Mediaportal Report. SMSF property loans a high-risk endeavour. Super returns to pick up: SuperRatings. ISA attacks Productivity Commission disconnect

Transcription

1 THU 19 JULY 2018 Mediaportal Report SMSF property loans a high-risk endeavour Money Management by Hannah Wootton 284 words ASR AUD 307 Industry Super Australia - Internet ID: Read on source site 8:41 AM N/A UNIQUE DAILY VISITORS, N/A UNIQUE DAILY VISITORS Super returns to pick up: SuperRatings Money Management by Hannah Wootton 332 words ASR AUD 335 Industry Super Australia - Internet ID: Read on source site 8:41 AM N/A UNIQUE DAILY VISITORS, N/A UNIQUE DAILY VISITORS ISA attacks Productivity Commission disconnect Money Management by Mike Taylor 527 words ASR AUD 548 Industry Super Australia - Internet ID: Read on source site 8:40 AM N/A UNIQUE DAILY VISITORS, N/A UNIQUE DAILY VISITORS NZ regulator s insurance review sends important message, FSC says Money Management by Nicholas Grove 345 words ASR AUD 370 Industry Super Australia - Internet ID: Read on source site 8:38 AM N/A UNIQUE DAILY VISITORS, N/A UNIQUE DAILY VISITORS COPYRIGHT This report and its contents are for the internal research use of Mediaportal subscribers only and must not be provided to any third party by any means for any purpose without the express permission of Isentia and/or the relevant copyright owner. For more information contact copyright@isentia.com DISCLAIMER Isentia makes no representations and, to the extent permitted by law, excludes all warranties in relation to the information contained in the report and is not liable for any losses, costs or expenses, resulting from any use or misuse of the report.

2 ASX set to open modestly higher; miners, metals advance Australian Financial Review by Timothy Moore 1833 words ASR AUD 10,267 Industry Super Australia - Internet ID: Read on source site 4:45 AM 25,143 UNIQUE DAILY VISITORS, 1,269 UNIQUE DAILY VISITORS Australian social impact investment market hits $6 billion Australian Financial Review by Alice Uribe 867 words ASR AUD 4,496 Industry Super Australia - Internet ID: Read on source site 12:15 AM 25,143 UNIQUE DAILY VISITORS, 1,269 UNIQUE DAILY VISITORS On Russia, take Trump at his (first) word Sydney Morning Herald 2233 words ASR AUD 2,761 Industry Super Australia - Internet ID: Read on source site 12:05 AM 117,888 UNIQUE DAILY VISITORS, 1,420 UNIQUE DAILY VISITORS Funds Brookfield's $1bn office vehicle The Australian by Ben Wilmot 666 words ASR AUD 3,296 Industry Super Australia - Internet ID: Read on source site 12:00 AM 33,387 UNIQUE DAILY VISITORS, 1,813 UNIQUE DAILY VISITORS Hostplus bets against pack wisdom in bid to threepeat The Australian by Cliona O Dowd 719 words ASR AUD 3,633 Industry Super Australia - Internet ID: Read on source site 12:00 AM 33,387 UNIQUE DAILY VISITORS, 1,813 UNIQUE DAILY VISITORS COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

3 AustralianSuper's Paul Schroder: Ban poor super performers The Australian by Michael Roddan 615 words ASR AUD 3,211 Industry Super Australia - Internet ID: Read on source site 12:00 AM 33,387 UNIQUE DAILY VISITORS, 1,813 UNIQUE DAILY VISITORS Hostplus upbeat on returns from unlisted, alternative assets Australian Financial Review by Joanna Mather 643 words ASR AUD 4,310 Industry Super Australia - Internet ID: Read on source site 12:00 AM 25,143 UNIQUE DAILY VISITORS, 1,269 UNIQUE DAILY VISITORS It's simple: big fees lead to low returns, experts say The Australian by Anthony Klan 733 words ASR AUD 3,821 Industry Super Australia - Internet ID: Read on source site 12:00 AM 33,387 UNIQUE DAILY VISITORS, 1,813 UNIQUE DAILY VISITORS It's a plus, navigating trade battles and housing booms Herald Sun, Melbourne, Business News, Jeff Whalley Page words ASR AUD 48,807 Photo: Yes Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: View original - Full text: 554 word(s), ~2 mins 303,140 CIRCULATION Wine leaving us in the red Courier Mail, Brisbane, General News, Rob Harris Page words ASR AUD 3,003 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 307 word(s), ~1 min 135,007 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

