Westpac Personal Superannuation Fund 2013 Annual Report€¦ · 30 June 2012. From 1 July 2013 the...

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Westpac Personal Superannuation Fund 2013 Annual Report

Westpac Personal Superannuation Fund

2013AnnualReport

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ContentsRecent developments in Superannuation .......... 1

Understanding your investment ......................... 7

Investment profiles ............................................. 10

Fees & other costs ............................................. 16

Other important information ............................ 19

Westpac Securities Administration Limited, ABN 77 000 049 472, AFSL 233731, is the trustee (Trustee) of the Westpac Personal Superannuation Fund (the Fund), ABN, 36 369 876 939. The following products are part of the Fund and are covered in this Annual Report.

Westpac Personal Superannuation Bond (commenced 1 October 1992)Westpac Personal Superannuation Investment Plan (commenced 1 October 1992)Westpac Personal Superannuation (commenced 26 February 1990)Westpac Personal Superannuation Bond (commenced 28 April 1992)Westpac Personal Superannuation (commenced 26 November 1987)Westpac Simple Super (commenced 1 November 1992)

The Fund is a resident regulated superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993 (SIS) and is not subject to a direction under section 63 of SIS.

This Annual Report was prepared on 30 November 2013.

The investment manager for the BT and Westpac investment options is BT Investment Management (Institutional) Limited ABN 17 126 390 627, AFSL 316455.

Your investment in the Fund is not guaranteed. The value of your investment can rise and fall depending on the investment returns achieved by the Investment Option(s) you select. You, with the assistance of your Financial Planner, are responsible for selecting the Investment Options in which you invest. We are not responsible for our decision to invest in the Investment Options you select and are not liable for any loss or damage you may incur as a result of you deciding to invest in, or withdraw from, a particular Investment Option.

The information contained with this report is general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether this information is appropriate to you and talk to your Financial Planner before making an investment decision.

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Recent developments in Superannuation:1. 2013/14 superannuation thresholds

The superannuation contributions caps and various other superannuation thresholds that apply for the 2013/14 financial year are as follows:

Low rate cap: $180,000

Concessional contributions cap:

• Age 60 or over $35,000

• Under age 60 $25,000

Non-concessional contributions cap: $150,0001

Capital Gains Tax (CGT) Cap (lifetime limit): $1,315,000

Government Co-contributions:

• Maximum co-contribution2 $500

• Lower threshold $33,516

• Upper threshold (cut off) $48,516

1. If you were under age 65 on 1 July 2013 you may be able to make up to $450,000 of non-concessional contributions over three financial years.

2. The maximum co-contribution payable is phased out by 3.333 cents for every dollar of total income over the lower threshold, until it reaches zero at the upper threshold.

2. Higher concessional contributions cap

The transitional $50,000 concessional contributions cap for individuals who are aged 50 or over ended on 30 June 2012.

From 1 July 2013 the general concessional contributions cap is $25,000 pa.

A higher concessional contributions cap of $35,000 pa (not indexed) is available:

• from 2013/14 financial year for individuals aged 60 or over; and

• from 2014/15 financial year for individuals aged 50 or over.

The higher cap will cease to apply when the general concessional contributions cap reaches $35,000 as a result of indexation. Note that indexation of the general cap has been paused at $25,000 until 30 June 14 after which annual indexation in line with Average Weekly Ordinary Time Earnings (AWOTE), rounded down to the nearest $5,000 will resume.

3. Tax treatment of excess concessional contributions

For 2013/14 and later financial years an individual’s excess concessional contributions will be taxed at their marginal tax rate (plus Medicare Levy and an interest charge), rather than at a total tax rate of 46.5%.

If you have excess concessional contributions from 2013/14 you will generally be able to elect to have 85% of the excess contributions released from super to help you pay the tax, or you may retain these contributions in your super account.

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The following tax treatment will apply to excess concessional contributions in respect of the 2013/14 and later financial years:

•the amount of excess concessional contributions will be included in the individual’s assessable income and taxed at their marginal tax rate (plus Medicare Levy);

•the individual will be provided a non-refundable tax offset equal to 15% of the excess concessional contributions for the tax deducted by the super fund;

• if the individual elected to have excess concessional contributions released from their super fund, they will be provided with a tax credit for the amount of excess concessional contributions paid to the Australian Taxation Office (ATO); and

•an interest charge on the additional income tax payable will also apply.

If you choose to have excess concessional contributions released from superannuation, the gross amount of the contributions released will not count toward your non-concessional contributions cap. Excess concessional contributions retained in your super fund, however, will count towards your non-concessional contribution cap.

For 2011/12 and 2012/13 only, if you have exceeded your concessional contributions cap by $10,000 or less, you may receive a once-only offer from the ATO to have the excess concessional contributions refunded to you and assessed at your marginal tax rate, rather than pay excess contributions tax. The offer will only be available the first time you breach your concessional contributions cap in respect of 2011/12 or 2012/13.

For further information about the taxation of excess concessional contributions visit ato.gov.au/Individuals/Super .

4. Additional 15% tax on super contributions for high income earners

From 1 July 2012 an additional 15% tax, Division 293 tax, may apply to certain concessional contributions for those with income greater than $300,000 for the financial year.

