Training Session 13 04 02 2021 Payroll superannuation fund 3

Summary

The video script discusses the Australian superannuation system, where employees can choose their pension fund, with employers making contributions on their behalf. It emphasizes the importance of correct fund selection, as it is heavily regulated. The script also covers the Fair Work Information Statement, outlining 10 minimum workplace entitlements, including maximum weekly hours, parental leave, annual leave, and termination notice. It highlights the differences between full-time, part-time, and casual employees, ensuring viewers understand their rights and the employer's responsibilities.

Takeaways

• 📋 In Australia, employees have the right to choose their superannuation fund, which is akin to a pension fund.
• 💼 Employers are responsible for making superannuation payments on behalf of employees but must follow the fund selection indicated by the employee.
• 📝 Employees need to fill out a form specifying their chosen superannuation fund, which is crucial for payroll setup in accounting software like Xero.
• 🏦 Superannuation is a heavily regulated payment in Australia, and self-managed super funds must not provide any benefit until the pension phase.
• 🚫 Employers must ensure compliance with superannuation regulations, as it is a critical aspect of employee benefits.
• 📚 New employees are provided with a Fair Work Information Statement, outlining the national employment standards.
• 🔢 Full-time employees are entitled to a maximum of 38 hours per week, with the possibility of reasonable additional hours.
• 👶 Employees have the right to 12 months of unpaid parental or adoption leave, with the option to request an additional 12 months.
• 🏖 Full-time employees are entitled to four weeks of paid annual leave, while part-time employees receive a pro-rated amount.
• 🏥 Employees have access to paid sick leave, paid compassionate leave, and unpaid family and domestic violence leave after one year of service.
• 🏛 Casual employees have specific entitlements, which should be reviewed and understood in the context of national employment standards.

Q & A

What is a superannuation fund in Australia?

A superannuation fund in Australia is a type of pension fund where employers contribute on behalf of their employees. It is a mandatory retirement savings scheme.

How do employees choose their superannuation fund?

Employees have the right to choose which superannuation fund they want to be a part of. They can specify their choice on a superchoice form.

What is the importance of the superchoice form in the context of superannuation?

The superchoice form is crucial as it allows employees to indicate their preferred superannuation fund. Employers use this information to make contributions to the correct fund.

Why is it important for employers to correctly enter superannuation fund details in accounting software like Xero?

Correct entry is essential to ensure that the superannuation contributions are made to the right fund. Errors can lead to legal and financial issues.

What are self-managed super funds and what restrictions apply to them?

Self-managed super funds (SMSFs) are retirement savings schemes managed by the members themselves. They are strictly regulated and cannot provide any benefits until the members are in the pension phase.

What is the Fair Work Information Statement and why is it provided to employees?

The Fair Work Information Statement outlines the national employment standards, including minimum workplace entitlements. It is provided to new employees to inform them of their rights and obligations.

What are the 10 minimum workplace entitlements under the national employment standards in Australia?

The entitlements include maximum weekly hours, the right to request flexible working arrangements, parental and adoption leave, paid annual leave, paid sick and carers leave, compassionate leave, unpaid family and domestic violence leave, community service leave, long service leave, and public holidays entitlements.

What is the maximum weekly hours for a full-time employee in Australia?

The maximum weekly hours for a full-time employee in Australia is 38 hours, with the possibility of reasonable additional hours.

How does the right to request flexible working arrangements work in Australia?

Employees have the right to request flexible working arrangements, but employers are not obligated to agree. It is a negotiation process that must be in the best interest of both parties.

What is the duration of unpaid parental and adoption leave in Australia?

Unpaid parental and adoption leave in Australia is 12 months, with the right to request an additional 12 months.

What are the entitlements for casual employees as compared to full-time or part-time employees?

Casual employees have different entitlements, which can be found in the Fair Work Information Statement. It is important to review this document to understand the distinctions.

