Introduction to Superannuation

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info@lasseter.com.autel.: 1300 083 691
An Introduction to
Superannuation

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Lasseter has prepared this presentation for general information purposes only and does not constitute personal
advice.
You should not act solely on the basis of material contained in this presentation.We recommend that formal advice
is sought which considers all your individual objectives and needs.
No material contained within this report should be construed or relied upon as providing recommendations in
relation to any financial product.
General Advice Disclaimer

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In Australia we have 5 basic types of superannuation funds:
•Corporate and Public Sector (Eg Public Service Super)
•Industry (Eg Cbus Super)
•Retail; (Eg AMP Superannuation) and
•Small APRA Funds (Similar to a SMSF but has a register superannuation Trustee)
•Self Managed Superannuation Fund (SMSF)
In this presentation we will focus on three of these types Industry, Retail and SMSF.
Types of Superannuation

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Selecting the Right Fund
Industry Retail SMSF
Control Trustee discretionally
makes all decisions
Choice of Asset Classes You own the assets. You
make the decisions
Investment Choice Adequate (usually 3 to 10
investment options)
High (large range of
investment options)
Unlimited (all investments
allowed under legislation)
Flexibility (eg pensions,
asset transfer,
adaptability)
Basic service levels Good but not tailored to
individuals
Completely tailored to
your needs
Cost (MER) 0.4 to 1.5%
(average approx 0.5%)
1.5 to 4.0%
(average approx 2.2%)
0.25% to 1.5%
(the bigger the fund the
smaller the MER)

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Likely Best forThose:
•Who don’t want to be too involved in their super but need substantive life and income protection insurance.
Advantages:
•Wide choice of investments – some even allow direct share trading
•Typically good website and reporting
•Better ones have high quality insurance and estate planning options
•Many offer spouse splitting and other important functions
Retail Funds

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Disadvantages:
•Extremely expensive. Most expensive form of superannuation.
•Third party trustee can make decision to protect themselves not help members.
•Need to make decisions well in advance, and paperwork can be cumbersome for pensions, spouse splitting and
withdrawals.
•Extremely inefficient during the transition to retirement years (55-75)
•Can be inefficient for small balances
Retail Funds

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Likely to Best forThose:
•Who don’t want much involvement in their super
•Are only in the accumulation stage
Advantages:
•Generally low cost. For balances between $10,000 and
$200,000 highly likely to be the cheapest option.
•Enough investment options for simple accumulation.
•Can be very good for accumulating balances with minimal attention to your super.
Industry Funds

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Disadvantages:
•Generally poor administratively (websites, phone centres, speed of processing)
•Typically have very poor options with pensions, spouse splitting, withdrawals. Need to make decisions well in
advance and need to follow up constantly.
•Insurance options often overpriced and/or unsuitable
•Estate planning options usually very poor
•Default funds are relatively aggressive and probably only suit those below 50
•Be very careful of funds with a high weighting to unlisted assets (property, infrastructure and private equity) CBUS,
MTAA,Westscheme,AGEST,Australian Super, Host Plus, Hesta
Industry Funds

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A self managed superannuation fund (SMSF) is a fund that meets the definition of a SMSF in Section 17A of the
Superannuation Industry (Supervision) Act.This generally means that a fund is a SMSF if:
•it has four members or less
•no member of the fund is an employee of another member of the fund, unless they are related
•each member is a trustee
•trustees receive no remuneration for their services as trustees.
What is a SMSF?

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Likely to best for those:
•Who have over $200,000 in Super assets (This amount will vary from person to person)
•Are prepared to be involved in their super fund
•Are in or approaching their retirement age
Advantages:
•Full control of every part of your super
•Full Investment choice including government guaranteed cash and direct property
•Pension,Withdrawal and Contribution superiority
•Lower fees than all retail super funds and competitive with industry funds above $200,000. Cheapest option for
large balances * subject to service provider fees
•Up to 4 members pooling assets and managing cash flows for the best results for all parties
SMSF

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Disadvantages:
•May require your regular involvement in the fund if you do not use a full service provider like Lasseter
•Not practical for balances of less than $200,000
•Not practical for those living overseas for the long term
SMSF

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• Establishment Costs – FREE (Lasseter will establish your SMSF at no cost)
• Corporate Trustee - $444 (One Off – ASIC Fee) see our SMSF Starter Package
• Annual Accounting and Tax – starting from $1320, see our Compliance and Administration Package
• Annual Audit – starting from $330 *
• Annual ATO Levy - $150
• Annual ASIC Fees - $212 (only for corporate trustee)
• Other Professional Fees – ie Financial Advisor
• Investment Fees – depending on investments chosen
SMSF Costs

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If you have any queries please call us on 1300 083691
or
We can contact you request via our website press here
View our SMSF Starter Package
View our Compliance and Administration Package
What Next?

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Lasseter InFocus
Offices: T: 1300 083 691
Melbourne
Altona E: info@Lasseter.com.au
Geelong W: www.Lasseter.com.au

Introduction to Superannuation

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