Superannuation

Looking after your future

As an employee of a Pacific Advisory Consulting Pty Ltd company you receive regular Superannuation Guarantee contributions equal to 9% of your gross income. Contractors have the option of choosing their own superannuation fund (by completing a Standard Choice Form), or you may prefer to join the Pacific Advisory Contractor Services default superannuation fund containing the following benefits:

• More than 60 different investment options to choose from
• Comprehensive insurance coverage including life insurance, disability insurance and income protection
• Wholesale fee structure (no entry or exit fees)
• Access to professional financial advice through Pacific Advisory Wealth Management Pty Ltd (a Corporate Authorised Representative of Hillross Financial Services Limited)
• A complimentary financial plan for all members including recommendations relating to super, investment allocation, personal insurances and beneficiary nominations
• Client online account access
• Nomination of beneficiaries
• Pre-retirement pensions available once preservation age is reached
• Complying super fund under Choice of Fund legislation

We can arrange to make the following types of contributions on behalf of contractors:

Superannuation Guarantee

Your employer will pay superannuation contributions on your behalf unless you are exempt or you are self-employed. This contribution is called the Superannuation Guarantee. It is compulsory for most employees. If you are eligible for the Superannuation Guarantee, your employer’s compulsory contributions must be equivalent to at least 9% of your earnings. For example, if you earn $150,000 a year, your employer will put at least $13,500 a year – or $1,125 a month – into your superannuation.

Salary Sacrifice

You can also add your own money to your employer’s contributions. You may be able to do this through what is called salary sacrificing. This means that you choose to take less salary and have your employer contribute the amount you don’t take added to your superannuation. As the salary you sacrifice comes off your gross salary, before you pay tax, you may be able to save tax this way. This tax saving comes about because, for most people, the tax saved on the forgone salary exceeds the tax that is paid when the equivalent amount is contributed to your superannuation.

Personal Contributions

You can also choose to make personal contributions (also known as non-concessional contributions) to your superannuation from your net income after tax. If you do, you may be eligible for the Government Co-contribution which the Australian Taxation Office calculates and pays, based on your tax return and information received from your superannuation fund.

Spouse Contributions

It is also possible to contribute to your spouse or partner’s superannuation and you may be able to claim a tax offset if they earn nothing or have a low income.

There is a lot to think about if you are considering making personal contributions to your own or your spouse or partner’s superannuation. It pays to find out as much as you can about the tax implications and to ensure you obtain professional advice to understand all your options.

Call 1300 803 441 to talk to one of our Account Managers today. Or click here to make an online enquiry.