/11) Welcome to the 2011 HESTA Breakfast Seminar

Transcription

1 /11) Welcome to the 2011 HESTA Breakfast Seminar

2 General advice warning & disclaimer This information is issued by H.E.S.T. Australia Limited ABN AFSL No Trustee of HESTA Super Fund ABN It is of a general nature. It does not take into account your objectives, financial situation or specific needs so you should look at your own financial position and requirements before making a decision. You may wish to consult an adviser when doing this. The information should not be relied on as legal advice. For more information about HESTA free call for a copy of our Product Disclosure Statements, which should be considered before making a decision about the Fund. Past performance is not a reliable indicator of future performance. Third-party services are provided by parties other than the Trustee and terms and conditions apply. H.E.S.T. Australia Limited are not licensed to provide advice on specific credit products and do not recommend specific credit products

3 Your super: in it for the long haul Like all super funds HESTA s investments are affected by share market and global economic changes HESTA has always focused on the long-term nature of super Markets will always go up and down, but Core Pool s above-average returns since inception* show its strength over the long term Core Pool s return is in the top quarter of funds in Australia over the long term *Source: SuperRatings Lifetime of Difference Calculator June 2011 Past performance is not a reliable indicator of future performance.

4 $10,000 invested in Core Pool Since From Inception August 1987 $90,000 $80,000 $70,000 $75, $60,000 $50,000 $40,000 $30,000 $54, % CPI + 4% Core Pool $31, $20,000 $10,000 $ Investments can go up and down. Past returns are not a reliable indicator of future performance.

5 /11) Proposed changes to super & Budget update (2011)

6 2011 Budget announcements On 10 May 2011 the Government delivered its budget for the financial year. Following is a summary of proposals that would affect superannuation. It is important to note that these are proposed changes and will need to be passed by Parliament before they become law. HESTA will provide members with further updates if the changes are made law.

7 2011 Budget proposals Co-contribution payments Maximum government co-contribution to remain at $1,000 (subject to eligibility criteria). $31,920 income threshold for maximum co-contribution, and $61,920 income threshold for no co-contribution to remain for and financial years. See HESTA Budget 2011 fact sheet for more information.

8 2011 Budget proposals Before-tax: concessional contributions caps Higher before-tax contributions cap for eligible workers aged 50+ of $25,000 above general concessional cap. General concessional contribution cap will increase in future due to indexation, but extra $25,000 for eligible over 50s will not be indexed. Higher limit is restricted to those 50+ with a total super balance of less than $500,000, from 1 July 2012 (available for all over 50s until June 2012). See HESTA Budget 2011 fact sheet for more information.

9 2011 Budget proposals Refund of excess concessional contributions from Eligible individuals can request refund of excess before-tax contributions made from 1 July Refund will be assessed at marginal tax rate, rather than as excess concessional contributions (46.5%). Only applies to excess contributions up to $10,000 and only on one occasion. See HESTA Budget 2011 fact sheet for more information.

10 2011 Budget proposals Less generous minimum drawdown relief for super income streams in Government to phase out minimum drawdown relief provided over last three years. In , relief will be less than in previous years at only 25%, rather than the 50% in place since Standard minimum to apply from 1 July 2012.

11 How does it work? Age Minimum percentage payment* before relief New minimum percentage* (until 30 June 2012) Under 65 4% 3% % 3.75% % 4.5% % 5.25% % 6.75% % 8.25% 95 or over 14% 10.5%

12 /11) Proposed changes to super Budget 2010 still to be legislated

13 2010 Budget announcements Increase the Super Guarantee to 12% by July 2019 Year Rate (%) See HESTA Budget 2010 Fact Sheet for more information.

14 2010 Budget announcements Raise the SG age limit from 70 to 75 Workers aged 70 to 74 would be eligible for SG contributions Proposed commencement date: 1 July 2013 See HESTA Budget 2010 Fact Sheet for more information.

15 2010 Budget announcements Low income earners government super contribution Government to provide up to $500 annually as a super contribution for workers earning up to $37,000 Proposed commencement date: 1 July 2013 See HESTA Budget 2010 Fact Sheet for more information.

