Superannuation

It is a condition of employment at UWS that all new employees are required to become members of UniSuper unless they are members of the old NSW State Super schemes, SSS and SASS, immediately prior to joining the University.

The type of UniSuper membership is determined by the terms of appointment.

Those who are initially appointed for a period of two years or more, and
Whose contracted hours are 50% or more of full-time hours.

Will receive 17% employer contributions and the standard rate of member contributions is 7% of after-tax salary. Under UniSuper's contribution flexibility program, which came into effect on 1 July 2006, you will, however, be able to reduce your member contributions to 4.45%, 4%, 3%, 2%, 1% or down to 0% if you wish.

Reducing your member contributions is a very significant decision that may affect the amount of money you have to live on in retirement and you may lose valuable insurance cover. Therefore, we suggest you do a thorough assessment of your retirement income goals before you make a decision.

UniSuper has an Online Contribution Flexibility Guide on the UniSuper website to help you fully understand the impact of reducing your member contributions.

Employees whose contracts fall outside the above terms will receive the Superannuation Guarantee of 9%. Non-casual employees are able to make voluntary contributions to UniSuper. These voluntary contributions are set up as a regular fortnightly payroll deduction which can be either post or pre-tax (salary sacrificed).

UniSuper Regular Voluntary Contribution Election form

Further information is available from the UniSuper website and members can register with UniSuper to access their account details. There is also a UniSuper helpline for members on 1800 331 685.

Members of the old NSW State Super schemes, SSS and SASS, can find more information on the State Super web site, and they can also access their accounts by registering at the website. The customer service number for SSS members is 1300 130 096 and for SASS members is 1300 130 095.

For further information, please contact the Superannuation Officer, Pauline Pickham.

Superannuation Salary Sacrifice

When superannuation contributions are salary sacrificed, they are deducted from gross pay before tax is calculated. This means that tax is calculated on a lower gross and hence less tax is payable resulting in higher net pay.

Members of UniSuper's full schemes (DBB or Accumulation 2) can salary sacrifice their standard contributions. The 7% is increased to 8.25% as salary sacrificed contributions are treated as employer contributions and UniSuper remits 15% contributions tax to the ATO. The increase in take-home pay is the difference between your marginal taxation rate and the 15% contribution tax payable on pre-tax contributions.

As well as sacrificing their standard contributions, contributory members may also salary sacrifice extra voluntary contributions as a fortnightly payroll deduction by completing the Regular Voluntary Contribution Election form. These voluntary contributions are set up as a regular fortnightly payroll deduction which can be either post or pre-tax (salary sacrificed).

Members of the old NSW State Super scheme (SSS) and SASS are now able to salary sacrifice their State Super contributions, but they may also join UniSuper and make voluntary salary sacrificed contributions as a fortnightly payroll deduction. Please visit OPC Forms and Templates to download the application forms. Please contact State Super for any other enquiries on 1300130095.

Fixed-term contract employees who are not eligible to join UniSuper's full schemes can still salary sacrifice voluntary contributions as a fortnightly payroll deduction.

Concessional Contributions Caps (Salary sacrifice or Pre-Tax)

Concessional superannuation contributions are made up of compulsory employer superannuation guarantee payments SG – 9%, employer contributions – 17% and personal salary sacrifice contributions to all superannuation funds. The current concessional contribution cap is $25,000.

In the 2012 Federal Budget, the government announced that from 1 July 2012, it will decrease the concessional contribution caps to $25,000 for all members of any age who salary sacrafice their contributions to superannuation for the next two financial years (2012-2013 and 2013-2014).

Excess contributions tax is incurred where an individual exceeds their concessional contributions cap. Excess concessional contributions are taxed at 31.5 per cent, in addition to the 15 per cent tax when contributions were made to the fund.

Please note: Staff of UWS 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.

Non-concessional Contributions Caps (After-Tax)

Non-concessional superannuation contributions include personal contributions for which you do not claim an income tax deduction, these are generally after tax contributions. The annual cap on non-concessional contributions was $150,000 for the financial year. In future years the cap will be calculated as six times the level of the concessional contributions cap.

Super Co Contributions

In the 2012 Federal Budget the co-contribution amount has been changed and the income thresholds reduced.

For more information please refer to the ATO website.

A decision to salary sacrifice has to take into account your individual circumstances especially if you have income from other sources.

For more information you can contact the Superannuation Officer, Pauline Pickham.

Staff should seek independent financial advice before electing to salary sacrifice.

Each University assists in the management of UniSuper, through membership of the Consultative Committee.

Unisuper is pleased to announce their new financial advice service, UniSuper Advice, is now open for business. UniSuper Advice will be able to provide both simple and comprehensive financial advice to members on a range of topics including:

strategies to help them pay off their debt faster
retirement planning
non-super investments for short and long-term goals
superannuation
insurance - from income protection to life insurance and TPD.

The UniSuper Advice team, headed by Executive Manager, Chris Davies, will service members across Australia, including regional campuses. Central offices will be located in:

Sydney - Level 17, Gateway, 1 Macquarie Place, Sydney, NSW 2000
Brisbane - Level 12, 300 Queen Street, Brisbane 4000 Melbourne - Level 23, 385 Bourke St, Melbourne 3000
Other state offices/locations will open progressively from early 2010.