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Get Ready Early - Fringe Benefits Tax (FBT) 2022

It’s that time of year again: time to think about your Fringe Benefits Tax (FBT) return. Employers must lodge an FBT return if they’ve provided fringe benefits to any employees or associates during the FBT year. With the FBT year ending 31 March 2022, you’ll n.....

Super - 3 min read

Corporate super funds are superannuation funds available to employees of a particular corporation. In some cases, corporate super funds can be made available to ex-employees or even relatives of current employees. Under current Australian law, employers have to offer a default superannuation fund option for employees so workers have the option between using their own super fund or the corporate super fund. 

Offering a corporate super fund has its pros and cons for businesses.

 

Benefits of Corporate Super Funds

The best talent in your industry can be highly selective about who they work for. As they shop around for the best place to work, they do pay close attention to salaries, but they also look at benefits. A great corporate super fund is beneficial to your employees and it can be a tool for attracting good talent.

Depending on the size of your business, your corporate super fund may have some attractive benefits. For instance, a large business may be able to negotiate lower fees than are possible for personal super funds. Lower fees can mean higher balances and more growth in the long run. 

Many corporate super funds offer a default level of automatic life and TPD insurance. Some funds even include income protection without medical underwriting, and this benefit usually stays with employees as long as they’re employed by you. 

Additionally, corporate super funds often offer ancillary benefits such as discounted gym memberships, reduced movie tickets, health and travel insurance discounts and many more.

 

Disadvantages of Corporate Super Funds

Most corporate super funds are only available to people working for the business. When your employees stop working for your business, they’re no longer eligible to participate in the fund. 

Therefore, corporate super funds may not be the first choice of employees who don’t plan on staying in one place for long. When they move to a new company, they may lose any fee discounts they’re enjoying, and their accounts will automatically be moved into the personal or retail division, which may not carry the same benefits.

As for disadvantages to you as the employer, it can initially take time and resources to provide a corporate super fund with the investment choices and benefits that are most advantageous to your employees. Fortunately, you can turn much of this work over to advisers. 

 

Is a Corporate Super Fund Right for Your Business?

Offering a corporate super fund to your employees can help you to improve your benefits package and attract enviable talent. It can be an effective selling point as you pitch your business to employees you want to hire. It can also help you to retain employees who might be thinking of seeking other opportunities. 

If you’re thinking of changing your corporate super adviser to get better advice for your employees, reach out to us at Altus Financial.

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