Home » FAQs
Redundancy Fund FAQ
1. Do I accrue any interest on my entitlements?
No. Interest is not paid on individual balances as such an action would class the Fund as a non complying Superannuation Fund and subject not only the income of the Fund to tax at 48.5 cents in the dollars but also the contributions to the same rate of tax..
2. Are any administration fees taken from my entitlements?
No administration fees are payable by either you the employee or your employer. The costs of running the Fund are deducted from the earnings of funds held in trust.
3. When am I entitled to make a claim?
To make a claim for your entitlements, you must be unemployed and have no offer of re-employment within the commercial construction industry.
The documents you will be asked to complete are legal forms and there are serious consequences for making false statements regarding your employment situation.
4. How do I make a claim?
To make a claim for your entitlements you must visit us at our office located on the 1st floor, 44 Parliament Place, West Perth. You must bring with you your 9 digit personal income tax file number, your redundancy membership card and a separation certificate from your employer if you received one. You will be required to fill in some forms and the processing of your claim will take between 2 – 4 working days once we have a written termination date from your employer and all the information asked of you.
You will receive all of the money the Fund is holding on your behalf at the time the claim is made. If further entitlements are received after you have made a claim and they relate to the period you are claiming for, another cheque will be automatically forwarded to you net tax.
5. How much tax must I pay when I make a claim?
All payments are taxed at 31.5 cents in the dollar. Subject to certain circumstances, if you are over the age of 55 and below the threshold you may be eligible to be taxed at the reduced rate of 16.5 cents in the dollar.
Early in July you will receive a Payment Summary which will include all payments received by you from the Fund, so as to enable you to complete your Income Tax Return for that year.
6. What happens if my employer is not paying my redundancy?
Twice a year in July and January you will receive a statement of your entitlements. We urge you to study the statement and if you do not see wither an employer or a work period you believe should appear, contact the office and we will investigate your query.
7. What happens to the surpluses?
In the old Fund any surpluses remaining after deducting the cost of running the Fund were distributed to the two beneficiaries. They in turn agreed that they would use any money received for the benefit of the industry. Examples of where surpluses were spent include; The MBA Training Fund, The MPA Skills Centre, The CFMEU Training Centre and the payment of insurance premiums.
With the introduction of the new No.2 Fund, there are restrictions on how surpluses may be used. So in time the Directors will decide how surpluses will be used when they become available.
8. Why do we have to pay FBT on Redundancy Contributions?
The Government changed the law in 2003 and made contributions subject to FBT. In the ensuing two years various amendments were made to the law granting relief subject to certain conditions. If you click on the Circulars to Employers tab, a full explanation of this is given there.
Mutual Benefit FAQ
1. What insurances am I entitled to?
If a workers employer is contributing to the Mutual Benefit Fund or you are a financial member of the CFMEU, you and in some instances members of your family will or may be covered for the following:
Funeral Benefit
Journey Cover
Leisure Travel
Ambulance Cover
Refer to the tab under Mutual Benefit for full details of cover and exclusions.
