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How to build employee trust

Cultivating employee trust is a key principle of effective communication, leadership and teamwork.

A lack of employee trust can be damaging to levels of employee engagement and overall business outcomes. Here are three ways to foster employee trust and boost performance:

Be honest
Open and honest communication helps to create trust as employees are informed of any changes that affect them and what is happening in the business. Creating a transparent culture where business leaders acknowledge their shortcomings as much as their successes helps to gain employee respect and boost confidence.

Recognise efforts
Recognition of good work is a surefire way to promote trust. Acknowledging efforts, especially in public, can help motivate employees to continually strive to do better and also inspires other team members to aim high. Providing frequent recognition helps employees to feel valued and certain about their performance and therefore, more likely to stay with your business.

Encourage autonomy
Show employees they are trusted by providing them with greater autonomy in their work. Autonomy provides employees with a sense of control, responsibility and ownership over their work. High levels of autonomy are associated with higher levels of job satisfaction and motivation.

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News

Tax on super death benefits for dependants vs non-dependants

July 9, 2020

A super death benefit is the super paid after a person’s death, usually to a nominated beneficiary. These benefits are subject to different tax treatments, depending on whether the beneficiaries are dependant or non-dependant.

Superannuation death benefits will generally be received tax-free by tax dependants, who are considered to be:

Dependants will not have to pay tax on the tax-free component of their super in the event that they:

However, they will be taxed at their marginal rate if they receive a capped benefit income stream and:

Not all super death benefits are subject to tax; for non-dependants, there is a taxable portion. This component is largely made up of after-tax super contributions that the deceased member has made.

Super death benefit payments are subject to tax when:

Non-dependants must calculate how much money in the super account is a:

The amount of tax non-dependants pay will be based on their marginal tax rate, however, this amount may be reduced by tax offsets. For the taxed element of the taxable component, the effective tax rate is your marginal tax rate of 17% (whichever is lower). For the untaxed element of the taxable component, the effective tax rate is 32% or your marginal tax rate (whichever is lower).