EMPLOYER FAQS
Quick Links
- Online payment and data submission options
- What should I be paying Superannuation Guarantee on?
- Investment options
- Temporary residents
- Reportable employer superannuation contributions
- Presenting a Westscheme award for Excellence in Vocational Education & Training (VET) at a local high school
- Award modernisation and using Westscheme as your default/employer fund
- Maximum salary for SG contributions
- Insurance options
- Can an employee make additional contributions?
- What changes were made to the annual concessional contribution limits?
Depending on which data submission method you choose, Westscheme employers can pay their contributions using:
- BPAY®
- Direct debit
- Direct debit on demand
- Electronic Funds Transfer (EFT)
To use any of the above payment methods, simply complete this form and post it to:
Westscheme
Locked Bag 3350
We will then send you a confirmation letter.
You can also make payments by posting a cheque to:
Westscheme
Locked Bag 3350
PERTH ADELAIDE TCE WA 6832.
Click here for more information
How do I calculate SG payments?
The SG payment, or superannuation guarantee contribution, is calculated based on a notional earnings base. Until June 2008, the earnings base may have been from an industrial award or an existing employment contract.However, since 1 July 2008, SG contributions must be calculated based on Ordinary Time Earnings (OTE) as defined in superannuation law. OTE is the amount an employee earns for ordinary hours of work. It may include over-award payments, shift or casual loadings, commissions, some allowances and paid leave, but usually excludes irregular overtime and non-performance bonuses.
Full details are set out in the ATO’s Superannuation Guarantee Ruling 2009/2. Click here to obtain a copy of this document. For more information on calculating SG payments, click here.
What are Westscheme's investment options?
Westscheme has 6 investment options to choose from. Members can choose a single investment option or a combination of options.
The Trustee’s Selection, a diversified investment option designed to suit most Westscheme members, is the default investment option.
For information on all the Westscheme investment options see the Member Handbook/Product Disclosure Statement.
Do I have to pay super for temporary residents?
Yes. If your temporary resident employees meet the superannuation guarantee criteria you must make super contributions for them. Generally, this is if they:
- are aged between 18 and 70;
- are paid $450 (before tax) or more in a calendar month, and
- work in Australia
How can temporary residents claim their super?
When temporary residents have left Australia, they can claim payments that were made by their employer into a superannuation fund or retirement savings account (RSA). This payment is called the “Departing Australia Superannuation Payment” (sometimes referred to as DASP).
To claim their superannuation, temporary residents must have left Australia permanently and their visa must have expired or been cancelled.
To help your former temporary resident employee claim their Westscheme super payment, you can tell them that they:
- may be eligible to receive a DASP,
- should keep:
- contact details of Westscheme - most useful is the email address of westscheme@superpartners.com.au and
- their own personal membership account number
- can contact Westscheme who will send the appropriate claim form to their permanent home-country address.
Temporary residents can claim their Westscheme superannuation from Westscheme for up to six months from the date of expiry or cancellation of their temporary visa. Where at least six months have passed since they left Australia and their temporary visa has expired or been cancelled, their Westscheme superannuation will be sent to the Australian Taxation Office (ATO). Your former temporary resident employee can then claim their super from the ATO.
Click here for more information.
What are 'reportable employer super contributions'?
The contributions you make for an employee where all of the following apply:- your employee influenced the rate or amount of super you contribute for them and
- the contributions are additional to the compulsory contributions you must make under any of the following:
- Super Guarantee Law;
- an industrial agreement;
- the trust deed or governing rules of a super fund; or
For example, salary sacrificed contributions are ‘reportable employer super contributions’.
- a federal, state or territory law.
From 1 July 2009, employers must include all reportable employer super contributions they make for an employee on the employee’s payment summary. Anyone with a reportable employer super contribution amount must be issued with a payment summary.
Click here for more information.
And remember - Reportable employer super contributions are to be reported for the income year that the contribution relates to. This could be a different year to the one they are actually received by the super fund.
In its earlier years, Westscheme's primary membership was a heavily blue-collar base of workers. As a tribute to this, and in view of the skills shortage prevalent in this sector, Westscheme has proudly supported initiatives in vocational education and training in schools.
Westscheme is working alongside schools and industry to ensure that the highly valued graduates from vocational education and training (VET) programs in schools receive the community recognition they deserve.
Coming into its 10th year, the Westscheme Awards for Excellence in Vocational Education and Training continue to be awarded to the top VET student in WA schools with a strong commitment to VET.