4 Hostplus boss smiling over cool job on housing Courier Mail, Brisbane, Business News, Jeff Whalley Page words ASR AUD 10,186 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 424 word(s), ~1 min 135,007 CIRCULATION Markets no longer super for big funds Courier Mail, Brisbane, Business News, Glen Norris Page words ASR AUD 4,075 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 457 word(s), ~1 min 135,007 CIRCULATION US rally, BHP spike lift bourse The Australian, Australia, Business News, SAMANTHA BAILEY Page words ASR AUD 4,992 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 521 word(s), ~2 mins 94,448 CIRCULATION Heathley weighs $700m listed trust The Australian, Australia, Business News, Ben Wilmot Page words ASR AUD 2,526 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 321 word(s), ~1 min 94,448 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

5 Regulators helping take housing risk out of economy Adelaide Advertiser, Adelaide, Business News, Jeff Whalley Page words ASR AUD 4,686 Photo: Yes Type: News Item Size: cm² SA Australia Industry Super Australia - Press ID: View original - Full text: 336 word(s), ~1 min 112,097 CIRCULATION Punish managers not shareholders Sydney Morning Herald, Sydney, Letters Page words ASR AUD 7,924 Photo: No Type: Letter Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 166 word(s), <1 min 88,634 CIRCULATION Hostplus bets against pack wisdom in bid to threepeat The Australian, Australia, Business News, Cliona O'Dowd Page words ASR AUD 15,520 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 822 word(s), ~3 mins 94,448 CIRCULATION Name, shame, ban poor performers: AustralianSuper The Australian, Australia, Business News, Michael Roddan Page words ASR AUD 5,497 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 635 word(s), ~2 mins 94,448 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

6 Collapsing tax base to burden workers Sydney Morning Herald, Sydney, General News, Eryk Bagshaw Page words ASR AUD 32,655 Photo: No Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 677 word(s), ~2 mins 88,634 CIRCULATION Toll cash would boost WestConnex Sydney Morning Herald, Sydney, General News, Matt O'Sullivan Page words ASR AUD 21,210 Photo: No Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 589 word(s), ~2 mins 88,634 CIRCULATION It's simple: fees erode returns The Australian, Australia, General News, Anthony Klan Page words ASR AUD 6,810 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 779 word(s), ~3 mins 94,448 CIRCULATION Shrinking tax base to fall heavily on workers Canberra Times, Canberra, General News, Eryk Bagshaw Page words ASR AUD 9,246 Photo: No Type: News Item Size: cm² ACT Australia Industry Super Australia - Press ID: View original - Full text: 782 word(s), ~3 mins 17,579 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

7 HOW PROPERTY SCAM SNARED SAVERS The Australian, Australia, Business News, Robert Gottliebsen Page words ASR AUD 7,194 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 842 word(s), ~3 mins 94,448 CIRCULATION Labor faces fresh fight on tax policy Sydney Morning Herald, Sydney, General News, David Crowe Page words ASR AUD 22,010 Photo: Yes Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 471 word(s), ~1 min 88,634 CIRCULATION House price concerns ease, says super boss Hobart Mercury, Hobart, Business News, Jeff Whalley Page words ASR AUD 614 Photo: Yes Type: News Item Size: cm² TAS Australia Industry Super Australia - Press ID: View original - Full text: 129 word(s), <1 min 28,265 CIRCULATION Growing our reputation as a renewable state Hobart Mercury, Hobart, General News, Guy Barnett Page words ASR AUD 2,096 Photo: No Type: News Item Size: cm² TAS Australia Industry Super Australia - Press ID: View original - Full text: 605 word(s), ~2 mins 28,265 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

