CONTENT
Scheme's Performance
Retirement & Wealth Creation Seminars
Regional Offices
Quarterly Superannuation Guarantee Contributions
New Legislation on Co-contributions and Reduction of Surcharge
Employer Helpline
New Legislation on Co-contributions and Reduction of Surcharge
The Federal Government and the Democrats reached an agreement on 7 September that will allow the Government Co-contribution for low income earners and the reduction in the maximum rate of superannuation surcharge to pass through the senate and become law. The two measures have been changed in the process of reaching the agreement.
The income thresholds for the Co-contribution have been increased. The lower income threshold will increase to $27,500 (up from the proposed $20,000) and the upper threshold will increase to $40,000 (from $32,500) so a greater number of taxpayers will be eligible for the Co-contribution.
The maximum rate of superannuation surcharge will now reduce from 15% to 12.5% over three years instead of the Government's original proposal to reduce it from 15% to 10.5% over three years. The proposed maximum rate of surcharge will now be:
14.5% (2003-04),
13.5% (2004-05), and
12.5% (2005-06 onwards).
Employer Helpline
The Scheme runs an Employer Helpline, which is available to employers. An Employer Helpline Officer can help you with any superannuation related matter eg matters arising relating to SG contributions, superable salary and SG deadlines. The number is 1800 636 441.
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 October 2003
Welcome
Welcome to the October edition of the Employer Newsletter. In this edition, we give you the latest on your Scheme's performance, remind you about our helpful Employer Helpline service and Regional Offices. We also give you the latest news on the legislation on reduction of surcharge and co-contributions and dates and venues of the upcoming seminars plus much more. We trust you will find this newsletter very informative.
Scheme's Performance
The new financial year - 2003/04 - has seen a welcome return to better performing investment markets.
Both Australian and international equity markets have continued to record good gains, although a strongly rising Australian dollar has also acted to slow the gains from offshore markets.
Fixed income markets have, however been affected by a sentiment of the inevitability that interest rates will rise.
This has meant that portfolios managed by the Scheme have been a mirror-reverse of last year. The growth based (equity-orientated) portfolios have shown strong performance, and the defensive categories (fixed income orientated) have produced the more subdued returns.
To assist the investment returns, the Scheme continues to adopt currency hedging policies to offset the worst of the impact of a rising AUD; and has also recently introduced some policies to protect against interest rates rising too quickly.
The return to more normal markets has allowed the Scheme to commence the year on a strong note.
Barring unforeseen impediments to the continuation of this trend, it is possible for the investment portfolios to deliver very solid investment gains for members this year.
Under this environment, the Scheme will return to being a high to top-quartile performer once again, and re-inforce the long-term outperformances that the portfolios continue to earn.
Accumulation & Executive Scheme (post-tax returns)
| |
High Growth |
Diversified |
Balanced |
Capital Guarded |
Cash Plus |
|
|
July |
3.48% |
2.22% |
1.14% |
0.12% |
0.33% |
|
August |
2.04% |
1.47% |
0.96% |
0.45% |
0.33% |
|
September |
-1.73% |
-1.16% |
-0.55% |
0.01% |
0.35% |
Retirement & Defined Benefit Scheme (post-tax returns)
| |
Returns |
|
|
July |
2.95% |
|
August |
1.88% |
|
September |
-1.20% |
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