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Performance Returns
Accumulation & Executive Scheme (post-fees and taxes)
| Period |
High Growth (%) |
Diversified (%) |
Balanced (%) |
Capital Guarded (%) |
Cash Plus (%) |
| Apr 2004 |
0.95 |
0.53 |
0.20 |
-0.11 |
0.34 |
| May 2004 |
1.49 |
1.44 |
1.21 |
1.13 |
0.36 |
| Jun 2004 |
2.87 |
2.22 |
1.59 |
1.00 |
0.33 |
| Year Ended 30 June 2004 |
16.20 |
12.57 |
9.36 |
6.14 |
4.14 |
Retirement & Defined Benefit Schemes
Year Ended 30 June 2004 to be announced. Check the website for latest figures.
New Accounting Standard for Councils
From 1 July 2005, a new accounting standard AASB 119 will apply. The Trustee (in conjunction with the Scheme's Actuary and Auditor) is considering the implications of this new standard and will advise you of its effect as soon as all details are available.
Retirement & Wealth Creation Seminars
Your Scheme regularly holds both Retirement and Wealth Creation Seminars.
The Retirement Seminars are targeted at the over 50's and provide information on the following issues:
Building Wealth
- Maximising Super Benefits
- Minimising Tax
- Investment Options
Decision Time
- Income Streams in Retirement
- Practical Case Studies
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Centrelink
- Age Pension & Allowances
- Asset and Income Tests
Lifestyle
- Nutrition and Exercise
- Planning for your retirement
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The Wealth Creation seminars are targeted at the under 50's and provide information on the following issues:
Creating an easy personal budget
How much to save
Reducing your tax payable
How to get the most out of your savings
Other important issues you need to consider
For seminar dates visit http://www.eisuper.com.au/seminars/seminarcalendar.asp
Members can reserve a seat at one of these seminars by calling 1300 369 901.
Quarterly Superannuation Guarantee Contributions
Under the Trust Deed, all contributions, including Employer and employee, optional and compulsory, must be remitted to your Scheme by the 28th day of the month following that to which the contributions relate. In addition, the ATO imposes penalties if SG contributions are not made by the quarterly cut off date. If you fail to make the cut off date you will need to lodge a SG statement and pay the SG charge.
The following table obtained from the Australian Taxation Office lists the quarterly cut off and lodgment dates.
| Superannuation guarantee quarter |
Cut off date for superannuation guarantee contributions |
Due date for lodgment of a SG statement and payment of the SG charge if contributions are not made on time |
| 1 July - 30 September |
28 October |
14 November |
| 1 October - 31 December |
28 January |
14 February |
| 1 January - 31 March |
28 April |
14 May |
| 1 April - 30 June |
28 July |
14 August |
Superannuation Developments
Quarterly Reporting by Employers to cease from 1 January 2005
While Employers will still be required to pay quarterly SG contributions to their employees, from 1 January 2005 Employers will no longer have to provide SG reports to employees.
Employers are reminded that the requirement in relation to the period up to 31 December 2004 is still applicable. Therefore, you will be required to provide your quarterly reports to members for the quarters ended 30 June 2004 and 30 September 2004 no later than 30 days after the latest contribution for that period was made.
New Superannuation Contributions Acceptance Tests
The Government has announced that from 1 July 2004, the eligibility criteria used to ascertain whether a member is able to contribute to a superannuation fund (the work test) has changed (as set out below):
Up to age 65 - all Australians aged under 65 will be able to contribute into their superannuation fund whether they are working or not.
Ages 65 to 74 - the work test that applies to people aged 65 to 74 will be changed so that if you work (i.e. are gainfully employed) at least 40 hours in a consecutive period of 30 days, you will be able to make contributions for the rest of the financial year. Previously, people aged between 65 and 74 needed to satisfy a 10 hour per week test.
Preservation of ETPs:
Any employer ETPs rolled over and received by a super fund on or after 1 July 2004 will be preserved and can only be released upon the satisfaction of another condition of release. This change does not affect the employee's ability to receive the ETP in the form of a lump sum directly from their employer.
