Making Contributions

Contributing to NEST could not be simpler. NEST offers a number of flexible methods for calculating and paying ongoing contributions. The following information outlines the options available for employers contributing into NEST.

Contributing with NEST

circular illustration of how contributions to NEST are made.

Calculating Contributions

NEST does not determine the level and extent of contributions – contributions are calculated in accordance with the rates of pay, ordinary hours and leave entitlements contained in the employment arrangement(s) pertaining to that business or operation. In accordance with these parameters NEST offers various payment options for employers to contribute entitlements into NEST.

  • Method 1: Term Transfer (transferring entitlement liability over nominated time period)
    This option allows employers to gradually transfer their employee entitlement liability into NEST over a nominated term, such as 12 or 24 months. Each month, employers provide a current leave liability report, and NEST calculates the required contribution based on the chosen term. NEST then reconciles the data, issues a Contribution Statement, and the employer simply makes the payment.

    This option is for employers who wish to transfer a balance sheet liability into an amount credited to an employee's account.
  • Method 2: Immediate transfer (transferring entire entitlement liability at once)
    This method suits employers who wish to transfer an amount representing their employee's/employees' currently accrued entitlements to NEST in a single transaction. After making a one-time payment for the existing liability, employers continue with monthly contributions for new accruals. Simply provide a Leave Liability Report with the initial payment, and NEST will set up Member Accounts. Ongoing contributions are then based on future leave liability reports.
  • Method 3: Paying only future entitlement accruals from an agreed start date
    This option allows employers to pay all future employee entitlement accruals into NEST while keeping existing liabilities on their balance sheet. Any leave taken by employees is borne by the employer for the specific employee and type of leave taken before claiming from NEST. Contributions are calculated using the same accrual rates as the employer’s payroll system, and a current leave liability report must be submitted with each monthly payment.

Completing Ongoing Contributions Statements

NEST sends all Employers a monthly Contribution Statement based on the previous month’s contributions and any known adjustments. You can make further adjustments on the form itself. Adjustments include:

  • addition of new employees;
  • termination or resignation of existing employees;
  • varying employee entitlements or pay rates; or
  • amending member details.

Alternatively you can simply send us your current Leave Liability Report and we will make all the adjustments for you. Once the adjustments are complete we will then send you an updated Contribution Statement reflecting the outstanding liability (as per the leave liability report and your chosen payment method).

Once all adjustments are complete all you need to do is submit the payment. Contributions to NEST are paid in arrears and are due within seven calendar days from the end of each monthly period.

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