Omar Bennett
PSSap is the super fund for current and former Australian government employees. It was established on 1 July 2005 and is an accumulation scheme. Constitutionally protected funds (CPFs) are untaxed superannuation funds that do not pay income tax on contributions or earnings. Some state governments operate CPFs funds for their employees. Funds created for members of the judiciary are also often CPFs. So, is PSSap a constitutionally protected fund?
| Characteristics | Values |
|---|---|
| What is PSSAP? | PSSAP is the super fund for current and former Australian government employees. |
| What are Constitutionally Protected Funds (CPFs)? | CPFs are untaxed superannuation funds that do not pay income tax on contributions or earnings. |
| Who has CPFs? | Some state governments operate CPFs funds for their employees. Funds created for members of the judiciary are also often CPFs. |
| Are PSSAPs CPFs? | No, PSSAPs are taxed. |
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What You'll Learn
PSSap is a super fund for current and former Australian government employees
PSSap is one of several super funds for Australian government employees, including CSS, PSS, DFRDB and MilitarySuper (MSBS). These funds are defined benefit funds, which means they are closed to new members.
PSSap is a constitutionally protected fund (CPF). CPFs are untaxed superannuation funds that do not pay income tax on contributions or earnings. Some state governments operate CPFs for their employees, and funds created for members of the judiciary are also often CPFs. Under the Australian constitution, state government assets cannot be taxed by the Commonwealth, so different tax arrangements apply to concessional contributions to CPFs.
Before 1 July 2017, concessional contributions made to a constitutionally protected taxed fund did not count towards an individual's concessional contributions cap. From 1 July 2017, concessional contributions made to CPFs count towards a member's concessional contributions cap, which is $27,500 in 2022/23.
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PSSap is an accumulation scheme
PSSap is not a constitutionally protected fund, as these are untaxed superannuation funds that do not pay income tax on contributions or earnings. Some state governments operate CPFs for their employees, and funds created for members of the judiciary are also often CPFs. Under the Australian constitution, state government assets cannot be taxed by the Commonwealth, so different arrangements apply to concessional contributions to CPFs.
PSSap is a defined benefit fund, which means that it is closed to new members. Other defined benefit funds include CSS, DFRDB, and MilitarySuper (MSBS).
Defined benefit funds offer a range of benefits to members, including life insurance and death and invalidity benefits. These benefits can provide financial security in the event of illness, injury, or death.
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PSSap is not a concessional contributions fund
PSSap is the super fund for current and former Australian government employees. It was established on 1 July 2005 and is an accumulation scheme. It is not a concessional contributions fund.
PSSap is not a concessionally-taxed fund, meaning that contributions made to it are taxed. This is in contrast to concessionally-taxed funds, which are untaxed superannuation funds that do not pay income tax on contributions or earnings.
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PSSap is not a defined benefit fund
PSSap is the super fund for current and former Australian government employees. It is an accumulation scheme, not a defined benefit fund. Defined benefit funds are closed to new members. Constitutionally protected funds (CPFs) are untaxed superannuation funds that do not pay income tax on contributions or earnings. Some state governments operate CPFs for their employees. Funds created for members of the judiciary are also often CPFs. Under the Australian constitution, state government assets cannot be taxed by the Commonwealth, so different arrangements apply to concessional contributions to CPFs.
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PSSap is not a taxed fund
PSSap is a super fund for current and former Australian government employees. It is a fully funded taxed superannuation fund, with each Commonwealth employer agency paying 15.4% of the member's salary into the PSSap.
PSSap members are not required to contribute to this superannuation fund, but they have the option to make after-tax contributions through deductions from pay or by salary sacrificing from pre-tax salary. They can also make before-tax contributions.
PSSap is not a constitutionally protected fund. Constitutionally protected funds (CPFs) are untaxed superannuation funds that do not pay income tax on contributions or earnings. Some state governments operate CPFs funds for their employees. Funds created for members of the judiciary are also often CPFs. Under the Australian constitution, state government assets cannot be taxed by the Commonwealth, so different arrangements apply to concessional contributions to CPFs.
Before 1 July 2017, concessional contributions made to a constitutionally protected taxed fund did not count towards an individual's concessional contributions cap. From 1 July 2017, concessional contributions made (and certain other amounts allocated for interests) in CPFs, and unfunded defined benefit funds will count towards a member's concessional contributions cap.
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Frequently asked questions
PSSap is the super fund for current and former Australian government employees.
Yes, PSSap is a constitutionally protected fund. Constitutionally protected funds (CPFs) are untaxed superannuation funds that do not pay income tax on contributions or earnings.
PSSap members benefit from not paying income tax on contributions or earnings.
Yes, some state governments operate CPFs for their employees. Funds created for members of the judiciary are also often CPFs.
