Question 1

1. What is happening?

Craig Stump · Accepted Answer

On 1 July 2021, the Australian superannuation guarantee (SG) rate must increase to 10%. This is a 0.5% increase from the current 9.5%. The Australian Federal Government confirmed in the recent budget announcement that the change will be implemented. The SG is part of the remuneration you receive and is a set percentage of your ordinary time earnings.

Question 2

2. How do these changes impact me?

Craig Stump · Accepted Answer

Australian salaried employees

All salaried employees are remunerated under a Total Fixed Remuneration (TFR) arrangement which is inclusive of SG payments. With the change to the SG rate, the TFR will remain unchanged with the base pay and SG values changing. This is illustrated in the example below.

TFR Element	Current (p/a) (Full Time Equivalent)	As at 1 July 2021 (p/a) (Full Time Equivalent)
Base Pay	$136,986	$136,364
Superannuation Guarantee	$13,014	$13,636
Total Fixed Remuneration (TFR)	$150,000	$150,000

*To calculate the base pay, divide the TFR by 1.095 (Current) or 1.10 (as at 1 July). Difference between TFR and base pay is the SG value. In the above example, the superannuation contribution increases by $622 per annum whilst the gross base pay decreases by the same amount. PAYG tax will be applied to the amended gross base pay. It is important to note that SG contributions for those with total income including pre-tax and SG superannuation contributions below $250,000 per financial year is taxed at the concessional contribution rate of 15% when it is received by your superannuation fund.

Australian wages employees

Wages employees are generally employed under the terms and conditions set out in their relevant industrial agreements. Under these agreements, remuneration is calculated as base rate plus allowances and benefits. The change in the superannuation guarantee rate will mean an increase in the superannuation contribution by Ventia for each wages employee. This is illustrated in the example below. Note that SG is calculated on ordinary time earnings (OTE) which excludes overtime payments.

Remuneration Elements	Current (p/a) (Full Time Equivalent)	As at 1 July 2021 (p/a) (Full Time Equivalent)
Base Rate	$80,000	$80,000
Allowance 1	$15,000	$15,000
Allowance 2	$6,000	$6,000
Superannuation Guarantee	$9,595	$10,100
Total	$110,595	$111,100

Question 3

3. Is this change specific to Ventia?

Craig Stump · Accepted Answer

No. SG is legislated by the Australian Federal Government and all employers must comply with the legislated requirements.

Question 4

4. Do these rules apply to all employees?

Craig Stump · Accepted Answer

Employers are required to pay SG contributions where an employee, aged 18 or over is earning $450 or more (before tax) in a calendar month. These obligations apply to Ventia Group employees. Ventia Group includes all entities of Ventia. The rules do not reduce or limit entitlements properly payable under an Enterprise Agreement or any other binding commitment of Ventia. Note that the Government announced in the budget a proposal to remove the $450 a month threshold. This will require it to be legislated on before being implemented.

Question 5

5. When will the change come into effect?

Craig Stump · Accepted Answer

The SG rate change to 10% will come into effect from 1 July 2021.

Question 6

6. Will my take home pay change?

Craig Stump · Accepted Answer

Salaried employees will see a change to the gross amounts applied to base pay and SG contributions. Total Fixed Remuneration (TFR) will remain unchanged. This is illustrated in the below example.

TFR Element	Current (p/a) (Full Time Equivalent)	As at 1 July 2021 (p/a) (Full Time Equivalent)
Base Pay	$136,986	$136,364
Superannuation Guarantee	$13,014	$13,636
Total Fixed Remuneration (TFR)	$150,000	$150,000

In the above example, the superannuation contribution increases by $622 per annum whilst the gross base pay decreases by the same amount. PAYG tax will be applied to the amended gross base pay. It is important to note that SG contributions for those with total income including pre-tax and SG superannuation contributions below $250,000 per financial year is taxed at the concessional contribution rate of 15% when it is received by your superannuation fund.

Question 7

7. Who is paying for the increase in the superannuation payment?

Craig Stump · Accepted Answer

For salaried employees, Ventia provides you with a Total Fixed Remuneration (TFR) inclusive of base pay and superannuation guarantee. The TFR is funded by Ventia. The adjustment to the SG rate means that a change must occur for the elements that make up TFR.

