New super legislation
In November 2016, a number of super reforms successfully passed through both houses of Parliament. These changes are due to come into effect by 1 July 2017.
The new legislation includes:
- Low Income Super Tax Offset (LISC) – provides a super boost of up to $500 a year for those earning less than $37,000, and is estimated* to benefit more than three million workers
- Transfer balance cap - which limits how much can be transferred into retirement phase to $1.6 million
- Concessional superannuation contributions – a reduction of the annual contributions cap to $25,000
- Income threshold reduction –the income threshold for payment of additional contribution tax (Division 293) has been reduced to $250,000
- Non-concessional cap reduction – a reduction of annual non-concessional cap to $100,000
- Tax Deduction of all personal contributions up to the cap – presently only available to the self-employed
- Catch-up concessional contributions - the ability for individuals with super balances below $500,000 to make ‘catch up’ concessional contributions (commences 1 July 2018).
- Extended eligibility - for low-income spouse superannuation tax offset
- Removal of anti-detriment provisions
- Removal of tax exemption on earnings of transition to retirement pensions
To learn more about these legislated super changes, please click here.
Should you wish to discuss your personal circumstances and how these changes may affect you and your superannuation, please call 1300 65 18 65 and ask to speak to one of our financial advisers. We’re here to help.
*Estimates are from Treasury.
Donald Trump, Big Data and Markets (and The Queen)
The Queen famously asked a room full of Economists after the Global Financial Crisis – “Why did nobody notice it?” We can ask the same question about President-elect Trump and Brexit.
The truth is that pundits, polls and markets get things wrong - it’s always major turning points or significant global events that demonstrate this best.
Just because we have more data, better analytics and faster computers doesn’t make us better forecasters or market sages. In many instances, the data collected may be incorrect - the “shy Tory” vote phenomena in the UK, where the actual vote for the UK conservatives is consistently higher than the polls, is a great example of this. As is yesterday’s result. Also, we’re human and regardless of the science behind predictions, human emotion will at times override and change the path or course of history.
Is that likely to change? No. Is that a problem? Not necessarily. As long as we understand that unpredictability and uncertainty is ever present.
This week, the unique perspective afforded by the Australian time zone captured what financial economists term “price discovery under uncertainty” – meaning that markets remain open but no one has a clue what is going on!
Early Wednesday morning, as the election was unfolding, the top 200 shares in Australia were up 1% and at the end of the day, closed down almost 2%. But at one stage during the day, they were down nearly 4%.
US stock futures actually tripped the circuit breakers introduced after the 1987 crash down 5%! By the end of the trading day, the US market actually closed up more than 1%!
So we were uncertain Wednesday, and we will continue to be uncertain. We don’t yet know what a Trump presidency means for the world or for markets other than that we continue to live in interesting times. And, as President Obama said, “the sun will rise in the morning”.
Head of Investments, Statewide Super
United States election result and market impacts
As we write this, the markets around the world are reacting strongly to the US election result. Our investment team have been monitoring the markets closely and have provided this statement for the information of our members.
In essence, the markets have been surprised by the result and are reacting accordingly. This has resulted in the Australian stock market being up +1% this morning, down -3.8% this afternoon before recovering to be down about -2% for the day. Our expectations, at this early stage, are that markets will remain volatile until the implications of this election result become clear.
It’s important to note however, that we've seen this type of reaction before, with Brexit and the European crisis in recent times. In the case of Brexit, UK shares fell -5.6% on the announcement but 3 weeks later were +12.5% higher.
What does this mean for Statewide Super and our members?
- We caution against members taking any short-term reaction to these wild moves in markets
- We strongly recommend members take a long-term approach and seek financial advice
As always, we strongly believe that short-term forecasts should not drive investment decisions and we also believe that portfolio diversification across all asset classes should be at the core of our members’ investment strategy. Our diversified multi asset class portfolios are designed to cushion some of the pain in volatile markets.
If you have any questions, or require any further information, please contact our client services team or Statewide Financial Planning on 1300 65 18 65.