8 Efforts to cool market welcomed West Australian, Perth, Business News, Jeff Whalley Page words ASR AUD 3,752 Photo: No Type: News Item Size: cm² WA Australia Industry Super Australia - Press ID: View original - Full text: 354 word(s), ~1 min 147,676 CIRCULATION Workers to carry Budget load West Australian, Perth, General News, Shane Wright Page words ASR AUD 4,102 Photo: No Type: News Item Size: cm² WA Australia Industry Super Australia - Press ID: View original - Full text: 396 word(s), ~1 min 147,676 CIRCULATION APRA s banks over Hayne probe Australian Financial Review, Australia, General News, james frost Page words ASR AUD 8,819 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 877 word(s), ~3 mins 44,635 CIRCULATION Unions push for worker reps on boards Australian Financial Review, Australia, General News, David Marin-Guzman Page words ASR AUD 7,605 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 570 word(s), ~2 mins 44,635 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

9 Hostplus stays upbeat on unlisted, alternative assets Australian Financial Review, Australia, Companies and Markets, Joanna Mather Page words ASR AUD 7,565 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 638 word(s), ~2 mins 44,635 CIRCULATION Super funds notch ninth year of growth Australian Financial Review, Australia, Companies and Markets, Joanna Mather Page words ASR AUD 8,070 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 576 word(s), ~2 mins 44,635 CIRCULATION Markets not so super Cairns Post, Cairns, General News, Glen Norris Page words ASR AUD 1,294 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 462 word(s), ~1 min 13,896 CIRCULATION Seniors ready for fight against Shorten's tax hit Age, Melbourne, Edition Changes - 2nd Edition, David Crowe Page words ASR AUD 13,035 Photo: Yes Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: View original - Full text: 416 word(s), ~1 min 83,229 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

10 Workers to carry Budget load West Australian, Perth, Edition Changes, Shane Wright Page words ASR AUD 4,120 Photo: No Type: News Item Size: cm² WA Australia Industry Super Australia - Press ID: View original - Full text: 396 word(s), ~1 min 147,676 CIRCULATION Wine leaving us in the red Courier Mail, Brisbane, Edition Changes - Metro, Rob Harris Page words ASR AUD 2,968 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 307 word(s), ~1 min 135,007 CIRCULATION Fund hosts best returns Gold Coast Bulletin, Gold Coast QLD, General News, Jeff Whalley Page words ASR AUD 2,164 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 557 word(s), ~2 mins 21,468 CIRCULATION Best super funds: Hostplus again tops table with full-year return of 12.5 per cent Herald Sun 18 Jul :01 PM 737 words ASR AUD 525 Industry Super Australia - Internet ID: Read on source site 34,378 UNIQUE DAILY VISITORS, 390 UNIQUE DAILY VISITORS Best super funds: Hostplus again tops table with full-year return of 12.5 per cent Daily Telegraph Australia by Jeff Whalley 18 Jul :01 PM 746 words ASR AUD 259 Industry Super Australia - Internet ID: Read on source site 38,547 UNIQUE DAILY VISITORS, 298 UNIQUE DAILY VISITORS COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

11 Best super funds: Hostplus again tops table with full-year return of 12.5 per cent The Mercury by Jeff Whalley 18 Jul :01 PM 746 words ASR AUD 318 Industry Super Australia - Internet ID: Read on source site 1,850 UNIQUE DAILY VISITORS, 14 UNIQUE DAILY VISITORS The Productivity Commission has clearly offended Industry Super Australia over super defaults. #superannuation #productivitycommission #ISA Twitter 1,648 followers Following 105 others 105 tweets Industry Super Australia - Social Media ID: DS View original - Favourite - Retweet - Reply 8:35 AM We're absolutely stoked! We've been able to achieve the best MySuper returns in Australia again for our 1.1 million hospitality members this Twitter 5:53 AM 3,893 followers Following 2,849 others 2,849 tweets Industry Super Australia - Social Media ID: DS View original - Favourite - Retweet - Reply COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

