Superannuation
In addition to the publicly provided age pension, Australia has a compulsory superannuation system which has the objective of facilitating the accumulation of private savings for retirement. In recognition of the need to encourage individuals to provide for their retirement, from 1986 employer-provided superannuation benefits were introduced into industrial award arrangements.
In July 1992 the Superannuation Guarantee took effect, which, combined with the introduction of superannuation in awards, led to a marked increase in the membership of superannuation schemes.
Employers are required to make contributions equivalent to 9% by quarterly instalments from 2002-03.
See here for the following information on superannuation:
VicSuper Scheme
VicSuper administers the Victorian Superannuation Fund and is designed to pay compulsory Superannuation Guarantee (SG) contributions into an account on behalf of employees.
VicSuper Scheme is a flexible accumulation fund which also offers VicSuper Top-Up and a VicSuper Beneficiary Account helping people boost their retirement savings.
For more information, see VicSuper (http://www.vicsuper.com.au)
Government Superannuation Office
The GSO is the new Trustee and Administrator of the State Superannuation Fund.
The GSO was established on 1 July 1999 following the passage of the Government Superannuation Act 1999 (the Act). The GSO is the successor in law to the former Victorian Superannuation Board.
The GSO's objectives, duties, functions and powers are set out in sections 6 and 7 of the Act. The State Superannuation Fund is a closed defined benefits scheme with approximately 180,000 members and assets of some $7.7 billion. It administers the State Superannuation Fund which includes New Scheme, Revised Scheme, State Employees Retirement Benefits Scheme (SERBS), and Transport Scheme. The State Superannuation Fund pays more than 50,000 pensioners each fortnight.
For more information, see GSO (http://www.gsoconnect.com.au)
Employee Enquiries
Your rate of contributions to Superannuation should be directed to:
- Executive Officers - Department Central Office Personnel
- Principals - Principal Remuneration Unit -Schools Personnel
- VPS, SSO and other staff - Shared Services (Payroll Control)
Enquiries regarding Superannuation entitlements, pay outs etc should be undertaken in consultation with a financial advisor and should be made directly to the relevant Superannuation Fund.
Superannuation Guarantee Levy
Details about Superannuation Guarantee levy contributions are contained in the booklet titled Local Payroll Requirements for Taxation, Superannuation, WorkCover. See the School Performance Data Publications.
Quarterly Superannuation Guarantee: The ATO has altered the superannuation guarantee payments to be quarterly, taking effect from 1 July 2003. From this date, employers must pay 9% of an eligible employee's earnings into a super fund or retirement savings account (RSA) on their behalf on at least a quarterly basis.
An ATO link is also available for those who wish to review the matter further, see ATO (http://www.ato.gov.au/superfunds/content.asp?doc=/content/19818.htm)
Salary Packaging
All staff employed in Victorian Government schools are now able to participate in salary packaging, including superannuation. Detailed information on all salary packaging arrangements, including superannuation, is for those who wish to participate, see Salary Packaging.
Employees should consult a financial adviser on all salary packaging issues, which include:
- Novated Car Leases
- Employee Contribution Method
- Teachers Notebook Scheme
- SmartSalary (Salary Packaging Agents)
As part of its salary packaging policy the Government has determined for employees within the public sector that a maximum of 50% of salary or remuneration package can be packaged by an employee. In keeping with the Government's decision the Secretary of the Department has approved the issuing of the Department's salary packaging policy with the same limits applying.
Teaching Service Order 179 Clause 2.1.1 (4) also states:
Teachers shall be paid the salaries specified in clause 1.1 of schedule 1 or any salary which may be specified by the Australian Industrial Relations Commission, whichever is the greater. A teacher may elect in writing to receive employment benefits in lieu of up to 50% of her or his salary in accordance with any salary packaging policy determined by the Secretary.