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CONTENT
Superannuation Guarantee Contributions for 2002-3 due by Monday 28th July 2003
Scheme's Performance in 2002-3
ALL contributions to be remitted by the 28th day of each month
Re-introduction of Administration fee
New Office in Wollongong
Billb-e Update
Retirement & Wealth Creation Seminars
Employer Handbook
Employer Survey
Employer Handbook
The Employer Representative Committee has finalised its first review of the Employer Handbook. A number of changes have been recommended, which will be incorporated in the next draft. We will keep you up to date with developments.
Employer Survey
To ensure we are providing the best service possible to you and our members, we have constructed an online Employer Survey. This survey is our tool in examining what our Employers like and dislike about the service we provide to them and their organisation's employees. Please click on the survey link to fill out the survey. Your cooperation is appreciated.
Re-introduction of Administration fee
The Scheme has re-introduced the administration fee for Retirement and Defined Benefit Scheme members with effect 1 July 2003. The fee, which will be charged to member accounts, is $39 per annum and represents the costs to the Scheme of providing a wide range of services to its members.
The administration charge has not been levied on member accounts since 1 July 1998 and the re-introduction is partly in response to the continuing world economic downturn, which has led to lower than expected rates of return for the Scheme. In comparison to other superannuation schemes, your Scheme's administration fee is one of the lowest in the industry.
Billb-e Update
Billb-e, the new billing system for the Retirement Scheme (Div B), has now been in operation for 7 months and is settling in quite well. Adjustment reports were replaced with a new improved format last month, which we hope has made life a little easier.
Thanks to those employers who are providing electronic files along with their payments. If you have issues creating them from your payroll system, electronic files are able to be sent each month along with the contribution due reports. Simply contact the Employer Help Line and have them register you as requiring an electronic file each month.
Work is continuing on the Employer web site to give you direct access into Billb-e later this year. You will be able to update your employees' service history, salary, etc and notify of exits.
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July 2003
Dear Employer
Welcome to your latest electronic Energy Industries Superannuation Scheme Employer Newsletter. We hope you find it interesting and useful. We're sending you this newsletter as part of our commitment to keeping you up to date and in touch with your obligations and opportunities in respect of your employees' superannuation. You may have noticed that it has a new look too.
We welcome your feedback on the issues featured in the newsletter or anything else regarding superannuation. Please email us.
Superannuation Guarantee Contributions for 2002-3 due by Monday 28th July 2003
Please note that all Superannuation Guarantee Contributions for 2002-3 must be received by the Energy Industries Superannuation Scheme by the 28th July 2003 otherwise you will be subject to the superannuation guarantee charge, and an administration fee and you may not be able to claim a tax deduction.
Any contributions received after this date will not be processed and will be sent back to you. Your council will then be required to pay the SG payment with associated fines to the Australian Taxation Office by 14 August 2003.
Please see the ATO ruling
ALL contributions to be remitted by the 28th day of each month
Under a combination of Scheme Rules and Superannuation Law, effectively all contributions, both 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.
Penalties
Penalties apply under both the Rules and legislation for failure to pay contributions on time.
For the Accumulation Scheme and Executive Schemes, late Employer contributions (salary sacrifice and compulsory or SG) will attract penalty interest for late payment at the rate of 10% per annum. This interest when collected is then applied to (those) member accounts.
In addition, under SG Regulations, where compulsory employer contributions are not paid to the Scheme by the new quarterly due dates (see next story), the employer will be liable for the Superannuation Guarantee Charge.
For all the Schemes, employee contributions deducted from a member's salary are due by the 28th day of the next month. This is a requirement under Commonwealth legislation and the Trustee is required to take action to collect such debts. Consequently, the Trustee applies a late interest penalty of 10% per annum. Also, employers who are late with such contributions are potentially liable for penalties under the Superannuation Industry (Supervision) Act. That Act states that failure to pay on time may be considered a "strict liability" offence, which does not allow many excuses for failure to pay on time.
Quarterly Superannuation Guarantee Contributions to be paid by specified dates.
The Australian Taxation Office (ATO) has recently introduced a new SG contribution standard (effective 1 July), that requires the payment of SG contributions on a quarterly rather than annual basis.
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 cut off and lodgment dates
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Superannuation guarantee quarter
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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 |
Employer Reporting Requirements
The ATO has recently introduced reporting requirements that employers must observe so that employees know how much superannuation has been paid on their behalf and where the money has gone (Defined Benefit Scheme members excluded).
The written report must include:
the amount of contributions made;
the name of the superannuation provider and, if possible, their contact phone number - to help employees contact their provider to confirm that their contributions have been made, the superannuation provider's name on the written report should be the name that would appear in the phone book; and
if known, the written report should also include the employee's account or membership number.
The ATO has advised that there is no specific format for reporting to employees but have provided the following examples:
a letter to the employee;
if the employer usually communicates with their employees via e-mail, they can use this medium to send the written report;
on a payslip, or
if available, a copy of a receipt for contributions from the superannuation provider.
For more information, go to www.ato.gov.au/super
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Scheme's Performance in 2002-3
The last few years have been some of the most difficult in financial markets with poor returns for most superannuation funds.
