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Accessing your superannuation

Posted on October 27, 2016 by admin

Australians are required to meet a condition of release under superannuation law before they are allowed to cash preserved benefits, restricted non-preserved benefits or access any of their super.

Some conditions of release restrict the form of the benefit or the amount of benefit that can be paid. These are known as ‘cashing restrictions’.

The most common conditions of release for paying benefits are that the member:

  • has reached their preservation age and retires

  • has reached their preservation age and begins a transition-to-retirement income stream

  • ceases an employment arrangement on or after the age of 60

  • is 65 years of age (even if they haven’t retired)

  • has died

Retirement is a condition of release however, depending on a person’s age, they must have stopped working, intend not to work again and have reached their preservation age. Upon the death of a member, their super will be released to their beneficiaries.

Less common conditions of release can apply in particular circumstances. Specific rules apply to the payment of these benefits. In special circumstances at least part of a member’s super benefits can be released before the member has reached preservation age. These are:

  • terminating gainful employment

  • permanent incapacity

  • temporary incapacity

  • severe financial hardship

  • compassionate grounds

  • terminal medical condition

Payments of benefits to members who have not met a condition of release are not treated as super benefits – instead, they are taxed as ordinary income at the member’s marginal tax rate.

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Tips for incorporating career mentoring into your business

Posted on February 28, 2020 by admin

A career mentorship program involves partnerships between employees to develop professional skills and gain industry knowledge. Due to their requirement for a collaborative effort, career mentoring programs are often seen as powerful development tools for cultivating both leaders and employees within a business.

Whether you are a small business owner or a multinational corporate leader, the implementation of a mentorship program will always be profitable for businesses as not only does it create a harmonious workplace culture, it also helps to attract and retain employees.

As straight-forward as career mentoring sounds, there are a few key tips to keep in mind when building a mentorship program for your business:

Make sure your mentoring program is clearly defined:
To create a successful mentoring program, both mentors and mentees should have a concise understanding of their roles and what they would like to gain from the mentorship. By succinctly outlining the purpose of the mentoring program, mentors and mentees are more likely to keep organised and communicate respectfully with the guarantee of mutual rewards.

There should also be short-term and long-term goals established for all parties involved, including the business. These goals could be the narrowing of particular skill gaps or creating a more open workplace culture. By having these goals set in stone, both mentors and mentees and have a clear direction to work towards.

Personalise the match-making process:
Often times, businesses will match a mentor and mentee together depending on their skill-set and position within the company. While on paper, this may appear to be an efficient process, but the lack of chemistry between a mentor and mentee may prove to be devastating for the workplace environment.

As a result, be sure to involve both mentors and mentees in the match-making process and take into account personality traits. You could do this by asking employees to take a personality test to ensure compatibility in career goals, personal interests and preferred communication methods.

Be involved as a third-party:
Lastly, it is the responsibility of the business to check-in on the progress of mentorship programs in order to understand how mentors and mentees can grow together and what improvements can be made to the program. Remember to always refer back to the long-term goals established and consider the feedback provided by mentors and mentees from the program.

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