Since Westscheme started its sponsorship program we have been very proud to see the status of school VET programs increase significantly. 93 schools participated in the program in 2009.
Each year, as part of its Awards for Excellence in VET, Westscheme invites interested employers to provide community support in presenting the award at local school presentations.
If this is something you would like to become involved in, please contact Penny Carroll, who is our Communications Manager on (08) 9218 4000 or email her at pcarroll@superpartners.com.au You can read more about Westscheme’s sponsorship work here
Award modernisation and using Westscheme as your default/employer fund
Award modernisation is the process of reviewing and rationalising awards in the national workplace relations system to create a system of 'modern awards'.
The Australian Industrial Relations Commission (AIRC) began the process in March 2008 following a formal request from the Australian Government.
By the end of 2009 more than 1500 awards had been reviewed and 122 industry and occupation awards created. These awards were effective on 1 January 2010 and most include transitional provisions to phase in changes in wages, loadings and penalties over a 5-year period. Most of the awards also have provisions that relate to superannuation arrangements.
There are 3 different scenarios which will determine what your options are now and whether you can use Westscheme as your default fund:
- If Westscheme is your current default fund and was at 11 September 2008 - You don’t need to do anything, just know you can retain Westscheme as your default fund.
- If Westscheme is not your default super fund but you have contributed to Westscheme (a superannuation guarantee contribution) prior to 12 September 2008 – You can nominate Westscheme as your default fund. Call us to discuss.
- If you do not contribute to Westscheme, or commenced doing so after 11 September 2008 - your default super fund for award employees may be limited to a fund named under the relevant award for those employees.
If you are unsure about what your options are regarding nominating a default fund, please contact us and we will be happy to assist you.
Click here for more information.
Default / employer fund
An employer’s default super fund is the fund that an employer chooses to pay an employee’s superannuation guarantee contributions to if the employee does not choose a fund.
A default fund must be a complying fund – which means it meets specific requirements and obligations set out in law – and it must offer a minimum level of insurance cover. You should also consider any provisions included in the award relevant to your employees.
The insurance cover must:
- charge a premium of at least $0.50 per week for those under 56 years of age, or
- the level of insurance cover must equal or exceed that shown in the table below, or
- if the contributions are made to a defined benefit fund on behalf of a defined benefit member, the cover must equal or exceed that detailed in the table below.
| Age range | Minimum level of insurance cover |
| 0-19 | Nil |
| 20 to 34 | $50,000 |
| 35 to 39 | $35,000 |
| 40 to 44 | $20,000 |
| 45 to 49 | $14,000 |
| 50 to 55 | $7,000 |
| 56+ | Nil |
Note: There are some circumstances where default funds do not need to meet the life insurance requirements. Westscheme’s insurance cover exceeds the minimum requirements. For more information about Westscheme’s insurance cover click here.
I want to know more about Westscheme's insurance cover
The primary purpose of Westscheme’s insurance cover is to provide a payment to a member's beneficiaries in the event of the member's death or a payment to the member in the event of their total and permanent disablement.
The premiums for all Westscheme insurance cover are deducted directly from member accounts. This means that members do not pay the premium from their after-tax income. Westscheme insurance is 24 hours a day/7 days a week cover.
While Westscheme automatically provides some insurance cover to most employees, if members think they need more they can apply for it. Westscheme also offers income protection insurance cover. People who are self-employed or not employed may also apply for insurance cover.
For information on all insurance cover offered by Westscheme and the definition of total and permanent disability/disablement, you should read the Member Handbook/Product Disclosure Statement (PDS)
Can an employee make additional contributions into super?
It’s never too late or too early to direct money into your super. Over time, your money is expected to grow due to compounding interest. There are a number of ways to make contributions into your account:
- salary sacrifice – these are ‘before-tax’ contributions and may help you minimise your tax. (scroll down to see an example of how salary sacrifice can work)
- personal contributions – these are ‘after-tax’ contributions and may mean you are eligible for a tax-free contribution by the government, known as a co-contribution.
- contribution splitting – you can split some of your super with your spouse.
- Spouse accounts
In addition, if you are eligible to receive it, the government may make a co-contribution into your account.
Click here to estimate your entitlement and eligibility to a co-contribution.
What is ‘salary sacrifice into super’ and do I have to let my employees do it?
Salary sacrifice into super generally means that you have organised your salary or wages so that part of your income is paid direct to you and part is paid into your super account. While many employers offer this service to their employees, it is not compulsory to do so.