If you are liable to pay the additional 15% tax, this will only be charged on your taxable concessional contributions (up to your concessional contributions cap) that are above the $300,000 threshold. If you have super in a defined benefit fund, the additional 15% tax may be calculated on your notional contributions which are not capped.

Income for the financial year for the purposes of Division 293 tax liability includes:

•taxable income (including the net amount on which family trust distribution tax has been paid)

•plus reportable fringe benefits

•plus total net investment loss

• less any taxable super lump sum upon which the low rate cap tax offset applies to reduce the tax to nil

•plus low tax contributions for the financial year.

If you have accumulation super accounts only, low tax contributions for a financial year will generally be concessional contributions for the year less excess contributions that are refunded to you or for which you have paid excess contributions tax.

If your low tax contributions bring your total income above the $300,000 threshold, only the amount of your low tax contributions above the $300,000 threshold will be subject to the additional 15% tax.

http://www.ato.gov.au/individuals/super/

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Example

Sabina’s income excluding low tax contributions is $285,000 for the financial year. Her low tax contributions for that year are $25,000. So Sabina’s combined income and low tax contributions are $310,000.

The amount of Sabina’s taxable contributions is the lesser of:

•her low tax contributions of $25,000 and

•the excess of the sum over the $300,000 threshold, being $10,000.

Therefore Sabina’s taxable contributions for the financial year are $10,000. The additional tax payable on these will be 15% of $10,000 = $1,500.

Special rules may apply for calculating Division 293 tax liabilities for:

•certain state higher level office holders and Commonwealth justices and judges;

• individuals with defined benefit interests;

• individuals with super interests in a constitutionally protected fund.

The ATO will use an individual’s income tax return and superannuation contributions information reported by super funds to assess whether an individual is liable to pay the additional 15% tax.

Division 293 tax assessments will generally not be issued until both a tax return and contribution information has been received. The ATO expect to start issuing assessments for this additional tax in January 2014, for the 2012/2013 financial year.

Due and payable assessments will be raised in respect of contributions to accumulation super funds. These liabilities are payable within 21 days and the individual can pay the tax from personal savings or by withdrawing funds from their superannuation using a release authority issued by the ATO.

Deferred assessments will be raised in respect of a defined benefit account from which no super benefit has yet become payable. Deferred liabilities are payable 21 days after a super benefit is paid from the defined benefit super account the debt is attributed to. Payment can be paid using personal savings or deducted from the benefit payable from the defined benefit account the debt is attributed to. Individuals can also choose to make earlier payment at any time using personal savings or by using a release authority to withdraw money from another accumulation interest the individual holds.

Former temporary residents who have paid Division 293 tax and have received a Departing Australia Superannuation Payment (DASP) can apply to the ATO to have the Division 293 tax refunded.

5. Consolidating multiple superannuation accounts within the same fund

From 1 July 2013, on an annual basis, the Trustee is required to identify whether you hold multiple accounts in the fund. If multiple accounts are identified, the Trustee is required to consolidate these accounts if this is in your best interest. The consolidation process must be completed at least once by 30 June 2014.

When determining whether it is in a member’s best interest to merge their super accounts, the Trustee must consider the possible savings in fees, charges and insurance premiums which will result if they merge accounts as well as any other relevant factors.

This requirement will only apply to accumulation superannuation accounts, and not to pension accounts.

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6. Increase of 0.5% in Medicare Levy

From 1 July 2014 the Medicare Levy will increase by 0.5% to 2.0% to help fund DisabilityCare Australia (previously known as the National Disability Insurance Scheme).

This means from 1 July 2014 the tax payable on superannuation lump sum benefits you receive from your super account will include the increased Medicare Levy. In addition, death benefits paid as a lump sum to a non-dependant for tax purposes1 will attract the increased Medicare Levy.

From 1 July 2014 if you are eligible to access your superannuation as a lump sum, any tax we are required to deduct will depend on your age and the tax components within your benefit, as shown in the table below.

Age Taxable component Tax-free component

Under 55 A rate of 22% (including the Medicare Levy) Nil

55-59 Up to the low rate cap2: Nil

Above the low rate cap2: a rate of 17% (including the Medicare Levy)

Nil

60 or over Tax-free Nil

If you are under age 60 and the TFN provided for you is incorrect, we are required to deduct tax on the taxable component of a lump sum benefit paid to you at the highest marginal tax rate plus the Medicare Levy.

Death benefits paid on or after 1 July 2014 as a lump sum to a non-dependant for tax purposes1 will be taxed in the following manner:

Tax-free component Tax-free

Taxable component Taxed at 17% (including the Medicare Levy)

Taxable component (untaxed element) Taxed at 32% (including the Medicare Levy)

1 Death benefits paid as a lump sum to your dependants (for tax purposes) are tax-free. A dependant for tax purposes includes your spouse or former spouse, your children under 18, a person who was wholly or substantially financially dependent on you at the time of your death and a person with whom you were in an interdependency relationship at the time of your death.