Outlines

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💼 Superannuation Fund Choices in Australia

In Australia, the concept of superannuation, akin to a pension fund, is decentralized, allowing individuals to choose their preferred superannuation fund. Employers contribute on behalf of their employees, but the employees have the autonomy to select the fund. This choice is documented on a form, which is crucial for setting up payroll in accounting software like Xero. It is emphasized that superannuation is a heavily regulated and important payment in Australia. Additionally, self-managed super funds are allowed, but they must adhere to strict regulations, particularly in terms of not deriving any benefit until the pension phase. Employers are obligated to ensure compliance with these regulations.

📋 Fair Work Information Statement Basics

The Fair Work Information Statement is a document provided to employees, outlining the national employment standards. It covers a range of minimum workplace entitlements, including a maximum of 38 hours per week for full-time employees with additional reasonable hours, the right to request flexible working arrangements, and parental and adoption leave of up to 12 months unpaid with the possibility of an extension. Paid annual leave, sick leave, and compassionate leave are also detailed, along with unpaid carers leave and family and domestic violence leave. The statement also mentions community service leave, long service leave, public holiday entitlements, notice of termination, redundancy pay, and the provision of the Fair Work Information Statement itself to new employees. This document serves as a comprehensive guide to the rights and expectations of both employees and employers in the Australian workforce.

Keywords

💡Superannuation

Superannuation, often equated with a pension fund, is a mandatory savings scheme in Australia designed to provide financial support for individuals post-retirement. In the script, it is highlighted as a significant payment that employers are required to make on behalf of their employees, with the employees having the right to choose their preferred superannuation fund. This choice is crucial as it impacts the employee's future financial security.

💡Decentralized

Decentralization in the context of superannuation funds refers to the distribution of control and management of these funds across various entities rather than being centralized under a single authority. The script mentions that in Australia, superannuation funds are decentralized, allowing for more flexibility and choice for individuals in managing their retirement savings.

💡Accounting Software

Accounting software is a tool used by businesses to manage financial transactions and records. In the video, it is mentioned that employers must accurately enter superannuation fund details into accounting software like Xero. This is essential for ensuring compliance with financial regulations and proper management of employee benefits.

💡Self-Managed Super Funds (SMSFs)

Self-Managed Super Funds are retirement savings vehicles in Australia where individuals have direct control over their investment decisions. The script emphasizes that while individuals can manage their own SMSFs, they are strictly regulated and cannot derive any personal benefit from them until they reach the pension phase, highlighting the importance of compliance in retirement planning.

💡Pension Phase

The pension phase in the context of superannuation refers to the period when individuals can start withdrawing benefits from their retirement savings. The script notes that benefits from self-managed super funds cannot be accessed until an individual enters this phase, indicating a regulatory framework designed to ensure the funds are used appropriately for retirement.

💡Fair Work Information Statement

The Fair Work Information Statement is a document provided to new employees in Australia that outlines their rights and entitlements under the national employment standards. The script mentions that this statement is given to employees to inform them of their minimum workplace entitlements, such as maximum weekly hours, paid leave, and termination notice.

💡National Employment Standards (NES)

National Employment Standards are the minimum conditions and rights that apply to all employees in Australia. The script lists the 10 minimum workplace entitlements under the NES, which include maximum weekly hours, paid annual leave, and compassionate leave, among others, emphasizing the legal framework that protects workers' rights.

💡Flexible Working Arrangements

Flexible working arrangements refer to the ability of employees to negotiate work conditions that suit their personal needs, such as flexible hours or remote work. The script explains that while employees have the right to request such arrangements, it is subject to negotiation and must be in the best interest of both the employee and the employer.

💡Parental and Adoption Leave

Parental and adoption leave are rights provided to employees in Australia for the purpose of caring for a newborn or an adopted child. The script specifies that this leave is initially 12 months unpaid, with the possibility of requesting an additional 12 months, illustrating the support for families in the workplace.

💡Paid Annual Leave

Paid annual leave is a mandatory entitlement for employees to take time off work each year with continued pay. The script mentions that full-time employees are entitled to four weeks of paid annual leave, which is a fundamental aspect of the national employment standards ensuring work-life balance.

💡Notice of Termination

Notice of termination is the formal communication given to an employee about the end of their employment. The script includes this as part of the national employment standards, indicating that employees have the right to receive notice before their employment is terminated, which is crucial for maintaining fair employment practices.

