Matching after-tax contributions

01 May 2010

With the end of the financial year fast approaching, it’s a great time to remind your staff about using the government co-contribution scheme to top up their super.

A matching contribution – of up to $1,000 – to eligible members is well worth consideration!

Plus – if you don’t already – you can help your employees pay their after-tax contributions, by offering to forward their payments direct to HESTA for them.

Here’s some handy information to pass on to your staff (but remember that you are not permitted to provide financial advice unless licensed to do so):

Contributions paid from your after-tax income can attract a co-contribution.
You can make after-tax contributions if you’re under 65. If you’re 65 to 75, you can only make after tax contributions if you’ve worked at least 40 hours, in a period of no more than 30 consecutive days in the financial year.
After-tax contributions are payable to HESTA by BPay, direct debit, cheque or through your employer.
If we receive your after-tax contribution by 30 June 2010 you’ll be assessed for a co-contribution for the 2009/2010 financial year.
If your total income* is less than $31,920 the maximum co-contribution is $1,000. The maximum declines by 3.33 cents for every dollar you earn over $31,920 and phases out completely at $61,920.
The government makes their co-contribution after you submit your tax return.
The ATO will automatically assess you for a co-contribution and pay it directly into your HESTA super account.
For full details of eligibility criteria go to www.hesta.com.au/contribute

* Your total income includes your assessable income (wages), reportable fringe benefits and amounts salary-sacrificed to super.

Remember, HESTA is unable to accept after-tax contributions if we don’t have your employee’s Tax File Numbers, so they will miss out on any co-contribution.

Who can your super go to?

Under HESTA’s Trust Deed when a HESTA member dies, any super and related benefits may be paid to one or more of the member’s dependants.

In 2009 the definition of ‘dependant’ was expanded to include:

A same sex partner (with whom you are in a relationship that is registered under law, or who lives with you on a genuine domestic basis in a relationship as a couple)
A child of your spouse or someone who is your child within the meaning of the Family Law Act 1975.

HESTA’s Trustee makes the final decision about who any benefits are paid to in the event of a member’s death – although their beneficiary nomination, any Will and other documentation is taken into consideration.

More information about who you can nominate as a beneficiary is available in the HESTA Product Disclosure Statement.

Have you changed your details?

If any of your employer details have changed, please let us know in writing – on your business letterhead and with an authorised signature – so we can update our records. Changes to your business, which we need to know about include:

name (please provide a copy of your Business Registration Certificate)
structure (e.g. business or company)
address
phone number
the contact person responsible for administering super in your workplace
your email address

Updates to HESTA brochures and forms

HESTA’s publications are regularly updated so remember to dispose of any old copies you have as they may not reflect current processes or legislation.

There have been recent updates to:

Your insurance guide, issued April 2010
Super Income Stream Product Disclosure Statement, issued March 2010

Go to www.hesta.com.au to download current versions of all brochures and forms or free call 1800 813 327 to obtain hard copies.

Super Guarantee (SG) contributions for the quarter 1 April - 30 June 2010 should reach HESTA by 28 July. If you haven’t made your contributions by 28 July you must lodge a Superannuation Guarantee Charge Statement – Quarterly with the Tax Office and pay the SG charge to the ATO by 30 August. Any such payment does not extinguish your obligation to pay contributions to HESTA, and no offset can be claimed unless the payment to HESTA is made before an assessment is raised by the ATO. Remember, if you don’t have a contribution to make for a particular employee for any given period, you must still provide a “NIL contribution” advice.