Do I earn interest on my entitlements?
No interest is paid to any member. The earnings on funds invested are firstly used to cover the cost of running the Fund and any remainder is used to fund services that are considered beneficial to the construction industry. There are tax considerations that would have to be addressed if interest were to be paid on members balances.
Are any fees taken from my entitlements?
No fees are charged to you or your employer. All operating costs are paid for from earnings on funds invested.
When am I entitled to make a claim?
You can make a claim for your entitlements if at the time of making the claim you have been terminated from your employment and have no future offer of employment within the building and construction industry.
How do I make a claim?
There are two ways you can make a claim. Either come into the office and complete the necessary paperwork or download it from the web site, complete the paperwork and mail the originals to ReddiFund. Once all the necessary paperwork is completed correctly the funds will be deposited into your nominated bank account, in some instances this can be within 48 hours. Every claim must be accompanied by the following documents:
- Your 9 digit Tax File number
- Your bank account details, accompanied by a bank statement
- Separation Certificate or Letter of Termination from your last employer (we will not be able to process your claim until we receive written notification of your termination date from your last employer within the building and construction industry)
- Certified copy of a current Government Issued Photo ID (for example Drivers Licence, Passport)
- Statutory Declaration and your signature witnessed by an authorised witness.
Can I claim straight away if I receive a letter of termination from my employer?
The straight answer to this question depends on the termination date on the letter. Generally speaking, it follows logically that a declaration date must always be on or after the termination date.
How much tax do I have to pay?
All payments made by ReddiFund is treated as an Employment Termination Payment (ETP) and is taxed at 32 cents in the dollar. If you are over the Preservation Age, then it will be taxed at 17 cents in the dollar. These rates apply provided you make a claim within 12 months of becoming entitled to make a claim. If you make a claim past 12 months since you became eligible to make the claim, the payment is required to be taxed at the marginal rate of 40 cents in the dollar. If you have made a claim for any entitlements during the year, in July of the following tax year you will receive a Payment Summary which you must include when completing your Income Tax return.
What is my Preservation Age?
The Preservation Age of each individual is dependent on their date of birth. If you are unsure, you can always ring us during office hours to check.
What happens if my employer is not paying my redundancy contributions into the Fund?
When we become aware that an employer is in default of their obligations we will contact them and try to recover any outstanding entitlements. We have the power under the trust deed to take legal action to recover any entitlements that are outstanding.