Salary sacrificed superannuation contributions:
- are deducted from salary BEFORE tax so it reduces taxable income and may lower the amount of income tax a member pays;
- are taxed at 15% when paid into a member’s superannuation account. This could be a lower tax rate than the member’s income tax rate;
- are called ‘concessional contributions’.
- are included in the $25,000 annual cap (if the member is less than 50 years of age) that applies to all concessional contributions paid into a member’s account each year. Superannuation Guarantee contributions (currently 9%) are also called concessional contributions. Concessional contributions paid into a member’s account above the cap will be taxed at the highest level (currently 46.5%). If a member is turning 50 years of age before 30 June 2012, they have a higher cap of $50,000 per year from the time they turn 50 years of age. Again, contributions above the cap will be taxed at the highest level (currently 46.5%). From 1 July 2012, the cap is $25000 for everyone.
Recent changes to tax law mean that salary sacrificed payments are now included when working out a member’s eligibility for some government benefits, including the Government co-contribution.
Employers are not required to offer this service to their employees. However flexibility such as allowing salary sacrificing into super can be a point of difference between employers competing for employees.
Click here for more information.
What is the Government Co-contribution?
To encourage superannuation savings, the Federal Government matches eligible personal after-tax superannuation contributions. This does not include Superannuation Guarantee or salary sacrifice contributions you make for your employees, personal contributions for which a tax deduction will be claimed or contributions made by a member’s spouse.For the 2009/10 financial year, the maximum co-contribution is $1,000 and is available to people whose total income is $31,290 or less and who have made a personal contribution of at least $1,000.
The maximum co-contribution reduces with increasing income, at a rate of 5 cents for every dollar you earn over $31,290 and cuts out at $61,290. Remember, ‘total income’ may not be the same as ‘taxable income’.
Other eligibility criteria apply. Click here for more information.
What is an industry super fund and what is a retail fund?
An ‘industry fund’ is a multi-employer superannuation fund that has an ‘all profits to members’ philosophy. This means that profits belong to members rather than shareholders. In some cases, an industry fund will cover a specific industry or range of industries and will accept contributions from any employers in those industries.Most industry funds were established in the mid to late 1980s, originally to accept award contributions. Most industry funds have trustees appointed by trade unions and employer associations. Since the mid 1990s, an increasing number of industry funds have gained public offer superannuation fund status – this means that any member of the public can apply to join the fund.
Westscheme is a multi ‘industry fund’ established in 1986 whose trustees are appointed by UnionsWA and the Chamber of Commerce and Industry of WA. Westscheme is a public offer superannuation fund. Members come from all over Australia and belong to industries such as hospitality, construction, agriculture, retail and professional services.
A retail superannuation fund is one that is offered by a bank, insurance company or other specialist administrators.
How can I help my staff get the most out of their super?
You can help your employees by meeting all your legal obligations and by encouraging them to read newsletters that most superannuation funds send out each year. It is against the law for you to provide any advice about superannuation unless you hold an Australian Financial Services Licence.
Westscheme employs Client Service Managers who provide a contact service for all Westscheme members to ensure that they receive personal, efficient and effective service from Westscheme. The Client Service Managers conduct workplace meetings and public seminars to help members understand their superannuation.
The Client Service Managers also regularly conduct employer briefings where you can find out more about Westscheme, discuss superannuation issues and keep up-to-date about rule changes within Westscheme and superannuation legislation. Westscheme’s Client Service Managers are salaried staff and do not receive any commissions.
Customer Service Consultants are also available to answer general administration enquiries from members and employers.
There is no additional charge for these services – the cost is provided for in the administration fee.
What is a ‘participating employer’ and do I have to become one?
A Westscheme Participating Employer is an employer who contractually agrees to be bound by the provisions of the Westscheme Trust Deed and to make contributions for its employees who are Westscheme members according to the law. If you wish to use Westscheme as your default or employer fund, you must become a participating employer of Westscheme. This enables you to meet your superannuation obligations for those employees who have not chosen another fund.
Do I have to tell my employees how much super I pay for them?
No. However, you are required to tell your employees the default fund into which their super contributions will be paid within 28 days of them starting work with you. And as an employer, you are also required to keep records that show various aspects of how you’ve met your superannuation obligations. See the question “What records must I keep?”.
What changes were made to the annual concessional contribution limits?