Government Super Announcement
On 15th September 2016, Treasurer Scott Morrison and Revenue and Financial Services Minister Kelly O'Dwyer announced the following changes to the federal government's superannuation reforms proposed in the Budget 2016-17:
- the $500,000 lifetime non-concessional cap will be replaced with a new measure to reduce the existing annual non-concessional (after-tax) contributions cap from $180,000 per year to $100,000 per year (from 1 July 2017).
- individuals aged under 65 will continue to be able to 'bring forward' three years' worth of non-concessional contributions;
- individuals with a superannuation balance of more than $1.6 million will no longer be eligible to make non-concessional (after tax) contributions from 1 July 2017. (This limit will be indexed);
- in order to fully offset the cost of reverting to a reduced annual non-concessional cap, the proposed abolishing of the work test from 1 July 2017 for people aged between 65 to 74 will not proceed. This means the current restrictions on such individuals from making superannuation contributions will remain, and
- the commencement date of the proposed catch-up concessional superannuation contributions will be deferred by 12 months to 1 July 2018. This measure allowed individuals to make additional concessional contributions where they have not reached their cap in previous years.
Similar to other Budget superannuation measures, the treatment will be broadly commensurate for members of defined benefit schemes.
According to Mr Morrison and Ms O'Dwyer, the new measures will enable Australians to contribute $125,000 each year with their annual concessional contributions, "and, if taking advantage of the non-concessional 'bring forward', up to $325,000 in any one year until such time as they reach $1.6 million". Mr Morrison and Ms O'Dwyer added that the measures "will ensure that 96[%] of Australians remain better off or unaffected by the Federal Government's superannuation reforms that will introduce greater flexibility and sustainability to the retirement income system".
Treasury has provided some preliminary information on its website as well as a superannuation fact sheet explaining the change in more detail.
Should you wish to discuss your personal circumstances and how these changes may affect you and your superannuation, please call 1300 65 18 65 and ask to speak to one of our financial advisers. We are here to help.
Statewide feeling super after national accolade
AN Adelaide headquartered superannuation fund has beaten off competition from across Australia to land a prestigious performance award.
Statewide’s MySuper investment option has been named the top performer nationally over the past three years in the Super Ratings annual SR50 MySuper Survey, courtesy of an investment return of 10.42 per cent.
Read the article from the Advertiser 23 July 2016 here.
Coming soon – annual member statements
2015–16 annual member statement notifications will be sent to members in August, so keep your eye out!
Starting from this year we’ve gone hi-tech, which enables us to maximise resources and keep fees low. This means your statement will be provided to you through a PURL (personalised URL) – a mini-website created just for you. From there your statement can be downloaded and saved as a PDF on your computer, or you can always print it out if you need – the choice is yours. If we’ve got your email address, an email will be sent to you containing the link to your PURL.
If we don’t have an email address listed for you, you will receive a letter in the mail containing the PURL information.
If you have any questions, please contact our customer service team on 1300 65 18 65.
Adelaide Precision Glass wins Fast Movers SA 2016 Award
Being told by a former boss he was replaceable set Clint Buick on a path that yesterday saw his business take out top prize in a competition recognising South Australia’s fastest growing companies.
To read the Advertiser article from Saturday 7 May click here.
Statewide Super Chair Juliet Brown OAM announced as Trustee of the Year
The Board of Statewide Super is proud to announce that its Independent Chairman, Juliet Brown OAM, is the recipient of the prestigious 2016 Trustee of the Year Award. This award is presented by the Australian Institute of Superannuation Trustees (AIST), and is the most highly-regarded award recognising superannuation trustee excellence by industry peers.
The announcement was made at the Conference of Major Superannuation Funds (CMSF) in Adelaide this afternoon, and recognised Juliet for her fierce commitment to the retirement outcomes of Statewide Super’s members and her leadership of the fund through a period of significant industry change.
Juliet holds the position of Independent Chairman of the Board and is a member of the Investment Committee. Juliet previously served as Chairman of the Local Super Board until the 2012 merger.
In congratulating Juliet on her commitment to the organisation, CEO Richard Nunn says,
“I can’t think of a more worthy recipient of this award.
“Juliet has led the organisation through a time of significant change.
