What it means for you
The resolution to the Concessional Cap issue and the implementation of the EPSS is worth thousands of dollars every year, and over the course of your career, may be worth hundreds of thousands of dollars in superannuation.
The large premiums for PBRI washing through your super hit members with huge tax bills every year, denied you the opportunity to save for your retirement, and locked members out of means tested support entitlements.
Last year, over 8,000 members were hit with a tax bill, sometimes tens of thousands of dollars. This made tax time every year a complex and stressful time for members. While the reimbursement process mitigated direct loss of income the Federal Government was not willing to commit to continue the reimbursement process long-term as PBRI premiums were about to grow exponentially.
Members superannuation savings were also affected – the ATO tax notices encouraged members to withdraw money from their superannuation accounts to pay these bills. And members were discouraged from making voluntary contributions to their superannuation, because the large premiums for PBRI ate away at your concessional cap.
The reimbursement process falsely inflated your income, locking members out of means tested support entitlements like medicare levies and private health rebates, child support, childcare rebates, carers’ allowances, and reduced prescription medication costs.
It was essential that the PANSW remove PBRI premiums from your superannuation.
That is what the new Enhanced Police Support Scheme (EPSS) achieves.
Depending on your circumstances, this could represents thousands of dollars of value to you every year.
With PBRI premiums now out of your super, members can decide whether it is best for them to make voluntary contributions to their superannuation, and use the full value of the concessional cap. Depending on your circumstances, this could make you hundreds of thousands of dollars better off when you reach retirement.
Thank you to all members for your commitment and unity throughout the Fix our Super campaign, and the industrial action which brought the State and Federal Governments to the negotiating table.