The overall TFR will not change, but the increase to the superannuation guarantee contributions will mean that more savings will be directed to retirement income. The change from 1 July 2021 is the first of a series of changes where the superannuation guarantee rate will increase in 0.5% increments each year until it reaches 12% in July 2025. It is considered that the 12% superannuation guarantee rate is critical to helping people achieve a dignified retirement as well as improve the sustainability of the Age Pension and take pressure off future Federal Government budgets as the population ages.

Question 8

8. Can I opt to have the increase applied to my take home pay instead?

Craig Stump · Accepted Answer

No. Superannuation guarantee is legislated, and employers must ensure contributions are calculated and paid according to the minimum requirements.

Question 9

9. When does Ventia pay superannuation contributions to the funds?

tomas · Accepted Answer

Superannuation contributions are paid to all superannuation funds on a monthly basis during the last week of the month. Contributions are paid in arrears which means that the contributions processed in one month will be paid to superannuation funds in the following month. For example, the superannuation contributions (both superannuation guarantee and additional voluntary contributions) processed in the July payroll will be paid to all superannuation funds in the last week of August.

Question 10

10. Why are these changes happening now?

Craig Stump · Accepted Answer

The Federal Government sets the rate and it has changed over time starting at 3% in July 1992 (4% for annual payrolls above $1m). From July 2002 up until 2013, the rate had been at 9.0%. Following the Cooper Review which identified potential shortfalls in Australians’ retirement savings, the original Rudd Government introduced a plan to increase superannuation to 12%. Accordingly, from 1 July 2014, superannuation was increased to 9.5%. The increase to 10% was originally set to commence from July 2015 but successive governments have since slowed the gradual increase in the rate, delaying this increase until July 2021. Further increases are legislated to occur where the superannuation guarantee rate will increase in 0.5% increments each year until it reaches 12% in July 2025. It is considered that the 12% Superannuation Guarantee rate is critical to helping people achieve a dignified retirement as well as improve the sustainability of the Age Pension and take pressure off future Federal Government budgets as the population ages.

Question 11

11. Can I forward a case to not have this change apply to me, what should I do?

Craig Stump · Accepted Answer

As superannuation guarantee is legislated, employers must ensure that compliance is maintained on calculating and paying contributions. Penalties apply to employers who do not comply with the minimum requirements. Therefore, Ventia is not able to consider any proposals that result in non-compliance to the Superannuation Guarantee (Administration) Act 1992 (Cth).

Question 12

12. I have heard that my colleague has not had a change to their take home pay. How can this be possible?

Craig Stump · Accepted Answer

There are groups of Ventia employees whose terms and conditions are governed by an industrial agreement. These are wages employees. Wages employee’s remuneration is not administered under a Total Fixed Remuneration basis. Under the industrial agreements, remuneration is calculated as base rate plus allowances and benefits. Therefore, base pay rates and allowances will not change whilst the superannuation guarantee amount will increase accordingly.

Question 13

13. How does this change impact any additional voluntary superannuation contributions?

Craig Stump · Accepted Answer

Any additional voluntary contributions in place will not impact the change to the superannuation guarantee rate. However, it is recommended that employees with additional voluntary contributions in place review these arrangements. Additional voluntary contributions made on a pre-tax basis, including superannuation guarantee contributions, are deemed as concessional contributions. This means that where both superannuation guarantee and additional voluntary contributions (pre-tax) exceed the concessional contribution cap, additional tax will be paid on the contributions. Note that from 1 July 2021, the concessional contributions cap increases from $25,000 to $27,500 per annum. If you wish to start, stop, or make changes to your additional voluntary contributions, please contact the relevant payroll teams as outlined below: Legacy Ventia: peopleservices@ventia.com.au Legacy Broadspectrum: payrollservices@broadspectrum.com

Question 14

14. Where can I find more information on these changes?

Craig Stump · Accepted Answer

Further information can be obtained on the Australian Taxation Office (ATO) website.

