Annual Report
Life Insurance
ANNUAL REPORT for Year Ended 30 June 2008
Insurance under superannuation is provided to Members of the following Funds:
BMA Personal Superannuation Fund
Partner Superannuation Fund
PrefSure Personal Superannuation Fund
Solar Personal Superannuation Fund
TOWER Superannuation Fund
Directory
BMA Personal Superannuation Fund
ABN 36 628 750 779
SFN 138 674
RSE Reg. R1000870
Partner Superannuation Fund
ABN 38 079 293 045
SFN 131 786
RSE Reg. R1004700
PrefSure Personal Superannuation Fund
ABN 23 629 400 179
SFN 510 506
RSE Reg. R1056648
Solar Personal Superannuation Fund
ABN 94 314 200 197
SFN 509284
RSE Reg. R1004694
TOWER Superannuation Fund
ABN 51 924 094 985
SFN 130683
RSE Reg. R1000900
Issuer & Trustee
TOWER Australian Superannuation Limited
ABN 69 003 059 407
AFSL 237851
RSE Lic. L0000642
Insurer & Administrator
TOWER Australia Limited
ABN 70 050 109 450
AFSL 237848
Customer Service
Call 1800 226 364
Monday to Friday
8:30am - 6:00pm (EST)
customerservice@toweraustralia.com.au
TOWER Australia Limited
PO Box 142
Milsons Point NSW 1565
www.toweraustralia.com.au
Head Office
80 Alfred Street
Milsons Point NSW 2061
Call 02 9448 9000
Fax 02 9448 9100
Postal Address
PO Box 142
Milsons Point NSW 1565
Terms used in this Annual Report
ABN |
Australian Business Number |
AFSL |
Australian Financial Services Licence |
APRA |
Australian Prudential Regulation Authority |
the Fund |
any one or more of (as relevant) BMA Personal Superannuation Fund, Partner Superannuation Fund, PrefSure Personal Superannuation Fund, Solar Personal Superannuation Fund and TOWER Superannuation Fund |
RSE Lic. |
RSE Licence |
RSE Reg |
Registrable Superannuation Entity Registration |
EST |
Eastern Standard Time |
pa |
Per Annum |
SCT |
Superannuation Complaints Tribunal |
SFN |
Superannuation Fund Number |
TOWER |
TOWER Australia Limited |
TOWER Group |
TOWER Australia Group Limited |
the Trustee |
TOWER Australian Superannuation Limited |
‘we’, ‘us’ |
generally means the trustee |
‘you’, ‘your’, |
generally means the member of the Fund |
‘member’ |
|
Disclaimer
The information contained in this Annual Report is general information only. It does not take into account your individual objectives, financial situations or needs. You should obtain your own advice from a financial adviser with respect to your individual objectives, financial situation and particular needs.
Whilst the Trustee makes every endeavour to ensure the accuracy of the information provided in this Annual Report, it is not responsible, to the extent permissible by law, for any liability that may arise for any direct, indirect, incidental, consequential or special damages that may arise from the use of this material. No liability is accepted for errors and omissions or for loss or damage suffered as a result of reliance on this material.
Chairman's message on behalf of the Trustee
How
it all works
Purpose
of the Fund
Death
Benefits
Superannuation Beneficiaries
About the Annual Report
Role of the Trustee
Fund
information
Fund
review
Insurance
benefits
Financial
information
Trustee
indemnity arrangements
Approved eligible rollover fund
Trust
Deed
Important Changes to Super
Salary sacrifice
New concessional contributions cap
New non-concessional contributions cap
Tax File Number (TFN)
Taxation of superannuation lump sum payments to terminally ill members
New co-contribution thresholds
Controls imposed by the Anti-Money
Laundering and Counter-Terrorism
Financing Act 2006 (Cth) (the "AML/CTF
Act")
Enquiries
and further information
Questions
about your TOWER product
Questions about your insurance cover
Complaints
About the Superannuation Complaints Tribunal
Dear Member,
I’m pleased to provide you with the Annual Report for the year ended 30 June 2008, and hope you find it informative.