“Throughout the merger with Local Super in 2012 and since, she has been single-minded in her focus on the best interests of Statewide Super members.
“Statewide Super remains in the top three superannuation investment performers in the country, which is a tribute to Juliet’s leadership,” says Richard.*
Board members today join Richard in his congratulations, with Yvonne Sneddon and Ken Williams both speaking on her behalf at the awards presentation in Adelaide.
Juliet expresses her gratitude upon being presented with this award,
“It’s an honour to receive this award from my peers. For me, it’s not about recognition of any one individual – rather the award reflects the commitment of the entire Board and staff of Statewide Super in our continued efforts to deliver the best possible retirement outcomes for our members,” she says.
AIST President Angela Emslie congratulated Ms Brown on her achievements and acknowledged her governance leadership excellence.
“Juliet has a strong commitment to the equal representation model and is a fervent advocate for members.
“She is well respected by her board, fund staff and peers as well as being actively engaged in the broader industry.
“It's great to be able to recognise her efforts at the Conference of Major Superannuation Funds (CMSF) in her home town of Adelaide,” says Ms Emslie.
Juliet was appointed to the board of Statewide on 1 July 2012. She holds the position of Independent Chairman of the Board, and is a member of the Investment Committee.
Juliet was appointed to the Local Super Board as an Independent Director in September 1995 and commenced as Chairman in July 2007.
She has significant experience in business and law extending over a range of industries including insurance, health, transport and superannuation, in both the public and private sectors.
From 1999–2004 Juliet held the position of Chief Executive of Thomson Playford, (now Thomson Geer) one of South Australia's largest commercial law firms. Prior to joining Thomson Playford, Juliet had undertaken senior practice management roles, as well as having practised as a solicitor in commercial litigation for both public and private sector clients, particularly in the insurance and health areas for over 20 years.
Juliet has extensive independent non-executive director, chairman and audit committee experience.
Her current appointments include:
· Chairman of the Lifetime Support Authority
· Director of the South Australian Motor Accident Commission
· Director of Medical Insurance Australia Pty Ltd
· Member of the South Australian Financing Authority Advisory Board.
Juliet is also a Fellow of the Australian Institute of Company Directors and a Member of the Australian Institute of Superannuation Trustees and the Law Society South Australia.
In 2015 Juliet was awarded a 'Medal (OAM) in the general division' for ‘service to the community through roles with health, transport, financial and business organisations’.
*According to independent ratings organisation SuperRatings, for Statewide Super’s MySuper investment option, for the year to 31 January 2016. Past performance is not a reliable indicator of future performance.
Statewide Super to ramp up brand awareness, marketing
New Statewide Super boss Richard Nunn plans to apply his experience from the retail wealth management sector to turbocharge the $6 billion superannuation fund's branding and marketing efforts so it can better compete against larger industry funds and the banks.
To read the Australian Financial Review article from Monday 8 February click here
Big’s not always the best
You don’t have to be big to be the best when it comes to strong superannuation returns. To read the Advertiser article from Monday 25 January click here
Statewide signs the Paris Pledge for Action
Statewide is pleased to announce that, as part of our ongoing commitment to sustainability, we have signed the Paris Pledge for Action.
In doing so, we are signalling that we welcome the global climate change agreement adopted last week at the United Nations COP21 conference, and we support the level of ambition set by the agreement.
‘Statewide embraces sustainability because we believe it makes good business sense – for the long-term wellbeing of our members’ retirement savings, for the natural environment and for the community in which we all live and work,’ says Acting Chief Executive Officer, Nicolle Rantanen.
‘Like many global signatories to the Paris Pledge for Action we will review our approach to sustainability, balancing a number of complex issues with our primary objective of delivering maximum retirement savings to our members,’ Ms Rantanen adds.
Visit Statewide’s sustainability page to learn more about our approach to sustainability.
Disruption nothing new
"It might be a case of famous last words, but I think that two of the most overused words are innovation and disruption," Con Michalakis says.
To read the Australian Financial Review article from Monday 7 December, click here.
Statewide outperforms most rivals
Adelaide-based financial services group, Statewide Super, has maintained its position as one of Australia’s top performers for the MySuper product according to a respected industry barometer of investment performance.