Question 15

15. Are New Zealand employees impacted by these changes?

Craig Stump · Accepted Answer

The superannuation guarantee changes relate to Australian employees only. New Zealand has a different system for retirement income and is not impacted by these changes.

Question 16

16. Where can I find my remuneration terms and conditions?

Craig Stump · Accepted Answer

Your remuneration terms and conditions are set out in your contract of employment.

Question 17

17. Who do I call / email if I need help?

Craig Stump · Accepted Answer

In the first instance, you can contact your Line Manager or your P&C Business Partner. Queries can also be emailed to the Reward Team at remuneration@broadspectrum.com. Further information can be obtained on the Australian Taxation Office (ATO) website.

Question 18

17. Who do I call / email if I need help?

Craig Stump · Accepted Answer

In the first instance, you can contact your Line Manager or your P&C Business Partner. Queries can also be emailed to the Reward Team at remuneration@broadspectrum.com. Further information can be obtained on the Australian Taxation Office (ATO) website.

Question 19

16. Where can I find my remuneration terms and conditions?

Craig Stump · Accepted Answer

Your remuneration terms and conditions are set out in your contract of employment.

Question 20

15. Are New Zealand employees impacted by these changes?

Craig Stump · Accepted Answer

The superannuation guarantee changes relate to Australian employees only. New Zealand has a different system for retirement income and is not impacted by these changes.

Question 21

14. Where can I find more information on these changes?

Craig Stump · Accepted Answer

Further information can be obtained on the Australian Taxation Office (ATO) website.

Question 22

13. How does this change impact any additional voluntary superannuation contributions?

Craig Stump · Accepted Answer

Any additional voluntary contributions in place will not impact the change to the superannuation guarantee rate. However, it is recommended that employees with additional voluntary contributions in place review these arrangements. Additional voluntary contributions made on a pre-tax basis, including superannuation guarantee contributions, are deemed as concessional contributions. This means that where both superannuation guarantee and additional voluntary contributions (pre-tax) exceed the concessional contribution cap, additional tax will be paid on the contributions. Note that from 1 July 2021, the concessional contributions cap increases from $25,000 to $27,500 per annum. If you wish to start, stop, or make changes to your additional voluntary contributions, please contact the relevant payroll teams as outlined below: Legacy Ventia: peopleservices@ventia.com.au Legacy Broadspectrum: payrollservices@broadspectrum.com

Question 23

12. I have heard that my colleague has not had a change to their take home pay. How can this be possible?

Craig Stump · Accepted Answer

There are groups of Ventia employees whose terms and conditions are governed by an industrial agreement. These are wages employees. Wages employee’s remuneration is not administered under a Total Fixed Remuneration basis. Under the industrial agreements, remuneration is calculated as base rate plus allowances and benefits. Therefore, base pay rates and allowances will not change whilst the superannuation guarantee amount will increase accordingly.

Question 24

11. Can I forward a case to not have this change apply to me, what should I do?

Craig Stump · Accepted Answer

As superannuation guarantee is legislated, employers must ensure that compliance is maintained on calculating and paying contributions. Penalties apply to employers who do not comply with the minimum requirements. Therefore, Ventia is not able to consider any proposals that result in non-compliance to the Superannuation Guarantee (Administration) Act 1992 (Cth).

Question 25

10. Why are these changes happening now?

Craig Stump · Accepted Answer

The Federal Government sets the rate and it has changed over time starting at 3% in July 1992 (4% for annual payrolls above $1m). From July 2002 up until 2013, the rate had been at 9.0%. Following the Cooper Review which identified potential shortfalls in Australians’ retirement savings, the original Rudd Government introduced a plan to increase superannuation to 12%. Accordingly, from 1 July 2014, superannuation was increased to 9.5%. The increase to 10% was originally set to commence from July 2015 but successive governments have since slowed the gradual increase in the rate, delaying this increase until July 2021. Further increases are legislated to occur where the superannuation guarantee rate will increase in 0.5% increments each year until it reaches 12% in July 2025. It is considered that the 12% Superannuation Guarantee rate is critical to helping people achieve a dignified retirement as well as improve the sustainability of the Age Pension and take pressure off future Federal Government budgets as the population ages.