2 A lifetime limit of $180,000 for 2013/14, indexed to AWOTE rounded down to the nearest $5,000 in subsequent years.

7. Low Income Super Contribution

From 2012/13 low income earners may receive a government super payment, called a Low Income Super Contribution (LISC), of up to $500 per financial year to help save for their retirement.

When introduced, a LISC would only be paid where the entitlement was $20 or more. Recent changes have been made to reduce the minimum LISC payment to $10. In addition, LISC entitlements of less than $10 will be rounded up to $10.

For more information on LISC go to ato.gov.au/Individuals/Super .

8. Reporting super payments on payslips

The previous government intended to require employers to report on payslips Superannuation Guarantee (SG) contributions when they are actually made. While the law has been amended to allow for these changes, regulations detailing the changes have not yet been issued.

This means employers are still only required to report your accrued SG contributions.

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9. Government Co-contributions

From 1 July 2012, the Government reduced the maximum government co-contribution available to $500.

If your total income1 for 2013/14 is more than $48,516, you will not be entitled to a government co-contribution. Further, to attract the maximum co-contribution of $500, you will still be required to make a personal after-tax contribution of $1,000 as the matching rate has been reduced to 50% (from 100%).

The table below shows the co-contribution entitlement at different levels of total income for 2013/14:

Total income1 $ Maximum Co-contribution entitlement based on total income2 $

After-tax contribution required $

Up to 33,516 500 1,000

34,000 484 968

36,000 417 834

38,000 351 701

40,000 284 568

42,000 217 434

44,000 151 301

46,000 84 168

48,516 Nil N/A

1 Total income is the sum of assessable income, reportable fringe benefits and reportable employer contributions less business deductions.

2 Co-contribution entitlement equals $500 - [(total income - $33,516) x 0.03333]

10. Portability of super between Australia and New Zealand

From 1 July 2013 eligible individuals are able to voluntarily transfer their superannuation between an Australian complying superannuation fund and a New Zealand KiwiSaver scheme.

It is voluntary for a superannuation fund in either country to accept these transfers so you will need to check with your super fund before initiating a transfer.

Westpac Personal Superannuation Fund members can transfer their superannuation benefits to New Zealand (NZ) however Westpac Personal Superannuation Fund does not currently accept transfers from KiwiSaver accounts.

Your super benefits can only be transferred to a KiwiSaver scheme if the following conditions are met:

•You have given the Trustee a statutory declaration stating you have emigrated permanently to NZ and the Trustee is satisfied you have emigrated permanently to NZ;

•You have given the Trustee proof of residence at an address in NZ following your emigration to NZ;

•You have requested and consented to the payment of your entire super benefit (partial transfers are not permitted);

•You have opened a KiwiSaver account;

•The Trustee has been given details of the KiwiSaver scheme and account number to which your benefit will be transferred;

•The KiwiSaver scheme will accept the benefit.

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Australian superannuation benefits transferred to a NZ KiwiSaver account will not have tax withheld at the time of transfer.

For more information on the Trans-Tasman retirement savings portability scheme go to ato.gov.au/Individuals/Super .

11. Lost member accounts to be transferred to the ATO

Changes to the definition of a lost superannuation account were made on 7 December 2012. Your super account will now generally be considered ‘lost’ if:

•no contributions or rollovers have been added to your account in the last year and either the trustee has never had an address for you or mail sent to you by the trustee has been returned unclaimed, or

•your account was established within your current or a previous employer’s default super plan and no contributions or rollovers have been added to your account in the last five years.

If your account is considered to be lost, the Trustee may be required to transfer your account balance to the ATO if:

•your account balance is less than $2,000; or

•the Trustee is satisfied that it will never be possible to pay an amount to you (because you cannot be identified based on the information reasonably available to the Trustee).

If your account balance is transferred you will be able to reclaim it from the ATO. From 1 July 2013, the ATO will pay interest on amounts claimed.

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Understanding your investmentUnderstanding the risks of investing

No matter which investment option you choose to invest in, there will always be some level of investment risk. The variability of returns is known as investment risk. Generally, the higher level of risk you are prepared to accept, the higher the potential returns, or losses.

Risk can be managed and even minimised, but cannot be eliminated and there is always a chance you may lose money on any investments you make. You should be aware of these risks when investing and understand that not all risks are foreseeable.

Some common types of investment risks are outlined in the table below.

Risk type Description of risk

Market risk Markets are subject to a host of factors, including economic conditions, government regulations, market sentiment, local and international political events and environmental and technological issues. Market risk may have different impacts on each investment and investment style in that market at different times.

Security specific risk An investment in a company may be affected by unexpected changes in that company’s operations (such as changes in management or loss of a big customer) and business environment.

International investments risk

Investing internationally in one of the major asset classes will give exposure to different or potentially greater risks that are not associated with investing in Australia. International investments may be more affected by political and economic uncertainties, lower regulatory supervision, movements in foreign currency and interest rates and more volatile, less liquid markets.

Currency risk For investments in international assets, a rise in the Australian dollar relative to other currencies, may negatively impact investment values and returns.

Interest rate risk Changes in interest rates can have a direct or indirect impact on the investment value and/or returns of all types of assets. Interest rates may affect a company’s cost of borrowings as well as the value of fixed interest securities.