12 Report by ABC s Amy Bainbridge. The Royal Commission has exposed banks that have... ABC, Sydney, 7:30, Ellen Fanning Duration: 8 mins 30 secs ASR AUD 345,575 National Australia Industry Super Australia - Radio & TV ID: X Jul :31 PM Report by ABC s Amy Bainbridge. The Royal Commission has exposed banks that have been underestimating people s household expenditure. Lenders are now tightening the rules on handing out mortgage cash. Ian and Michelle Tate have previously bought an investment property in 2008 through a Westpac loan and two more properties later through a loan with the same bank. The loans had interest-only periods secured against their family home that they own outright. Ian Tate claimed the rise in repayment once the interest period ended was never explained. The Tate family had low monthly expenses, which allowed them to loan out the three investment properties. However, there are expenses listed incorrectly according to them. The Tates family lawyer Josh Mennen says they have claimed Westpac breached the responsible lending laws, given it was an estimation that suited the broker and the bank due to being enabled to waive through a loan for several mortgages. They have sold two investment properties, but the repayments keep going up dramatically for the remaining two. The Banking Royal Commission has heard most banks have been relying too heavily on the household expenditure measure as a benchmark to plug in a figure from someone s living expenses. The responsible lending laws say banks must make proper inquiries about expenses to find out if someone can afford a loan. Westpac recently said they are committed to fixing the mistakes they have made if they made them. University of Melbourne s Professor Guyonne Kalb says it is concerning people would be given loans they cannot repay. Kalb previously designed the household expenditure measure as a tool for banks, but she is alarmed these banks are not using them for their intended use. 753,000 All, 356,000 MALE 16+, 394,000 FEMALE 16+ Interviewees Gary Tahmizian Ian Tate Josh Mennen, Tate family lawyer Michelle Tate Professor Guyonne Kalb, University of Melbourne Vision ANZ, Commonwealth Bank, NAB, Westpac Also broadcast from the following 11 stations ABC (Hobart), ABC (Darwin), ABC (Brisbane), ABC (Adelaide), ABC (Melbourne), ABC (Perth), ABC (Canberra), ABC (Regional Queensland), ABC (Regional Victoria), ABC (Regional NSW), ABC (Albany) COPYRIGHT This report and its contents are for the internal research use of Mediaportal subscribers only and must not be provided to any third party by any means for any purpose without the express permission of Isentia and/or the relevant copyright owner. For more information contact copyright@isentia.com DISCLAIMER Isentia makes no representations and, to the extent permitted by law, excludes all warranties in relation to the information contained in the report and is not liable for any losses, costs or expenses, resulting from any use or misuse of the report.

13 Herald Sun, Melbourne Author: Jeff Whalley Section: Business News Article type : News Item Classification : Capital City Daily : 303,140 Page: 24 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 48,807 Words: 554 Item ID: Page 1 of 2 It s a plus, navigating trade battles and housing booms JEFF WHALLEY SUPER performing superannuation fund has praised banking regulators for their efforts to cool the housing market. House prices no longer loom as a risk to the economy following efforts to strip heat from the market, Hostplus chief David Elia says. But Mr Elia says he is still wary about the potential de-globalising effect of the trade stoush between the US and China, Australia s biggest trading partner. Mr Elia, who visited Washington DC last month to look at potential US infrastructure investments, also says Hostplus is getting closer to making inroads in that market. Hostplus will today reveal that its balance fund delivered a return of 12.5 per cent over the year to June, again topping the league table, according to research house SuperRatings. That figure is down slightly from 13.2 per cent the previous year, when the Melbourneladder. But it is significantly higher than the median return of 9.3 per cent across Australia s lowfee MySuper funds the default funds offered to employees over the past financial year. The Hostplus MySuper fund has also been the best performing over three, five, seven and 15-year time frames, but slips slightly down the table measured over the past 10 years, to fifth spot. Mr Elia said he saw two economic risks that, in the short to medium term, could affect the performance of super funds broadly. The first is central banks largely acting in advance of inflation and stifling economic growth (by) increasing interest rates, he said. Mr Elia said RBA governor Phillip Lowe had sensibly noted there was no case to raise the cash rate here, but rates were still broadly rising globally. The housing market did not loom as a risk thanks to the good work of the RBA and regulators, he said. The housing market seems through proper regulation and tightening lending practices to have cooled off, Mr Elia said. The other economic threat was that of trade wars and potential de-globalisation, he said, in a nod to the trade conflict between China and the US. With $34 billion under management, Hostplus is the industry super fund pitched at employees in the hospitality, tourism and sports sectors. Mr Elia said the fund s success over the past financial year validated its decision to avoid the noise in the market, whereby many other funds moved into cash in preparation for a downturn. Hostplus was planning to stick to its more active equity management model, he said. We have a very low allocation to index-hugging managers. Mr Elia said Hostplus would also maintain its focus on unlisted assets, which make up 47 per cent of its portfolio.

