INDUSTRY super funds have announced a new initiative to take the legwork out of consolidating multiple accounts to save eligible members an average $260 a year in fees and insurance premiums.

So far, 18 industry super funds covering over half the workforce are cooperating in a collective cross-fund matching initiative that will be free of charge to members if a successful match is found.

In its first full scale deployment, the matching initiative seeks to automatically consolidate 500,000 low balance inactive accounts.

Successfully consolidating all these accounts could collectively save members an estimated $100 million a year in duplicate fees and insurance premiums.

Industry Super Australia chief executive, Bernie Dean, said industry super funds had been designing and testing the sophisticated cross-matching scheme for over a year.

“The initiative follows a successful 2017 pilot led by Industry Funds Services and nine industry funds which consolidated 50,000 accounts,” said Mr Dean.

“It has been developed to cut through restrictive rules which limit the ability of funds to reunite members’ lost and inactive savings without first obtaining express consent.

“Once a match is found members will still be able to opt out, but a survey following the pilot found members who had accounts consolidated were very happy funds proactively chased their savings.

“This is the right thing to do for members – they expect the system to sort out multiple accounts for them," Mr Dean said.

“Industry super funds have been consolidating multiple accounts for many years but it has relied on members kicking it off. This new initiative will cut through the red tape,” he said.

“Consolidating the accounts will reduce duplicate charges and help members build their super savings faster,” Mr Dean said.

According to Productivity Commission estimates, eliminating multiple accounts could save a member $51,000 over his or her entire working life. 

Industry Super Funds’ cross-matching initiative:

• · Eligible inactive accounts with balances under $6,000 will enter a collective pool to be matched to the active account held by participating funds.
• · There will be no charge to members associated with the matching of a superannuation account and no exit fees for duplicate accounts closed as accounts are consolidated.
• · Industry Super-owned AUSfund – an Eligible Rollover Fund – will be used to match and consolidate members’ inactive accounts to an active account held in a participating industry super fund.
• · Any inactive accounts sent to AUSFund but not consolidated in the initial wave of matching will attract investment returns net of a low annual administration fee of $11.50 and 0.53 percent indirect costs until consolidated in subsequent matching waves.
• · Where required, funds will inform members of their fund’s participation in the cross fund matching exercise through disclosures, including the annual member statements.

ends

THE Queensland Resources Council has welcomed the Palaszczuk Government’s release of the Environmental Impact Statement (EIS) for the new coking coal mine, Olive Downs, in central Queensland.

QRC chief executive Ian Macfarlane said Pembroke’s $1 billion Olive Downs project, near Moranbah, would further strengthen the resources sector’s contribution to the Queensland economy.

“Currently the resources sector in Queensland is creating a new job and investing $1 million every hour while exporting $1 billion every week and delivering almost $100 million to the Palaszczuk Government every week,” Mr Macfarlane said.

“Olive Downs is a milestone project for Queensland which will create 500 jobs in the construction phase, 1000 once operational, produce 15 million tonnes of coal every year and will be one of the largest open cut coking coal mines in the world.”

Mr Macfarlane thanked State Development Minister Cameron Dick and Isaac region Mayor Anne Barker for their support of the resources sector.

“This is a clear and practical example of all levels of government working together to provide big city economic opportunities in regional towns of Moranbah, Dysart, Nebo, Middlemount. Jobs in the resources sector are high-tech and well-paid jobs with the highest average weekly full-time adult earnings of any industry at $2659 – or over $138,000 per annum,” he said.

“This is more good news for Queensland’s coal industry and highlights the strong fundamentals of Queensland’s coking coal from the Bowen Basin. It’s high-quality coal, close to ports and is produced at a lower cost to other markets including the US.”

The Queensland resources sector now provides one in every six dollars in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 businesses across the State – with almost 7000 businesses in the Greater Brisbane region – all from 0.1 per cent of Queensland’s land mass, according to the QRC.

www.qrc.org.au

ends

SINGLE TOUCH Payroll (STP) reporting is off to a successful start, according to the Australian Taxation Office (ATO), with around 40,000 employers already sending tax and super information from their payroll software each time they pay their employees.

The STP transition year for employers with 20 or more employees started on July 1, delivering on the commitment to streamline reporting obligations and make sure employers pay the right amount of super for their employees.

ATO assistant commissioner John Shepherd acknowledged the significant efforts undertaken by employers to change the way they report to the ATO and commended those involved in the design of STP.

“Software providers and tax professionals have done a great job getting their clients’ systems and processes ready for STP reporting. Their collaboration with the ATO in designing and ensuring the readiness of STP has made this first step in the implementation of STP a success,” Mr Shepherd said.

"Once an employer starts reporting through STP, they will no longer have to give their employees a payment summary (what many still call a Group Certificate). Employees will be able to access an income statement for each employer in ATO online services, accessed through myGov. STP data will be pre-filled into their tax return at the end of the financial year and made available to their registered tax agents.

“Over 2.5 million employees can already see their tax and super information being updated after every pay in myGov. This gives them a better picture of their super entitlements and more control over their retirement savings.

“As with any major transition we recognise that some payroll software providers may require additional time to transition their employer clients to STP-enabled software,” Mr Shepherd said.

Penalties generally won’t apply in this transition year as the ATO continues to focus on providing tailored support to employers as they commence their STP reporting.

Employers who need additional time can also apply using the ATO’s online form or by asking their tax or BAS agent to make an application on their behalf.

Around 73,000 employers with 20 or more employees are expected to transition to STP reporting this financial year. Around 15,000 small employers with 19 or fewer employees have also voluntarily started their STP reporting.

www.ato.gov.au

ends

THE ACCC has expressed preliminary concerns about the proposed merger of Siemens A.G.’s (Siemens) Mobility Division with Alstom S.A. (Alstom), which are detailed in a Statement of Issues published today.

“A combined Siemens-Alstom would be by far the largest supplier of heavy rail signalling in Australia,” ACCC chair Rod Sims said.

The ACCC’s review has focussed on signalling systems for heavy rail passenger networks, particularly train interlocking systems and automatic train protection (ATP) systems. Signalling systems provide safety and traffic management controls on rail networks.

Interlockings are the core of a signalling system; they set routes for the safe movement of trains across railway lines. Train protection systems ensure that trains comply with movement authorities issued by the interlockings.

“The ACCC’s preliminary view is that the proposed merger may substantially lessen competition in the supply of heavy rail signalling systems for passenger rail networks in Australia, in particular interlocking systems and ATP systems. The loss of competition could result in increased prices for customers, or lower levels of service, quality, or innovation,” Mr Sims said.

“We have heard from many industry participants who have expressed competition concerns with the merger. We will continue to evaluate the competitive options available to passenger rail networks in Australia."

The proposed merger is also being reviewed by overseas competition regulators, including the European Commission.

“The ACCC is liaising closely with overseas competition regulators, as some of these potential competition issues may also arise in other countries,” Mr Sims said.

The ACCC invites further submissions from interested parties in response to the Statement of Issues by 20 September 2018. The ACCC’s final decision is due on 29 November 2018.

The Statement of Issues is available on the public register: Siemens A.G and Alstom S.A propose to combine Siemen's mobility business with Alstom.