Business Superannuation an employee benefit – it may be an inducement to stay with an employer if managed effectively. There is a legal obligation to provide superannuation for workers categorised as employees employees. Effective superannuation plans can be perceived beneficially by employees, potentially improving staff retention, lowering overall employment costs.
Business-sponsored employee superannuation
Employers have a statutory obligation to make superannuation guarantee payments (under defined circumstances) on behalf of their employees. Compliance may be through selecting a fund ‘approved’ under one of the Modern Awards or an enterprise bargaining agreement. Otherwise, they have the right to make a choice as an employer seeking to do the best thing for their employees, to meet that statutory obligation under a couple of options. These include –
- an employer-sponsored (and managed) corporate solution – although this is becoming less popular with the SME employers; or
- take a ‘retail’ public-offer solution.
Employers need to ensure that they offer ‘choice of fund’ facilities to their employees. In this context, any ‘default’ fund offering needs to be complying with all relevant legislation and regulations. That obligation applies to MySuper accounts – and requires appropriate insurance protection opportunities being available to the members. Detailed research of those protection options are available so that they will meet the needs of the members.
A retail public-offer business superannuation solution with benefits for employees
Continuum Financial Planners Pty Ltd can facilitate a compliant solution to this dilemma for employers. Our business superannuation strategies provide employers comfort in two ways –
- a compliant superannuation arrangement for their employees; and
- access to education about financial matters for their employees. (Employees can access professional financial planning advice from our team that will be recognised as added value to the employment arrangements. The employer defines the parameters of this service.)
We facilitate this solution through BT Financial Group’s employee superannuation offerings; or, other public offer accounts that feature benefits, including:
- Low relative cost in the market
- Provided through an award-winning platform
- Offered with flexible investment choices
- Spouse and family member accounts allowed
- Automatic payments of anti-detriment benefits to surviving beneficiaries (where applicable)
- Automatic acceptance of insurance options within defined categories
- Financial planning/investment market education
- Access to cost-advantaged financial advice
- Information about their superannuation account online, 24/7
Convenient online administration available for employers
Employers who want to provide such a service, in full compliance with their obligations under the Superannuation Guarantee laws, can access the service knowing that:
- Online account administration efficiency (including superannuation guarantee payment contributions)
- New employees added
- Former employees removed
- Employee information updated
- Policy committee reports (where required) are available at least annually
- Super Choice to minority external funds using the ‘Clearing House’ facility’.
How can you access this employee benefit for your business?
Our team is ready with solutions to your super guarantee payment obligations. To discuss them, contact our office to arrange a meeting –
- by phone on 07-34213456 – or
- at your convenience, use our online Make A Booking facility.
(This article was originally posted in October 2012. It has been updated/ refreshed occasionally, most recently during January 2024.)