14 Herald Sun, Melbourne Author: Jeff Whalley Section: Business News Article type : News Item Classification : Capital City Daily : 303,140 Page: 24 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 48,807 Words: 554 Item ID: Page 2 of 2 HOST WITH THE MOST AUSTRALIA S TOP 10 BALANCED SUPER FUNDS OVER THE PAST YEAR Return 1. Hostplus Balanced 12.5%* 2. AustSafe Super MySuper (Balanced) 11.4% 3. AustralianSuper Balanced 11.1% 4. Cbus Growth (Cbus MySuper) 10.9%* 5. Club Plus Super MySuper 10.8% 6. Equip MyFuture Balanced Growth 10.7% 7. Sunsuper for Life Balanced 10.7% 8. Hesta Core Pool 10.6% 9. NGS Super Diversified (MySuper) 10.5% 10. UniSuper Accumulation 1 Balanced 10.5% * Interim results Source: SuperRatings The housing market seems through proper regulation and tightening lending practices to have cooled off HOSTPLUS CHIEF DAVID ELIA

15 Courier Mail, Brisbane Author: Rob Harris Section: General News Article type : News Item Classification : Capital City Daily : 135,007 Page: 6 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 3,003 Words: 307 Item ID: Page 1 of 1 Wine leaving us in the red ROB HARRIS THE nation s greater preference for a chardonnay rather than a beer is hurting attempts to return the Budget to surplus. The overall tax take from alcohol as a proportion of GDP has fallen over the past decade. Australians are drinking less overall in , the average alcohol consumption was 10.8 litres; by , that had fallen to 9.7 litres. And beer now accounts for only about 40 per cent of alcohol consumed, down from about 50 per cent in Wine now accounts for about 38 per cent of consumption, up from 32 per cent over the same period. A new Parliamentary Budget Office report on trends affecting tax collection said alcohol excise in was 0.3 per cent of GDP, down from 0.4 per cent in worth about $5 billion. Unlike beer, wine is not subject to alcohol excise, but to a wine equalisation tax. However, the greater consumption of wine has not increased receipts because the WET is levied on the value of wine, and prices have fallen. The PBO report found there had also been: A fall in fuel excise, driven by a long-time freeze on indexation and greater fuel efficiency in new cars; A fall in customs receipts as a result of free-trade agreements and tariff changes; and A rise in tobacco excise, as higher excise rates more than offset falling consumption. Personal income tax accounts for almost 54 per cent of total federal receipts. The report warned that despite the Government s plan for tax cuts in three phases over seven years, bracket creep would still see the overall personal income tax take increase. It said recent trends meant taxes on consumption were likely to continue to trend down, taxes on capital would be flat or down, and an increased proportion of labour income would be taxed concessionally through superannuation.

16 Courier Mail, Brisbane Author: Jeff Whalley Section: Business News Article type : News Item Classification : Capital City Daily : 135,007 Page: 49 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 10,186 Words: 424 Item ID: Page 1 of 2 Hostplus boss smiling over cool job on housing JEFF WHALLEY THE head of Australia s bestperforming superannuation fund has praised banking regulators for their efforts to cool the housing market. House prices no longer loom as a risk to the economy following efforts to strip heat from the market, Hostplus chief David Elia says. But Mr Elia says he is still wary about the potential deglobalising effect of the trade stoush between the US and China, Australia s biggest trading partner. Mr Elia, who visited Washington DC last month to look at potential US infrastructure investments, also said Hostplus is getting closer to making inroads in that market. Hostplus will today reveal that its balance fund delivered a return of 12.5 per cent over the year to June, again topping the league table, according to research house SuperRatings. That figure is down slightly from 13.2 per cent the previous year, when Hostplus was also top of the ladder. But it is significantly higher than the median return of 9.3 per cent across Australia s low-fee MySuper funds the default funds offered to employees over the past financial year. The Hostplus MySuper fund has also been the best performing over three, five, seven and 15-year time frames, but slips slightly down the table measured over the past 10 years, to fifth spot. Mr Elia said he saw two economic risks that, in the short to medium term, could affect the performance of super funds broadly. The first is central banks largely acting in advance of inflation and stifling economic growth (by) increasing interest rates, he said. Mr Elia said RBA governor Philip Lowe had sensibly noted there was no case to raise the cash rate here, but rates were still broadly rising globally. The housing market did not loom as a risk thanks to the good work of the RBA and regulators, he said. The other economic threat was that of trade wars and potential deglobalisation, he said, in a nod to the trade conflict between China and the US.

