And this includes your changing insurance needs as you move through life and its phases.  At Hostplus, we offer flexible insurance options that can change with you as your life unfolds. Our website has handy calculators that can help you work out how much insurance you may need, as well as how much your insurance may cost.

If you choose to consolidate your super into Hostplus this means you’ll only pay one set of fees and insurance premiums, plus you’ll get all the benefits of our competitive performance, and the freedom to choose the investment option that best suits your needs.

All Hostplus members can access our digital advice tool, SuperAdviser or speak with one of our dedicated phone-based Superannuation Advisers – all as part of your member benefits. Advice can help you to understand your insurance within your super, the type and level of cover best suited to your particular needs and to help give you confidence that you’re only paying for what you need and that your cover is appropriate for your life stage. Call us on 1300 348 546, Monday to Friday, 8am - 8pm AEST/AEDT,  or use our online form.