Question 26

9. When does Ventia pay superannuation contributions to the funds?

tomas · Accepted Answer

Superannuation contributions are paid to all superannuation funds on a monthly basis during the last week of the month. Contributions are paid in arrears which means that the contributions processed in one month will be paid to superannuation funds in the following month. For example, the superannuation contributions (both superannuation guarantee and additional voluntary contributions) processed in the July payroll will be paid to all superannuation funds in the last week of August.

Question 27

8. Can I opt to have the increase applied to my take home pay instead?

Craig Stump · Accepted Answer

No. Superannuation guarantee is legislated, and employers must ensure contributions are calculated and paid according to the minimum requirements.

Question 28

7. Who is paying for the increase in the superannuation payment?

Craig Stump · Accepted Answer

For salaried employees, Ventia provides you with a Total Fixed Remuneration (TFR) inclusive of base pay and superannuation guarantee. The TFR is funded by Ventia. The adjustment to the SG rate means that a change must occur for the elements that make up TFR.

The overall TFR will not change, but the increase to the superannuation guarantee contributions will mean that more savings will be directed to retirement income. The change from 1 July 2021 is the first of a series of changes where the superannuation guarantee rate will increase in 0.5% increments each year until it reaches 12% in July 2025. It is considered that the 12% superannuation guarantee rate is critical to helping people achieve a dignified retirement as well as improve the sustainability of the Age Pension and take pressure off future Federal Government budgets as the population ages.

Question 29

6. Will my take home pay change?

Craig Stump · Accepted Answer

Salaried employees will see a change to the gross amounts applied to base pay and SG contributions. Total Fixed Remuneration (TFR) will remain unchanged. This is illustrated in the below example.

TFR Element	Current (p/a) (Full Time Equivalent)	As at 1 July 2021 (p/a) (Full Time Equivalent)
Base Pay	$136,986	$136,364
Superannuation Guarantee	$13,014	$13,636
Total Fixed Remuneration (TFR)	$150,000	$150,000

In the above example, the superannuation contribution increases by $622 per annum whilst the gross base pay decreases by the same amount. PAYG tax will be applied to the amended gross base pay. It is important to note that SG contributions for those with total income including pre-tax and SG superannuation contributions below $250,000 per financial year is taxed at the concessional contribution rate of 15% when it is received by your superannuation fund.

Question 30

5. When will the change come into effect?

Craig Stump · Accepted Answer

The SG rate change to 10% will come into effect from 1 July 2021.

Question 31

4. Do these rules apply to all employees?

Craig Stump · Accepted Answer

Employers are required to pay SG contributions where an employee, aged 18 or over is earning $450 or more (before tax) in a calendar month. These obligations apply to Ventia Group employees. Ventia Group includes all entities of Ventia. The rules do not reduce or limit entitlements properly payable under an Enterprise Agreement or any other binding commitment of Ventia. Note that the Government announced in the budget a proposal to remove the $450 a month threshold. This will require it to be legislated on before being implemented.

Question 32

3. Is this change specific to Ventia?

Craig Stump · Accepted Answer

No. SG is legislated by the Australian Federal Government and all employers must comply with the legislated requirements.

Question 33

2. How do these changes impact me?

Craig Stump · Accepted Answer

Australian salaried employees

All salaried employees are remunerated under a Total Fixed Remuneration (TFR) arrangement which is inclusive of SG payments. With the change to the SG rate, the TFR will remain unchanged with the base pay and SG values changing. This is illustrated in the example below.

TFR Element	Current (p/a) (Full Time Equivalent)	As at 1 July 2021 (p/a) (Full Time Equivalent)
Base Pay	$136,986	$136,364
Superannuation Guarantee	$13,014	$13,636
Total Fixed Remuneration (TFR)	$150,000	$150,000

*To calculate the base pay, divide the TFR by 1.095 (Current) or 1.10 (as at 1 July). Difference between TFR and base pay is the SG value. In the above example, the superannuation contribution increases by $622 per annum whilst the gross base pay decreases by the same amount. PAYG tax will be applied to the amended gross base pay. It is important to note that SG contributions for those with total income including pre-tax and SG superannuation contributions below $250,000 per financial year is taxed at the concessional contribution rate of 15% when it is received by your superannuation fund.

