Effective July 2021, Adobe contributes 10% of your salary up to A$300,000 to your super account. You may contribute additional funds through a salary sacrifice arrangement. A further increase of 0.5% per year are legislated to a target of 12% in 2025.
How much can you contribute to your super fund?
The general concessional contribution cap (CCC) will be A$27,500 for the 2021-2022 Financial Year. Concessional contributions consist of employer contributions plus salary sacrifice contributions plus personal deductible contributions plus insurance premium reimbursements.
Your personal CCC may vary depending on your carry forward contributions (from 2018-2019 financial year onwards). You can check your current CCC and carry forward CCC on ATO online services (accessed via myGov).
Any contributions paid above this amount will incur additional tax at your marginal (average) tax rate. It is your responsibility to ensure that you do not exceed this concessional cap.
If you are on a 457 visa, you can access your superannuation funds when you permanently leave Australia. However, this will be subject to the Departing Australian Superannuation Payment (DASP). This should be considered before making voluntary contributions. For further information, please visit the ATO Website.
How can you join or change super funds?
A BT Super account is opened for all new employees (unless you opt out) for the purpose of insurance coverage. There is no obligation to direct your Superannuation Guarantee Contribution (SGC) to the BT Super account and this will not affect the insurance benefit. When you join BT Super you will receive a New Member Welcome Pack with your account details and information to access your account online.
- If a new Super Choice Form is received after the payroll cutoff (typically the last day of the prior month), your contributions will be paid into your new superannuation fund in the month following. For example, if a Super Choice Form (directing Adobe to contribute superannuation into a new fund) is received on 5 April, the April contributions will be paid into your old account (or in the case of a new starter, into a new BT default account). From May onwards, the contributions will be paid into the fund as per your nomination.
- If the superannuation fund we have on our record is made inactive or closed, it is your responsibility to notify ERC of your new fund information as soon as possible. If we do not receive your new superannuation information by the payroll cut off in the following month, Adobe will make the mandatory contribution deposit into your BT Super account. It is worth noting that your existing fund may become inactive or closed in the event of a full rollover.
What benefits do I get with BT Super?
Once you have the BT account set up, you will receive online portal access details from BT, and you can update your personal details, nominate beneficiaries, and check the contribution transactions via the online portal.
BT have waived the fixed administration fees ($9/month) and Adobe pays the asset-based administration fees (0.15% per annum for MySuper (default), and 0.1% per annum for all other investment options).
In addition, you are automatically covered for the following insurances with BT super, of which the premiums are paid by Adobe:
- Life and Total & Permanent Disability (TPD) insurance based on 3 times your base salary. Please refer to the Life and TPD page for further information.
- Salary Continuance which pays 75% of your base salary for up to 2 years with a 30-day waiting period. Please refer to the Salary Continuance page for further information.
As stated above, there is no requirement for employees to contribute into the BT Super Account. If you would prefer to direct your superannuation contributions to a different superannuation fund, we suggest you consider maintaining your BT Super account in order to retain the employer-paid insurance benefits. You would also need to retain a small balance in the account; Adobe pays the insurance premiums each month following the deduction from BT Super.
How can you contribute through salary sacrifice?
How are pre-tax contributions taxed?
Contributions up to the concessional cap will be taxed at 15%, as opposed to your marginal tax rate of up to 45% plus Medicare Levy. Employees earning more than A$250,000 will also have an additional 15% tax on their contributions under division 293, unless modified by ATO.
Earnings on your superannuation investments will be taxed at a maximum of 15%.
What if you do not complete a Super Choice Form when you join Adobe?
Adobe is legally required to contribute superannuation funds in a timely manner on your behalf. If we do not receive your Super Choice Form by your first payroll cut off, we will direct your superannuation contributions into your stapled superannuation account as per the records held by the ATO.
As we open a BT super account upon you joining Adobe (for insurance purposes unless you opt out), it is likely that this is the account for which we will be requested to direct your superannuation funds to. You may elect to redirect your superannuation contributions to any superannuation fund of your choice, at any time, by completing a Standard Choice Form and returning this to the ERC.
Your investment options
When you join BT super, you will be defaulted into the BT MySuper Lifestage investment option that corresponds to the decade you were born in. This option is designed to get more conservative as you get older. You may choose an alternative investment strategy for your super investments via your BT online account.
For individuals who wish to access a larger choice of investment options, Adobe also provides employees the option to access the BT Super Invest retail product. Further information can be found in the Super Invest presentation [PDF] and Investment Options Booklet [PDF].
- The annual A$540 account-based administration fee within BT Super Invest is payable by you, the member. Adobe will continue to pay the asset-based administration fees of 0.15% per annum of your account balance (depending on your balance and investments).
- In order to be covered for Death, TPD and Salary Continuance insurance, you must retain a positive balance within the default BT superannuation account.
- The BT Super Invest account needs to be set up through Ben Chosid at BT to ensure that the fee discounts are passed on.