Transcript Slide 1

VTA HR Conference
Choice of Fund and other information.
Presented by:
Lorenz Alphonso
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Superannuation Adviser
VicSuper Representative
VicSuper Pty Ltd ABN 69 087 619 412 AFSL 237333 RSE L0000468 is the Trustee of VicSuper Fund R1000580
About VicSuper
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General nature of presentation
•
This presentation provides general advice without taking into
account any of your objectives, financial situation or needs. As
a result, this advice may not be appropriate for your
circumstances.
•
As this presentation contains information about VicSuper Fund
benefit plans, you should ensure that you read the relevant
Combined Financial Services Guide and Product Disclosure
Statement prior to making any decision in relation to the
benefit plan.
Information on VicSuper’s general financial advice service
•
VicSuper representatives are paid salaries by VicSuper.
•
No commissions are payable to or received by VicSuper
representatives, any other person or entity or VicSuper itself to
recommend VicSuper.
•
VicSuper is not a member of any financial group nor does it
have any ownership links or affiliations that would affect the
advice provided by its representatives. VicSuper is the Trustee
of the Fund and, as the AFS licensee, is responsible for the
advice provided.
•
You can call VicSuper's Member Centre on toll free 1300 366
216; log on to www.vicsuper.com.au; visit one of our five
superannuation advice centres; or write to us at GPO Box 89,
Melbourne 3001.
Part 1:
Federal Budget changes
- Contributions caps
Contribution caps - concessional contributions
• Annual contribution limits have been halved
• Superannuation Guarantee (SG)
Annual limit of $25,000
• Additional employer contributions
• Salary sacrifice
• Self employed contributions
Above age 50 – annual limit
$50,000 (until 30 June 2012)
• Amounts above the limits are taxed at 46.5% (top marginal tax rate
including Medicare levy)
• Bonus payments salary sacrificed into super are included in caps
• Amounts in excess count towards non-concessional contributions limit
• The date the contribution is received determines the financial year the
contribution is counted for
• The limits apply per person across all super funds, it is not a fund limit
Contribution caps – example
Mark age 48
Salary
$60,000
Performance bonus
$8,000
SG
$6,120 (9% of $68,000)
Salary Sacrifice
$18,000
Salary sacrifice of performance bonus
$8,000
Total concessional contributions
$32,120
Tax payable
Total $7,061
15% up to $25,000 ($3,750)
plus 46.5% on $7,120 (highest MTR
plus Medicare levy) ($3,311)
Counted towards the non-concessional
contribution cap
$7,120
Part 2:
Obligations update
- Tax File Numbers
- Choice of fund
Tax File Numbers
•
TFN must be passed on by the employer generally when paying
the first contribution for an employee to the super fund
•
Without a member’s TFN, a superannuation fund may be required
to:
–
–
charge additional tax on certain contributions on 30 June each
year
not accept certain contributions
Choice of fund – your obligations
 Select a default fund for the choice of fund form
 Issue eligible employees with a choice of fund form within 28
days of them commencing
 Keep records for 5 years
× No need to follow up your employees
× You only need to accept a new choice form once every 12 months
If your employees do not return the COF form, make
payments to the default fund.
1 July
Choice of fund - The 28 day rule for Lucas the contractor
JULY
Start
15 July
28 Jul
Issue
COF form
29
30
31 Jul
Pay super
31 Aug
Pay super
30 Sep
Pay super
AUGUST
1 August
5 Aug
COF form
returned
15 August
SEPTEMBER
1 Sep Contract ends
15 Sep
20 Sep Lucas returns*
2 months to action
28 August
OCTOBER
1 Oct
5 Oct
*When Lucas returns on a new contract, the 28 day rule starts again from the new start date
Choice of fund - Checking a Standard Choice Form
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×
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Member number is supplied
Check that details of the select fund have been supplied
including: SPIN no, Payment and Contact details.
There is no requirement to become a participating employer
• If unsure contact the fund to check if employer needs to
register to pay into account (quote SPIN)
Proof that the fund is a complying fund – A letter of
compliance
• For Self Managed Super Funds insist on letter of
complying fund status from the ATO
• We recommend that you check on the complying status
of super funds at least every two years. Refer to ‘Super
Fund Lookup’ www.abn.business.gov.au
That the form is signed
If completed correctly – start paying to chosen fund within 2
months
Part 3:
How VicSuper can help
We all like to help people but be careful of providing advice to your
employees
• any financial product advice given in relation to super can only be
provided under an Australian Financial Services Licence (AFSL)
• financial product advice is a recommendation or statement of
opinion that:
– is intended to influence in making a decision in relation to a
financial product or class of products, or
– could reasonably be regarded as being intended to have such
an influence
VicSuper advice service
• a one-on-one superannuation advice service covers the following
topics for members and prospective members including
Emergency Services Superannuation Scheme (ESSSuper) Revised, New, SERB and Transport Scheme members:
– being on track for retirement
– determining appropriate investment options
– strategies to meet immediate and future goals
• VicSuper provides this service without obligation and free of
charge
• please contact the VicSuper Member Centre on 1300 366 216 to
make an appointment for an interview at your nearest VicSuper
advice centre
• advice centres in Melbourne, Traralgon, Bendigo, Geelong and
Blackburn
How VicSuper can help
• a dedicated VicSuper account consultant
• VicSuper EmployersOnline enables you to administer your
employees’ super online
• Employer Resource Guide 2009/2010
• new starter training sessions for your superannuation
administration staff
• How do we rate and what additional services would you like
VicSuper to provide – we value your feedback
Any questions?
• The information presented in this seminar is intended to provide general financial product advice
on VicSuper Fund benefit plans; the Emergency Services & State Super (ESSSuper) – Revised,
New, SERB and Transport Schemes; and general superannuation matters and does not take into
account your or your employees’ particular investment objectives, financial situation and specific
needs. As this general advice will not take into account your or your employees’ circumstances,
you will need to consider if the general advice provided is suitable for your superannuation
requirements before taking any action.
• You should assess your own financial situation and your employees’ superannuation requirements
and obtain the relevant Combined Financial Services Guide (FSG) and Product Disclosure
Statement (PDS) before making a decision. The relevant VicSuper Combined FSG and PDS can be
obtained by calling our Member Centre on 1300 366 216 or by visiting vicsuper.com.au. You may
also wish to seek the help of a qualified VicSuper representative.
• VicSuper Pty Ltd ABN 69 087 619 412 (“VicSuper”) is the Trustee of VicSuper Fund ABN 85 977
964 496. The Trustee holds an Australian Financial Services Licence (AFSL 237333) under the
Corporations Act 2001 (Cwlth) and a RSE Licence under the Superannuation Industry Supervision
Act 1993 (Cwlth). Under its AFSL, VicSuper is licensed to deal in and provide financial product
advice on superannuation products. At present VicSuper representatives are limited to
recommending VicSuper Fund benefit plans and providing financial product advice on VicSuper
Fund benefit plans; the Emergency Services & State Super (ESSSuper) - Revised, New, SERB and
Transport Schemes; and general superannuation matters. VicSuper does not provide advice about
any other superannuation funds.
• This seminar is based on information current as at August 2009 unless otherwise stated.
© 2009 VicSuper Pty Ltd