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SUPERANNUATION GUIDELINES
Please refer to the Human Resources website.
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CHOICE OF FUND
From 1 July 2005, Choice of Fund laws allowed many Australians to choose which superannuation fund will receive the 9% Superannuation Guarantee (SG) contributions that their employers make on their behalf.
Because of numerous exemptions in the legislation, choice of fund does not apply to many people in the higher education and research sector. Most university employees are covered by an Enterprise Bargaining Agreement (EBA) that already stipulates the payment of superannuation.
UTS staff are exempt from choice of fund rules.
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CONCESSIONAL CONTRIBUTION CAPS
From 1 July 2012 the Federal Government has changed the concessional contribution cap to $25,000 for the 2012/2013 and 2013/2014 financial years.
Concessional superannuation contributions are made up of:
- Compulsory superannuation guarantee payments (SGC – 9.25% from 1/7/2013)
- Employer contributions – 14% or 17%
- Salary sacrifice/Salary Packaged contributions to all superannuation funds.
Information on these contributions will be shown on your payslip as a fortnightly and/or YTD (year to date) amount under the sections Pre Tax Deductions and Employer Contributions.
The amounts shown on your payslip may not match your concessional contribution balance as advised each year by your superannuation fund/s to the Australian Taxation Office.
POTENTIAL OPTIONS TO REDUCE YOUR CONCESSIONAL CONTRIBUTION BALANCE.
- Cease salary sacrifice contributions to superannuation.
- UniSuper Contribution Flexibility.
- UTS Superannuation Flexibility for Support and SSG staff only.
- SSS, SASS and the UniSuper Defined Benefit Plan have different ways of calculating the concessional contribution balance that they advise the ATO. Please refer to their websites for the appropriate concessional contribution fact sheets.
If you exceed your concessional contributions cap, you may pay a higher tax rate on any contributions that exceed these limits. It is your responsibility to monitor and be aware of your total contributions and possible tax impact.
To discuss strategies or mechanisms to manage your concessional contributions please contact UniSuper, State Super or your financial adviser. You can also discuss this matter with the Australian Taxation Office.
Staff in the Superannuation area at UTS are not able to provide financial advice.
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NON-CONCESSIONAL CONTRIBUTION CAP
In the 2012/13 financial year, you can make up to $150,000 of non-concessional (personal after-tax) contributions to your super before tax applies. If you exceed this $150,000 cap the excess contributions will be taxed at 46.5%.
If your contributions exceed both the concessional and non-concessional contributions caps in a financial year, the excess amount could end up being taxed at 93% overall.
It is your responsibility to monitor the contributions made into your UniSuper account, and to any accounts you may hold in other super funds, to ensure you do not exceed the caps.
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RESC - REPORTABLE EMPLOYER SUPERANNUATION CONTRIBUTIONS
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- CONTRIBUTION FLEXIBILITY:
Under UniSuper’s contribution flexibility arrangements, you can reduce your standard member’s contributions to specific levels – down to zero if you are receiving 17% employer contributions or to a minimum of 2.55% if you are receiving 14% employer contributions. In both cases UTS will maintain the appropriate level of contributions.
For more information:
Defined Benefit members:
http://www.unisuper.com.au/members/super-options/defined-benefit-division
Accumulation 2 members:
http://www.unisuper.com.au/members/super-options/accumulation-2
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- SUPERANNUATION FLEXIBILITY:
Superannuation Flexibility is available under the Support Staff Agreement and Senior Staff Group Collective Agreement and UniSuper Trust Deed. Only UniSuper members of the Senior Staff Group and Support Staff who receive the full employer contribution level of 17% and who make standard member contributions are eligible to apply for Superannuation Flexibility. Superannuation flexibility enables eligible staff to elect to reduce the employer contribution level paid into their UniSuper account by UTS from 17% to 14% of salary, and instead receive the 3% balance as a non-superannuable cash payment in their fortnightly pay.
Academic Staff are not eligible for superannuation flexibility because there is no equivalent clause in the Academic Staff Agreement.
The Superannuation Flexibility Application Form includes further information about arrangements for Superannuation Flexibility.
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For more information please refer to the ATO website.
http://www.ato.gov.au/individuals/content.asp?doc=/content/42616.htm&mnu=41871&mfp=001/007
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- TEMPORARY RESIDENTS DEPARTING AUSTRALIA:
For more information please refer to the ATO website:
http://www.ato.gov.au/content/00276719.htm
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State Super Financial Services and UniSuper hold seminars at UTS for their members. For more information please refer to the UTS Staff Notices.
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UniSuper
UniSuper Advice
SSS
SASS
State Super Financial Services (Sydney Office)
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1800 331 685
1300 331 685
1300 130 096
1300 130 095
1800 620 305
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