Superannuation Surcharge
The maximum surcharge rate was reduced to 14.5% for the 2003-04 year of income (previously it was 15%).
It will reduce to 12.5% in the 2004-2005 year of income and 10 per cent in the 2005-2006 year of income and subsequent years.
For the 2003-04 year of income, the surcharge phases in over the income levels of $94 691 to $114 981. The surcharge rate increases by 1 per cent for each additional
$1 399 of income from $94 691 (for the 2004-05 year of income the surcharge will be phased in over the income levels of $99 710 to $121 075).
Government co-contribution for low income earners
From 1 July 2003, an employee who receives any form of employer superannuation support (but is not a 'self-employed person') is entitled to a Government co-contribution.
An employee with income of less than $27 500 will be eligible for a dollar for dollar matched contribution, of up to a maximum amount of $1 000, for eligible personal contributions made to a complying superannuation fund. For an employee with a total income between $27 500 and $40 000, the maximum amount of Government co-contribution is reduced by eight cents for every dollar above $27 500. There is no entitlement to the co-contribution once an employee's total income is $40 000 or more.
If the annual sum of an employee's eligible personal contributions is less than their maximum co-contribution amount, then the Government's co-contribution amount will be equal to the amount of the employee's contribution, e.g. an employee with a total income of $20 000 who made personal contributions of $500 in the 2003-04 year of income will only receive a Government co-contribution of $500.
Further Changes effective 1 July 2004
Further Changes to the co-contribution legislation will:
increase the level of Government matching of personal superannuation contributions to 150%;
increase the maximum amount of Government contribution available to
$1 500;
increase the income level up to which the maximum co-contribution applies to $28 000; and
reduce the rate by which the maximum co-contribution phases out to 5 cents for each additional dollar of income.
Consequently, the co-contribution will phase out completely at $58 000.
BREAKING NEWS
It took seven years, but Choice of Fund is now law. The information below is based on the original legislation and will most certainly change as we get closer to implementing these important changes. Fund choice is to take effect from 1 July 2005.
The government has estimated that 4.82 million employees and 654 000 Employers will be impacted by fund choice. Industry estimates that 70% of all employees will become subject to fund choice under the new legislation. It is currently sitting at approximately 30% of all employees.
We will keep you posted! We are examining the impact that this new law will have on your Scheme and will advise you when there is more detailed information from the government as to how fund choice will work in practise.
Superannuation Ready Reckoner for 2004
Reasonable Benefit Limits 2004-05 (2003-04)
| Lump sum |
$619 223 ($588 056) |
| Pension |
$1 238 440 ($1 176 106) |
Contributions by Employers to regulated superannuation funds (including "salary sacrifice" contributions) are fully deductible up to the age based deduction limits. The deduction limits are:
| Age of employee (years) |
Deduction limit 2003-04 |
Deduction limit 2004-05 |
| under 35 |
$13 233 |
$13 934 |
| 35 to 49 |
$36 754 |
$38 702 |
| 50 and over |
$91 149 |
$95 980 |
Please note that these limits only apply to Employer contributions made towards accumulation benefits (i.e. not contributions paid to the Defined Benefit and Retirement Schemes).
Employer Helpline
Your Scheme runs an Employer Helpline, which is available to all Employers. An Employer Services Officer can help you with any superannuation related matter e.g. matters relating to SG contributions, superable salary and SG deadlines. The number to call is 1800 636 441.
Are you sending your communications to the right place?
The following is a one-stop reference guide to all the relevant contact numbers and addresses through which Employers should send communications.
Fax - All Employer faxes should be sent to: 02 9299 9321
Contribution Return Emails
All Contribution Return e-mails should go to our Administrator (Mellon) at the following e-mail addresses:
For the Accumulation and Executive Schemes: accumulationscheme@mellon.com.au
For the Defined Benefit and Retirement Schemes: retirementscheme@mellon.com.au
All Other E-mails - employerservices@eisuper.com.au
Telephone - For all Employer inquiries, please call 1800 636 441
Writing
If you are writing to the Scheme, please address the letter as follows:
Energy Industries Superannuation Scheme
PO Box N835 Grosvenor Place,
Sydney NSW 1220
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August 2004
