A WESTERN Australian- based company Financial Solutions has launched what it claims to be a one-stop financial benefits shop for small to medium-sized enterprises to provide to their employees.
Its Corporate Solutions package aims to provide employers with 20 or more full-time staff and a minimum payroll of $500,000 with access to superannuation, financial planning, personal banking, general insurance, health cover and lifestyle benefits through one provider.
Financial Solutions is owned by South Australian credit union Australian Central Credit Union.
ACCU’s general manager of wealth management Stefan Lipkiewics said Financial Solutions had targeted SMEs because they lacked access to this type of service.
"Traditionally this type of package has only been available to larger national businesses," he said.
"Corporate solutions enables SMEs to offer staff a super fund plus a total staff benefits package using just one provider.
"Essentially employers are able to provide more benefits without taking on any extra administrative responsibilities."
The package gives the employer the chance to use a number of superannuation platforms.
The health plan is offered through MBF, the discounted general insurance – which includes home, car and travel insurance products – is offered through CGU, the discounted banking products such as home loans are offered by ACCU and the lifestyle benefit products come from Your Advantage, a company managed by MLC.
Lifestyle benefits include things such as discounted dining, discounted furniture and the like.
Financial Solutions business development manager Eugene O’Sullivan said the company had come up with the concept after undertaking some market research of employers and employees about 18 months ago.
"The feedback from employers was that they wanted improved access to information, effective education and communication to their employees and access to quality benefits for those employees," he said.
"They wanted to have an employee benefit package to attract the best staff. Something that was a bit different.
"What the employees were looking for was improved education on things such as superannuation. About 30 per cent wanted access to individual financial planning.
"But the highest ranked benefit employees wanted was access to a corporate health plan."
However, offering a corporate health plan has proved problematic for many companies.
There are two key problems – fringe benefits tax and the question of who will be the recipient of the Federal Government’s rebate to private health insurance subscribers.
Mr O’Sullivan said Financial Solutions had not been able to get around those problems and had left it up to employers instead.
"What most companies are looking at is providing this discounted benefit package to their employees and telling their employees to pay the costs themselves," he said.
"There are some cases where the employers are looking at subsidising those costs.
"By putting the cost onto the employee, the employee then gets the benefit of the rebate."
Mr O’Sullivan said Financial Solutions would be providing the consultancy and advice part of the package out of Perth.
"We have people in South Australia and the Northern Territory through ACCU but in the main the financial planning side of the operation will be driven out of Perth," he said.
"If more specific advice is needed we can always go back to the CGUs or others that are involved with the package."
