Quarterly Superannuation Guarantee Contributions

Just a reminder that SG contributions for the month of December are due to the Energy Industries Superannuation Scheme by 28 January 2004. Under the Trust Deed, all contributions, including employer and employee, optional and compulsory, must be remitted to the Scheme by the 28th day of the month following that to which the contributions relate. The Trustee is authorised to impose penalties for late contributions.

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 may be subject to SG penalties.

The following table obtained from the Australian Taxation Office lists the cut off and lodgment dates.

Superannuation guarantee quarter	Cut off date for superannuation guarantee contributions	Due date for lodgment of a SG statement (if cut off date is missed)
1 October - 31 December	28 January	14 February
1 January - 31 March	28 April	14 May
1 April - 30 June	28 July	14 August

Scheme's Performance

Almost in mirror image to early 2003, the last six months of the calendar year have seen the growth based portfolios (portfolios with a significant allocation of investments to shares and property) benefit from the turnaround in share markets. Within the Accumulation Scheme, the High Growth portfolio with a 7.56% return was the stellar performer along with the Retirement Scheme, which returned 7.2% for the six months to December 2003. The Diversified and Balanced strategies within the Accumulation Scheme also performed well, with 5.41% and 4.34% return rates respectively.

The more defensive portfolios with significant investments in bonds and cash have been impacted by the fall in bond prices as interest rates started climbing late in 2003. Despite this, the Capital Guarded portfolio did exceptionally well with a return of 2.72%, while Cash returned 2.09%.

The Scheme has taken steps to protect members' investments against the fall in bond prices and the rise in the Australian dollar. This hopefully will result in stronger performance than would otherwise be the case.

Where to from here?

As the economic growth began to accelerate in late 2003, the need for a stimulatory monetary policy with low short-term interest rates began to recede. Consequently the Reserve Bank of Australia (in November and again in December) raised official interest rates by 0.25% each time, becoming the first central bank to tighten rates in this cycle. This was carried out to provide a disincentive to the rapid growth in housing and consumer finance that had been encouraged by low interest rates of the last few years.

With the prospect of further interest rate rises, it will be interesting to see if the share market recovery will continue. However, the better investment results being recorded for 2003/04 to date provide a positive contrast to the last few years. Accumulation & Executive Schemes (post-tax returns) High Growth Diversified Balanced Capital Guarded Cash Plus October 2003 November 2003 December 2003 Retirement & Defined Benefit Schemes (post-tax returns) Returns October 2003 November 2003 December 2003

Accumulation & Executive Schemes (post-tax returns)

	High Growth	Diversified	Balanced	Capital Guarded	Cash Plus
October 2003	1.73%	1.10%	0.52%	-0.07%	0.35%
November 2003	-0.91%	-0.82%	-0.60%	-0.42%	0.30%
December 2003	2.83%	2.54%	2.83%	2.63%	0.41%

Retirement & Defined Benefit Schemes (post-tax returns)

	Returns
October 2003	1.5%
November 2003	-0.8%
December 2003	2.7%

Retirement & Wealth Creation Seminars

The Scheme regularly holds 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
• Centrelink
  - Age Pension & Allowances
  - Asset and Income Tests
• Lifestyle
  - Nutrition
  - Exercise and planning for your retirement

Following are the details of the upcoming Retirement Seminars:

Date	Location	Time
February
Tuesday, 10th	Campbelltown	8:45 am - 2:45 pm
Wednesday, 11th	Bankstown	4.45 pm - 8.15 pm
Thursday, 19th	Broken Hill	8:45 am - 2:45 pm
March
Wednesday, 3rd	Sydney	4.45 pm - 8.15 pm
April
Saturday, 3rd	Wollongong	8:45 am - 2:45 pm
Tuesday, 6th	Tamworth	8:45 am - 2:45 pm
Wednesday, 7th	Moree	8:45 am - 2:45 pm
Thursday, 8th	Glen Innes	8:45 am - 2:45 pm
Tuesday, 20th	Merimbula	8:45 am - 2:45 pm
Wednesday, 21st	Bateman's Bay	8:45 am - 2:45 pm
Thursday, 22nd	Nowra	8:45 am - 2:45 pm
May
Wednesday, 5th	Windsor	8:45 am - 2:45 pm
Tuesday, 11th	Griffith	8:45 am - 2:45 pm
Wednesday, 12th	Wagga Wagga	8:45 am - 2:45 pm

Morning tea and a light lunch are provided

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

Following are the details of the upcoming Wealth Creation Seminars:

Day	Location	Time
April
Wednesday, 21st	Rooty Hill	5.30 pm - 8.00 pm
Wednesday, 28th	Gosford	5.30 pm - 8.00 pm
May
Wednesday, 5th	Wollongong	5.30 pm - 8.00 pm
Monday, 10th	Griffith	5.30 pm - 8.00 pm
Wednesday, 12th	Sydney	5.30 pm - 8.00 pm

A light dinner is provided. Members can reserve a seat at one of these seminars by calling 1300 369 901.