An active year
It’s been a challenging and unpredictable year for the Australian financial services sector. Before recent events, the past ten years had been mostly a good news story. The fallout from the US sub-prime mortgage crisis however is a reminder to all that while a global economy can provide businesses with many opportunities, it can also create new risks.
Despite this environment TOWER Group’s financial performance has remained strong. Its performance has been recognised by strong support for our share price, in comparison to the market. This was also highlighted by Standard & Poor’s which this year lifted its outlook for TOWER Group to positive.
TOWER’s commitment
This performance could not have been achieved without the outstanding commitment of our people. I look forward to the coming year and more opportunities to deliver high quality products and customer service to you.
Yours sincerely,
Jim Minto
Chairman
TOWER Australian Superannuation Limited
How it all works
This section explains what it means for you to have your insurance structured as superannuation through one of the Funds. It covers important concepts like payments, benefits and beneficiaries, and who to contact if you need any further information.
Purpose of the Fund
The Fund provides benefits for Members and their dependants in the event of a Member’s death or total and permanent disablement (if selected). The Trustee holds life insurance policies issued by TOWER that insure these benefits.
After deducting taxes, expenses and fees, all contributions to the Fund are used to meet premium payments for these life insurance policies.
Death Benefits
If you die while you are a member of the
Fund and a benefit is paid under the insurance policy held by the Trustee
for you, the Trustee will pay the benefit
to one or more of your dependants or to your legal personal representative.
The law generally defines your dependants as:
- Your spouse including your de facto spouse but not a same sex partner;
- Your child including an adult child and step-child;
- Anyone who is financially dependent on you at the time of your death; and
- Any other person defined as a dependant under the current superannuation law.
Your legal personal representative is the legal administrator of your estate.
Superannuation Beneficiaries
Understanding who receives your benefit in the Fund in the event of your death is important. Under the Fund rules (except if you are a member of the BMA Personal Superannuation Fund), you have two options for advising us how you would like your death benefit paid:
- Option 1: you can make a binding death benefit nomination. This means that the Trustee must pay your benefit in accordance with your nomination. Binding nominations are valid for three years. Your binding nomination needs to be renewed every three years to reflect any changes in your personal circumstances.
- Option 2: you can make a non-binding death benefit nomination. This means that you can nominate dependants as your preferred beneficiaries. However, the Trustee of the Fund will seek to identify all dependants at the time of your death and, when considering your nomination, will determine to whom and in what proportions to pay your benefit.
If you are a Member of the BMA Personal Superannuation Fund, you may nominate your personal representative and/or dependants as your preferred beneficiaries, and the Trustee will take into account your wishes in the event of your death.
To nominate or update your beneficiary details please complete and return the ‘Death Benefit Nomination Form’ relevant to your superannuation Fund which can be downloaded from the web site www.toweraustralia.com.au/cs/forms.asp.
If you require any further information regarding the death benefit nomination process please contact a Customer Service Consultant on 1800 226 364 or via email on: customerservice@toweraustralia.com.au.
About the Annual Report
The Annual Report provides information on how your Fund is managed and general information about changes to the superannuation sector.
Role of the Trustee
The Trustee supervises the management of the Fund to make sure that it operates in accordance with the rules set out in the Trust Deed and that all relevant legal obligations are met.
Fund Information
Fund review
We review the Fund each year on 30 June. This review has two purposes, which are to:
- determine your benefits in the Fund so that your Annual Statement can be prepared; and
- prepare the Fund’s financial accounts and annual return for submission to the Australian Prudential Regulation Authority.
Insurance benefits
Your insurance cover and/or premium will be updated automatically:
- On the anniversary of your policy, due to changes in your age
- When the indexation on the sum insured changes (as applicable)
You can also ask to change your sum insured through the Fund. This request needs to be in writing. To find out more please contact our Customer Service Consultants on 1800 226 364.
Financial information
The financial accounts of the Fund are prepared in accordance with the Australian Accounting Standard AAS25 Financial Reporting by Superannuation Plans and within the provisions of the Trust Deed and relevant legislative requirements. As Members’ benefits in the Fund are wholly determined by reference to life insurance policies, we are not required to provide the following information in your Annual Report:
- audited financial statements, auditor’s report or abridged financial information;
- statement of assets; and
- details of any assets (or group of associated assets) which exceed 5% of the value of the Fund.
