Let s tackle super together!

Transcription

1 Let s tackle super together!

2 Agenda Legislation update Clearing house Single Touch Payroll Administration update Our partnership Mix and mingle

3 Disclaimer This seminar provides general information only. It has been prepared without taking into account your individual objectives, financial situation or needs. You must not rely on this information alone as a sole or primary source of advice or guidance for the purpose of making decisions about your superannuation options. If you are interested in exercising your options in LGIAsuper in relation to a matter referred to in this presentation you should obtain the relevant Product Disclosure Statement and consider contacting an LGIAsuper representative who can give you appropriate advice which does take into account your particular objectives, financial situation and needs.

4 Legislation update

5 Contribution caps 2018/19 $180k $150k $125k $100k Non-concessional Concessional Employer Salary sacrifice Deductible $75k $50k $25k Concessional 100K Non-concessional After tax Spouse Potential tax deduction $0k 25K

6 Concessional cap 2018/19 $30k Annual concessional contribution 6% salary sacrifice 6% after tax $25k $20k $15k $10k $5k $100K $139K $209K $0k

7 Contribution cap agreements Contribution cap agreement Surplus taken as salary Must meet minimum SG contribution requirement

8 Contribution caps New employees New to Council (template letter available) Transfer from another council Agreement commenced part-way through year Salary increases Extra concessional contributions Phone advice at no additional cost

9 Tax deduction for super contributions Changing non-concessional (after-tax) contributions to concessional (pre-tax) - see handout Funds count towards contribution caps Process to claim tax deduction Complete notice of intent to claim form (see handout) Your accountant will include in your tax return Make contribution to LGIAsuper LGIAsuper will provide written confirmation of the change to provide to your accountant

10 New Legislation and what it means for you

11 First Home Saver Voluntary contributions can be withdrawn Eligible contributions are those above the required 6% Withdraw up to $15k per year and $30k in total (per individual) Contribution caps apply

12 Downsizing contributions Sale of main residence 10-year ownership condition Contribution of up to $300,000 if individual over 65 Contribution caps and age based rules don t apply Contribution within 90 days of disposal of dwelling

13 How can we help? Qualified financial planners contributions advice over the phone more comprehensive advice, in person or over the phone Workplace education visits, executive presentations, expos/wellness days Member seminars EmployerNews Content for council newsletters

14 LGIAsuper clearing house

15 Clearing House

16 What has changed? SuperStream legislation Electronic payments Data format Messaging Choice of fund 1 July 2017 Payments to other funds

17 Clearing house Kick-off Registration Choice of fund Play is underway Single file upload for all employees Single payment

18 A recap Registered to use clearing house New employee induction pack ATO standard choice form LGIAsuper letter of offer and welcome letter Employer online for LGIAsuper employees Updated file format

19 A streamlined approach One system One file and payment Go-live from 2 nd half of 2018 Cease using Employer Online

20 Three steps to success

21 Get ready Register New bank details Set up a new creditor Payroll provider Provide file specification SAFF

22 Get ready Review checklist Data cleanse USI ABN ESAs for SMSF Addresses & phone numbers

23 Transition Test your SAFF Involve LGIAsuper Establish internal processes Refer to your checklist

24 Transition changes Payment & file submission on same day New bank account Payment must equal file amount No negatives Payment reference numbers

25 How can we help? Dedicated support User guides File formats On site support Testing - files can be sent to employers@lgiasuper.com.au Sign off process Checklist completed

26 Transition ready You are now transition ready!

27 Go Live! Single file upload on clearing house Cease using Employer online

28 Support ongoing Our dedicated Employer Services Team will continue to support you opt. 2 Employers@lgiasuper.com.au

29 Payroll provider discussion

30 Single touch payroll

31 Single touch payroll Streamline how employers report some tax and super information Part of Australian Government initiative to reduce red tape Compulsory for employers with 20 + employees from 1 July 2018

32 Single touch payroll PAYG withholding & salary amounts reported to ATO on pay cycle - video Report contributions to ATO when they are remitted to fund Introduction of new employee commencement services TFN declaration Online super choice

33 Process

34 Implementation Preparation Count your employees Talk to your payroll provider Update your system and business processes Start reporting from 1 July Compliance Penalties Exemptions Deferrals

35 Single touch payroll Potential LGIAsuper solution

36 Single touch payroll Payrol l Data Export CSV / XML Direct no hands Uploa d SBR2 (ebms / XML)

37 Single touch payroll Upload a file Validations on data submitted Messaging from ATO Reporting & record keeping Security of data

38 Available Options Through your payroll provider LGIAsuper clearing house portal

39 Next steps Visit the ATO website Talk to your payroll provider or Talk to LGIAsuper

40 Payroll provider discussion

41 Administration update

42 New system Consolidated platform Digital capability Increased automation

43 Administration reminders Step one Step two Terminations different screens from 5 th of March

44 Administration reminders Member number Account number Account number Account number

45 Administration reminders Contribution refunds Leave without pay Salary updates

46 Clearing house reminders Payment must equal file total Payment and file must be sent on the same day New bank account details Provided payment reference (PRN)

47 Our partnership

48 LGIAsuper workplace programs Management Briefings HR and Payroll Briefings Key Insights Inductions Tailored Education Programs Seminars, workshops & consultations Redundancy, inductions & ageing workforce Wellness and Expos days Super pop up stand 5 minute health checks and merchandise giveaways

49 Key insights LGIAsuper: All Councils Membership by Age Group 1400 TOTAL NO. OF EMPLOYEESAGE Approx. Total Council Membership: 45K AGE OF EMPLOYEES Profile No. % Membership 50 years or over approaching retirement (average age 45) 17,359 39% Contributions Could potentially exceed Concessional and Non-Concessional Contribution Cap ($25K and $209k- 17/18) 822 2% Contributions (6%) Salary Sacrifice 16,850 38% Contributions (6%) Could consider Salary Sacrifice instead of Personal after tax contributions (Salary over $40k and 6% Personal after tax contribution) 16,607 37% Contributions Average annual superannuation contribution (18%) $11,195 NA Insurance Low and Professional risk profile 6,997 16% Investments Nominated an investment choice 4,563 10% Beneficiaries - Nominated a Beneficiary (Preferred or Binding) 20,048 45%

50 New employee inductions agenda About us Super in local government Contributions Investments Insurance Member online Next steps

51 Expos / Wellness Days Talk super 5 min super health check Giveaways Improve financial literacy

52 Local government & community

53 LGIAsuper

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