Employee Benefits in Australia 2017

Table of Contents

1 EXECUTIVE SUMMARY 2

2 INTRODUCTION 9

2.1 What is this Report About? 9

2.2 Definitions 9

3 COUNTRY STATISTICS 13

4 OVERVIEW OF EMPLOYEE BENEFITS IN AUSTRALIA 14

5 REGULATIONS 16

6 STATE AND COMPULSORY BENEFITS 19

6.1 Retirement Benefits 22

6.1.1 Introduction 22

6.1.2 Types of retirement plan 22

6.1.3 Eligibility 22

6.1.4 Age 23

6.1.5 Benefits 23

6.1.6 Payment options 26

6.1.7 Typical employer practice 26

6.1.8 Employee and employer contributions 27

6.1.9 Taxation 28

6.2 Death in Service 29

6.2.1 Introduction 29

6.2.2 Eligibility 29

6.2.3 Benefits 32

6.2.4 Payment options 34

6.2.5 Employee and employer contributions 34

6.2.6 Taxation 34

6.3 Long-Term Disability Benefits 35

6.3.1 Introduction 35

6.3.2 Eligibility 35

6.3.3 Benefits 38

6.3.4 Payment options 40

6.3.5 Employee and employer contributions 40

6.3.6 Taxation 40

6.4 Short-Term Sickness Benefits 41

6.4.1 Introduction 41

6.4.2 Eligibility 41

6.4.3 Benefits 42

6.4.4 Payment options 43

6.4.5 Employee and employer contributions 43

6.4.6 Taxation 44

6.5 Medical Benefits 45

6.5.1 Introduction 45

6.5.2 Eligibility 45

6.5.3 Age 45

6.5.4 Typical employer practice 47

6.5.5 Employee and employer contributions 48

6.6 Workmen’s Compensation Insurance 49

6.6.1 Introduction 49

6.6.2 Eligibility 49

6.6.3 Benefits 50

6.6.4 Payment options 51

6.6.5 Employee and employer contributions 51

6.6.6 Taxation 51

6.7 Maternity and Paternity Benefits 52

6.7.1 Introduction 52

6.7.2 Eligibility 52

6.7.3 Benefits 54

6.7.4 Payment options 55

6.7.5 Employee and employer contributions 55

6.7.6 Taxation 55

6.8 Family Benefits 57

6.8.1 Introduction 57

6.8.2 Eligibility 57

6.8.3 Benefits 58

6.8.4 Payment options 61

6.8.5 Employee and employer contributions 61

6.8.6 Taxation 61

6.9 Long-Term Care Benefits 62

6.9.1 Introduction 62

6.9.2 Eligibility 62

6.9.3 Benefits 62

6.9.4 Employee and employer contributions 63

6.10 Minimum Resources 64

6.10.1 Introduction 64

6.10.2 Eligibility 64

6.10.3 Benefits 64

6.10.4 Payment options 65

6.10.5 Taxation 65

6.11 Unemployment Benefits 66

6.11.1 Introduction 66

6.11.2 Eligibility 66

6.11.3 Benefits 67

6.11.4 Payment options 69

6.11.5 Employee and employer contributions 69

6.11.6 Taxation 69

7 PRIVATE BENEFITS 70

7.1 Retirement Benefits 71

7.2 Disability Benefits 71

7.3 Sickness Benefits 72

7.4 Medical and Health Benefits 72

7.5 Other Benefits 72

8 APPENDIX 75

8.1 Methodology 75

8.2 Contact GlobalData 75

8.3 About GlobalData 76

8.4 GlobalData’s Services 77

8.5 Disclaimer 78

List of Tables

Table 1: Insurance Industry Definitions 9

Table 2: Australia – Country Statistics 13

Table 3: Australia Retirement Benefits – Retirement Age, 2017 23

Table 4: Australia Retirement Benefits – Cash Benefits Based on Individual’s Family Status, 2017 24

Table 5: Australia Retirement Benefits – Transitional Retirement Cash Benefits Based on the Individual’s Family Status, 2017 24

Table 6: Australia Retirement Benefits – Rent Assistance Given to Individuals With No Children, 2017 25

Table 7: Australia Retirement Benefits – Rent Assistance Given to an Individual With Children, 2017 25

Table 8: Australia Retirement Benefits – Employee and Employer Contribution under Social Security 27

Table 9: Australia Retirement Benefits – Employee and Employer Contribution 27

Table 10: Australia Death Benefits – Asset Test Threshold for Full Pension, 2017 31

Table 11: Australia Death Benefits – Asset Test Limits for Part Pension, 2017 31

Table 12: Australia Death Benefits – Asset Test Limits for Part Pension, 2017 31

Table 13: Australia Death Benefits – Widow Allowance, 2017 33

Table 14: Australia Death Benefits – Widow B Pension, 2017 34

Table 15: Australia Death Benefits – Widow B Pension Transitional Rates, 2017 34

Table 16: Australia Income Test – Single Pensioners, 2017 36

Table 17: Australia Income Test – Couple Combined, Illness Separated (Couple Combined) Pensioners, 2017 36

Table 18: Australia Income Test – Single Pensioners 36

Table 19: Australia Income Test – Couple Combined, Illness Separated (Couple Combined) Pensioners 36

Table 20: Australia Disability Benefits – Cut-off Points, 2017 37

Table 21: Australia Disability Benefits – Assets Test for Disability Support Pension For Individuals Below 21 years With No Children, 2017 38

Table 22: Australia Disability Benefits – Disability Support Pension for People Aged Below or Above 21 Years of Age With Children, 2017 38

Table 23: Australia Disability Benefits – Disability Support Pension for People Aged Below 21 Years With No Children, 2017 39

Table 24: Australia Sickness Benefits – Sickness Allowance, 2017 42

Table 25: Australia Sickness Benefits – Study Payments, 2017 42

Table 26: Australia Sickness Benefits – Income Support Bonus 43

Table 27: Australia Sickness Benefits – Telephone Allowance, 2017 43

Table 28: Australia PBS Safety Net – Thresholds, 2017 47

Table 29: Australia Workmen Compensation Benefits – Employee and Employer Contributions 51

Table 30: Australia Family Benefits – Maximum Amount of Family Tax Benefit Part A, 2017 58

Table 31: Australia Family Benefits – Energy Supplement Part A, 2017 59

Table 32: Australia Family Benefits – Energy Supplement Part A, 2017 59

Table 33: Australia Family Benefits – Maximum Amount of Family Tax Benefit Part B, 2017 60

Table 34: Australia Family Benefits – Maximum Amounts of Energy Supplement Part B, 2017 60

Table 35: Australia Family Benefits – Parenting Benefits, 2017 60

Table 36: Australia Minimum Resources – Cash Benefits Paid as Youth Allowance, 2017 64

Table 37: Australia Minimum Resources – Cash Benefits Paid as New start Allowance, 2017 65

Table 38: Australia Unemployment Benefits – Cash Benefits for New start Allowance 67

Table 39: Australia Unemployment Benefits – Cash Benefits for Youth Allowance, 2017 68

Table 40: Australia Unemployment Benefits – Cash Benefits at Special Payment Rates 68

Table 41: Australia Unemployment Benefits – Parenting Single Payment 68

Table 42: Australia Private Retirement Benefits – Level of Insurance 70

Table 43: Australia Private Retirement Benefits – Preservation Age 71

List of Figures

Figure 1: Australia – Main Institutions of Social Security System 19