On 1 July 2009 the annual limit on concessional super contributions reduced. Concessional contributions include employer Super Guarantee (SG) contributions, salary sacrifice contributions and any personal (deductible) contributions (where applicable).
The reduction could have serious tax implications for anyone breaching the limits, for example by salary sacrificing too much in 2009/10.
Amounts that exceed the limits will be taxed at the highest marginal tax rate (currently 46.5%), instead of the ordinary 15% concessional tax rate.
The annual limits are:
- $25,000 - for individuals under age 50; or
- $50,000 - for individuals age 50 and over. (until June 2012)
Members are encouraged to review any salary sacrifice arrangement they may have to avoid breaching the annual caps.
Remember, the annual limit refers to the contributions actually paid into a super account from 1 July 2009 to 30 June 2010. Members may wish to check their account to see if any contributions due in the last quarter or month of the 2008/09 financial year were received in the 2009/10 year. Members can check their account online via the Member Login area on the homepage.
For those new to online account access they should call Westscheme on 9278 7070 for a security PIN to allow access.
Personal Contributions
These are also known as voluntary, post-tax, after-tax or non-concessional contributions. They are paid out of after-tax salary or take-home pay and:
- can be paid into a member’s account via
- payroll deductions (unavailable if the employer pays super on a quarterly basis) or by
- the member using direct debit, BPay, direct debit on demand or cheque.
- are generally not taxed again but investment earnings are taxed concessionally at 15%.
- may mean that the member is eligible for the Government Co-contribution, which is a tax-free payment.
In the 2009-10 financial year the annual limit on personal or non-concessional contributions limit is $150,000 per person. People aged 65 to 74 years, must have worked at least 40 hours in 30 consecutive days in a financial year before Westscheme can accept a personal contribution from them. People over 75 years of age are not eligible to make a personal contribution into their superannuation account. Contributions below the limit (or cap) will not be taxed again and will be tax free when paid out to the member. Contributions above the cap are taxed at the highest level (currently 46.5%).
Under the current law, Westscheme can only accept personal contributions if it has the member’s tax file number.
The financial decisions you make can be complex, Westscheme recommends members seek professional financial advice before making any changes to super arrangements.
Click here for more information.
Industry Fund Financial Planning
Westscheme members can obtain limited personal advice regarding Westscheme Superannuation through Industry Fund Financial Planning (IFFP) at no additional cost. Members who wish to do this, can contact Peter Burke on (08) 9218 4038 or 1800 198 503. For those seeking more comprehensive advice, please call IFFP on (08) 9463 3930 or 1300 138 848 to arrange an appointment.
IFFP charges for personal appointments and comprehensive personal advice on a fee-for-service basis. They do not accept up front or ongoing commissions.
Click here for more information.
Maximum salary for SG contributions
The maximum superannuation contribution base is used to determine the maximum limit on any individual employee's earnings base for each quarter of any financial year. You do not have to provide the minimum support (usually 9% of OTE) for the part of earnings above this limit. The maximum salary used to calculate the SG required in 2009/10 is $160,680 per annum or $40,170 per quarter. These amounts are indexed in line with AWOTE each income year.
Click here for more information.
When do I have to pay super for my employees?
Generally you have 4 weeks from the end of each quarter to make your payments.
The due dates for Superannuation Guarantee (SG) payments are:
| For work done: | Payment is due by: |
| 1 July – 30 September | 28 October |
| 1 October – 31 December | 28 January |
| 1 January – 31 March | 28 April |
| 1 April – 30 June | 28 July |
If super is part of your Award arrangements other payment dates may apply so you should check first.
Who is entitled to super guarantee payments?
As an employer, you have a legal obligation to pay super contributions for your eligible employees, who are:
- aged between 18 and 70, are paid $450 (before tax) or more in a calendar month, and work full-time, part-time or on a casual basis, or
- under 18 years of age, are paid $450 (before tax) or more in a calendar month and work more than 30 hours a week.
An employer’s obligation to make SG contributions for individuals ceases when an individual’s salary exceeds the maximum cap of $160,680 per year, or $40,170 per quarter (indexed annually). Employers are not obliged to make SG payments to those employees earning in excess of the maximum caps, but may do so if they wish.
The Australian Taxation Office website has web-based tools to help you work out if an employee is eligible for superannuation guarantee contributions.
What does ‘choice of fund’ mean?
Many employees are now able to choose the super fund into which super guarantee contributions are paid. There are some exceptions.
The Australian Taxation Office website has useful information to help you work out if someone is eligible to choose their preferred superannuation fund.
