Councillors' super
Councillors' superannuation arrangements are different to other members. You should consider the Accumulation Benefits Fund, Retained Benefit account & Spouse account PDS and Supplementary PDS for councillors in deciding whether to acquire, or continue to hold, this product.
Councillors are generally not regarded as employees for taxation and superannuation purposes. As such, a council is generally not obliged to pay superannuation contributions. However, if a council resolves unanimously to be an 'eligible local governing body' under the Tax Act, councillors are regarded as employees and superannuation guarantee contributions must be paid.
For other councils, it is up to each council to decide whether it will match superannuation contributions for its councillors. These contributions can be made to LGsuper or another fund. It is up to each councillor to decide whether to contribute or not. If they choose not to contribute, council will not make contributions.
Under advice from the ATO dated 13 August 2007, councillors may sacrifice part of their remuneration into super. As councillors are not employed by councils, they may qualify for a tax deduction on any standard member contributions or voluntary contributions they make, providing the income they receive from employment is no more than 10% of their total employment.
