T H E L E A D I N G I N D E P E N D E N T J O U R N A L FO R T H E S U P E R A N N U AT I O N A N D I N S T I T U T I O N A L F U N D S M A N A G E M E N T I N D U S T RY JUNE 2010
Volume 24 - Issue 5
Super industry apolitical on super tax 10 BUDGET ROUND-UP Hockey under fire over SG opposition
In the wake of industry funds comments about the Federal Government’s proposed resource industry super profits tax, the superannuation industry is making clear it wants no part of a political debate. MIKE TAYLOR reports.
S 12 DEATH BENEFITS Avoiding the sting of regulatory and legal troubles
14 ASSET ALLOCATION
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Why investing in the past is a road to nowhere
18 EQUITIES The question marks over the outlook for international equities For the latest news, visit superreview.com.au MANDATES
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NEWS
confined to the superannuation guarantee,” one source said. “Everyone was caught off-guard when Whiteley started in on the mining companies.” Immediately following the meeting with the Government in Canberra, Whitely said the mining companies should cease their political campaign and enter into discussions with the Government. By comparison, IFSA remained silent while ASFA’s head of research, Ross Clare, confined ASFA’s comments to the superannuation guarantee. ASFA chief executive Pauline Vamos, who was overseas at the time of the Canberra talks, confirmed that her organisation did not wish to become embroiled in the super profits tax debate. She said she believed it was inappropriate to adopt a position on the tax when the details were not clear but that funding an increase in the superannuation guarantee represented a very small proportion of what might ultimately be raised. One senior figure whose company is a member of IFSA said views remained strongly divided in the superannuation
enior superannuation industry officials have sought to place distance between their organisations and the stance adopted by the Industry Super Network’s David Whiteley over the Federal Government’s resource industry super profits tax. Whiteley succeeded in causing consternation within some sections of both the Investment and Financial Services Association (IFSA) and the Association of Superannuation Funds of Australia (ASFA) when a statement he made following industry group discussions with the Federal Government were interpreted as having been made on behalf of the whole of the super industry. Super Review has been told that the presence of ASFA and IFSA representatives at the meeting with the Government was predicated on their organisations’ support for the Budget announcement that the superannuation guarantee would be lifted to 12 per cent and not their support for the resource super tax. “There was an agreement going into the meeting with the Government that any public statements would be 3
EDITORIAL
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Pauline Vamos
Everyone was caught off-guard when Whiteley started in on the mining companies.
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APPOINTMENTS
industry on the Government’s approach to the resource companies super tax. “The debate is ongoing and no one should be claiming a fixed industry position on this,” he said. It is understood the approach taken by Whiteley in the wake of the talks with the Government has caused some within both IFSA and ASFA to question the merit of further ‘joint’ industry approaches involving the outspoken industry funds spokesman. It seems that joint industry approaches will, if they occur at all, be more likely to involve ASFA, IFSA and the Australian Institute of Superannuation Trustees, which is regarded as having a less doctrinaire approach. SR 23
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