Welcome to the October 2017 employer update!

It was great to see so many employers at the RAAA conference last week and we enjoy having opportunities to discuss superannuation with you so we can help you meet your obligations. Please call me or our Member Services Team if you have any super questions or would like to make a time for a detailed chat.

By now members should have received their annual member statement for the 30 June 2017 financial year. A copy of our Annual Trustee Report to members is also available on our website if you would like to read it – or call us for a hard copy if you prefer.

Again, we are facing some procedural changes in superannuation, so you may want to understand the rules and prepare appropriately. We have outlined the new Single Touch Payroll system below for you and provided more details on our website.
 

 

 

Silas Dingiria
Manager - Member & Employer Services
02 6268 4387 |  0427 156 205

I am pleased to announce that Gordon Johnson from the Bureau of Meteorology won an iPad at the AvSuper stall at the RAAA conference – congratulations Gordon!

As always, we are happy to share our knowledge of superannuation with our employers so stay in touch and let us know of your super questions and concerns.

 

September 2017 Quarterly Investment Update

Global economic recovery continued over the September quarter. Geopolitical risks remained heightened, as North Korea continued to conduct missile and nuclear tests, and having a ‘war of words’ with US President Trump.

Most US corporates reported strong earnings results in July, with the majority of S&P 500 companies outperforming earnings forecasts. Economic activity continued to strengthen, with strong jobs growth and an historically low unemployment rate. As a result, the US Dollar Index fell to a 2-year low in early September, which was more than 10% below the highs reached in early 2017. US President Trump plans to reduce the corporate tax rate from 35% to 20%, which he expects will boost the international competitiveness of US companies.
 

Sue Field, Investment Manager

Australian equity markets were range bound throughout the quarter. Australian companies delivered mixed earnings results in half year reports, however, there was an increase in the number of companies failing to meet expectations. Early in the quarter, the Australian dollar (AUD) strengthened significantly, driven by strong economic growth in China, a sharp increase in commodity prices and a corresponding USD weakness.

Did you know... we put a monthly investment commentary on our website to keep employers and members informed about global markets and their impact on Australia. You can find it in our investment section or subscribe* to our commentary reminder list to get an email each month as it is updated.

* Subscribing is easy – just fill in the form beside the commentary or email us at avsinfo@avsuper.com.au and we’ll do it for you.

Single Touch Payroll Reporting (STPR)

We will provide further information on our website in due course, but the following will give you a broad overview of STPR.

Single Touch Payroll Reporting was legislated in September 2016 and is now available to limited businesses. Many employers will have to use this new system by 1 July 2018, so do you know what STPR is and how it affects you?

In very simple terms, the STPR is a means of reporting to the ATO as you finish a pay run instead of creating separate annual summaries. The government introduced this concept to reduce red tape and administrative time for businesses, as well as reduced employees claiming multiple tax-free thresholds and the ability to better monitor the SG.

STPR will be implemented via payroll software or through a third party provider (such as a payroll service or your accountant). Currently, limited function software is available, with most providers having STPR ready software in place by October 2017. It will be compulsory for significant employers from 1 July 2018 and may be compulsory (subject to legislation) for smaller employers from 1 July 2019. An administrative penalty will apply to employers reporting late or false/misleading data.

If you have 20 or more employees (not full time equivalent) on 1 April 2018, you are a significant employer. Reviewing your payroll system now is probably a good idea, even if you aren’t a significant employer. And it is also a good opportunity to check you are meeting all your SG obligations as the new rules will highlight any discrepancies.
 

Investment Returns (net of investment fees and taxes) to 30 September 2017

Investment Option

Quarter

Financial year to date

5 years (annualised)

Growth (MySuper)#

 1.7%

1.7%

10%

Conservative Growth

1.2%

1.2%

5.5%

Stable Growth

1.4%

1.4%

7.4%

Balanced Growth*

1.4%

1.4%

n/a

High Growth

1.9%

1.9%

12.3%

Australian Shares

0.7%

0.7%

11.1%

International Shares

3.0%

3.0%

13.3%

Cash

0.4%

0.4%

2.5%

Past performance may not be an indicator of future performance.
# Your super will be invested in our Growth (MySuper) option if you don't make an investment choice.
* The Balanced Growth option was introduced on 1 July 2015
The investment returns for the quarter and the financial year to date detailed above are real investment returns for the period shown, not annualised or 'per annum' returns which may differ from the numbers above. These returns are for accumulation options only.

News

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AvSuper named as 2017 ACT small employer for the Defence Reserves Support Council in recognition of our support to employees in the Reserves.

Reduced investment fees! – Since 1 September, the
investment fees for our Cash and International Shares options have been lower for all members invested in those options.
 

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