Trustee indemnity arrangements
The Trustee has an approved guarantee from the National Australia Bank. Under the terms of the guarantee, all liabilities of the Trustee incurred as a result of the Trustee fulfilling its duties to the Fund are guaranteed by the National Australia Bank. This guarantee extends up to the amount of $5 million dollars. A copy of the approved guarantee is available for review upon request by calling a Customer Service Consultant.
Additionally, the Trustee is insured under a professional indemnity insurance policy in order to maintain sufficient and adequate cover to protect the interests of Members of the Fund.
Approved eligible rollover fund
The Trustee is required by superannuation law to select an eligible rollover fund (ERF) to which we may transfer your withdrawal benefit in certain circumstances including if:
- your address details have never been provided to us; or
- we have sent to you one item of written communication which has been returned as unclaimed mail.
If we pay your benefit to the ERF, you cease to be a Member of the Fund and become a Member of the ERF. On transfer to the ERF, your insurance protection in the Fund ceases. You are able to transfer or withdraw your benefit from the ERF as the governing legislation permits.
The Trustee has nominated Colonial Mutual Life's Supertrace Eligible Rollover Fund as the ERF of the Partner Superannuation Fund, PrefSure Personal Superannuation Fund and the Solar Personal Superannuation Fund.
The contact details are:
The Supertrace Fund Administrator
Locked Bag 5429
Parramatta NSW 2124
1300 788 750
The Trustee has nominated Australian Eligible Rollover Fund as the ERF of the TOWER Superannuation Fund and the BMA Personal Superannuation Fund.
The contact details are:
Australian Eligible Rollover Fund
Locked Bag 5429
Parramatta NSW 2124
1800 677 424
Trust Deed
Each Fund has a Trust Deed which sets out the rules under which the Fund is managed. Members may inspect the Trust Deed at any time by contacting one of our Customer Service Consultants on 1800 226 364.
Important changes to superannuation
In the past financial year, there have been some important changes to superannuation which may affect your Fund and retirement. We’ve provided an overview of these changes below and you can find more detail by contacting the Australian Taxation Office (ATO) on 13 10 20 or at their website www.ato.gov.au.
Salary sacrifice
Salary sacrifice contributions to superannuation will now be assessed as income for all relevant tax and transfer programs, including co-contributions, income support payments, child support and a range of government assistance delivered through the tax system. In addition, salary sacrifice contributions are now permissible up to age 74. Previously they were only allowed to age 69.
New concessional contributions cap
Concessional contributions will be capped at $50,000 for the 2008/2009 financial year, for those under 50. The concessional cap will be indexed for future years. A transitional period applies for people aged 50 or over to be able to contribute up to $100,000 annually until 30 June 2012. Members will be taxed an additional 30% plus the Medicare Levy on concessional contributions made in excess of this cap.
New non-concessional contributions cap
Non-concessional contributions made to superannuation will be capped at $150,000 for the 2008/2009 financial year. Members will be taxed at the top marginal tax rate (plus Medicare Levy) on non-concessional contributions made in excess of this cap. In addition, people under 65 will be able to bring forward two years of contributions, enabling $450,000 to be contributed in one year, with no further contributions in the next two years. The non-concessional contributions cap will also be indexed in future years.
Tax File Number (TFN)
Changes to superannuation legislation mean that we should hold your TFN.
If we do not hold your TFN:
- your insurance cover could lapse as we are unable to accept personal contributions to pay for insurance and/or your contributions may not be enough to cover premiums due to the extra tax being applied to the contributions
- you will not be able to make personal or spouse contributions to your superannuation policy
- employer and salary sacrifice contributions will be taxed at 46.5% (an additional 31.5% on top of the existing 15% contributions tax)
- you may miss out on the Government Co-contribution
For pre 1 July 2008 members, amounts up to $1000 will be taxed at 15%. Amounts in excess of this cap will be taxed at 46.5%.