16 Tax File Number Legislation Super funds can now use TFN as the primary identifier of accounts Will help to help uncover and prevent multiple accounts Don t pay extra tax super funds need your TFN

17 Need more information? One-on-one advice about your super is available from HESTA staff Read Budget 2010 & 2011 factsheets

18 Helping members take control Education and advice service tailored education programs individual intra-fund personal advice at no extra cost contribution options investment options insurance cover transition to retirement advice small charge $495 a team of qualified Superannuation Advisers phone advice full financial planning advice fee for service

19 Education sessions include General superannuation Topping up your super HESTA s insurance Member investment choice Transition to retirement Easy money management Understanding your HESTA statement

20 Member Education Team Led by Neil Saxton, our team of Member Education Managers specialise in delivering quality education on super and related matters. Neil Saxton Executive Manager - Member Education Flavio Alessio NSW Natasha Dreger VIC Irene Duncanson VIC Luke Fraser QLD Cheryl Heath NSW/ACT Marian Hegarty QLD Tony Kotsonis NT Sharon Knightley WA John Leitch VIC Connie Letizia SA Jaime Seletto VIC Eric Thomson NSW Don Wishart TAS

21 Member Advice Team Led by Debby Blakey, our team of Superannuation Advisers and Superannuation Advice Officers specialise in the delivery of advice about super. HESTA Financial Planners provide holistic financial advice. Debby Blakey Executive Manager - Member Advice Superannuation Advisers Superannuation Advice Officers Ester Cibasek NSW/ACT General Manager - Member Advice Megan Cottrell VIC Erik Donert VIC John Fox VIC/TAS Michelle Kerlin NSW/ACT Tim Johnston Financial Planners David Logan Sam Thompson QLD Patrick Toffoli SA/NT Bernadette Missen WA Cameron Peebles NSW David Francis SA/WA/NT Betty Tran ACT/NSW/QLD Emily Wheatley TAS/VIC

22 /11) Low cost insurance through HESTA Case Study

23 Case study: Rebecca Rebecca is: a 42-year-old nurse married with two children under 10 works part-time at her local hospital earning $42,000 pa before-tax paying off a mortgage of $350,000 with her partner on their family home (no other debts), and has $20,000 invested in HESTA s Core Pool

24 Case study: Rebecca Rebecca s current cover through HESTA New cover recommended by HESTA SA IP Cover 2 units $850 pm payable to age 60 (after a 90 day waiting period) IP Cover 7 units $2,975 pm payable to age 60 (after a 90 day waiting period) Death Cover $114,000 Death Cover $456,000 2 units 8 units Total cost of $3.00 pw Less tax deductions actual cost to Rebecca: $2.55 pw Total cost of $11.10 pw Less tax deductions actual cost to Rebecca: $9.44 pw Insurance cover is subject to acceptance by HESTA s insurer

25 Great improvements to insurance Effective 1 March 2012 cover to protect income up to new pension age of 67 benefit payable for additional 7 years 25% increase in death benefit at age 40 74% increase in death benefit at age 50 Able to combine lump sum TPD and IP to age 67 Changes will benefit the typical HESTA member

26 Co-contributions Help members grow their super faster $1 for every $1 up to $31,920 - includes reportable fringe benefits Maximum co-contribution reduces on a sliding scale - cuts out at $61,920 Co-contributions received in 2010/ ,168 members $32.7 million

27 Access to extra services Competitive and award winning products to meet HESTA members needs: Transaction & savings accounts Home loans Personal loans Business loans Equipment finance Credit cards Term deposits Novated leasing

28 Industry support HESTA continuing partnerships with all sectors across health and community services conferences seminars educational material articles for publications

29 Client Relations Team Led by Lynn Hart, our dedicated Client Relationship Managers ensure HESTA remains a key partner across health and community services. Lynn Hart Executive Manager - Client Relations Alison Dixon TAS General Manager - Client Relations Mark Ashby NSW Nick Cowling VIC Helena Higginbottom VIC Colleen Hogan-Manning SA Graham King WA Tony Kotsonis NT Elaine Lawler NSW/ACT Carole Menere NSW Michael Scanlon QLD Anthony Smolic VIC

30 Industry support HESTA Awards Reward and recognition for health and community services 5 th year Inaugural year Inaugural year Inaugural year Sponsored by

31 Need more information? Review our handout HESTA s financial education and advice service Request a workplace education & advice session from HESTA hesta.com.au Don t be one of those people who does nothing, take some control!

32 Solutions for employers Client Service Advisors: Flavio Corbanese NSW / ACT Greg Lovett Qld Sam Ang Vic / Tas Stacey Tsouflidis SA David Billingham WA

33 Topics Superpartners Who are we? Client Service Advisor What do we do? Electronic Solutions Who, What, Where and Why 33

34 About Superpartners Currently 1,700 employees, located in Adelaide, Brisbane, Canberra, Melbourne (HO), Perth, Sydney and Tasmania. Employers 750,000 + Australian Super HESTA Superpartners MTAA Members 6.4 Million + Funds under administration $97 Billion CBUS 34

35 My role as your Client Service Advisor Employer Client Superannuation Administration 35

36 Electronic Solutions I can save you time I can make your job easier! 36

37 Does this look familiar? Paperwork compared to no paperwork. 37

38 What is E-Commerce? Electronic transmission of data over an electronic medium; Results in straight through processing; and Eliminates paper. PAYROLL HESTA MEMBERS 38