Credit risk Credit risk refers to a risk of loss arising from the failure of a borrower or other party to a contract to meet its obligations. This may arise in securities such as derivatives, fixed interest securities and mortgage securities.

Liquidity risk This is the risk that an investment may not be easily converted into cash with little or no loss of capital and minimum delay because of either inadequate market depth or disruptions in the market place. Securities of small companies in particular may, from time to time, and especially in falling markets, become less liquid.

Derivative risk The value of derivatives is linked to the value of the underlying assets and can be highly volatile. Potential gains and losses from derivative transactions can be substantial.

Derivatives

These are investments whose value is derived from other assets, such as shares, and may be used as part of the portfolio management process. Futures contracts and options are examples of derivatives.

Derivatives may be used to reduce risk and can act as a hedge against adverse movements in a particular market and/or in the underlying asset. Derivatives can also be used to gain exposure to assets and markets. While derivatives offer the opportunity for significantly higher gains from a smaller investment (because of the effective exposure obtained) they can also produce significantly higher losses, sometimes in excess of the amount invested.

The Fund does not invest directly in derivative securities and the use of derivatives to gear the investment options is not permitted.

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Net earnings

The earnings rate for members in the investment option is reflected in the price of the units, rather than being credited or debited against the accounts of members. A change in the value of the members’ unit price includes the net earnings of supporting assets in the investment option.

Net value of an investment option

The net value of an Investment Option is the value of all investments and cash held by the Investment Option less amounts owing or payable in respect of the Investment Option including any provision that is considered necessary. For example, provision might be made for possible future losses on an investment that is considered to be overvalued or cannot be fairly determined. A full description of the valuation method is given in the Trust Deed.

The net value of an Investment Option may include an asset known as Future Income Tax Benefit (FITB). A FITB arises when, for tax purposes, a loss is available to offset a future gain (i.e. so as to reduce the amount of gain that might otherwise be taxable). Our policy is to recognise FITBs in Westpac Super as a separate asset of the relevant Investment Option. Like any other asset in an Investment Option, the value of the unit price is adjusted for FITB.

The value of a FITB can change over time based on the likelihood of being able to offset the losses against future gains and the time at which they can be used. Accordingly, changes in the value of a FITB asset may cause unit prices to change (as is the case with a change in the value of any other asset in the Investment Option).

The level of FITB recorded in the unit price of an Investment Option may be ‘capped’, taking into account the probability that accrued losses are able to be offset against future gains. The Joint ASIC and APRA Unit Pricing Guide to Good Practice, and Westpac policy require that FITB only be recognised in the net asset value and unit price of an Investment Option to the extent that the deferred tax benefit is expected to be realisable in the future. It may be necessary to reduce the level of FITB to ensure that the value of the Investment Option (and the unit price) is not over-stated.

Unit pricing

We can change the way in which we calculate unit prices, as well as the buy/sell spread used. Information regarding any such change will be available on our website or by calling Customer Relations. Notice will not ordinarily be provided, however we may provide notice on our website, or in the next regular communication.

Transaction processing

For switches, withdrawals and contributions, where a valid request is received before the daily cut-off time of 4.00pm (Sydney time) on a Business Day, the request will be processed using the application and withdrawal prices for the relevant investment option issued for the Business Day we receive the valid request. We aim to process the request as soon as reasonably practicable and ordinarily within 5 Business Days of receipt. Because units are issued or redeemed on this basis, there can be an effect on underlying fund performance, either positive or negative, depending on market movements between the Business Day for which the application or withdrawal price is used and the date of processing. Ordinarily, the impact on performance is insignificant.

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Performance information

How we calculate performance

Performance figures are calculated in accordance with the Financial Services Council (FSC) standards.

Total returns are calculated:

•using withdrawal prices appropriate for the month end

•taking into account management costs of the relevant investment option, and

•taking into account earnings tax up to a maximum of 15% plus withholding tax paid on foreign income (if any).

Certain other fees such as Contribution fees or Withdrawal fees (if any) are not taken into account.

Performance as at 30 June 2013

The latest performance information and more information about how performance is calculated is available from our website at westpac.com.au .

Investment returns shown are historical. Investment returns can go up and down and past performance is not a reliable indicator of future performance. Future performance is not guaranteed.

For actual performance of your account, for the year ended 30 June 2013, please refer to your Annual Statement which was issued to you in July 2013.

http://www.westpac.com.au/

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Investment profilesThe Fund has a range of Investment Options. Members can choose to invest in any combination of these Investment Options (subject to a maximum of five Investment Options at any one time). You cannot switch between the Contribution Fee and Nil Contribution Fee Investment Options.

The Fund currently invests through a life policy issued by Westpac Life Insurance Services Limited (represents 100% of the Fund). State Street Global Advisors, Australia Limited has been appointed to manage the Westpac International Share Investment Option and the international share holdings in the Diversified Investment Options.

The Investment Option profile section (beginning on the next page) gives you a snapshot of each Investment Option together with other information including:

•the full range of Investment Options available within the Fund;

•the investment objectives and strategy of each Investment Option; and

•asset allocation information, including strategic range, target position and allocations for 30 June 2012 and 30 June 2013.