Highlights

Introduction to the concept of a superannuation fund in Australia, which is a type of pension fund.

Australian employers are required to pay into a superannuation fund on behalf of their employees, with the employees choosing the fund.

The importance of correctly identifying the superannuation fund to ensure accurate payments in accounting software like Xero.

Explanation of the strict regulations surrounding superannuation funds in Australia, including prohibition of deriving benefits until the pension phase.

Emphasis on the responsibility of employers to comply with superannuation regulations.

The necessity of a superchoice form for employees to select their preferred superannuation fund.

Introduction of the Fair Work Information Statement and its role in outlining national employment standards.

Listing of the 10 minimum workplace entitlements under the National Employment Standards.

Details on maximum weekly hours for full-time employees and provisions for reasonable additional hours.

The right of employees to request flexible working arrangements and the negotiation process involved.

Information on parental and adoption leave policies, including 12 months of unpaid leave and the option for an additional 12 months.

Details on paid annual leave, sick leave, and carers' leave entitlements for employees.

Explanation of compassionate leave and unpaid carers leave, including the conditions for their use.

Introduction of unpaid family and domestic violence leave as a new provision for employees after 12 months of service.

Details on community service leave, including jury duty and other forms of community service.

Information on long service leave and public holiday entitlements for employees.

Requirements for notice of termination, redundancy pay, and the provision of the Fair Work Information Statement to new employees.

A comparison of the employment standards for full-time, part-time, and casual employees in Australia.

Transcripts

the next thing is um you know

a superchoice form this is another part

of it in australia

um they decentralized um superannuation

funds and they said

um you know people have the right to

choose what superannuation fund that's

like the pension fund

so i'd really you know if you can write

these things down superannuation fund

equals pension fund

however you're going to remember it um

this is where we

uh are paying um every employer is

paying

uh on behalf of the employee

but they get to tell us which fund so on

this form

they're going to fill out this section

and they need to give you the

name details the fund name is usually a

number and when we're entering them in

xero or an accounting software we have

to make sure that we get the right one

i'll talk more about superannuation it's

it's a really it's a really important

payment that we have to make it's very

heavily regulated in australia

we are allowed to have our own

self-managed super funds

but we are not allowed to derive any

benefit from them

at all until we are in pension phase

so it's very strictly regulated and

it's really important that employers are

doing the right thing

so they basically have to fill this

format and this for you rely on this

form

to come to set them up in payroll

another thing that we have to give them

is this fair work

information statement it's just

something we attach and we give to them

basically it's telling them the national

employment standards

it's a minimum so i'm just going to

quickly go through these there are 10

minimum workplace entitlements in the

national employment standard that apply

to all employees

maximum weekly hours are 38 hours for a

full-time employee

plus reasonable additional hours

the right to request flexible working

arrangements but that doesn't mean that

the employer

absolutely has to um you know agree to

everything

it's a negotiation and it has to be in

the best interest of both parties

parental and adoption leave of 12 months

unpaid with the right to request

additional 12 months that's like

maternity leave or any or if you're

adopting

a maternity opportunity four weeks paid

annual leave each year pro writer if

you're a part-time employee

a total of 10 days paid sick and carers

leave each year

two days paid compassionately i will

explain these

um for each permissible occasion two

days unpaid carers leave

and then there's also unpaid family and

domestic violence leave

that has something that's um after

you've worked for 12 months

uh we have to allow them community

service leave for example if they're

called

for jury duty or they're doing some

other kind of community service

long service leave and the entitlement

is for

you to be absent on public holidays and

i'm sorry the entitlement for you to be

absent on public holidays and for you to

be paid for ordinary hours on those days

notice of termination and redundancy pay

and the right to receive this

fair work information statement if

you're a new employee so this basically

covers

the minimum requirements of hiring a

full-time or a part-time employee

down here it tells you a bit more about

casual employees um

you know so you can refer back to this

when i send it and get an idea and maybe

you know

look at it and go how how is it the same

and how is it different to

um you know to serbia just said that you

are familiar and you understand what's

happening in the background