VicSuper Annual Employer Update Seminar Series 2018

Transcription

1 VicSuper Annual Employer Update Seminar Series 2018 Presented by Tracey Fisher Manager Strategic Government and Employer Relations Rachelle Harvey and Bethan Hart Senior Account Consultants

2 Important information This advice has been prepared without taking into account your objectives, financial situation or needs. You should therefore consider the appropriateness of the advice in light of your individual circumstances before acting on the advice. You should also obtain and consider a copy of the relevant Product Disclosure Statement available at before making any decisions. VicSuper is licensed to deal in, and provide financial product advice on superannuation products. At an additional fee, financial advice can be provided on a broader range of financial matters and products under an Australian Financial Services Licence held by a third party, who is responsible for the advice. VicSuper Pty Ltd ABN , AFSL , Trustee of Victorian Superannuation Fund ABN

3 as April 2018 Performance highlights

4 Award-winning advice We offer a range of advice services with qualified financial planners. Personal advice can be given faceto-face at 1 of our 20 offices across Victoria or over the phone. We also offer members a comprehensive advice service on super and nonsuper topics. Our award-winning advice is commission-free and is available for both members and non-members.

5 We ve been voted Best Public Sector Fund by Super Review We re pleased to announce we ve been voted Best Public Sector Fund of the year at Super Review s Super Fund of the Year Awards.

6 What s new at VicSuper?

7 Introducing the Premier Team

8 The team Rachelle Harvey David Crawford Bethan Hart Senior Account Consultants Lauren Hall Jessica Ting Premier Help Desk

9 Introducing the Client Partnership Team

10 Client Partnership Managers Caroline Melocco Will Rigney Richard Ferrier Ross Taylor

11 Client Partnership support Muggie Davaa Workplace Consultant Kathleen Distajo Workplace Consultant

12 Workplace Engagement

13 Available for our default employers

14 Employer insights

15 We re local

16 VicSuper s Beeline our award winning online interactive tool is just like having a coach by your side 24/7. It s a straightforward way to work towards the ideal retirement

17 VicSuper Mobile App

18 Super Voluntary Code of Practice A first for the superannuation industry To ensure simplicity and ease for members to opt out of insurance To reduce unnecessary fees for multiple or inappropriate policies To better support members when they make a claim To ensure that premiums do not inappropriately erode savings in super

19 Enhanced Insurance Offer Key changes from 1 July 2018 New insurance partner Cheaper death and TPD premiums Unit based death and TPD cover under general occupation will reduce from a weekly premium of 96 cents per unit to 83.5 cents per unit. This is a13% reduction in premium on top of the 10% provided last August, representation a total reduction of approximately 22% since 1 July 2017 Special offer period increase from 60 to 90 days New occupation categories of white collar and professional Ability to transfer existing Income Protection cover from other superannuation accounts to VicSuper More information in July Employer update FutureSaver members will have received communication. No action is required by members if they are happy with current level of cover as transition happened seamlessly on 1 July 2018

20 Administration Fee Reduction From 1 July 2018 we reduced the percentage component of our administration fee VicSuper FutureSaver from 0.28% p.a. to 0.19% p.a VicSuper Flexible Income from 0.28% p.a. to 0.22% p.a

21 Super legislation update $25,000 concessional contributions cap $100,000 non-concessional contributions cap (subject to your Total Super Balance) Employees can now make tax deductible contributions First Home Super Saver scheme $300,000 downsizing contribution from sale of principal home for over 65s from 1 July 2018

22 2018 / 2019 Budget Announcements Super fees to be capped at 3% pa for small accounts This Budget measure applies from 1 July 2019 for small accounts with balances under $6,000 Exit fees banned Exit fees will be banned for all super accounts from 1 July (VicSuper has never charged an exit fee) Insurance through super opt-in rule for younger and low balance members Insurance will move from a default to an opt-in basis for members with balances of less than $6,000, members under 25 years of age, and members whose accounts have not received a contribution in 13 months It s important to understand that these Budget proposals still need legislation to be passed before they can be implemented. We ll keep you posted closer to the time about what this could mean for you in more detail.

23 2018 / 2019 Budget Announcements Changes to inactive/low balance accounts Members accounts must be paid to the Australian Taxation Office where the account balance is less than $6,000 and has not received a contribution for more than 13 months. Work test exemption The Federal Government will introduce an exemption from the work test for voluntary super contributions by individuals aged with super balances below $300,000 in the year after they do not meet the work test requirements The ability for high income employees to opt out of some super guarantee contributions If your income exceeds $263,157 and have multiple employers, the Federal Government will allow you to nominate wages from some of your employers to be exempt from the superannuation guarantee (SG) from 1 July This is to help high income earners stay under the concessional contributions cap It s important to understand that these Budget proposals still need legislation to be passed before they can be implemented. We ll keep you posted closer to the time about what this could mean for you in more detail.

24 Employer Obligations - Data The ATO requires certain information from employees in regard to making contributions full name residential address TFN telephone number

25 What is Single Touch Payroll (STP)? Single Touch Payroll is the next step in streamlining your payroll reporting It will change the way you report your employees payroll information to the ATO It commenced 1 July 2018 for employers with 20 or more employees You will report payments such as salaries and wages, pay as you go (PAYG) withholding and super information to the ATO when you pay your employees

26 What does it mean for you? Data will be sent to the ATO from your payroll solution each payday Your payroll cycle will not change Your payment due date for PAYG withholding and super contributions will not change You may not be required to provide your employees with a payment summary at the end of financial year You will have the option to invite your employees to complete their tax file number declaration, choice of fund and withholding declaration online This feature will not be available immediately

27 The VicSuper STP Offer STP transfer solution available from 1 July 2018 There will be no charge for VicSuper default employers We'll offer full transition and ongoing support Our STP offer is subject to your payroll system being compliant and capable of extracting the STP data the ATO needs What you need to do We recommend you find out when your payroll software provider will offer STP reporting Check your payroll software provider has applied for a deferral start date Find out what support they'll offer to you in the transition

28 The VicSuper STP Process

29 We re here to help We re here to help In person Over the phone Online tools On-going education

30 Questions?