SLO Seminars

The Scheme is holding information sessions for Superannuation Liaison Officers (SLOs) who would like to keep abreast of the latest Scheme and superannuation developments. The following is a list of seminars for this year.

DAY	DATE	LOCATION
Friday	20-Feb	Broken Hill
Tuesday	24-Feb	Sydney
Wednesday	25-Feb	Penrith
Thursday	26-Feb	Dee Why
Thursday	4-Mar	Dubbo
Friday	5-Mar	Orange
Tuesday	9-Mar	Queanbeyan
Wednesday	10-Mar	Wollongong
Thursday	11-Mar	Sydney
Monday	15-Mar	Tamworth
Tuesday	16-Mar	Moree
Wednesday	17-Mar	Glen Innes
Thursday	18-Mar	Coffs Harbour
Friday	19-Mar	Lismore
Tuesday	23-Mar	Albury
Wednesday	24-Mar	Deniliquin
Thursday	25-Mar	Leeton
Friday	26-Mar	Wagga Wagga
Wednesday	31-Mar	Taree
Thursday	1-Apr	Newcastle

Seminars commence at 8.45am and conclude at 1pm. Morning tea and a light lunch are provided. For more information or to reserve a seat at one of these informative seminars, please call the Employer Helpline on 1800 636 441.

Regional Offices

Just a reminder that the following are our office details. Please feel free to let your employees know they are welcome to visit to discuss super-related issues.

Office	Office Manager
Sydney: 28 Margaret Street	Michael Harris
Wollongong: Shop 2 & 3/60 Burelli Street	Jenny Stimson
Lismore: 81-83 Molesworth Street	Janine McLelland
Wagga Wagga: 2/209 Baylis Street	Dean Cooper
Orange: 187 Summer Street	Rebecca Ellington
* The following offices are staffed one day per month – bookings are essential.
Albury: 429 Swift Street
Goulburn: 148 Auburn Street Goulburn

Superannuation Co-contributions Explained

Good news for members with low income

To qualify for a co-contribution:

1. You must be making your superannuation contributions on an after tax basis;
2. You will need to make these superannuation contributions (that will qualify for a co-contribution) directly into your account - contributions to spouse's account do not qualify.
3. You should have "Total Income" (as determined by the ATO) of less than $40,000 in the year you are seeking co-contributions.
4. You must be eligible for employer superannuation contributions (e.g. you should be working during the period. If you are on leave without pay for the whole year, you will not be entitled to claim co-contributions).

What does this mean for me as a Retirement Scheme (Pool B) contributing member?

Good News! As a Pool B contributing member, you are already making post tax contributions, so you probably automatically qualify for point a. (i.e. contribute after tax) and point b. (i.e. contribute to your own account). However to qualify for the co-contribution, you will still need to have "Total Income" of less than $40,000, and to ensure that you are actually working during the period. What do I need to do to have my eligibility for co-contributions assessed? You don't have to do anything!

Somewhat like the surcharge, whether you are eligible or not, is determined by the ATO combining information from your tax return and from the Scheme's Administrator. The ATO determines your eligibility based on your "Total Income". This is calculated by adding the total of your "assessable income" and "reportable fringe benefits". The ATO then reviews details of any superannuation contribution provided by your Scheme that may be eligible for a co-contribution. Once the ATO has these two bits of information they then determine whether the member is eligible for a co-contribution and what the co-contribution amount will be.

How much is the co-contribution?

The co-contribution is a matching contribution, dollar for dollar subject to a maximum of $1,000. This maximum starts reducing once your "Total Income" reaches $27,500 (down to zero once your income reaches $40,000). The co-contribution examples table gives you a guide. When will this take effect and when will I receive my co-contribution? The effective date is 1st July 2003. That is, the co-contributions apply to the current financial year. Some members will have already paid in sufficient personal contributions to attract some, or all of the available co-contribution. The Scheme will send in the required information by 31 October 2004, so it really depends on when you send in your tax return. Remember the ATO needs both pieces of information to determine who is eligible and how much needs to be paid. Given this, it is likely that any co-contribution payment will be made in 2005.

How will I receive my co-contribution?

Any co-contribution payment will be made to the superannuation fund which reported the highest post tax superannuation contribution for that year as a personal (post tax) contribution. If this is your Scheme, we will automatically receive and report any co-contribution amounts in your name.

How will my co-contribution be taxed?

Superannuation co-contributions are tax-free - both on the way into and on subsequent payment from the Scheme.

Should I review my current contribution strategy?

Every time superannuation tax rules change you should review your arrangements. Because each situation is different, we recommend you contact Member Services on 1300 369 901. If you have complex arrangements, we encourage you to speak to a FuturePlus Financial Planner.

	Total Income
	Up to $27,501	$27,500 to $30,000	$30,001 to $32,500	$32.501 to $35,000	$35,001 to $37,500	$40,000 and above
Example 1 Your after tax Contribution at $500	$500	$500	$500	$400	$200	$0
Example 2 Your after tax Contribution at $1,000	$1,000	$800	$600	$400	$200	$0
Example 3 Your after tax Contribution at $2,000	$1,000	$800	$600	$400	$200	$0