Changes for Employee Superannuation OptionsFrom the 1st of January 2021 the law relating to employees and their choice of superannuation fund has changed.
New workplace determinations and enterprise agreements made on or after this date must now offer employees the right to choose the super fund to which you pay their compulsory super contributions. Once a new determination or agreement is in place, an employer needs to offer choice of super fund to:
Alternatively, employers can give their employee a Superannuation (super) standard choice form to complete. An employer must then pay the employee’s compulsory super to their nominated fund. If an employee doesn’t nominate a fund, an employer can continue to pay an employee’s super to the same fund previously contributed to, or into a default fund. Source: ATO – Employees now have more super choice Note: This is not the same as the legislation implemented on the 1st of July 2005, where the primary objective was to make it law to give employees the right to choose which superannuation fund will receive their employer superannuation contributions. This change is in regard to agreements made at an enterprise level between employers and employees and their union, about terms and conditions of employment. What is An Enterprise Agreement?An enterprise agreement is between one or more national system employers and their employees, as specified in the agreement. Enterprise agreements are negotiated by the parties through collective bargaining in good faith, primarily at the enterprise level. Under the Fair Work Act 2009, an enterprise can mean any kind of business, activity, project or undertaking. Enterprise agreements made on or after 1st January 2021 need to provide employees with a choice of superannuation fund. Any restrictions placed on employees’ choice of superannuation fund in enterprise agreements made on or after 1st January 2021 are not enforceable. Failure to pay superannuation into an employee’s choice of superannuation fund may result in employers having to pay superannuation charges. Source: FWO – Enterprise bargaining
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The New SME Recovery Loan Scheme will Begin as of 1st April 2021 through to 31st December 2021.With the first federal government’s SME Loan Guarantee Scheme helping over 35,000 expanding the scheme aims to support more businesses affected by the pandemic and boost the economy.
The government will now accept a higher responsibility of the guarantee, moving from a 50/50 backing with banks to the Government providing the banks with guarantee 80% of the loan. The banks will still assess the credit worthiness of applicants. Understanding the Eligibility CriteriaA business is eligible for the SME Recovery Loan Scheme if it meets the following conditions:
If your business has previously accessed a loan under the SME Guarantee Schemes you are still eligible to apply for this new extended scheme. What are The Loan Details?The loans are up to $5 million in total and can be either secured or unsecured, and for a repayment period of up to 10 years. Lenders are also able to offer a repayment holiday period of up to 24 months. The interest rate offered is determined by each lender and will generally be capped at 7.5%. If eligible, your business can use the loan for a number of purposes including:
The process is as follows:
Why Apply for the Loan Scheme?Some sectors still remain under pressure. For those businesses, the new scheme will provide targeted support and will also help to close the funding gap, giving businesses more time to recover. Participating banks are also offering loans, including overdrafts, at very low interest rates, to help bridge cash flow gaps. The Australian Banking Association provides some detail on participating banks: The Australian Banking Association – The Business Relief Package Contact us for more information - email: sally@boox.com.au |
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