Taxation of superannuation lump sum payments to terminally ill members
The Government has made it easier for people to access their superannuation benefits in the case of a terminal illness. Superannuation can now be paid tax free to members suffering from a terminal illness.
New co-contribution thresholds
The lower and upper threshold of the co-contribution have changed for the 2008/2009 financial year
|
2007/2008 |
2008/2009 |
Lower threshold 1 |
$28,980 |
$30,342 |
Upper threshold 2 |
$58,980 |
$60,342 |
1 If a person’s total assessable income and reportable fringe benefits is this amount or less, they will receive the maximum co-contribution (depending on the amount of contribution made). |
||
2 If a person’s total assessable income and reportable fringe benefits is this amount or more they will not be eligible to receive the co-contribution. |
||
Controls imposed by the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (the “AML/CTF Act”)
This legislation is aimed at implementing controls to limit or prevent activities relating to money laundering and terrorism financing. These controls are documented within the TOWER AML Program and include the following:
- Record Keeping obligations.
- Know Your Customer obligations including the requirement to identify and verify the identity of customers and their beneficiaries.
- Ongoing Customer Due Diligence.
- Monitoring of Transactions.
- Suspicious Matter Reporting mechanisms
- International Funds Transfer reporting requirements.
To comply with these obligations we may need to carry out procedures to identify you or, in the event of death, your beneficiaries. We may need to verify the identification information provided to confirm its authenticity. We cannot process payment requests (including claims) until we receive all information required.
In some circumstances we may need to report certain information about our customers to relevant authorities, including the Australian Transaction Reports and Analysis Centre (AUSTRAC). Where such reporting has taken place, we may be prevented by this legislation from telling you. Where legally permitted or obliged to do so, we may disclose that information to regulatory or law enforcement agencies, to our related bodies corporate, or to other third parties. The AUSTRAC website at www.austrac.gov.au provides information relating to the AML/CTF Act. We will not be liable to you for any loss you suffer (including consequential loss) caused by the fact that we are required by law to delay, block, freeze or refuse to process a transaction.
To assist us to keep in touch with you, please notify us of any change of either your name, or your address.
TOWER Australia Limited
ABN 70 050 109 450 AFSL Number 237848
80 Alfred Street Milsons Point NSW 2061
Call 02 9448 9000 Fax 02 9448 9100
www.toweraustralia.com.au
Enquiries and further information
Questions about your TOWER product
At TOWER, we set ourselves high standards of customer service. So if you have any questions about your TOWER product, or are interested in finding out more about TOWER’s wide range of market leading protection, please contact us in one of the following ways:
- Contact a Customer Service Consultant on 1800 226 364 Monday – Friday 8:30am-6:00pm (EST)
- Email us at customerservice@toweraustralia.com.au quoting your policy number: or
- Write to us at the following address quoting your policy number
TOWER Australia Limited
PO Box 142
Milsons Point NSW 1565
Questions about your insurance cover
If you have any questions about your insurance cover through the Fund, please contact your financial adviser. If you don’t have a financial adviser, our Customer Service Consultants can put you in touch with one. Please call them on 1800 226 364 Monday – Friday 8:30am-6:00pm (EST).
Complaints
If you have a complaint about the Fund please put it in writing and send it to the following address:
TOWER Complaints Manager
TOWER Australia Limited
PO Box 142
Milsons Point NSW 1565
If your complaint has not been resolved to your satisfaction within 90 days of lodging your complaint, you may refer your complaint in writing to the Superannuation Complaints Tribunal (SCT), at the following address:
Superannuation Complaints Tribunal
Locked Bag 3060
GPO Melbourne VIC 3001
Call 1300 780 808
Email info@sct.gov.au
Website www.sct.gov.au
About the Superannuation Complaints Tribunal
The SCT is an independent body established by the Commonwealth Government to review unresolved complaints arising from trustee decisions relating to its members as opposed to trustee decisions about the management and operation of a superannuation fund as a whole. The objective of the SCT is to provide a fair, timely and economical means of resolution of complaints as an alternative to the court system. The SCT cannot consider complaints that have not been first referred to a trustee's complaint resolution process.