17 Courier Mail, Brisbane Author: Jeff Whalley Section: Business News Article type : News Item Classification : Capital City Daily : 135,007 Page: 49 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 10,186 Words: 424 Item ID: Page 2 of 2 HAPPY RETURNS Australia s top 10 balanced super funds over the past year 1. Hostplus Balanced 12.5% 2. AustSafe Super MySuper (Balanced) 11.4% 3. AustralianSuper Balanced 11.1% 4. Cbus Growth (Cbus MySuper) 10.9%* 5. Club Plus Super MySuper 10.8% 6. Equip MyFuture Balanced Growth 10.7% 7. Sunsuper for Life Balanced 10.7% 8. Hesta Core Pool 10.6% 9. NGS Super Diversified (MySuper) 10.5% 10. UniSuper Accumulation 1 Balanced 10.5% * Interim return Source:SuperRatings GOOD JOB: David Elia, CEO of Australia s best-performing superannuation fund Hostplus. Picture: Alex Coppel

18 Courier Mail, Brisbane Author: Glen Norris Section: Business News Article type : News Item Classification : Capital City Daily : 135,007 Page: 49 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 4,075 Words: 457 Item ID: Page 1 of 1 Markets no longer super for big funds GLEN NORRIS QUEENSLAND S biggest superannuation funds have joined growing skittishness about stock investments amid rising concerns about global trade wars and inflation. QSuper, which manages $72 billion in pension funds, said that while equities had been strong in recent years, it remained difficult to forecast how this could be sustained. Sunsuper, the Brisbanebased manager of $55 billion in funds, says it has been reducing its allocation to equities and lifting investment in private equity, property and infrastructure. QSuper chief investment officer Brad Holzberger said QSuper would continue to stick to a more diversified investment strategy, especially when it came to equities. We don t rely on the performance of the sharemarket or any one asset class, said Mr Holzberger. We see a 60 per cent to 70 per cent allocation to equity as a big bet which may pay off when markets are strong but could be equally costly when markets fall. Prior to 2009, QSuper had an equity weighting of around 55 per cent but felt that was too high. We know that in a year of unexpected downturn, like the Global Financial Crisis, equities exposure at that level can produce losses of up to 25 per cent, said Mr Holzberger. Sunsuper chief investment officer Ian Patrick said concerns about trade wars and rising inflation in the US were already impacting on stock markets. It can be very difficult to pick the turning point in the market and you can become defensive too early, Mr Patrick said, adding corporate earnings remain strong. Mr Patrick said Sunsuper s flagship balance fund had about a 60 per cent allocation to listed equities and would reduce that progressively by between 2½ and 3½ per cent. Both QSuper and Sunsuper join Australia s biggest superannuation fund, AustralianSuper, in expressing concerns that future stock market gains may be limited. AustralianSuper last week said it will reduce its exposure to the sharemarket amid expectations interest rate hikes overseas will bring an end to the equities boom. AustralianSuper has about 62 per cent of its cash invested in listed equities. By contrast, QSuper s balanced fund held 36.9 per cent in equities, 23.5 per cent in fixed interest and the rest in other asset classes including real estate, infrastructure and cash. QSuper s balanced fund returned 6.87 per cent during the financial year with a 10- year annual performance of 6.75 per cent. AustralianSuper s balanced option returned per cent over the financial year to June and per cent annually over the past five years. Sunsuper s balanced fund returned 10.7 per cent last year and 6.9 per cent annual over the past decade. The benchmark ASX 200 Index returned 8.3 per cent last financial year and has had a 1.9 per cent annual return average over the past decade.