Australian wages employees

Wages employees are generally employed under the terms and conditions set out in their relevant industrial agreements. Under these agreements, remuneration is calculated as base rate plus allowances and benefits. The change in the superannuation guarantee rate will mean an increase in the superannuation contribution by Ventia for each wages employee. This is illustrated in the example below. Note that SG is calculated on ordinary time earnings (OTE) which excludes overtime payments.

Remuneration Elements	Current (p/a) (Full Time Equivalent)	As at 1 July 2021 (p/a) (Full Time Equivalent)
Base Rate	$80,000	$80,000
Allowance 1	$15,000	$15,000
Allowance 2	$6,000	$6,000
Superannuation Guarantee	$9,595	$10,100
Total	$110,595	$111,100

Question 34

1. What is happening?

Craig Stump · Accepted Answer

On 1 July 2021, the Australian superannuation guarantee (SG) rate must increase to 10%. This is a 0.5% increase from the current 9.5%. The Australian Federal Government confirmed in the recent budget announcement that the change will be implemented. The SG is part of the remuneration you receive and is a set percentage of your ordinary time earnings.

Question 35

I have another question. Who can I contact?

Craig Stump · Accepted Answer

Get in touch with our Payroll team.

Question 36

If I don’t receive a payment summary does the way I lodge my tax return change?

Craig Stump · Accepted Answer

There will be no changes to the way you lodge your tax return, whether you do this yourself or use an accountant.

You will not need to provide a payment summary as the ATO will already have this information pre-filled based on the information employers report to the ATO throughout the year.

Question 37

Why do the super contributions reported on my Ventia payslip not always match what my superfund is reporting to myGov?

Craig Stump · Accepted Answer

Employers do not pay super to the funds each time a payroll is processed.

Legally all employers have until the 28th day after each quarter ends to pay superannuation.

Example: Contributions for January, February and March pays would not be paid until 28 April.

Ventia pay superannuation more frequently than quarterly. We pay super monthly generally two weeks after the end of each month. For example: January contributions are paid in mid-February.

Question 38

How can I access my Income Statement if I don’t want to create a myGov account?

Craig Stump · Accepted Answer

It is not compulsory to have a myGov account.

If you don’t create one you will need to contact the ATO to get a copy of your income statement after 31 July 2019.

If you call before that date your information may not be finalised. You can phone the ATO on 13 28 61 for this information.

Question 39

What if I don’t have a myGov account?

Craig Stump · Accepted Answer

A myGov account is easy to set up, you will just need an email address to create your account. Watch this video for a how-to guide Alternatively, you can go directly to my.gov.au, select ‘create an account’ at the bottom of the screen and follow the instructions. Once your myGov account is set up, you can link it to ATO online services.

Question 40

When will I be able to access my income statement or payment summary through myGov to complete my tax return?

Craig Stump · Accepted Answer

Although you will be able to view your year-to-date information from 31 May 2019, employers have until 31 July to finalise your income statements.

Check your MyGov account after 31 July for your 2018/19 income statement.

Once this is complete you will be able to lodge your tax return.

Question 41

What is an income statement?

Annie Petersson · Accepted Answer

Your income statement will show your financial year-to-date salary and wages, the tax that has been withheld and your employer super reported amounts.

This information will be updated each time Ventia pays you. This is similar to the information you would normally see on your payslip.

After the end of each financial year, your income statement will have the information you need to prepare your tax return. This is the equivalent of your annual payment summary.

Some people may still call this a group certificate.

Question 42

Will I receive a payment summary from Ventia at the end of this financial year (1 July 2018 to 30 June 2019)?

Annie Petersson · Accepted Answer

Ventia will not be providing employees with a payment summary at end of this financial year.

Instead, 2018/19 payment summary information will be available on the myGov website and will now be called an income statement.

The ATO will send a notification to your myGov inbox when your income statement is ‘tax ready’ so you or your tax agent can complete your tax return.

Employers have until 31 July to confirm employee details are tax ready, however this is likely to be available sooner.

We will keep you posted.

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