Home' Hotel Management : HM JUNE 2017 Contents I
n March, we launched our new digital welcome pack
which ensures all of our members have their account
details on their phones and accessible at all times. This
innovation will help our members easily take their
super from job to job. By ensuring members have their
superannuation details on their phone, we enable them
to engage with us during their job change as simply as
possible. We’re very excited about the launch of this
product and what it could mean for the industry.
Another area we have focused on is providing our
members with the best protection we can through
personal insurance. Everyone should be able to protect
themselves financially should an illness or injury prevent
them from working. Access to personal insurance (life
and disability insurance and income protection) through
Intrust Super is, in most, cases automatic and provides
members with high levels of cover. Insurance premiums
are paid by our members’ superannuation account, so the
cost doesn’t come from the day-to-day family budget.
We have worked hard to keep our insurance relevant
to our membership. Casual, part-time and full-time
workers are all covered, because members in the
hospitality industry are not always full-time workers.
With our income protection insurance, PayGuard, up
to 90 per cent of a member’s wages are covered if they are
unable to work due to illness or injury. Attempting to live
on only 60 per cent or 70 per cent of their income would
make it hard for anyone to pay living expenses. Intrust
Super provides 90 per cent cover so that our members will
have less to worry about financially, and can subsequently
concentrate on their health.
Our insurance offerings have won us Money
magazine’s ‘Best Value Insurance in Superannuation’ award
for the last five consecutive years, and the 2016 Rainmaker
SelectingSuper ‘Personal Insurance of the Year’ award.
That ’s how we know our hard work to provide the best
insurance cover for our members is paying off.
Younger people make up a large part of our membership.
Much of the younger generation have little time or
inclination to engage with their super. Retirement is still
a long way off for them, and superannuation is not high
on their list of priorities. We know superannuation is not
something our younger members want to spend time on.
So we invest considerably in reducing the amount of time
and effort our members must spend on engaging with us.
Innovation is the key: Intrust Super’s
Brendan O’Farrell at AHICE
Intrust Super CEO BRENDAN O’FARRELL looks at what’s
new in the world of super funds and insurance, key topics
he discussed on stage at AHICE.
Most of our forms are available online, and our communications with our members
are largely electronic. Rather than waiting for forms to be mailed to them, members can
access and complete our forms as soon as they need to. Updates to our members’ account
balances or information about their insurance cover is available electronically 24/7. With
electronic communication, our members can find the information they need, whenever
they need to and wherever they happen to be at the time. A bartender can complete a
form online at 1am if he is browsing emails while on a shift break, for instance.
Last year’s federal budget announced some of the most significant changes to super in
many years. Intrust Super’s members needed to know how this would impact them. Some
of these changes, which will come into effect on 1 July 2017, are:
• A AUD$1.6 million cap is being placed on all pension funds. Any money in a pension
account that is in excess of this cap will need to be transferred to an accumulation
account before 1 July 2017;
• Those with combined incomes and superannuation contributions greater than
AUD$250,000 will now be charged up to 30 per cent tax on their concessional
contributions, up from the current 15 per cent;
• Before-tax contributions, such as salary-sacrifice and Super Guarantee contributions,
are being capped at AUD$25,000 per year. This is a reduction from the current before-
tax caps: AUD$35,000 for those over 49 and AUD$30,000 for those under 49;
• The after-tax contribution cap is also being reduced to AUD$100,000, down from
AUD$180,000 per year; and
• Investment returns in a transition-to-retirement (TTR) strategy will be taxed up to 15
per cent, rather than being tax free.
Our financial planning arm, Intrust360, has been helping members to adjust their
retirement plans in light of these new rules. For example, our advisers have encouraged
some clients to prepare for the changes by taking advantage of the higher contribution
caps before they are reduced from 1 July 2017.
WHERE TO NEXT?
Superannuation returns were positive for the fifth straight year in 2016, despite the
current geopolitical landscape. Markets are very reactionary and, over the last year, have
been quite volatile. The returns across the industry struggled last year due to the change
to China’s growth, Brexit and the initial reaction to the Trump Presidential victory.
However, markets stabilised at the end of the year, thanks to strong outcomes from
equities, bringing with it positive results.
Market volatility is predicted to continue, with upcoming elections in France and
Germany likely to impact global markets. It is important to note that although these
changes can significantly impact the markets, the drops seem to be temporary, as seen
after the markets recovered strongly following Brexit and President Trump’s election.
With all these factors combined, 2017 could be another year of ups and downs.
Superannuation investments are, of course, designed for the long term. Despite the
volatility experienced in 2016, Intrust Super’s rolling five-year return is still a strong
10.53 per cent. Intrust Super’s team of investment managers will continue to ensure our
portfolios are well diversified, can sustain any short term volatility and, importantly, are
constructed for strong long-term performance. n
48 HM The Business of Accommodation
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