20 Jun 2008
HESTA members are encouraged to give their super a free top-up through the Federal Government’s co-contribution scheme. If a member quali. es, the Government provides a co-contribution of up to $1.50 for each $1 of after-tax contributions. The maximum annual co-contribution of $1,500 applies to incomes of $28,980 or less for this financial year. It is reduced for each dollar of income over $28,980, cutting out at $58,980.
“Income” is assessable income and reportable fringe bene. ts. Salary sacri. ce contributions do not attract a co-contribution. The minimum co-contribution the Government will pay is $20 and the Australian Tax Of. ce (ATO) administers the scheme. Contributions must be made by 30 June and members must lodge a tax return. The member’s super fund will notify the ATO about the after-tax contributions and the ATO will decide if they are eligible. If eligible, the co-contribution will be paid directly into their super account. Any co-contribution must generally remain in the member’s super account until at least preservation age. For more information call the ATO on 13 10 20 or visit www.ato.gov.au/super
Tax File Numbers (TFNs): Are your employees paying too much tax?
Don’t forget to provide your employee TFNs to HESTA. Where an employee has provided you with their TFN for employment purposes, you are required to provide the TFN to their super fund. Please remember to provide TFNs when advising details of new members. For more information about your TFN and privacy obligations,
New earnings base for Super Guarantee (SG)
The Tax Of. ce is reminding employers that from 1 July 2008, they must use ordinary time earnings to calculate super guarantee contributions. Ordinary time earnings are generally what employees earn for their ordinary hours of work. This includes over-award payments, commissions, shift allowances and paid leave. It excludes such things as overtime.
Most employers already use ordinary time earnings to calculate super guarantee contributions. However, some employers currently calculate super guarantee contributions on earning bases contained in:
- an industrial award
- an existing employment agreement
- a fund’s trust deed, or
- a law of the Commonwealth, States or Territories. All employers should check their current super contribution arrangements now to make sure they are in a position to use ordinary time earnings in their calculations from 1 July 2008.
Updates to HESTA brochures & forms
HESTA’s publications are regularly updated. There have been recent updates to:
- Your employer guide (formerly Ready, Set, Go) (04/08)
- Rolling into HESTA guide (02/08)
- Topping up your super guide (02/08).
Download these publications at www.hesta.com.au To obtain hard copies, free call 1800 813 327. Remove any old copies you may have as they may not reflect current processes or legislation.
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