We’re pleased to share more details on how stand down affects your compulsory member contributions as a member of Division 2.

Your Credited Service, a key component to calculating your defined benefit, will continue to accrue while you’re stood down. This means your defined benefit will also continue to grow during periods in which you’re stood down. It also means that your obligation to make your compulsory member contributions continues while you’re stood down.

As a member of Division 2, your compulsory member contributions go into a separate accumulation account called your Member Account.  These form part of your total benefit, and their contribution to your total benefit is calculated based on the amount you contribute and the relevant net investment earnings on those contributions.

During periods of stand down, these contributions can’t be deducted from your pay and credited to your Member Account. Therefore, if you don’t pay the contributions, the net result is that your final total benefit will be less than if you had made them.

As you are a Division 2 member without a minimum benefit guarantee from a former Australian Airlines plan, the defined benefit component of your benefit will not be impacted by the unpaid contributions.

You have two choices to help you satisfy your obligation:

Your options

Option 1: Request to stop making compulsory member contributions and have your benefit automatically adjusted

You can request to suspend your obligation to pay compulsory member contributions while you’re stood down. Your defined benefit will continue to grow if you choose this option, however the accumulation component of your benefit will be adjusted automatically. This is because your Member Account will not receive the contributions you have requested not to pay, or the net earnings you would have otherwise earned on those contributions.

or

Option 2: Confirm you will continue to make compulsory member contributions

If you choose this option, we’ll send you a statement detailing your unpaid compulsory member contributions and the due date by which you must pay them each quarter. Please note that if you choose this option, you are agreeing that if you don’t pay by the due date, you will be treated in accordance with Option 1; that is, you request to suspend your obligation to pay all outstanding and future compulsory member contributions while you’re stood down. That means we’ll stop sending you quarterly statements about your unpaid contributions.

How to make your choice

Please read the information below about how each option works before making your choice at the bottom of this page.

Whichever option you choose, you can pay some or all of your unpaid compulsory member contributions at any time via BPAY. You can learn more about this in the ‘How each option works’ section.

How each option works

Option 1: How requesting to suspend your compulsory contributions will impact your benefits

As a member of Division 2, your compulsory member contributions go into a separate accumulation account called your Member Account.  Their contribution to your total benefit is calculated based on the amount you contribute and the relevant net investment earnings on those contributions.

During periods of stand down, these contributions can’t be deducted from your pay and credited to your Member Account in Qantas Super.

If you request to suspend your compulsory member contributions while you’re stood down, you will not have to pay them.

Your defined benefit will continue to grow if you choose this option, however the accumulation component of your benefit will be adjusted automatically.

This is because your Member Account will not receive the contributions you have requested not to pay, or the net earnings you would have otherwise earned on those contributions.

The net result is that your final total benefit will be less than if you had made those compulsory contributions.

As a Division 2 member without a minimum benefit guarantee from a former Australian Airlines plan, the defined benefit component of your benefit will not be impacted by the unpaid contributions.

Option 2: What you need to do if you confirm you will keep paying your compulsory member contributions

If you confirm to us that you will keep paying your compulsory member contributions, it’s important that you pay them by the due date specified on your quarterly statement. As part of confirming that you will keep making those contributions, you are agreeing that if you do not make them in the time stipulated, you will be taken to have requested to have all outstanding and future compulsory member contributions suspended in accordance with Option 1.

You can pay your compulsory member contributions in two ways.

Make BPAY contributions

You can make contributions to your account via BPAY – you can find your current BPAY details by logging into your account.

These contributions are classified as voluntary contributions when you make them and go into one of your accumulation accounts. It’s important to note that the classification of these contributions as ‘voluntary’ instead of ‘compulsory’ will not affect or change the value of your total super benefit. This is because, although any voluntary and compulsory member contributions you make are credited to different accumulation accounts, all your accumulation accounts are invested in the same way.

If you make BPAY contributions, please ensure you make your payment with enough time to ensure it reaches your account by the relevant due date.

 

Salary sacrifice when you return to work

You can pay your outstanding contributions through a salary sacrifice arrangement with Payroll. You can do this by filling out the Stand Down Member Contributions Salary Sacrifice Agreement form on The Terminal, and Payroll will begin to deduct contributions from your pay when you return to work. If you choose to set up an arrangement, you must pay the pre-tax amount you have been advised you owed. If you pay this way, your unpaid contributions and any future updates will be managed by Payroll moving forward.

You do not need to be stood up at the time that you fill out the form to enter into the arrangement.

Salary sacrifice contributions, along with contributions made by your employer, are called ‘concessional contributions’. You can make up to $27,500 of concessional contributions to your super each financial year; if you exceed this limit, you may need to pay additional tax.

Frequently Asked Questions

  • What if I already made contributions via BPAY before receiving my statement from Qantas Super?

    If you have been making contributions via BPAY, these contributions were classified as voluntary contributions and added to one of your accumulation accounts.  As any voluntary contributions and compulsory member contributions you make are invested in the same way, we will consider all voluntary contributions made since 1 March 2020 as counting towards your obligation to make compulsory member contributions when we calculate how much you owe, but we will not transfer the payments from your other accumulation account to your Member Account.

    If you contributed more than you needed to cover your compulsory member contributions, we will continue to track that against any future compulsory member contributions owing that arise and put them towards those.  If you have paid less than you needed to and are continuing to pay your compulsory member contributions, then we will provide you with a statement that lets you know how much more you need to contribute.