39 E-commerce products Employer Online Super File Manager Membership base <30 members >30 members Main function Data entry Upload payroll mapped file Member details Add, terminate members Included in payroll file 39

40 Submitting the contribution 40

41 Creating a new submission - upload file 41

42 Action Items Approve payment 42

43 Action Items Approve payment method 43

44 What now? Call me! Solutions Online Options Legislation Fund processes 44

45 If you re a member of HESTA, ME Bank is your Bank

46 ME Bank shared values Created by Industry Super Funds, like HESTA, who brought Australians low cost, no commission super: Simple, low cost banking Transparent banking products with low fees, low interest rates and higher returns built in for members Award winning great service Convenience of banking in the workplace and at home Australian based Call Centre

47 We can help you and staff in your facilities with their HOME DAY-TO-DAY NEEDS SAVINGS BUSINESS Member Package award winning all-in-one home loan solution bringing together great benefits 2011 Gold Medal Best Bank Standard Variable Member Package Ultimate Offset Account EveryDay Transaction Account comes with a Debit MasterCard that gives your members more flexibility and access to their money Online savings accounts an online savings account with no ongoing account-keeping fees 2011 Silver Medal Best straight up online savings account Business loans, vehicle and equipment finance, vehicle salary packaging, high yield deposit accounts and a Business MasterCard Super Members Home Loans a range of discounted home loans, including standard, offset and investment loans providing variable, fixed or split loan options A low rate ME MasterCard award winning low rate credit card 2011 Gold Medal Best Low Rate Credit Card Super Members Term Deposits award winning term deposits including bonus interest of up to 0.25% p.a. Personal loans we have one of Australia s cheapest personal loans First Home Saver Account helps your members save for their first home sooner 2011 Money magazine s Best of the Best Awards, Gold Winner, Cheapest Personal Loan, Bank Category

48 ME Bank - benefits to members For the past 10 years, ME Bank s standard variable home loan rate has been lower than the major bank s every single month. Source: Graph created by ME Bank Pty Ltd from information provided by InfoChoice as at August 2011.

49 Customers of the major banks could have saved up to $23,590 Data sourced from Infochoice. Graph compares the ME Bank Super Members Home Loan (SMHL) standard variable rate with the standard variable home loan rates of ANZ, NAB, CBA and Westpac on the first day of each month (01/06/01 01/06/11). *Savings calculated on a 30 year, $300,000, principal and interest home loan after 10 years (June June 2011) on the ME Bank Super Members Home Loan standard variable rate vs the standard variable home loan rates of ANZ, CBA, NAB and Westpac. Assumes the same monthly repayment is made to each loan, based on the minimum repayment of the loan with the higher interest rate. Interest calculated daily and applied monthly. Graph and calculation do not include applicable fees, charges or discounts and do not consider other home loans products from these lenders that may carry different interest rates. ^Based on the same assumptions as the aforementioned example, calculation based on the time taken for the loan balance to first drop below $260,000. SMHL range is available to eligible members of super funds and unions. Fees and charges apply. Terms and conditions available on request. Applications are subject to credit approval. Members Equity Bank Pty Ltd ABN: ACLN: /0911 Bank ME Bank ANZ CBA NAB Westpac Home Loan Product Super Members Home Loan Standard Home Loan ANZ Standard Variable Rate Home Loan CommBank Variable Rate Home Loan NAB Tailored Variable Rate Home Loan Westpac Rocket Repay Home Loan Difference over 10 years on a $300,000 loan* $0 You paid $22,843 more You paid $22,842 more You paid $22,348 more You paid $23,590 more Time taken to pay off first $40,000 of principal^ 7 years 9 years, 10 months 9 years, 10 months 9 years, 10 months 9 years, 11 months Is your Home Loan with one of the major banks? Interest rate (% p.a.) ME Bank ANZ CBA NAB Westpac Nov 10: Major banks increase rates above RBA increase. ME Bank does not. 2008: Global financial crisis leads to deep interest rate 2005: Major banks continue to increase rates in unison. Customers of the major banks could have saved up to $23, years of home loan interest rates - ME Bank vs the major banks Through all the highs and lows of the last decade, it s reassuring to know that ME Bank has consistently offered a standard variable home loan rate that s lower than the major banks - month after month, year after year. It reflects a commitment to act in your best interest, which is just as strong today as it was a decade ago

50 To find out more about the benefits of banking with ME Bank call our Australian based Contact Centre on If you re a member of HESTA, ME Bank is your bank. This information does not take into account your objectives, financial situation or needs. Before acting on the information, you should consider the appropriateness having regard to your own financial situation. Members Equity Bank Pty Ltd. ABN AFSL: , ACLN:

51 Questions? More people in health & community services choose HESTA than any other fund