11.06% BALANCED RETURN

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1 MAtTERS Spring % BALANCED RETURN

2 Contents Third consecutive year of double digit returns for members...1 Deadline extension for SuperStream compliance now October 2015!...2 A message from the CEO The importance of insurance in super...4 Australians need to save more in super: ASFA...6 Super update...8 Reminder: ATO performing superannuation audits Accessing super: preservation age now 56 years [since July 2015] Updated timeline for Stronger Super New PDS [Product Disclosure Statements] are now available...9 Welcome to the 2015 Spring edition of SuperMatters.. Welcome to the 2015 Spring edition of SuperMatters. The new financial year is here, and I am very proud of the Fund producing double digit returns for our members for the third consecutive year. Our popular Core Super MySuper [Balanced] option returned 11.06% for members. This result ranked us third in the top 50 Australian super funds this year according to SuperRatings. The deadline for businesses to adopt the new legislated super data and payment standards has been extended to the end of October. If you need any help transitioning to the new rules please give us a call. Last month the Association of Superannuation Funds of Australia [ASFA] released new figures stating a couple needs $640,000 in super to retire comfortably. Our annual superannuation statement time is here and you will soon be able to check on how our super balance is growing. If you think your super balance might need a boost, right now is a great time to look at utilising strategies such as salary sacrifice or after-tax voluntary contributions to get your balance heading in the right direction. I hope you enjoy this edition of SuperMatters, and if you would like us to cover a particular topic in a future edition or have any questions regarding the information you read, please us at info@intrust.com.au or call us on We are at your service

3 % Third consecutive year of double digit returns for members Intrust Super continues its consistent record in strong investment performance. The combined effect of all our investment strategies has ensured our default investment option, Core Super MySuper, delivered an impressive 11.06%. That is almost two full percentage points higher than the median balanced fund of 9.8% as reported by independent superannuation research house SuperRatings. The research house ranked our result third in Australia for the 2014/15 financial year in their top 50 funds survey! Our members have been treated to some great results for the last three years with the Core Super MySuper option returning 14.02% in 2013/14 and 15.06% in 2012/13. Intrust Super continues to look at the markets and try and provide the best returns for our members every year. Past performance is no indication of future returns

4 Deadline extension 31 oct 2015 for SuperStream compliance 2

5 3 The Federal Government s deadline for the SG contribution data standards has been extended to 31 October for medium to large businesses. The standard introduces the compulsory use of technology to improve processing efficiency and the quality of member contributions data. Employers who aren t ready in time may receive fines from the Australian Taxation Office [ATO]. Here are some tips for painlessly meeting the Government s regulations by the new deadline. 1. Register for our clearing house service SCH Online SCH Online allows you to pay super on behalf of many employees, and to many super funds from one portal. Our service is fully compliant with the data requirements. It reduces the time it takes to process contributions and ensures payments are deposited efficiently into your employees super accounts. Unlike many of Intrust Super s competitors, the service only requires one login, one upload of data and one payment to fulfil all your super obligations. If you have 20 or more employees, you should register to use SCH Online as soon as possible to ensure you are compliant by 31 October. If you have fewer than 20 employees, you have until 1 July 2016 to register. 2. Ask your employees for their Tax File Number [TFN] Generally, providing your employees TFNs is mandatory. TFNs allow member voluntary contributions to be paid and accepted, and they ensure individuals are taxed appropriately. 3. Keep employee details up to date and let us know if they change jobs On average, Australian workers have three super accounts. You can help your employees avoid this by: providing as much detail as possible when employees join; ensuring employee details are kept up-to-date; encouraging new starters to get in touch with us about their super; notifying us when an employee leaves employment. 4. Encourage your employees to consolidate their accounts The ATO has reported there is just under $16 billion in lost super in Australia. Consolidation is easier than ever. Intrust Super provides members with an online form that takes less than a minute to complete. It s important for your employees to speak to a financial adviser before consolidating funds and to consider insurance and fee implications. If you have any questions, please contact your regional Client Services Manager or the contact centre on Michael Scanlon Brisbane mscanlon@intrust.com.au Cassie Allgood North Queensland callgood@intrust.com.au Malcolm McBeath Northern Region Brisbane Vic WA mmcbeath@intrust.com.au Rhys Rakauskas Clubs rrakauskas@intrust.com.au

