Superannuation - Employer Contributions
Description
UniSuper members have the option to convert their existing UniSuper Defined Benefit Division/Accumulations Super2 Employer Contributions to pre tax contributions. The converted contributions are then considered to be employer sponsored benefits.
The employee will receive an increase in take home pay.
However the following should be noted:
- The employee's salary will be reduced by 8.25%, this being the equivalent of the 7% contributions plus 15% tax payable by UNISUPER on contributions paid by the employer
- Superannuation benefits will continue to be based on the salary before deductions
- The contributions will be subject to preservation requirements and, when paid will not be treated as undeducted contributions
- Payment of contributions may affect the reasonable benefits limit
What is allowable?
The UniSuper Trust Deed allows The University of Melbourne to pay the employee's contributions.
Taxation issues / status
As it is a pre tax deduction no PAYG tax applies. The benefit is also exempt from FBT and there is no GST applicable.
Substantiation Documentation
Declaration from the employee. This is provided by signing the salary packaging application form.
Form of Payment
Regular fortnightly deductions from your gross salary.
Package Cost
The cost of the employee contributions. There is no administrative charge.
Other Information
Contact the University's Superannuation Officer on 8344 6075.
How to Apply
Complete the Salary Packaging HR 32 form and return to Human Resources.