Depending on your income, salary sacrifice can be a tax-effective way to grow your super, on top of your employer’s regular Superannuation Guarantee contributions.
Salary sacrifice is an arrangement between you and your employer to make an additional contribution to your super from your before-tax pay.
Salary sacrifice is generally only tax-effective for people with middle to high incomes, earning more than $45,000 per year (as at 2021/22).
As a Master Electricians Australia (MEA) member, you can put the energy into your super with Energy Super, the leading industry super fund for people who work in the energy industry.
As an Energy Super member, you’ll benefit from:
Energy Super’s indirect administration fees were reduced in 2019, to provide members with the following benefits:
For help or further information, please contact the Energy Super Contact Centre on 1300 436 374, or speak to John Curtin, MEA’s dedicated Fund Development Manager, on 0429 538 028.
*Subject to meeting eligibility requirements, please see the Energy Super Insurance Guide for more information.
The information above is of a general nature only and does not consider your individual circumstances. MEA does not provide financial or tax advice. Always consult with your accountant.
On 1 July 2022, various changes to superannuation will come into effect that could benefit many of our members.
We’ve summarised some of the key changes and what they could mean for you below. For the full list of changes impacting your employees on 1 July, visit here.
The Superannuation Guarantee rate is scheduled to increase to 10.5% on 1 July 2022. This is the minimum percentage of a person’s salary (ordinary time earnings) that their employer must pay into their superannuation.
Last year, the Government increased the Superannuation Guarantee to 10% on 1 July 2021, as part of its long-term plan to increase the rate to 12% by 2025.
Higher contribution arrangements for eligible employees (as part of an enterprise agreement) are not expected to change on 1 July 2022.
The $450 monthly income threshold for employer contributions will be removed on 1 July 2022.
Removing the minimum threshold would give more opportunities to low-income workers, or people working with multiple employers, to grow their super.
Under this change, employers must pay the Superannuation Guarantee to employees who earn less than $450 per month. This means that all employees will be entitled to employer contributions into their super, regardless of how much they earn.
If you would like to discuss how these changes might affect you or your employees, our team of superannuation specialists and financial advisers can help you.
To speak with a superannuation specialist email firstname.lastname@example.org or call us on 1300 436 374 to discuss the type of appointment that would suit you best.
* ESI Financial Services Pty Ltd (ESI Financial Services, ABN 93 101 428 782) (AFSL 224952) is a wholly owned entity of LGIAsuper. ESI Financial Services has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514 to facilitate the provision of financial advice to members of LGIAsuper. LGIAsuper Financial Advisers are Authorised Representatives of IFS. In limited circumstances, a LGIAsuper Financial Adviser may also be an Authorised Representative of ESI Financial Services. Additionally, LGIAsuper has also engaged Link Advice Pty Limited ABN 36 105 811 336, AFSL 258145 to provide LGIAsuper members with access to limited personal advice over the phone in respect to LGIAsuper and Energy Super products.
This article has been produced by LGIAsuper Trustee (ABN 94 085 088 484, AFS 230511) as trustee for LGIAsuper (ABN 23 053 121 564) and may contain general advice, which has been prepared without taking into account your objectives, financial situation or needs. As such, you should consider the appropriateness of the advice to your objectives, financial situation and needs before acting on the advice. You should also obtain and consider the Product Disclosure Statement (PDS) for your account before making any decision to acquire or contribute additional amounts to your LGIAsuper account – available to download at https://energysuper.com.au/pds or call us on 1300 436 374 to request a copy. This email contains information that is up to date at the time of publishing. Some of the information may change following its release. Any questions can be referred to Energy Super (as part of LGIAsuper) by calling us on 1300 436 374 or by emailing us at email@example.com .
With February proving to be another tumultuous month for Australia’s superannuation industry, Chief Investment Officer (CIO) Mark Rider has advised Energy Super and LGIAsuper members to be aware of their risk profile and consider the long-term impacts of their investment decisions before making snap decisions to switch.
To help Energy Super members understand how the current market impacts their superannuation, Mark has compiled this month’s market update. Members can also make use of the fund’s complimentary personal advice on a single topic related to their superannuation or a 30-minute Super Health Check, at no additional cost.
From 1 November 2021, employers will be required to meet new Your Future, Your Super legislative requirements known as
‘stapling’ or ‘stapled fund’ for any new employees after this date. Here is a summary of the requirements:
View Energy Super’s Stapling Fact Sheet here to find out more about the ATO requirements, and how you can prepare for this important change when hiring new employees from 1 November 2021 onwards.
As we continue through 2021 and into the new financial year 21-22, there’s never been a better time to check in on your super account, and make sure you’re across some of the new updates and changes.