The following table will assist you with understanding the Investment Option profiles.

Investment Objective The investment objective for each Investment Option represents our current target, which may change over time. These aims may not be achieved and we do not forecast or guarantee the future performance of any Investment Option.

Strategy The strategy describes the process used by the investment managers when investing in the relevant asset classes to achieve the investment objective.

Asset allocation Target Position (TP) and strategic ranges

This section provides details on the asset classes, in which each Investment Option invests and the asset allocation target position and ranges for each Investment Option. The asset allocation target position is the starting point for all asset allocation decisions. We will actively adjust the exposure within the specified ranges to maximise the Investment Option’s investment returns.

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Westpac Personal Superannuation

(commenced 26 February 1990)

Westpac Personal Superannuation Bond

(commenced 28 April 1992)


(commenced 26 November 1987)

Income Accumulation Conservative Growth

Investment objective

Aims to provide a high level of capital security and to maximise interest earnings from a portfolio that invests mainly in money market securities.

Aims to provide a conservative level of capital growth over the medium term (at least three years) and a relatively high level of interest earnings.

Strategy Invests directly through a life policy so that the underlying investments of the portfolio consist wholly of short-term liquid assets such as bank bills.

Invests directly through a life policy so that the majority of the underlying assets provide income for reinvestment. Such assets include bank-billed and cash on deposit as well as Australian and international fixed interest. The fund also invests in growth assets such as shares and property, to provide potential for higher returns.

Asset Allocation

Asset allocation at 30 June 2013%

Asset allocation at 30 June 2012 %

Target Position

Strategic Range



Target Position

Strategic Range

Australian Shares

n/a n/a n/a 5-10 10.07 15.08 10 5-15

International Shares

n/a n/a n/a n/a 3.04 5.07 0 0-10

Property n/a n/a n/a n/a 3.04 5.11 10 0-20

Australian Fixed Interest

n/a n/a n/a 0-15 32.89 25.09 20 10-30

International Fixed Interest

n/a n/a n/a 0-15 9.97 9.96 10 0-20

Cash 100 100 100 100 33.02 44.80 50 40-60

Alternatives n/a n/a n/a n/a 7.97 n/a n/a n/a

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(commenced 26 February 1990)


(commenced 28 April 1992)



Balanced Growth Dynamic Growth


Aims to provide a high level of capital growth over the long term (at least five years) from a balanced portfolio of assets.

Aims to maximise capital growth over the long term (at least five years) from a dynamic portfolio that includes a high proportion of Australian and international shares.

Strategy Invests directly through a life policy so that the underlying investments of the portfolio include assets with high long-term growth potential such as property and Australian and international shares.

Invests directly through a life policy so that the underlying investments of the portfolio consist of a diversified portfolio of predominantly growth assets, which may provide the potential for long-term capital growth and include property and Australian and international shares.

Asset Allocation



Target Position

Strategic Range



Target Position

Strategic Range

Australian Shares

36.8 32.9 39 28-48 42.8 39.9 45 35-55


14.2 22.3 14 12-32 21.3 30.4 21 17-37

Property 7.6 10.2 5 0-10 7.6 10.2 5 0-10


24.9 20.1 25 5-32 13.0 10 13 0-20


5.0 10 5 0-20 4.0 5 4 0-20

Cash 1.5 4.5 2 0-10 1.3 4.5 2 0-10

Alternatives 10.0 n/a 10 0-20 10.0 n/a 10 0-20

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(commenced 1 October 1992)

Westpac Personal Superannuation Investment Plan

(commenced 1 October 1992)

Cash Based Managed Stable



Aims to provide a conservative level of capital growth over the medium term (at least three years) and a relatively high level of interest earnings.

Strategy Invests directly through a life policy so that they underlying investments of the portfolio consist wholly of short-term liquid assets such as bank bills.

Invests directly through a life policy so that the majority of the underlying assets provide income for reinvestment. Such assets include bank-backed bills and cash on deposit. Part of the underlying assets of the portfolio also include growth assets, such as shares and property, to provide potential for higher returns.

Asset Allocation



Target Position

Strategic Range



Target Position

Strategic Range

Australian Shares

n/a n/a n/a n/a 10.1 10 11 5-15


n/a n/a n/a n/a 3.0 0 3 0-10

Property n/a n/a n/a n/a 3.0 10 2 0-20


n/a n/a n/a n/a 32.9 19.8 33 20-50


n/a n/a n/a n/a 10.0 9.9 10 0-20

Cash 100 100 n/a n/a 33.0 50.3 33 30-50

Alternatives n/a n/a n/a n/a 8.0 n/a 8 0-20

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Managed Growth Growth Plus



Aims to maximise capital growth over the long term (at least five years) from a dynamic portfolio that includes a high proportion of Australian and international shares.

Strategy Invests directly through a life policy so that the underlying investments of the portfolio include assets with high long-term growth potential such as property and Australian and international shares.

Invests directly through a life policy so that the underlying investments of the portfolio consist of a diversified portfolio of predominantly growth assets, which may provide the potential for long-term capital growth and include property and Australian and international shares.

