ANZ Smart Choice Super Investor Update : Member Update Winter 2015
15 IMPORTANT CHANGES AND INFORMATION The Low Income Super Contribution (LISC) effectively returns any tax paid (up to $500) on concessional contributions made in a financial year for a low income earner (an individual with an adjusted taxable income of $37,000 or less in an income year). The co-contribution may appear on your statement as either an addition or deduction. An addition represents a payment from the ATO into your account and a deduction may be the correction of a payment received to your account or the recovery of an overpaid co-contribution by the ATO. Conditions apply, so you should speak to your financial planner or contact the ATO in relation to the amount paid. UPDATE TO BENEFICIARY NOMINATION DISCLOSURE The following information in the next section replaces the content under the heading "No nomination, defective nomination or cancelled nomination" in the ANZ Smart Choice Super and Pension Additional Information Guide dated 11 November 2013 and in the ANZ Smart Choice Super Additional Information Guide -- Employers and their employees dated 11 November 2013. No nomination, defective nomination or cancelled nomination If you choose not to make a nomination, do not make a valid nomination, cancel your existing nomination or to the extent your nomination is defective, the Trustee will pay your death benefit to your Legal Personal Representative*, if your estate is solvent. If there is no Legal Personal Representative, or your estate is insolvent, the Trustee will pay your death benefit to your spouse. If you do not have a spouse, the Trustee will pay your death benefit to one or more of your dependants (as determined by the Trustee) and if no dependants, the Trustee will pay your death benefit in accordance with the relevant law. AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY (APRA) LEVY In 2013, the Federal Government increased the APRA Levy (Levy) paid annually by all APRA regulated superannuation funds. We wish to notify you that OnePath Custodians Pty Limited (Trustee) has now recovered this year's Levy from member accounts. The amount of the Levy is set to recover the general operational costs of APRA, and will also assist with the implementation of the Government's 'SuperStream' reforms. These reforms are designed to support the superannuation system to operate more efficiently for the benefit of members. The Levy is an expense to the OnePath MasterFund and is applied each year. The component of the Levy related to SuperStream will cease in 2018. What does this mean for you? The Trustee recovers the Levy by deducting it from the unit price of each investment option (excluding cash, term deposits and guaranteed products). The recovery for the year ending 30 June 2015 occurred on, or around, 28 May 2015. It is estimated the impact on members was 0.01% of unitised investment options. For example, a member with a balance of $50,000 will pay $5.00. Looking forward to the 2015-16 financial year, the Australian Government is considering collecting the SuperStream component of the levies on a member basis rather than a percentage of a superannuation entity's assets. What do you need to do? You do not need to do anything, the Levy and unit price adjustment has already been recovered for the 2014/15 year and we will notify you of the changes made for 2015/16 by the Australian Government, if any. YOUR ANNUAL REPORT IS AVAILABLE ONLINE In line with ANZ's ongoing commitment to reducing our impact on the environment, your Annual Report will be available online in December 2015 at anz.com > Personal > Investing & Super > Resources CHANGES TO DISHONOURED CHEQUE PROCESSING PROCEDURE In response to the declining usage of cheques, the Australian Payments Clearing Association has mandated that banks switch from paper to electronic image exchange as the mechanism to manage cheque payments. As a result, if dishonoured, the physical cheque will no longer be returned to the customer. The customer will now receive a letter that contains an image of the dishonoured cheque. The new process is effective from 25 May 2015. As a result of the physical cheque not being returned, the cheque re-presentation process can no longer be supported, and has been removed from ANZ's operating procedures. continued * Legal Personal Representative means an executor of the will or administrator of the estate of a deceased person, the trustee of a deceased person, the trustee of the estate of a person under a legal disability or a person who holds an enduring power of attorney granted by a person, however: a. subject to paragraph (b) below, a person does not have a Legal Personal Representative unless: i. a grant of probate has been made; ii. letters of administration have been issued; or iii. such equivalent authority as the Trustee determines for jurisdictions outside Australia has been conferred on a person; and b. if the Trustee is reasonably satisfied that the value of your estate is less than the amount which the Trustee from time to time specifies as the 'probate limit', then the Trustee may treat a person who does not meet the criteria in (a) but who the Trustee is reasonably satisfied will, in practice, be informally performing the role of executor or administrator of your estate as if they were your Legal Personal Representative.
Member Update Autumn 2015