Located at:

Level 6, Building 10 235 Jones Street ULTIMO  NSW  2007.

Superannuation and Packaging Co-ordinator:     Paul Champion

Phone:        (02) 9514  2845

Fax:            (02) 9514 2839

superannuation@uts.edu.au

Superannuation and Packaging Officer:     Roger Brewer

Phone:        (02) 9514 2853

Fax:            (02) 9514 2839

superannuation@uts.edu.au

• FEDERAL BUDGET 2012 OVERVIEW

Please see the attached UniSuper Fact Sheet.

• 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.

• SUPERANNUATION UPDATE:

Concessional Contributions Caps

Concessional superannuation contributions are made up of compulsory superannuation guarantee payments (SG – 9%), employer contributions – 17% and salary sacrifice contributions to all superannuation funds. The current concessional contribution cap is $25,000 (indexed). The transitional concessional contribution cap is $50,000 (not indexed) for those aged 50 years or older. The transitional arrangements are due to expire on 30 June 2012.

Excess contributions tax is incurred where an individual exceeds their concessional contributions cap. Excess concessional contributions are taxed at 31.5 per cent, in addition to the 15 per cent tax when contributions were made to the fund.

In the 2010/2011 Federal Budget, the government announced that from 1 July 2012, it will increase the concessional contribution caps to $50,000 for individuals who are 50 years or older, where their total super balances are below $500,000. The government also announced individuals who breach the concessional contributions cap by $10,000 or less can request that the excess contributions be withdrawn from their super fund and refunded to them.

Note: these two proposed changes have not received royal assent and are not yet law.

Non-Concessional Contribution Caps

Non-concessional superannuation contributions include personal contributions for which you do not claim an income tax deduction, these are generally after tax contributions. The annual cap on non-concessional contributions was $150,000 (indexed) for the 2009/10 financial year. In future years the cap will be calculated as six times the level of the (indexed) concessional contributions cap.

How Concessional Contribution Caps affect your relevant Super Fund membership

Information about the effect the Concessional Cap has on the various super funds that are available to University employees is contained in the Fund factsheets which can be accessed from the links below.

UniSuper Defined Benefit Division

Notional Taxed Contribution (NTC) rates for DBD members

UniSuper Accumulation 2

Understanding how the concessional contribution cap applies to Accumulation 2 members

State Super – SSS

SSS Concessional Contribution Cap

State Super – SASS

SASS Concessional Contributions Cap

Please note: Staff of UTS are not able to provide financial advice.  Therefore, if you require more information regarding the changes, and how they may affect your personal circumstances, you should seek advice from a financial planner.

If you are a UniSuper Member, a new financial advice service is now available and will be able to provide both simple and comprehensive financial advice to members on a range of topics. Please call 1300 331 685.

If you are a State Super Member a financial service is also available. For further information go online to the State Super Financial Services website.

• 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

• SUPERANNUATION FLEXIBILITY:

The UTS Enterprise Agreement for Support staff and the Certified Agreement for the

Senior Staff Group includes a clause which allows the University to offer staff to elect to forego the employer superannuation contribution of 3% (or 1% for half members) that UTS pays to the staff member’s UniSuper accumulation component.

Instead they will receive that amount as non superannuable taxable salary in their pay each fortnight. 

This clause is not included in the UTS Enterprise Agreement for Academic Staff.

For more information please refer to the Human Resources website:

http://www.hru.uts.edu.au/docs/manual/5_6a.pdf

• SUPER CO CONTRIBUTIONS:

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

• TEMPORARY RESIDENTS DEPARTING AUSTRALIA:

For more information please refer to the ATO website:

http://www.ato.gov.au/content/00276719.htm

• SEMINARS:

State Super Financial Services and UniSuper hold seminars at UTS for their members.  For more information please refer to the UTS Staff Notices.

• WORKSHOP AGENDA:

Copy of Agenda

• SUPERANNUATION GUIDELINES:

Please refer to the Human Resources website.

**HR are presently updating the Superannuation Guidelines**

• CONTACT PHONE NUMBERS:

UniSuper

UniSuper Advice

SSS

SASS

State Super Financial Services (Sydney Office)

1800 331 685

1300 331 685

1300 130 096

1300 130 095

1800 620 305