If you’re changing jobs, you should read this.
If you’re changing jobs, you should read this.

Changing jobs often sits up the top of the list of stressful life events along with moving house, death in the family, illness or divorce. Human beings are generally not designed well to regularly make huge changes like a job change in life, and so many of us stay in jobs for years and years. It can be a confusing time when you do decide to finally make the leap to work somewhere else, but there are a few key things that you can do to make this transition happen smoothly.

> Assuming that you’ll be getting a pay rise when you change jobs, you should check your Income Protection insurance against your new salary to make sure the benefit matches up. Generally, if you have Agreed Value insurances (i.e. are insured for a specific amount per month) you will need to apply to your insurer to increase this. Insurers will be keen to see proof of your salary before they give you an uplift, and they may even want you to wait a while before they offer an increased benefit. Have your independent financial adviser check with your insurer if you aren’t sure.

> Remember to let your employer know the details of your super fund. If you do not have an Enterprise Bargaining Agreement (EBA) and have what’s known as ‘Choice of Fund’, you should provide your new employer know details such as:

– Name of Fund

– A letter of compliance

– Details of how they can contribute (including your policy number)

If you are employed within certain government sectors or an industry such as health or construction you may not have superannuation choice. In this case it’s best to speak with your financial adviser as to what you can do with your previous superannuation account.

> Don’t forget your salary sacrifice arrangements. If you salary sacrificed something in your old job (car, super, insurance, computer, etc) don’t forget to either speak to your new HR person about whether you can continue this arrangement, or if you should setup post-tax debits to continue to make these payments. Stopping your superannuation salary sacrifice, for instance, can make a huge difference in your balance at the end of your working life.

> Check your payslip. Sometimes employers can make mistakes, particularly if they are paying allowances, entitlements or your contract contains anything but normal terms and conditions. There is good information and calculators available on the ATO website, or you can check with a Chartered Accountant should your structures be more complicated.

 Changing jobs can be an exciting and busy time. It’s a good time to consider any questions you might have about your pay, superannuation and general financial well-being. It’s important that you don’t just rely on your employer to get the details right, and a good Accountant or Independent Financial Adviser can help you with this. If you would like to speak to an Adviser, feel free to contact us here or on (03) 9999 7200.

Disclaimer: The information on this site is of a general nature only. This is not a recommendation or endorsement of any product or investment. It does not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements before making any financial decisions or consult the advice of an accountant or financial adviser.

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