Asset Allocation



Target Position

Strategic Range



Target Position

Strategic Range

Australian Shares

36.8 32.9 39 28-48 42.8 39.9 45 35-55


14.2 22.3 14 12-32 21.3 30.4 21 17-37

Property 7.6 10.2 5 0-10 7.6 10.2 5 0-10


24.9 20.1 25 5-32 13.0 10 13 0-20


5.0 10 5 0-20 4.0 5 4 0-20

Cash 1.5 4.5 2 0-10 1.3 4.5 2 0-10

Alternatives 10.0 n/a 10 0-20 10.0 n/a 10 0-20

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Westpac Simple Super


Bank Deposit Managed Investment




Strategy Invests directly through a life policy so that the underlying investments of the portfolio consist wholly of short-term liquid assets such as bank bills.

Invests directly through a life policy so that the underlying investments of the portfolio include assets with high long-term growth potential such as property and Australian and international shares.

Asset Allocation



Target Position

Strategic Range



Target Position

Strategic Range

Australian Shares

n/a n/a n/a n/a 36.8 32.9 39 28-48


n/a n/a n/a n/a 14.2 22.3 14 12-32

Property n/a n/a n/a n/a 7.6 10.2 5 0-10


n/a n/a n/a n/a 24.9 20.1 25 5-32


n/a n/a n/a n/a 5.0 10 5 0-20

Cash 100 100 100 n/a 1.5 4.5 2 0-10

Alternatives n/a n/a n/a n/a 10.0 n/a 10 0-20

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Fees and other costsFees and charges are either deducted directly from your account or are reflected in the unit price calculation. The amount and method of allocating fees and charges may change from time to time. The Trustee will notify you of any significant change. The main features of the current fee and cost structures are outlined for each product below. For how each fee is defined, please see the section titled ‘Understanding the fees’.

Westpac Personal Superannuation (commenced 26 February 1990)

Westpac Personal Superannuation (commenced 26 November 1987)

Westpac Personal Superannuation Bond (commenced 28 April 1992)

Contribution Fee

This fee is 3.30% of each regular contribution.

For each single contribution, the fee is 4% of the first $29,000*, 3% from $29,001 to $97,000*, 2% from $97,001 to $209,000 and 1% of the balance.

For each transfer or rollover, the fee is 1% of the amount transferred, subject to a minimum fee of $53.70*. This charge is waived if you are transferring from a fund administered by Westpac Financial Services.

This fee is 3.30% of each regular contribution.

For each single contribution, the fee is 3.5% of the first $29,000*, 3% from $29,001 to $97,000*, 2% from $97,001 to $209,000 and 1% of the balance.

For each transfer or rollover, the fee is 1% of the amount transferred, subject to a minimum fee of $53.70*. This charge is waived if you are transferring from a fund administered by Westpac Financial Services.

For each contribution, the fee is 3% of the first $97,000*, 2% from $97,001 to $207,000 and 1% of the balance.

Administration Fee

$8.41 per month* $4.22 per month* $4.11 per month*

Issuer Fee An issuer fee of up to 1.77% pa is deducted from the value of assets in each Investment Option at the time of calculating the unit price.

An issuer fee of up to 1.77% pa is deducted from the value of assets in each Investment Option at the time of calculating the unit price.


Transaction fee $53.70* $53.70* –

Buy-sell margin For the Income Accumulation, Balanced Growth and Conservative Growth Investment Options, this margin is the greater of either 1% of the value of the assets in the Investment Option, or an allowance to cover the actual cost of buying and selling the assets. The current margin for these Investment Options is 1%.

For the Dynamic Investment Option, the margin is the greater of either 1.2% of the value of the assets in the Investment Option, or an allowance to cover the actual cost of buying and selling the assets. The current margin for the Investment Option is 1.2%.

For the Income Accumulation, Balanced Growth and Conservative Growth Investment Options, this margin is the greater of either 1% of the value of the assets in the Investment Option, or an allowance to cover the actual cost of buying and selling the assets. The current margin for these Investment Options is 1%.


For the Income Accumulation, Balanced Growth and Conservative Growth Investment Options, this margin is the greater of either 1% of the value of the assets in the Investment Option, or an allowance to cover the actual cost of buying and selling the assets. The current margin for these Investment Options is 1%.


Insurance charges

Available on request Available on request Not available

*These are the amounts applying as at 1 October 2012. These may increase on 1 October each year in line with increases in the Consumer Price Index.

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Westpac Personal Superannuation Bond (commenced 1 October 1992)

Westpac Personal Superannuation Investment Plan (commenced 1 October 1992)

Westpac Simple Super (commenced 1 November 1992)

Contribution Fee

For each single contribution, the fee is 3% of the first $153,000* and 1.5% of the balance.

For regular contributions the fee is 2.50%

For each single contribution, transfer or rollover, the fee is 3% of the first $153,000* and 1.5% of the balance.

Not applicable.

Administration Fee

$65.20 per annum* $9.05 per month* $6.45 per month*

Issuer Fee An issuer fee of up to 1.18% pa is deducted from the value of assets in each Investment Option at the time of calculating the unit price.