19 The Australian, Australia Author: SAMANTHA BAILEY Section: Business News Article type : News Item Classification : National : 94,448 Page: 27 Printed Size: cm² Market: National Country: Australia ASR: AUD 4,992 Words: 521 Item ID: Page 1 of 1 US rally, BHP spike lift bourse EQUITIES SAMANTHA BAILEY firmly higher yesterday, boosted by positive leads from Wall Street and a surge in BHP. At the close of trade, the benchmark S&P/ASX 200 had risen 41.5 points, or 0.67 per cent, to The All Ordinaries index had gained 40.7 points, or 0.65 per cent, to points. The gains followed a strong rally on Wall Street after US Federal Reserve chairman Jerome Powell gave a positive assessment of the US economy. That initially boosted markets across the Asia-Pacific region but gains had mostly reversed by the afternoon, following a warning of the implications of a US-China trade war by South Korea s finance minister. However, the local bourse remained buoyant. We followed the strong lead from the US overnight, where markets responded very positively to Jerome Powell s statement markets seemed to like it, Tribeca deputy portfolio manager Jun Bei Liu said We expect volumes to remain thin this week ahead of the reporting season. Over the next two weeks we will start to see some price impacts, but this week is probably the end of the holiday period. The benchmark index was boosted bybhp, which shot up 3.3 per cent to $33.57 after announcing it had produced 3 per cent more iron ore for the 12 months to June compared to the previous fiscal year. Rio Tinto lifted 0.4 per cent to $79.51 while Fortescue was 0.2 per cent lower at $4.42. In financials, Westpac added 0.5 per cent to $29.67, while NAB edged up 0.2 per cent to $ ANZ rose 0.3 per cent to $ Commonwealth Bank gained n 0.7 per cent to $75.02 after its subsidiary Bankwest said it would close 29 branches and cut 200 jobs, saying customers were increasingly using self-service banking options. Energy stocks weighed on the market following mixed moves in the price of oil. Crude oil prices recovered somewhat after the sharp fall earlier in the week as investors shifted their focus to declining stockpiles, Commonwealth Bank mining and commodities associate director Vivek Dhar said. A Bloomberg survey showed investors are looking for a 4 million-barrel decline in US inventories of crude oil. However, the rally was limited as several producers, such as Saudi Arabia, Russia and the US, continued to report rising output. Woodside Petroleum lost 0.7 per cent to $34.50 while Origin Energy fell 0.3 per cent to $9.38. Santos was unchanged at $5.96. Oil Search shed 2.2 per cent to $8.61 on the of a downgrade by JPMorgan. Education services provider Navitas plunged 3.3 per cent to $4.09 after the company flagged a writedown of $130 million in its full-year results due to restructuring and impairment charges. Goldminer Evolution Mining rose 0.6 per cent to $3.15 after announcing it would pay Norton Gold Fields more than $15m to terminate the historic rights to mine and process ore from gold deposits in Western Australia. The dollar was trading firmly lower at US73.54c in late trade. The market yesterday % change S&P/ASX 200 Health Materials Info tech Cons disc Utilities Telecoms Financials Energy Source: Bloomberg

20 The Australian, Australia Author: Ben Wilmot Section: Business News Article type : News Item Classification : National : 94,448 Page: 27 Printed Size: cm² Market: National Country: Australia ASR: AUD 2,526 Words: 321 Item ID: Page 1 of 1 Heathley weighs $700m listed trust BEN WILMOT HEALTH Sydney-based healthcare property funds manager Heathley Asset Management is considering setting up a $700 million real estate investment trust that would float on the Australian Securities Exchange. The move comes as Heathley weighs up options for its capital structure as it seeks to fund a pipeline of opportunities that could lift its holdings to $1 billion. Heathley is being advised by investment banks UBS and JPMorgan. The Australian in May revealed that Heathley was seeking a strategic capital partner as it pursues more medical centre and aged-care property deals as the operators it is working with also seek to grow. Heathley already has a network of medical centres, hospitals and aged-care homes that make up about $550m worth of property in the specialist field and this is rising as its long track record attracts operators. The firm, led by Andrew Hemming, has been in demand by prospective partners wanting to capitalise on its knowledge of healthcare systems and it has been running a process through Damon Reynolds, of KPMG Corporate Finance. Floating an externally managed trust may be attractive as the vehicle could be used to grow Heathley s holdings, and it would be the only such specialist health property fund listed on the ASX. Heathley is considering the A-REIT as part of a strategy that could see it also team up with either superannuation funds or wealthy private investors. The stockmarket has been primed for activity in the health space and parties are already keen to access the $2bn property portfolio of the in-play Healthscope. Property investors have also been starved for raisings in 2018 and institutions are keen to new asset classes as traditional areas of property face headwinds. Heathley declined to comment last night as the shape a trust may take is yet to be finalised, although analysts said a vehicle would be underpinned by strong demand in the health sector and long-term leases to high-quality operators.

