Superannuation

IMPORTANT NOTICE REGARDING CHANGES TO SUPERANNUATION FROM 1 JULY 2007

There are three superannuation schemes to which The Australian National University makes contributions. These schemes are:

UniSuper - incorporating the Defined Benefit Division, Accumulation Super 2 and Accumulation Super 1
The Commonwealth Superannuation Scheme (CSS)
The Public Sector Superannuation Scheme (PSS) .

It is no longer possible to join the CSS or PSS schemes. Existing members of these schemes continue to have their contributions made by the University.

ANU contacts about superannuation can be found at HR Contacts

Choice of Superannuation Fund

In late June 2004 the Federal Government enacted new legislation dealing with choice of superannuation fund for Australian employees. The commencement date for the new legislation will be 1 July 2005.

The Choice provisions will apply to future contributions only (not existing balances) and only to Superannuation Guarantee (SG) contributions (i.e. 9%). However, there are a number of key exemptions, namely

employees working in the public sector
employees covered under a state award or workplace agreement that specifies the superannuation fund the employer must make payments into, or
employees in Defined Benefit schemes.

The ANU Enterprise Agreement 2005-2008 specifies that UniSuper is the superannuation fund of choice for the ANU. Therefore, all current staff members have as a condition of employment that they remain with UniSuper and all new employees to the ANU will be required to join UniSuper.

The University will continue to maintain employer superannuation contributions to the Commonwealth Superannuation Scheme (CSS) and the Public Service Superannuation Scheme (PSS) for ANU staff who are currently members.

You will be aware from materials recently sent to all UniSuper members, that UniSuper is introducing more flexibility in response to the choice legislation to ensure that members’ varied needs are met within the fund.

HR coordinates regular superannuation seminars and we would be happy to provide additional local information sessions.

Superannuation simplification

The Federal Government has introduced changes to the taxation treatment of superannuation payments and superannuation contributions. These changes are expected to take place on 1 July 2007. For full details please go to the ATO website at http://www.ato.gov.au/super/content.asp?doc=/content/00094534.htm

Staff of the ANU 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. A list of financial planners is available at http://www.fpa.asn.au/.

Provision of Tax File Number

From 1 July you must provide your tax file number to your superannuation fund. If you have not already done this you should do so immediately. If you have not provided your tax file number your pre-tax contributions will be taxed an additional 31.5% (i.e. a total of 46.5%).

Pre-tax superannuation contributions

Pre-tax (concessional) contributions, which includes employer contributions (normally 17% of salary), will have an annual cap of $50,000. Transitional arrangements apply for people aged 50 or over. See http://www.ato.gov.au/super/content.asp?doc=/content/00094534.htm.

Post-tax superannuation contributions

Post-tax (non-concessional) contributions will have an annual cap of $150,000.

Eligible Termination Payments (ETP’s)

From 1 July 2007, it will no longer be possible to roll over an ETP into a superannuation fund.

We realise that superannuation is complicated, however, only licensed financial advisors are permitted by law to give you personal financial advice. This means that University staff members are unable to advise you how much you should salary sacrifice, nor can they recommend a financial advisor.

Whilst the University believes that it is important for you to be aware of these changes, we are not in a position to provide you with individual advice, calculations, etc.

Further Information

For further information please contact your financial advisor, your superannuation fund,

UniSuper - 1800 331 685 - https://www.unisuper.com.au/AboutUnisuper/enquiry.cfm

CSS - 1300 000 277 - http://www.comsuper.gov.au/ - members@css.gov.au

PSS - 1300 000 377 - http://www.comsuper.gov.au/ - members@pss.gov.au

or the Australian Taxation Office - http://www.ato.gov.au/super/default.asp?menu=4081.

UniSuper Accumulation Super 1 (formerly known as APP)
UniSuper Defined Benefit Division & Accumulation 2
The Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation Scheme (PSS)
Superannuation Seminars
Benefit Options
UniSuper website
ComSuper website
CSS website
PSS website
Government Superannuation Co-Contribution