Employee Benefits, Global
Spotlight on Australia – the global benefits tech success story
04.03.25
The next stop on our global benefits tour is Australia. Australia’s strong trade and investment relationships with the world’s fastest growing economies means they’re a natural gateway for international business, and technology is now the third largest sector contributing to Australian GDP. A dynamic, diverse and very competitive talent market means that organizations are starting to do more to recruit the best people – particularly when it comes to the employee experience and employee wellbeing.
Although the range of benefits available in Australia isn’t as wide as some other countries, there’s still a need to provide a seamless employee experience that shows the value of everything on offer, and the typical core offering has grown over the last few years. Our customers in the region use OneHub to create a single hub for employees to access superannuation, benefit information, discount portals, and wellbeing content.
Core benefits
Superannuation
Australia’s superannuation system for retirement saving is a compulsory requirement and companies must pay 11.5% of the employees’ salary into a superfund (a long-term investment fund) for employees. Employees can generally choose what fund their super is invested in, and how it is invested.
Employees can opt to contribute either on a regular or a one-off basis, with potential tax advantages. They can also make voluntary contributions – by setting up salary sacrifice with their employer or making personal contributions. However, there are caps on how much employees can contribute to their super without paying extra tax, which depends on whether contributions are made from before-tax or post-tax income and earnings.
It’s also important to note that when employees leave the company, they take their fund with them.
Medical
Although there is state provision for medical costs via the government run Medicare, more than half of Australian residents have a top up plan. Medicare doesn’t cover private treatment and there are limits to the types of treatments covered.
Health insurance is typically purchased by employees rather than via a company plan. Some employers provide an allowance or reimbursement scheme; this allows employees to choose their own cover, add family members and select options such as dental, lower deductibles, and outpatient care. In some cases, larger employers may offer a group plan, and this coverage may include things like physical therapy, dental and optical coverage.
Life insurance
This is increasingly being offered by employers, with many employees expecting it to feature in their core benefits package. Coverage is based on either the employees’ years of service or is a flat rate of three times the employee’s annual salary.
Disability insurance
Employers provide this as part of their core benefits package for selected professions and higher-grade employees, and cover is typically 75% of the employees’ annual salary.
Voluntary benefits
To create an offering that’s above the market median and gives employees greater choice, some companies are introducing a wider range of voluntary benefits, including:
- Wellbeing allowances
- Discount portals
- Car leasing
- Health screening
- Employee Assistance Program (EAP) – most employers provide access to an EAP, either on a standalone basis or on a pay-as-you-use arrangement.
- Private plans for medical and life insurance that enable employees to flex cover, including partner life cover.
Wellbeing allowances have become increasingly common over the last few years, as employees demand greater wellbeing support; our global research found that the third top factor employees now consider when choosing an employer is evidence of a strong commitment to employee wellbeing (Benifex, Expectation Exponential Research).
Benefits administration
Even in companies where headcounts are smaller, the administration savings that come with using a platform like OneHub to administer benefits are significant. Our customers are keen to deliver Superannuation selections through OneHub to provide maximum flexibility for employees, at the same time as simplifying the process – and reducing the admin burden for local benefits teams.
OneHub allows employees to select their preferred super fund, check their membership or account number, and select their regular contribution levels or make a one-off contribution to their fund.
Here’s how Benifex customer, Salesforce, …
The Salesforce success story: How Salesforce used OneHub to manage Superannuation and improve the employee experience
“Overall, our launch in Australia, Singapore, and Thailand was hugely successful. I think that because we always brought everything back to the employee experience and the user’s journey with the technology, our new system was always going to be a hit. Rolling out a global benefits platform in many territories is complex without a doubt, but when it’s an intuitive system that’s designed for both employees and admins, you can’t really miss!”
The challenge
Superannuation was Salesforce’s biggest pain point in Australia. With over 100 retirement funds to choose from, complex reporting requirements, and paper-based employee actions like selecting fund types and contribution levels, the process was both time-consuming and error-prone. Employees often struggled to navigate the options, leading to confusion and increased support queries.
The approach
Salesforce partnered with Benifex to implement OneHub and simplify the superannuation journey. By analyzing fund usage across 1,500 employees, they identified the top 10 most commonly selected funds and introduced simple dropdown menus for fund selection within the platform. They also retired internal intranet resources and redirected employees to the new centralized platform, encouraging self-service and adoption of the new digital experience.
The results
- A significant reduction in employee support cases, as answers were embedded directly within the platform
- Smoother backend processes, including payroll, finance, and vendor reporting
- No negative feedback from integrated benefit vendors
- A successful rollout across Australia, Singapore, and Thailand, driven by a consistent focus on improving the employee experience
Key considerations for rolling out global benefits in Australia
1. Support local expectations with a seamless digital experience. Although the range of benefits in Australia may not be as broad as in other markets, the employee experience still matters. With a competitive talent landscape and a growing emphasis on wellbeing, employers can present their offering clearly and compellingly using a digital benefits platform.
2. Superannuation requires flexibility and clarity. Superannuation is a mandatory and complex part of the Australian benefits landscape. Employees can choose their own fund, set contribution levels, and even make voluntary contributions – with strict tax rules depending on how these are structured. Using technology to support these choices reduces errors, simplifies the employee journey, and minimizes admin for HR teams.
3. Tailor medical and insurance benefits to individual needs. Most Australians have supplementary private health cover, and many employers are moving away from group plans toward allowances or reimbursement models. This empowers employees to choose the coverage that works best for them, including options for family members and additional treatments. Similarly, life and disability insurance are becoming expected parts of the benefits package, with varying levels of cover depending on role or tenure.
4. Use voluntary benefits to drive engagement and stand out. Wellbeing support is now a key consideration for employees choosing an employer. To meet this demand, organizations are increasingly offering voluntary benefits such as wellbeing allowances, car leasing, discount portals, private insurance plans, and access to EAPs. These benefits provide choice, promote wellbeing, and enhance the overall value of the package.
To learn more about how to prioritize your global rollout in Australia, speak to one of our benefits experts.
Paul Andrews
Paul joined Benifex from Mercer in 2019 with a wealth of international benefits experience, having worked with a large number of high-profile, multinational clients to review their approach to global talent and reward. He leads Benifex’s global benefits delivery team and he’s doing an excellent job of it, if we may say so ourselves. He is skilled in international risk assessment and management, legislative compliance, trend research, cross-border claims, and customer relationship management.
04.03.25