Concessional & non-concessional cap
Concessional and non-concessional caps have increased from 1 July 2021. The new financial year brings an increased threshold to the concessional cap, which will now sit at $27,500 (a $2,500 increase). This is in addition to any unused concessional cap amounts accrued since 1 July 2018 if applicable. The non-concessional cap has increased to $110,000 (a $10,000 increase), and the cut-off age for being able to bring forward up to three years’ worth of non-concessional contributions in a single year (if eligible) has increased from 65 to 67 years.
Super Guarantee Increase
As of the 1 July 2021, there has been an increase in the Super Guarantee (SG) to 10%. This applies to most employees earning over the current threshold of $450 per month. This is a 0.5% increase from the current 9.5% and is a part of the Super Guarantee increase which is set to progressively rise to 12% by 2025.
If you have any questions about navigating any of the new financial year updates reach out to the friendly team at Energy Super on 1300 436 374 – we’re here to help!
Before making an investment decision you should consider the PDS and whether the Fund is right for you. If you need assistance, talk to one of our financial advisers. Any information or advice included in this message is provided by ESI Financial Services Pty Ltd (ABN 93 101 428 782) (AFSL 224952) a wholly owned entity of LGIAsuper (ABN 23 053 121 564) (RSE R1000160). LGIAsuper Trustee (ABN 94 085 088 484) (AFSL 230511) as trustee for LGIAsuper.
While all due care and diligence has been taken in the preparation of this document, the Trustee reserves the right to correct errors or omissions. Information in this document is current as at 1 July 2021. Prepared and issued by LGIAsuper Trustee (ABN 94 085 088 484) (AFSL 230511) (the Trustee), as trustee for LGIAsuper (ABN 23 053 121 564) (RSE R1000160) (the Fund). A Product Disclosure Statement (PDS) is available from energysuper.com.au or by calling 1300 436 374.
There’s plenty to consider when trying to get your finances in order and often it is left on the ‘to do’ list and you never get to it due to other commitments and pressures that get in the way day-to-day.
There are a lot of questions that you may have, should I pay off the mortgage? Should I put money into super? When can I do those renovations? How old will I be when can I stop work and how can I afford the children’s education?
Good financial advice will help answer all these questions by mapping out your goals, where you are today and where you would like to be in the future, especially when it comes to retirement.
Retirement is the main trigger for most people to review their super and seek help, but by then it may be too late.
Do you know how much super you will have when you retire? Will it be enough? According to Association of Superannuation Funds of Australia’s Retirement Standard, to have a ‘comfortable’ retirement, single people will need $545,000 and couples will need $640,000 in retirement savings^.
So, the earlier to start to reflect on what your retirement looks like for you, the more control you may have on what that looks like in the future.
Everyone’s financial journey is unique, so individual professional guidance can give you the knowledge you need to make confident choices to help you live the life you want in retirement.
Think about all the other plans and milestones you achieve throughout your life. You invest in the maintenance of your car, your wedding, your children’s education and your home, so why not invest in your future retirement?
For many, retirement seems a long way off, but we often hear our members say it goes so quickly and it is here before you know it!
Energy Super offers a wealth of experienced financial advisers* to help you plan for the future. We can be flexible and meet with your directly with many of our advisers located regionally and easy to access when it suits you. We’re the industry super fund that’s super personal. That’s why we talk to almost half our members every year.
We get to know you, what your financial circumstances are and then determine what your plans are for the future. We then work with you to develop your plan and assist you every step of the way to help you meet your goals. It’s not just advice, we help you put it into action, taking the stress out of your plans for your money and ultimately your retirement.
So don’t wait until it’s time to retire, take time review your financial situation early.
Your happiness in retirement is a small price to pay and remember you only retire once so make it count!
If you’d like some personalised expert advice about your Energy Super over the phone you can access our Single Issue Advice service at no extra cost to you or you can speak to one of our Financial Advisers*. Book an appointment or call us on 1300 436 374 between 8am to 6pm (AEST) Monday to Friday.
*Energy Super offers financial advice through ESI Financial Services (AFSL 224952), a wholly owned entity of Energy Super.
^According to Association of Superannuation Funds of Australia’s Retirement Standard, to have a ‘comfortable ‘ retirement, single people will need $545,000 in retirement savings and couples will need $640,000.
This document does not provide personal financial advice and should not be considered the sole or primary basis on which you make financial decisions. You should consider your financial situation before acting on the advice. You should also obtain and consider the Product Disclosure Statement (PDS) for more information or call us on 1300 436 374.
Electricity Supply Industry Superannuation (Qld) Ltd (ABN 30 069 634 439) (AFSL 336567) is the Trustee and issuer of Energy Super (ABN 33 761 363 685). Financial advice is provided by ESI Financial Services Pty Ltd (ABN 93 101 428 782) (AFSL 224952), a wholly owned entity of Energy Super.
At Energy Super, keeping members informed on all changes that impact them, their families and their superannuation remains top focus.
Energy Super are regularly providing updates on the COVID-19 climate and investment markets, and supporting members with mental health services.
For more information, visit Energy Super’s COVID-19 information centre here.