6 The importance of insurance in super Our life and our ability to work [to generate an income] are the biggest assets we will ever have; bigger than the value of our homes. Should we die, or become disabled through illness or injury, most of our roles will need to continue and be performed by our families. Therefore, we must protect them financially if something were to happen to us. Intrust Super has won the Money magazine Best Value Insurance in Superannuation award for the last three years in a row. Eligible members receive Life and Total and Permanent Disability insurance and Income Protection cover automatically^. No health checks are required and the premiums are very competitive. Life and Total and Permanent Disability cover Life insurance provides funds should you die prematurely. These funds could cover unpaid mortgages and debts, and provide security for your family. For example, Intrust Super provides a default cover of $300,000 to those under 40 years of age. The payment from this policy may provide education funds for your children and income for your surviving partner [to look after the children or pay for child care so your partner can continue to work]. 4

7 5 Income protection Income protection insurance provides an income stream to you if you are unable to work in your normal employment, due to sickness or injury. This is probably the most important type of insurance after all, where would we be without our income? Need more information? If you would like further information on insurance cover in super, please visit intrust.com.au or contact us on We re at your service. *52 weeks for Mental Conditions. ^Select Super members need to opt in for income protection. Intrust Super s PayGuard provides up to 90% of your income for up to two years*, with an additional 10% of the replacement income paid into your super account. PayGuard also offers multiple waiting period options [the lapsed time before a claim will be paid]. Longer waiting periods result in lower premiums.

8 6 Australians need to save more in super: ASFA

9 7 The Association of Superannuation Funds of Australia [ASFA] recently brought out new figures on how much Australians need in their super to have a comfortable lifestyle in retirement. An Australian couple will need to have a super balance of $640,000 and a single person will require $545,000 to enjoy a comfortable retirement. This is $130,000 more than ASFA s previous estimation. "A combination of increasing cost pressures, increasing life expectancy and the recently legislated changes to the Age Pension means test have had an impact on the estimated savings Australians will need to live a comfortable retirement," explained ASFA CEO, Pauline Vamos. Australians looking to improve their current superannuation balance can employ some of the following strategies: Salary sacrificing Salary sacrificing involves forgoing some of your pre-tax salary in exchange for super contributions. Salary sacrifice may offer tax advantages for people on a higher marginal tax rate. For example, instead of being taxed at a marginal rate of up to 49%, the sacrificed amount may be taxed at only 15%*. Salary sacrifice contributions, like SG contributions, are pre-tax or concessional contributions. It is important to note that pre-tax contributions are subject to a contributions cap. This financial year the concessional contributions cap is $30,000 for those aged 49 and under and $35,000 for those aged 50 and over. After-tax contributions An after-tax contribution [known as non-concessional contribution] is a contribution made using money that you've already paid income tax on. After-tax contributions do not attract a contributions tax. After-tax contributions are also subject to contribution caps and those that exceed the caps will be subject to an additional tax of 49%. Prior to making an after-tax contribution you should make sure you aren't going to exceed the cap that applies to your situation. Let the Government help top up your super with co-contributions If you make an after-tax contribution to super and you have a 'total income' of no more than $50,454 in the 2015/16 financial year, you may also be eligible to receive a Government Co-contribution, up to a maximum of $500^. It pays to check whether you, your spouse or your children could be eligible for a co-contribution. Developing your contribution strategy There are a number of things to consider when making a decision about your personal contribution strategy. These include: How much surplus income you have available to invest. Are there other things, such as debt, which you may want to pay off first? Can you commit to leaving extra contributions in super until you reach your preservation age? A financial adviser can help you determine whether a pre-tax or post-tax contribution is appropriate in your circumstances and what effect these strategies may have on your other entitlements. * An additional 15% tax applies to some or all of the concessional contributions of high income earners [generally those whose 'incomes' and concessional contributions exceed $300,000 pa]. ^The maximum co-contribution is $500, paid at the rate of 50 cents for each $1 contributed. The maximum is only available to people with an income of $35,454 or less. The co-contribution scheme ceases completely at total income of $50,454. We're here to help Making voluntary contributions towards your super will help you prepare for a better future and could also provide you with tax benefits. Intrust Super has financial advisers that can help you put a plan in place to achieve a comfortable lifestyle in retirement. Give them a call on today.

