Additional Superannuation
Description
An employee may salary package additional superannuation contributions to a complying superannuation fund.
Salary packaging additional superannuation does not affect the University of Melbourne’s normal employer contributions.
Payments made as pre tax superannuation deductions are subject to a number of regulations:
- Payments made under this salary sacrifice option will be subject to preservation rules and cannot be withdrawn before reaching retirement age and retiring from the workforce.
- A contribution tax of 15% is applicable
- Pre tax superannuation contributions may be subject to the superannuation surcharge levy of up to 15% and may impact on your reasonable benefits limit (RBL)
The superannuation fund you choose must be a complying fund in accordance with the Australian Prudential Regulation Authority (APRA) and the Insurance and Superannuation Commission (ISC). For self managed funds a copy of the compliance certificate will be required.
IT IS RECOMMENDED THAT YOU SEEK FINANCIAL ADVICE BEFORE PACKAGING ADDITIONAL SUPERANNUATION.
What is allowable?
Top up superannuation contributions paid into a complying fund of which the employee is a member.
The employer on behalf of the employee makes contributions to the fund.
Taxation issues / status
- Salary sacrificed contributions are subject to a contributions tax of 15%, that is deducted by the superannuation fund and remitted to the ATO
- The Superannuation Contributions Surcharge (SCS) may also apply for employees with an adjusted taxable income in excess of $85,242 (2001/2002). The SCS is increased by 1% for each $1,165 above the threshold to a maximum of 15 % for income over $103,507 or more etc.
- GST does not apply in respect of this benefit
- FBT does not apply.
Substantiation Documentation
Proof that the nominated fund is a complying fund.
Form of Payment
The employer must pay to the trustee of the superannuation fund the amount of the deduction before the end of the 28-day period beginning immediately after the end of the month in which the deduction was made.
Ref: Superannuation Industry (Supervision) Act 1993 No.78, 1993 - Sect 64.2
What does it cost?
If the additional contributions are to Unisuper, there will be no additional cost.
If the additional contributions are to a private fund there will be a cost of $4 per fortnight. This will be deducted fortnightly.
Other Information
Contact the Superannuation Officer on 8344 6075.
How to Apply
Complete the HR 32A form (Salary Packaging Additional Superannuation) and return it to the Superannuation Officer in Human Resources.