The SuperRatings Fund Credit Rate Survey in September placed Statewide in second place nationally for MySuper performance for the 12 months to September.
MySuper was introduced in 2013 after the Federal Government decided financial services providers should offer a ‘no frills’ superannuation product which would become the ‘default’ fund for employees who did not make a choice about where their contributions should be directed.
Statewide’s Head of Investment, Con Michalakis, said the September quarter had been “challenging with significant swings in emerging markets, commodities, energy stocks and high yield bonds”.
“Statewide’s overall investment strategy held up well in these markets, performing better and losing less than the majority of our peers,” Mr Michalakis said.
“As a matter of fact we were number two in the nation for MySuper investment performance for the 12 month rolling period to September 2015,” he said.
“If you have funds in our MySuper option the chances are high that you’ve done better than work colleagues or family members who are with a different super fund.”
Content provided by Business SA, and published in Business SA’s The Actual e-news,
Statewide salutes Brian Hurn OAM – a great South Australian
The Statewide community is deeply saddened by the passing of long-standing board member Brian Hurn OAM over the weekend.
While Brian retired from the Statewide board in June of this year, we continue to be influenced and inspired by his dedication to the role and commitment to our members, expressed across more than 20 years of service.
A respected member of the Barossa Valley and broader South Australian community, Brian served as a Local Government Association representative on our board from 1993 – first for Local Super and then for Statewide following the merger of our funds in 2012.
Brian was also actively involved in a number of the Statewide board’s sub-committees.
‘This was typical of Brian, who was constantly driven to contribute the greatest value in his commitment to any role,’ says Statewide Chairman Juliet Brown. Statewide investment manager David Smelt worked with Brian for many years.
‘Brian’s favourite reference was that he was “a simple country boy,”’ he remembers, ‘but his quick wit and passion for all he undertook made you feel privileged to have come into contact with him’.
Brian was a fourth generation farmer of wool, lamb, beef and wine grapes, and made major contributions to South Australia as mayor of the Barossa Council from 1996–2014, through his involvement with the Local Government Association (including as president from 1999–2001), as a first class cricketer playing for South Australia from 1957–1967 (including in the 1963–1964 Sheffield Shield winning team), and as a member of the Angaston Country Fire Service for over four decades.
We are truly grateful to Brian for his hard work and many years of service to Statewide. He will be sorely missed and our thoughts are with his family at this time.
Statewide CEO appointment
Statewide Chairman, Juliet Brown OAM, has today announced the appointment of Richard Nunn as the industry fund's new chief executive officer.
To read the Advertiser article from Tuesday 6 October, click here.
One of Australia’s best
When you’re with Statewide you can sit back and relax knowing we’ve delivered super results for you. We know you want the best out of your super – and we’ve been recognised as a top performing fund.
Our MySuper investment option returned an impressive 11.48% for the 2014–15 financial year#, making us the third-best performing MySuper fund according to independent ratings firms SuperRatings and Chant West.
In addition, Statewide is delighted to be an Industry Super Fund of the Year nominee for Super Review’s Super Fund of the Year Awards 2015.
These awards, powered by ratings-house The Heron Partnership, are judged on:
- Strong investment strategy and returns
- Quality insurance arrangements for our members
- The many other benefits we can offer our members.
Head of Investments, Con Michalakis, says we’re constantly striving to do more for our members and these recent achievements recognise our efforts.
“Investment strategy and returns are a big part of the judging of these awards and we’re really proud of our performance. Statewide has delivered double-digit returns on our default option* for three years running now. This is really positive news for our members – our high returns translate to more money for their retirement,” he says.
The winners of the Super Fund of the Year Awards will be announced at a Super Review event in Melbourne on 13 August.
To see the 2014–15 investment returns for all of Statewide’s investment options, please visit our Investment performance page.
And, if you’re impressed with our track record, and would like to roll your super into your Statewide account, visit our Consolidation page.
#Based on hard close unit prices at 30 June 2015. Past performance is not a reliable indicator of future performance.