An issuer fee of up to 1.77% pa is deducted from the value of the assets in each Investment at the time of calculating the unit price. This fee may increase to a maximum of 2% pa. The Trustee will advise you at least three months before any increase.

Transaction fee All switches between Investment Options in any calendar year are free (except for the buy-sell margin).

All switches between Investment Options in any calendar year are free (except for the buy-sell margin).

All switches between Investment Options in any calendar year are free. If you transfer all or part of your investment to another superannuation or rollover fund, you will be charged a transfer fee of $64.80*.

Withdrawal fee

(The fee on each amount you take out of your investment)

No additional fee is charged for your first two withdrawal transactions (include transfers and rollovers) in any calendar year. Any additional withdrawals in that year will incur a fee of $82.60^ per withdrawal.



Buy-sell margin This margin is the greater of either 1% of the value of the assets in the Investment Option, or an allowance to cover the actual cost of buying and selling the assets. The current margin for these Investment Options is 1%.

This margin is the greater of either 1% of the value of the assets in the Investment Option, or an allowance to cover the actual cost of buying and selling the assets. The current margin for these Investment Options is 1%.

The current margin for these Investment Options is 0%.

Insurance charges

Not applicable Available on request Not applicable

* These are the amounts applying as at 1 October 2012. These may increase on 1 October each year in line with increases in the Consumer Price Index

^ Each is determined by the anniversary date of each contribution

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Understanding the fees

Contribution fee

This fee is deducted when the Trustee receives your contribution, transfer or rollover.

Administration fee or plan fee

This fee is charged to your account each month.

Administration Fee for the Westpac Personal Superannuation Investment Plan (commenced 1 October 1992)

Regular contributions: when you start your Plan, you pay a monthly administration fee of up to 0.55% of the annual regular contribution commitment:

•0.55% for the first $2,700,

•0.275% from $2,701 to $6,500, and

•0.11% for amounts above $6,500.

The monthly administration fee is payable for up to 10 years1 from the start of a new regular contribution plan or increase in regular contribution amount. If you increase your annual regular contribution, you pay up to 0.55% on the increase, from the date of the increase.

This fee is indexed each month and deducted from your investment account each month (that is, there are 12 deductions in a year, with the fee increasing each month through indexation). The fee does not apply to any automatic indexation increases in regular contributions. It also does not apply to single contributions, transfers or rollovers.

Exit fee: If you withdraw your investment before your nominated retirement age, any un-recouped monthly administration fees are taken into account when calculating your Plan’s cash value.

Issuer fee

This is the fee for the product issuer’s services in overseeing the product’s operations and/or providing access to the product’s Investment Options. This fee includes the fee previously disclosed as the Investment Management Fee.

Transaction fee

A transaction fee may apply if you switch between Investment Options or withdraw. A buy/sell spread cost may also apply (refer to buy/sell margin below).

Withdrawal fee

You may incur fees for making withdrawals, as set out in the tables on the previous pages.

If you are invested in Westpac Personal Superannuation and are paying a monthly administration fee for regular contributions, an exit may apply upon withdrawal. Refer to ‘Administration Fee for the Westpac Personal Superannuation Investment Plan (commenced 1 October 1992)’ above.

Buy/sell margin

A buy-sell margin is charged at the time of calculating the issue and redemption prices. The margin is payable to Westpac Life Insurance Services Limited.

Insurance charges

Where you take out insurance in your plan, the cost of insurance is deducted directly from your account each month. Tables of insurance charge rates are available on request. The insurance charge depends on your level of insurance, gender, age, whether you are a smoker or a non-smoker, the cover selected and any special acceptance terms imposed at commencement of risk by Westpac Life Insurance Services Limited.1 The monthly administration fee is payable for either 10 years or the nominated retirement age, whichever occurs first.

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Other important information:Temporary residents

The Australian Government requires the Trustee to pay temporary residents’ unclaimed superannuation to the ATO after at least 6 months have passed since the later of:

•the date a temporary resident’s visa ceased to be in effect; and

•the date a temporary resident permanently left Australia.

The ATO identifies and informs the Trustee of the impacted members on a twice yearly basis. Once the benefit has been transferred to the ATO, investors are required to claim the benefit directly from the ATO at ato.gov.au .

The Australian Securities and Investment Commission has issued industry wide relief exempting Trustees of regulated superannuation funds from providing exit statements to temporary residents who cease to hold a superannuation account as a result of the transfer of that account to the Australian Tax Office (ATO) under the super unclaimed money legislation. On this basis, the Trustee of Westpac Personal Superannuation Fund will not issue exit documentation for temporary residents where an account balance has been paid to the ATO as unclaimed money.

In the event that the benefit has not yet been transferred to the ATO, members are able to claim it from Westpac Personal Superannuation Fund under the Departing Australia Superannuation Payments (DASP) regime.