10 Super update Reminder: ATO performing superannuation audits The ATO has warned that pubs, bars and taverns will be the focus of superannuation compliance audits scheduled from 1 July The ATO will be checking that employers have fulfilled their obligations to: contribute at a rate of 9.5%, make contributions by the quarterly cut-off dates [28 October, 28 January, 28 April, 28 July], pay super for eligible contractors, even if the contractor quotes an Australian Business Number, keep accurate records, provide an employee's tax file number to their super fund within 14 days of receiving it, and lodge a superannuation guarantee charge statement quarterly if they haven t paid the correct amount by the cut-off date. If you would like any more information please contact us on Accessing super: preservation age now 56 years [since July 2015] Since 1 July 2015, Australians turning 55 will have to wait at least another year before they can access super benefits. Everyone born on or after 1 July 1960 must reach preservation age, and retire in order to retrieve their super. The below table outlines what your preservation age will be: Accessing super: What is your preservation age? Date of birth Your preservation age Before 1 July From 1 July 1960 until 30 June From 1 July 1961 until 30 June From 1 July 1962 until 30 June From 1 July 1963 until 30 June On or after 1 July Updated timeline for Stronger Super From Task Status 31 October July July July July July July 2025 If you employ 20 or more staff, you must use the new data and e-commerce standard when making super contributions If you employ less than 20 staff, you must use the new data and e-commerce standard when making super contributions SG rate increase: 9.5% to 10% Deadline extended! Currently scheduled to proceed Currently scheduled to proceed SG rate increase: 10% to 10.5% Currently scheduled to proceed SG rate increase: 10.5% to 11% SG rate increase: 11% to 11.5% SG rate increase: 11.5% to 12% Currently scheduled to proceed Currently scheduled to proceed Currently scheduled to proceed 8

11 9 New PDS [Product Disclosure Statements] are now available Intrust Super issued new Product Disclosure Statements [PDS] in August 2015, reflecting recent fees and cost changes. The great news is that the indirect cost ratio of 0.91% has been reduced to 0.88%, making your Intrust Super account even better value for money. The PDSs contain important information about fees, product features and the risks of investment. It is important for all staff to read the PDS before joining Intrust Super to ensure they understand the product they're investing in. The new PDSs are now available on intrust.com.au. If you would like to order new copies, please give us a call on or contact your regional Client Services Manager.

12 Note for your diary New data & payment standards deadline * 31 OCT *For employers with 20 or more staff members. Connect with us facebook.com/intrustsuperfund twitter.com/intrustsuper The information contained in this document is of a general nature only, and does not take into account your individual situation, objectives and needs. Unless indicated, the product information refers only to the Core Super MySuper and the Executive Super product offering only. You should consider the appropriateness of the general information having regard to your own situation before making any investment decision. A Product Disclosure Statement is available at intrust.com.au or call us on for a copy. While Intrust Super has no reason to believe that this information will not provide an accurate view of the material covered, Intrust Super does not accept liability for any errors or omissions in the content of this information. The Clearing House functionality within EmployerAccess is provided by the Superannuation Clearing House [SCH] as an Authorised representative of Pacific Custodians [ABN AFSL ]. Both the SCH and our administration provider, Australian Administration Services [AAS] [ABN ], are part of the Link group of companies and therefore separate to IS Industry Fund Pty Ltd, the Trustee of Intrust Super. The Trustee is not responsible for the products or services, views or actions of these organizations. Employers should use their own judgment before taking up any product or service offered by a third party. The Trustee of Intrust Super is IS INDUSTRY FUND Pty Ltd MySuper Unique Identifier: ABN: AFSL No: RSE Licence No: L RSE Registration No: R Intrust Super ABN: USI/SPIN: HPP0100AU IS Financial Planning Pty Ltd ABN trading as Intrust360 is a wholly owned subsidiary of IS Industry Fund. Intrust360 is a corporate authorised representative of Adviser Network Pty Ltd ABN: AFSL: Corporate Authorised Representative Number: