Welcome to the September edition of TOWER Talk.
Providing you with current information concerning TOWER,
our products and the industry.
In this edition:
FULS and Lifeforce Investment Policies
If you have any clients who invest in the Friends’ Unit Linked (FULs) or Lifeforce investment policies as trustees of superannuation funds, you should be aware that we have written to them to confirm their status as trustees of complying superannuation funds.
To read more, click here.
Corporate Superannuation Members – Super Choice Update
We are writing out to Corporate Superannuation members shortly to update them on Super Choice as well as detail a number of strategies members may wish to consider to increase their superannuation savings. To read more, click here.
Super Fast Facts
Quick facts and updates on Superannuation to keep you informed. To read more, click here.
Canberra Corner
For an easy to read update on the progress of legislation through parliament, click here.
FULS and Lifeforce Investment Policies
If you have any clients who invest in the Friends’ Unit Linked (FULs) or Lifeforce investment policies as trustees of superannuation funds, you should be aware that we have written to them to confirm their status as trustees of complying superannuation funds.
The investment policies operate as ‘virtual pooled superannuation trusts’ under taxation legislation, returning earnings net of tax at the concessional superannuation rate. This enables the investor to return those earnings directly to members without the need to calculate and withhold tax in respect of the amounts.
Under taxation legislation, these policies can only be held by investors who are trustees of complying superannuation funds. Whilst the obligation to advise us if the superannuation fund is no longer complying rests with the trustee, we will be taking this opportunity to confirm the requirement and that continuing obligation with each investor. You should therefore expect to receive questions about the obligation and the information we are requesting (limited to the ABN and/or SFN for the fund).
Please note, TOWER Australia Limited does not act as manager or administrator in respect of any of these policies; all policies are pure investment contracts only, however, where we do maintain investment details at a member level it would be for reporting purposes only.
Corporate Superannuation Members – Super Choice Update
We are writing out to Corporate Superannuation members shortly to update them on Super Choice as well as detail a number of strategies members may wish to consider to increase their superannuation savings. These strategies are:
- consolidating superannuation accounts
- using the Government co-contribution
- using salary sacrifice through superannuation
- finding any lost superannuation.
The mailout includes a booklet - Super Strategies for your Retirement - which discusses these strategies in more detail as well as a pre-completed Transfer Authority forms so that members can easily consolidate other superannuation accounts they may have into their TOWER member account.
View a sample copy of the letter , transfer authority and booklet.
Advisers will receive a sample copy of the letter and booklet within the next two weeks.
Please contact Natalie Kleibert from Sales Marketing if you have any queries.
- The Minister for Family and Community Services, Senator the Hon Kay Patterson, together with the Minister for Workforce Participation, The Hon Peter Dutton, recently announced pension increases to apply from 20 September 2005. To view a summary of the changes please click here.
- The Government has recently released a consultation paper on the recovery of superannuation contributions made before bankruptcy. To view the paper please click here.
There are many changes made to legislation that may affect you and your clients month to month. For an easy to read update on the progress of legislation through Parliament, click here.
Disclaimer
This document has been prepared to be used by financial planners and advisers only. It is not to be provided to individual clients. The information contained in this document is general information only and cannot be considered to be financial advice. The information does not take account of the investment objectives, financial situation or particular needs of any particular client. To the extent permissible by law, TOWER Australia Limited (ABN 70 050 109 450, AFSL 237848) and its related companies (TOWER) specifically disclaims any liability that may arise for any direct, indirect, incidental, consequential or special damages that may arise from the access to or use of this document. No liability is accepted by TOWER for errors and omissions or for loss or damage suffered as a result of reliance on this document.
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TOWER Australia Ltd
A.B.N. 70 050 109 450
AFSL Number 237848