HRS - Fringe Benefits
12 May 2017
Notice of change from Maxxia
Applicable to: Pastors
The Lutheran Church of Australia (LCA) has engaged Maxxia to provide fringe benefit financial services for all eligible people under the LCA Human Resource System (HRS) banner. Currently this is provided by way of regular payments (including any mortgage payments) and the provision of an ANZ Visa debit card for the remaining balances.
The Australian Government through the Reserve Bank of Australia have tightened up the rules around provision of salary sacrifice (fringe benefits) financial services using card programs and the disclosures and transparency rules around them.
As a result the ANZ have advised Maxxia that they will no longer provide their debit card facilities for use in fringe benefit services. The ANZ have been offsetting the cost of the cards against the transaction commissions that are paid by the vendors. This in turn has resulted in the appearance that the ANZ have provided the cards for 'free'. With ANZ ceasing their provision of debit and prepaid cards to salary packaging industry Maxxia have had to source a new card provider.
Maxxia is now working with a company called EML to provide these services. EML’s subsidiary, Heritage Bank will issue the new cards and hold the monies.
What does this mean for you?
- The ANZ cards will stop working on 30 June 2017.
- New cards will be issued in June - there will be no application process for this.
- No further 'Know your customer' process required; thus eliminating cumbersome identification processes, except where the balance is over $5000.
Transfer of available balances from ANZ to EML on 1 July 2017
- Introduction of a customer discount partnership program offering real discounts of everyday purchases.
- The ability to view real time balances and transactions information via an updated Maxxia app.
- Tap and Go Visa pay wave technology to be introduced.
- Additional charge based on $1.84 per benefit. This amounts to $2.03 per fortnight after as the fee is tax deductible.
Please click here for access to the Maxxia process diagram.
Please click here for FAQs.
We believe that the solutions proposed by Maxxia are the best options for the LCA and associated entities at this point in time. We review these services regularly and monitor the costs and benefits to ensure that we continue to have the best possible solution for the needs of the LCA community as a whole. We believe that the enhanced benefits to individuals through EML and Heritage Bank will add significant value the new card and packaging arrangements compared to the old ANZ cards.
We will be working with Maxxia to ensure a smooth as possible transition but please let us know if you are experiencing challenges with the transition process as outlined by Maxxia.
LCA Human Resource System
1300 LUTHER (1300 588 437)
hrs@lca.org.au