Complaints resolution

We have arrangements for dealing with members’ questions or complaints about the operation or management of the Fund. If you have a concern or a complaint, please contact a Customer Relations Consultant on 131 817. Where possible, member concerns received over the telephone are resolved at that time. If your concerns cannot be resolved in this way, you can outline your complaint in writing to:

•Westpac Personal Superannuation Fund The Complaints Officer GPO Box 3960 Sydney NSW 2001

The Complaints Officer will endeavour to resolve your complaint within 30 days of receiving your letter and is required by law to deal with your enquiry or complaint within 90 days. However, if you are not satisfied with the response, or have not received a response within 90 days, you may contact the Superannuation Complaints Tribunal (the Tribunal):

•by calling 1300 884 114; or

•writing to: Superannuation Complaints Tribunal Locked Bag 3060 Melbourne VIC 3001

The Tribunal is an independent body established by the Government to help members of super funds resolve complaints. The Tribunal will attempt to resolve your complaint through conciliation, helping you and us to reach an agreement. If your dispute cannot be resolved through conciliation, the Tribunal may make a binding determination.

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Important information about Nominated Beneficiaries

If you have nominated one or more beneficiaries to receive a death benefit (your account balance) in the event of your death, we suggest you review your nomination regularly (particularly if your personal circumstances change), to make sure your needs are met.

It is important to note that if, on your death, any nominated beneficiary has died, or is no longer your dependant or Legal Personal Representative, they will not be entitled to a share of your benefit. The Trustee will pay the share:

•To your Legal Personal Representative; or

• If there is no Legal Personal Representative – to any dependant in proportions determined by the Trustee.

If you wish to change or revoke your nomination you should complete a Nomination of Beneficiaries form, which you can obtain by calling Customer Relations on 131 817.

Eligible Rollover Fund

Currently your benefit may be transferred to an Eligible Rollover Fund (ERF) in the following circumstances:

• If you become a lost member, i.e. we have not received a contribution or rollover for you within the last 12 months and one or two pieces of written communication has been returned unclaimed, unless during the last two years we have verified that your address is correct or you have elected to be permanently excluded from being a lost member. (It is important that you inform us of any changes to your address details so that you’re not transferred to the ERF. Trustees of regulated super funds report details of lost members to the ATO, who maintain a lost members register. Persons may search the register to ascertain if they have benefits which are lost.);

• If your investment balance falls below $1,200 you may be requested to make an additional investment to increase your balance over $1,200. If you do not increase your investment, it may be transferred to the ERF;

• If you request to transfer your benefit to another fund and that request cannot be processed due to insufficient information or the other fund returns the money to Westpac Personal Superannuation Fund because they have been unable to process the request;

• If circumstances under ‘Cooling-off’ apply;

• In any other circumstances permitted under superannuation law.

The ERF currently selected for Westpac Personal Superannuation Fund is:

SuperTrace Eligible Rollover FundLocked Bag 5429Parramatta NSW 2124

If your benefit is transferred to SuperTrace:

•you will cease to be a Westpac Personal Superannuation Fund account holder and any insurance cover provided will also cease on the date of transfer or at the end of the continuation period that may apply, if later;

•you will need to contact the SuperTrace Administrator on 1300 788 750 in order to claim your benefit back or deal with your benefit;

•you will not be able to make contributions to the ERF;

•you will not have investment choice — the trustee of the ERF will nominate the investment strategy that will apply; and

•the ERF will normally ensure that your benefits will not be eroded by administration fees and charges, however, other fees may apply. Please refer to the ERF’s product disclosure statement for more information.

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Superannuation Contributions Surcharge

If you are liable for superannuation contribution surcharge the amount will be deducted from your account.

Indemnity insurance

The Trustee is indemnified by a policy of insurance in respect of its duties as Trustee of the Plan.

Reserves

Westpac Personal Superannuation Fund does not maintain any reserves.

Financial information

As permitted by the Corporations Act, certain financial and investment information has not been included in this report on the basis that the Fund, which is a sub plan of the Westpac Mastertrust, invests 100% of its assets through a life policy. Copies of the complete audited financial statements and the auditor’s report for Westpac Mastertrust are currently available from:

Westpac Securities Administration LimitedLevel 20, 275 Kent Street,Sydney NSW 2000

or by calling Customer Relations on 131 817, Monday to Friday, 8.00am to 6.30pm (Sydney time).

Committees

The Board delegated committees are:

•Board Audit, Risk and Compliance Committee

•Board Investment Committee

•Board Benefits Review Committee

Further information

You are welcome to call us at any time if you have any questions regarding this report or require further information about Westpac Personal Superannuation Fund. Details of how we can be contacted are on the back cover.

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WPBW996 (12/13) 372936

For more information contact us

•Customer Relations: 131 817 8.00am to 6.30pm (Sydney time) Monday to Friday

•Our registered address is: Level 20, Westpac Place 275 Kent Street Sydney NSW 2000

•Postal address: Westpac Personal Superannuation Fund GPO Box 3960 Sydney NSW 2001

•Fax: +61 2 9274 5408

•Website: westpac.com.au

•Overseas enquiries: +61 131 817

•Westpac branches: Westpac branches are currently located throughout Australia. To find out the location of your nearest branch, simply visit westpac.com.au or call 131 817.

Westpac Personal Superannuation Fund 2013 Annual Report€¦ · 30 June 2012. From 1 July 2013 the...

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Transcript of Westpac Personal Superannuation Fund 2013 Annual Report€¦ · 30 June 2012. From 1 July 2013 the...