In the wake of changes to the tax treatment of superannuation proposed in the Federal Budget, industry superannuation fund Tasplan is spruiking the employer benefits of offering superannuation as a salary incentive.
“Employees are likely to be far more receptive to the use of superannuation in negotiations about salary as a result of the Government’s decision to abolish the taxation of benefits on retirement after age 60,” said Tasplan general manager Neil Cassidy.
Employer options identified by Tasplan include one-off payments to superannuation for achieving targets or outstanding performance, or topping-up the 9 per cent superannuation guarantee contribution in lieu of a salary increase.
“Super is a tax effective option which has been made more attractive by the recent abolition of the superannuation surcharge and the reduced taxation and increased flexibility which will flow from the Budget announcements.”
Tasplan’s approach bears similarities to union efforts after the Government’s introduction of the co-contribution scheme in 2004. Following the launch, unions targeted employees in promoting the tax-effectiveness of funnelling more of their salary into superannuation.
