Breaking news

Intergenerational Report 2010 focuses on super

On 1 February the Australian Government released the Intergenerational Report 2010 which sets out the social, economic and policy challenges Australia will face between now and 2050 as a result of our ageing population. This report canvassed a broad range of issues including population growth, employment and environmental sustainability, and particularly highlighted the importance of super in supporting older people once they leave the workforce.

The report suggested that as older people come to make up a higher proportion of Australia’s population in the years ahead, it will become more and more difficult for governments to provide for their needs through benefits such as the aged pension. As a result, private super savings are likely to become more important than ever before, and the choices each of us make about our super today will have a big impact on how we live in the years to 2050. To find out more about the Intergenerational Report 2010 and the importance of superannuation in an ageing Australia visit www.treasury.gov.au/igr.

Super reading – your annual report goes interactive

Keeping up with how your super fund is performing just got easier with this new online CSS Annual Report – the CSS Reporter. Instead of sifting through page after page of reports, the new interactive format lets you jump right to the information you’re interested in. Along with all the financial facts and figures, the CSS Reporter also features interesting news items and feature stories from the year that’s been and much more. We hope you’ll find it a useful tool.

Henry review: government proposes increased super contributions

After more than a year of anticipation, the Henry taxation review was handed to the Australian Government in December 2009. Treasury Secretary Ken Henry’s review was the first in-depth examination of Australia’s tax system for over a decade, and the final report contained a wide-ranging series of recommendations for reform.

In response to the Henry review, the government proposed a number of important changes to Australia’s superannuation system. Most significantly, the government is proposing to increase the current super guarantee rate from 9% to 12% over seven years from 2013 to 2020, significantly boosting employer contributions. Other key proposals include:

• increasing the super guarantee age limit from 70 to 75
• offering a government super contribution of up to $500 a year for those on an adjusted taxable income of up to $37,000
• maintaining the concessional contributions cap at $50,000 (indexed) for those aged 50 or over who have less than $500,000 in super after 30 June 2012.

These proposed superannuation changes haven’t been introduced to Parliament and may not become law, but we will keep you up-to-date with the latest news and what the changes may mean for your super at www.css.gov.au.

Get your full Annual Member Statement online

To make it easier to see how your super has performed in 2009/10, you can now access your full annual member statement via the secure Member services online section of the CSS website. As well as being able to download and print your statement, you can also access the interactive Member Statement Guide which explains each section in detail to make sure you understand exactly how your super is working for you.

Unless you have told us otherwise we will still send you a printed copy of your Annual Member Statement, but if you would like to cut down on paperwork by accessing this exclusively online, make sure you update your email address in Member services online. You’ll need an access number to use this service so if you don’t have one or have misplaced it call 1300 000 277 and we can give you one over the phone.

Proposed ARIA and MilitarySuper merger update

The Bills covering the proposed merger and other governance and administration reforms were not debated in the Senate prior to the election being called. This means the proposed merger of ARIA, the Military Superannuation Board and the Defence Force Retirement and Death Benefits Authority did not proceed on 1 July 2010.

We will keep you updated on any relevant developments through the news section of the website.

CSS Product Disclosure Statement update

In November 2009 we published a Supplementary Product Disclosure Statement which highlights some changes to the current CSS Product Disclosure Statement. Importantly, the supplementary statement outlines changes to the Fees and other costs section. In 2009 we also released two online updates to the Product Disclosure Statement which addressed the Australian Government super co-contribution scheme and the tax treatment of lump sums, so visit our Publications page.