  • What happens when I’m working and stood down intermittently?

    Qantas will automatically deduct your regular compulsory member contributions from your pay for any periods during which you’re working or taking paid leave. There will not be any extra deducted to account for your unpaid compulsory member contributions from your periods of stand down.

  • If I stop making contributions now, can I start making contributions at a later time, even if I’m still stood down?

    Yes, you can. Even if you request to have your compulsory member contributions suspended, you can make extra voluntary contributions later via BPAY.

    These contributions will be classified as voluntary contributions when you make them and go into one of your accumulation accounts. It’s important to note that as you are a member of Division 2 without a minimum benefit guarantee from a former Australian Airlines plan, the classification of these contributions as ‘voluntary’ instead of ‘compulsory’ will not affect or change the value of your total super benefit. This is because, although any voluntary and compulsory member contributions you make are credited to different accumulation accounts, all your accumulation accounts are invested in the same way.

  • If I stop making contributions, can I make extra compulsory member contributions when I’m working again?

    Yes, you can. If you have requested to have your compulsory member contributions suspended, you can make extra voluntary contributions later via BPAY or through a salary sacrifice arrangement with Qantas.

    Any contributions you make via BPAY will be classified as voluntary contributions when you make them and go into one of your accumulation accounts. It’s important to note that as you are a member of Division 2 without a minimum benefit guarantee from a former Australian Airlines plan, the classification of these contributions as ‘voluntary’ instead of ‘compulsory’ will not affect or change the value of your total super benefit. This is because, although any voluntary and compulsory member contributions you make are credited to different accumulation accounts, all your accumulation accounts are invested in the same way.

    Alternatively, you can pay your outstanding contributions through a salary sacrifice arrangement with Payroll. You can do this by filling out the Stand Down Member Contributions Salary Sacrifice Agreement form on The Terminal, and Payroll will begin to deduct contributions from your pay when you return to work. If you choose to set up an arrangement, you must pay the pre-tax amount you have been advised you owed. If you pay this way, your unpaid contributions and any future updates will be managed by Payroll moving forward.

    You do not need to be stood up at the time that you fill out the form to enter into the arrangement.

    Salary sacrifice contributions, along with contributions made by your employer, are called ‘concessional contributions’. You can make up to $27,500 of concessional contributions to your super each financial year; if you exceed this limit, you may need to pay additional tax.

  • What happens to my benefit if I have unpaid compulsory member contributions and take redundancy?

    Your compulsory member contributions go into a separate accumulation account called your Member Account. During periods of stand down, these contributions can’t be deducted from your pay and credited to your Member Account. If you don’t pay the contributions, the net result is that your redundancy benefit does not include the amount of the unpaid contributions or any earnings on those contributions. The defined benefit component of your benefit will not be impacted by the unpaid contributions.

    So as a member of Division 2 without a minimum benefit guarantee from an Australian Airlines plan, any unpaid compulsory member contributions are excluded in the calculation of your redundancy benefit as they have not been credited to your accumulation accounts (and have not received any earnings).

  • If I confirm I’ll keep paying my compulsory member contributions, how long will I have to pay them?

    For any statement we issue on or before 31 October 2021, you need to pay those contributions so that they are received by Qantas Super, or enter into an arrangement to pay them, by 30 November 2021. For statements issued after that date, we’ll generally give you at least four weeks from the date we issue your quarterly statement to pay your compulsory member contributions. If you haven’t paid them in full by then, you will be treated in accordance with Option 1; that is, you request to suspend your obligation to pay all outstanding and future compulsory member contributions while you’re stood down.

    Please ensure you make any payment with enough time to ensure it reaches your account by the due date.

     

  • What happens if I confirm I’ll keep paying my compulsory member contributions but miss a payment due date?

    If you haven’t paid them in full by then, you will be treated in accordance with Option 1; that is, you request to suspend your obligation to pay all outstanding and future compulsory member contributions while you’re stood down.

  • What's the difference between my post-tax and pre-tax amounts owing?

    Your compulsory member contributions owing are determined on a post-tax basis. However, if you choose to continue paying your contributions, you can choose to pay them on a pre-tax or post-tax basis. If you want to pay via BPAY, you must pay the post-tax amount owed. If you are back at work and want to pay via salary sacrifice, you must use the pre-tax amount owed.

    This is because salary sacrifice contributions are paid from your pre-tax salary, and are taxed at 15% when they reach your super account. This means the amount you salary sacrifice may not match up to the amount owing when it’s determined on a post-tax basis.

    For example, if you owe $500 on a post-tax basis and contribute $500 via salary sacrifice, your contribution will have $75 in tax (or 15%) deducted when it reaches your super account. That means you have only contributed $425 of your $500 owing. In order to meet the $500 owing you would need to contribute $588 on a pre-tax basis.

  • If I set up salary sacrifice, how can I make my payments by the due date?

    If you set up a salary sacrifice arrangement, your payments moving forward will be managed by Payroll, and you will no longer be bound to the due date specified on the last statement you received from Qantas Super. However, you must enter into the salary sacrifice arrangement before the due date on the last statement you received from us.

Make a choice regarding your compulsory member contributions

Complete the following form to let us know what you would like to do regarding your compulsory member contributions while you’re stood down.
  • This field is for validation purposes and should be left unchanged.

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