*MySuper option has been the default since 1 July 2013. The Balanced/Growth option was our default option for 2012-13.
Canny strategy delivers Statewide super surge
THREE years of double-digit investment returns have made Adelaide-based Statewide Super one of the top performing superannuation funds in the nation. The $6 billion fund’s MySuper default investment option returned 11.48 per cent for 2014-15, well above the industry average of 9.7 per cent.
Read the article from the Advertiser 28 July 2015 here.
Super access a win-win for all
Opening access to millions of dollars in funding for the South Australian Health and Medical Research Institute is a classic win-win situation.
SAHMRI researchers have the opportunity to further their work and create commercial outcomes and Statewide Super members have an investment which has a reasonable chance of delivering exceptional results.
2015 Federal Budget
If you’d like to read about what the Federal Budget may mean for your super and retirement, click here to read a summary prepared by the Australian Institute of Superannuation Trustees, the industry body representing profit-for-members super funds..
Nomination now open for 2015 South Australian Regional Awards
As a South Australian-based organisation, Statewide supports many regional and rural employers across the state. That's why Statewide are once again proud to sponsor the tourism award as part of the Brand SA Regional Awards.
Nominations for the 2015 South Australian Regional Awards are now open, giving individuals, groups and organisations the opportunity to be recognised for their outstanding achievements and contributions to regional South Australian communities.
Click here for more info.
Please click here to begin a nomination.
Top 3 in Australia for investment returns
South Australian-based industry super fund, Statewide, has ranked in the Top 3 out of all MySuper funds in Australia for the past year, according to the latest ranking from SuperRatings.
Statewide's MySuper product ranked 3rd out of 47 products in the survey for the year to
Managing over $6 billion in retirement funds for over 145,000 members, located
predominantly in South Australia and the Northern Territory, Statewide has been assessed
by independent superannuation industry analyst SuperRatings as recording amongst the
strongest returns for MySuper funds with a rolling 1 year return of 15.52 per cent.
The majority of Statewide's investment options have been ranked by SuperRatings in the
top quartile for the past year.
Statewide Acting CEO Nicolle Rantanen said the fund's commitment to strong returns for
members was supported by the latest ratings.
"Our goal is simple - it's to help our members save effectively for their retirement. The
latest ratings reaffirm our investment strength in the market," Ms Rantanen said.
"We are about making super easy and delivering more for our members and the 18,000
employers whose super obligations we help fulfill."
SA super fund a star
Read the article from the Advertiser 28 April 2015 here.
Super Centre expansion
Statewide recently updated its Member Centre in Victoria Square to cater to rising demand. It’s just one aspect of doing more for members. Click here to read article.
Super news – super returns!
We’re super pleased to announce that our investments have been going great guns of late!
As measured by independent super research provider, SuperRatings*, 95% of our assets are in the top quartile or above median on a one to five year basis.
Furthermore, our MySuper option has achieved returns which meant that it was in the top five MySuper funds over the calendar year to December 2014.
The combination of solid returns, low fees, a comprehensive range of products, and great service, makes us confident that we’re competing favourably with the best super funds in Australia.
*Super Ratings Fund Credit Rating Survey, December 2014
New licence, same solid service
As a profit-for-members industry super fund, we work hard to do more for you and, as part of this commitment, our advice capabilities continue to expand so we can help more of our members and their families reach their lifestyle goals.
An important component of solid and reliable financial advice is ensuring our financial planners have a well resourced team behind them, offering support to ensure they continue to operate under the best practice principles. As of Monday 16 February 2015, our financial planning team will be operating under a new Australian Financial Services licence – Industry Fund Services Limited (IFS) ABN 54 007 016 195, AFSL No 232514.
This will provide little change for you because we will have the same financial planners you have worked with in the past – they will simply be operating under a new licence. What we expect, however, is that the additional support provided by IFS will enable them to see even more of you and have the capability and capacity to extend our services to providing financial advice to your friends and family.
If you’re an ongoing review client, you will start to see the IFS logo on some of our more formal documents, but other than this, it’s business as usual.
For detailed financial planning advice about your situation, call 1300 65 18 65 today to make an appointment with a Statewide financial planner!