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Tax file numbers – new employer obligations

New rules expected from 1 July 2007 will make it even more important for super funds to have member tax file numbers (TFNs) on record – and you’ll have new obligations to satisfy too.

It has always been important for members to provide their TFN to their super fund. From 1 July this year, there will be further ramifications for members whose funds don’t have their TFN:

• They won’t be allowed to make any after-tax contributions from 1 July 2007.
• Taxable contributions to the member’s super (ie employer SG and any salary sacrifice contributions) will be taxed at 46.5%, compared with the current rate of 15%. A $1,000 threshold will apply to members who joined the fund before 1 July 2007 – the tax will not apply to the first $1,000 of their taxable contributions.

To minimise the number of members falling ‘victim’ to these rules, the Government is imposing new obligations on employers from 1 July 2007.

Your new obligations from 1 July 2007

Currently, you can only forward an employee’s TFN to the super fund if the employee gives their approval on their TFN Declaration form (which they complete on starting employment). From 1 July 2007, where an employee quotes a TFN for employment purposes, it will automatically be taken as quoted for superannuation purposes and you will need to forward the TFN to the employee’s super fund – generally within 14 days. The Simplified Super fact sheet outlines the new rules and how the Government plans to roll them out.

We’re doing our bit

The February 2007 issue of Directions for members, which is being mailed out this week, advises members of the importance of providing their TFN. Members for whom we have no TFN on record will also receive a TFN notification for completion and return.

Making the most of the Budget changes

The lead article in Directions for members outlines the opportunities they may have as a result of the Budget changes coming in from 1 July 2007. You might find the article useful too.

Aon Master Trust scores top awards from SuperRatings and Heron

	A rising star in 05, solid gold in 06 and now platinum in 07 – the Aon Master Trust is always improving and offering you more. SuperRatings, an independent agency reviewing Australia’s major funds, has awarded us its top Platinum rating for 2006/07. The review process covers fees, investment returns, member benefits, website access and features, super advice and fund governance.
	Five stars for the second year running. Independent research firm, The Heron Partnership, has once again awarded us their ‘outstanding’ five star rating. This award recognises Aon’s excellence in superannuation investment, insurance, ancillary benefits and communications.

Salary sacrifice: a must-have for your employees?

Many employees are now looking to salary sacrifice as a tax-effective way to boost their super savings. Making super contributions from their before-tax pay means they’re investing a larger sum of money (which helps their super to grow faster) and paying less income tax (so they have more take-home pay).

And salary sacrificing could soon become even more attractive. Assuming the Budget changes come in from 1 July 2007, super may be an even more tax-effective way to save for many people. You may find more and more employees asking you if they can salary sacrifice into super.

Need a form? If you currently offer salary sacrifice to your employees, or are thinking of introducing this option, you’ll need a form for the employee to complete. Here’s a sample contributions form that you can adapt for your workplace.

Posters for your workplace

We’ve developed a suite of posters reminding members of the Aon Master Trust’s features and benefits, and including our contact details if they have any questions about their super. Feel free to download a poster (poster1, poster2) and use it in your workplace.

It’s easier to get around

If you’re a regular user of our online services, you may be interested to know that we’ve added links direct to the Aon Master Trust website homepage as well as to the employer forms and services pages. So if you want to browse the latest news, grab a form or check on the services available to you, just click on the link and you’ll go straight there.

For feedback, questions or more information…

• contact your Account Manager, or
• call us on 1300 880 588, or
• email us

Disclaimer

The information in this document is general in nature. Your personal objectives, needs or general situations were not taken into account when preparing this information. You should consider the appropriateness of any general advice before acting on it, having regard to your own objectives, financial situation and needs. If the information relates to a financial product, you should obtain and consider the relevant Product Disclosure Statement before making any decision to purchase that financial product.

Depending on the terms of the particular Plan, the Trustee may receive remuneration in respect of the superannuation interests that it issues. For providing personal advice that results in the issue of an interest in the Aon Master Trust, Aon Consulting Pty Limited may receive remuneration from the Trustee. Employees and directors of Aon Consulting Pty Limited are remunerated by way of salary, but may receive bonuses based on the quality and amount of services provided.

This document has been prepared by Aon Consulting Pty Limited (ABN 48 002 288 646, AFSL 236667) a related body corporate of the trustee of the Aon Master Trust (RSE R1000566), Aon Superannuation Pty Limited (AFSL 237465, RSE L0000437). This is a relationship that might reasonably be expected to be capable of influencing Aon Consulting Pty Limited when the company provides financial product advice to clients in respect of the Aon Master Trust.