How do I make sure my employees have choice of fund?
You must give new employees a “Standard Choice Form” within 28 days of starting employment. If you have chosen Westscheme as your employer nominated/default fund then you can download the form from here. You can also download blank forms from the ATO website.
When you receive a completed Standard Choice Form and all the required information from your employee who has nominated a fund that is different from your chosen default fund, any contributions you make in the two months after receiving the form can be made to either your employer nominated fund or the employee’s new chosen fund. Contributions you pay after the two month period must be made to the employee’s new chosen superannuation fund.
Click here for more information.
I want to use Westscheme as my employer/default employer fund. How do I do this?
Simply complete a Notification of Choice of Employer Fund form and either fax it back to us on (08) 9278 7099 or post it to:
Westscheme
Locked Bag 3350
PERTH ADELAIDE TCE WA 6832
Can I claim a tax deduction for the super I’ve paid?
Generally, super contributions paid by employers and people who are self-employed are tax deductible in the financial year you pay them. However, you cannot claim a tax deduction for the Super Guarantee Charge as this is the penalty imposed if you fail to meet your super obligations.
If you are self-employed, only contributions for which you have not claimed a tax deduction are eligible for the Government Co-Contribution.
Do I have to provide an employee’s Tax File Number (TFN) to their super fund?
If your employee gives you a completed TFN Declaration Form (NAT 3092), you must then pass the TFN on to their super fund. Penalties apply if you do not pass your employee’s TFN on to their super fund.
What records must I keep?
You must keep records that show:
- the contribution amount you paid for each employee;
- the period over which the contributions were made;
- the date on which each contribution was made;
- the name of the fund to which the contribution was made;
- the basis on which the employer became liable for the contribution including:
- any elections made by the employee regarding their choice of superannuation fund;
- the date you received a ‘choice of superannuation fund’ election’ by an employee.
As with other business dealings, you should also keep records that affect your liability, such as advice from trustees about the funds to which you are contributing. These records can be examined by officers of the Australian Tax Office and there are penalties for failing to keep accurate records.
If you are subject to a Superannuation Guarantee Charge (SGC), you also must keep records of how you calculated the amounts shown in your quarterly superannuation guarantee charge statement.
Penalties apply for failing to keep adequate records.
If you are required to pay superannuation under an award, you may have additional record keeping obligations and you should check your relevant award or regulations.
What happens if my employee is not a member of the fund they nominate?
Where an employee chooses a fund that is different from your ‘Employer Fund’ or ‘Default Fund’, the employee must provide you with specific information about their chosen fund.
Some superannuation funds require the employee to complete an application form to become a member. In contrast, Westscheme does not require application forms where an employer is already making superannuation contributions to it for other employees. Instead, when providing your contribution data, simply add the new employee’s name, date of birth, full residential address and if you have it, their tax file number.
What happens if I miss a super payment?
If you pay any Superannuation Guarantee (SG) contributions directly to a superannuation fund, including Westscheme, after the cut off date (see “When do I have to pay super for my employees?”), you must pay a Superannuation Guarantee Charge (SGC) to the Australian Tax Office.
If you have made a late contribution to a super fund for an employee, you may be able to offset that payment against the amount of super guarantee charge you have to pay for that employee for that period.
Click here for more information. Remember, any SG contributions that you make are tax deductible. However, the SGC and any late contributions used to offset the charge continue to be non-tax deductible.
I’m self-employed. Does super apply to me?
As a self-employed business person, you are not required to contribute to a super fund. However, you may wish to consider superannuation as a way of saving for your retirement.
From 1 July 2007, most self-employed people can claim a full deduction for contributions they make to their super fund until age 75. You may also be eligible for the Government Co-contribution if you make personal contributions for which you do not claim a tax deduction.
If you are a contractor, your clients are sometimes considered employers for superannuation purposes and may be required to make super contributions for you. The Australian Taxation Office website has a web-based tool to help you work out if someone is an employee or a contractor, and if they are eligible for superannuation contributions.
What is the super guarantee charge (SGC)?
The SGC is a non-tax deductible charge levied on employers who do not make the minimum superannuation contributions required by the Superannuation Guarantee (Administration) Act. The charge is based on a percentage (currently 9%) of an employee's ordinary time earnings and includes amounts for interest and administration costs. An employer can avoid the SGC by paying 9% of an eligible employee's ordinary time earnings to an appropriate complying superannuation fund or retirement savings account each quarter.
Click here for more information.