In an environment where data has shown "…an average decline of about 2.4 percent for the 2002-3 financial year for funds that invested mainly in shares, property and fixed interest…" (The Australian Financial Review 2 July 2003), your Superannuation Scheme has recorded small positive returns for the Diversified, Balanced, Capital Guarded and Cash Plus strategies, and a small negative for High Growth. Similar performances are recorded for the Rollover and Allocated Pension products. The Retirement Scheme figures will be available shortly. Below are the investment returns for each strategy.
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High Growth |
Diversified |
Balanced |
Capital Guarded |
Cash Plus |
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Superannuation |
-1.5% |
0.6% |
2.8% |
5.1% |
3.6% |
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Rollover |
-1.8% |
0.2% |
2.5% |
4.8% |
3.2% |
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Allocated Pension |
0.1% |
0.2% |
2.9% |
5.9% |
4.0% |
Is Superannuation still a good investment?
Yes! For a number of important reasons:
Taxation Treatment of Superannuation: Firstly, the taxation treatment of money invested in superannuation remains favourable for most investors.
Eggs in many baskets: Secondly, the Scheme Strategies invest in many asset classes including cash, equities, property and bonds, ensuring that under-performance in some asset classes may be countered by out-performance in others.
Clever Investing: Thirdly, the Scheme employs many strategies to shield against losses and to support returns. For example the Scheme has at its disposal hedge strategies to protect against currency movement.
Remember it's for the Long-Term: While investment returns have been poor over the last few years, investors recalling the returns of just three to five years ago will have memories of very high returns. Over the long-term, super funds will provide a sound choice for long term savings.
What can your members expect to see in their statements?
It depends on a number of factors that are unique to each member. The Scheme's performance relates to the effect on a sum of money invested over the whole year. In contrast, member superannuation accounts often receive contributions throughout the year, may experience once-off transfers in or out, and may be subject to taxation differences. In addition, members may have switched between strategies during the year. You are welcome to call the Employer Helpline on 1800 636 441 for more information.
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New Office in Wollongong
The Honourable David Campbell MP, the N.S.W Minister for Regional Development, officially opened the new Local Government and Energy Industries Superannuation Scheme's regional office in Wollongong on 13th June 2003. The Wollongong office will service the 10,000 members who live and work in the Illawarra and South Coast of NSW.
The new office will provide members with the opportunity to meet with Scheme representatives in Wollongong to discuss their super. Furthermore, members approaching retirement can now make an appointment with a Financial Planner at the new office. The office is the latest initiative to provide superior service and access to Scheme members following the opening of offices in Sydney, Lismore, Orange, Wagga Wagga, and satelite offices in Goulburn and Albury.
The Schemes financial planners are able to provide advice tailored to meet the individual needs of each member. Our financial planners are salaried employees whose advice is not driven or influenced by commissions.
Members can discuss retirement planning, salary sacrifice (if employer offers this), voluntary insurance, low cost home loans, or any other superannuation matter. To book an appointment, the number to call is 1300 369 901. Our offices are conveniently located at;
Sydney: 28 Margaret Street
Wollongong: Shop 2 & 3/60 Burelli Street
Lismore: 81-83 Molesworth Street
WaggaWagga: 2/209 Baylis Street
Orange: 187 Summer Street
Albury: 429 Swift Street
Goulburn: 148 Auburn Street Goulburn
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Retirement & Wealth Creation Seminars
Retirement 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:
- Income Streams in Retirement
- Practical Case Studies
- Age Pension & Allowances
- Asset and Income Tests
- Nutrition
- Exercise and planning for your retirement
Following are the dates and venues of the upcoming Retirement Seminars:
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Tuesday, 9 September |
Cessnock |
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Wednesday, 10 September |
Raymond Terrace |
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Thursday, 11 September |
Wyong |
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Friday, 12 September |
Gosford |
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Wednesday, 24 September |
Taree |
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Thursday, 25 September |
Kempsey |
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Friday, 26 September |
Grafton |
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Saturday, 27 September |
Tweed Heads |
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Wednesday, 1 October |
Newcastle |
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Tuesday, 14 October |
Windsor |
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Saturday, 18 October |
Wollongong |
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Wednesday, 22 October |
Liverpool |
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Saturday, 8 November |
Dee Why |
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Wednesday, 12 November |
Sydney |
Seminars start at 8.45am with registration and finish at 2.30pm. Morning tea and lunch is provided
Wealth Creation Seminars
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 bill
- How to get the most out of your savings
- Other important issues you need to consider
Following are the dates and venues of the upcoming Wealth Creation Seminars:
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Tuesday, 29 July |
Blacktown |
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Thursday, 14 August |
Dee Why |
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Tuesday, 26 August |
Kogarah |
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Tuesday, 9 September |
Raymond Terrace |
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Wednesday, 17 September |
Dubbo |
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Thursday, 25 September |
Grafton |
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Thursday, 23 October |
Wagga Wagga |
Seminars commence at 6pm and refreshments are provided
Members can reserve a seat at one of these seminars by calling 1300 369 901
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