21 Adelaide Advertiser, Adelaide Author: Jeff Whalley Section: Business News Article type : News Item Classification : Capital City Daily : 112,097 Page: 34 Printed Size: cm² Market: SA Country: Australia ASR: AUD 4,686 Words: 336 Item ID: Page 1 of 2 Regulators helping take housing risk out of economy JEFF WHALLEY THE head of Australia s bestperforming superannuation fund has praised banking regulators for their efforts to cool the housing market. House prices no longer loom as a risk to the economy following efforts to strip heat from the market, Hostplus chief David Elia says. But Mr Elia says he is still wary about the potential deglobalising effect of the trade stoush between the US and China, Australia s biggest trading partner. Mr Elia, who visited Washington DC last month to look at potential US infrastructure investments, also says Hostplus is getting closer to making inroads in that market. Hostplus will today reveal that its balance fund delivered a return of 12.5 per cent over the year to June, again topping the league table, according to research house SuperRatings. That figure is down slightly from 13.2 per cent the previous year, when Hostplus was also top of the ladder. But it is significantly higher than the median return of 9.3 per cent across Australia s low-fee My- Super funds the default funds offered to employees over the past financial year. The Hostplus MySuper fund has also been the best performing over three, five, seven and 15-year time frames, but slips slightly down the table measured over the past 10 years, to fifth spot. Mr Elia said he saw two economic risks that, in the short to medium term, could affect the performance of super funds broadly. The first is central banks largely acting in advance of inflation and stifling economic growth (by) increasing interest rates, he said. Mr Elia said RBA governor Phillip Lowe had sensibly noted there was no case to raise the cash rate here, but rates were still broadly rising globally. The other economic threat was that of trade wars and potential de-globalisation, he said, in a nod to the trade conflict between China and the US. Across its funds, Hostplus has $34 billion under management.

22 Adelaide Advertiser, Adelaide Author: Jeff Whalley Section: Business News Article type : News Item Classification : Capital City Daily : 112,097 Page: 34 Printed Size: cm² Market: SA Country: Australia ASR: AUD 4,686 Words: 336 Item ID: Page 2 of 2 Hostplus chief David Elia says house prices no longer loom as a risk to the economy Picture: ALEX COPPEL.

23 Sydney Morning Herald, Sydney Section: Letters Article type : Letter Classification : Capital City Daily : 88,634 Page: 17 Printed Size: 99.00cm² Market: NSW Country: Australia ASR: AUD 7,924 Words: 166 Item ID: Page 1 of 1 Punish managers not shareholders Ross, Ross, Ross, increasing fines for companies ultimately penalises the wrong people the shareholders ( When business behaves badly, July 18). That is doubly concerning when the shareholder is a superannuation fund so people s retirement incomes are penalised. Surely it is necessary to penalise those responsible for corporate bad behaviour (as you so mildly call it). Executives must understand that if they knowingly act in a manner that is contrary to law they will personally pay a price whether that is loss of bonus, fine, reported conviction and even, in appropriate circumstances, a custodial sentence. While executives get off scot-free there is no motive for good behaviour. They ve already received their bonus or promotion for their bad behaviour and moved on. Peter Townsend, Sydney Ross Gittins talks about increasing fines for badly behaving companies. Perhaps time eating porridge and planting pine trees would be more of a disincentive. Oh sorry, this is white-collar crime, how silly of me to forget. Stephen Dunn, Bonnells Bay

24 The Australian, Australia Author: Cliona O'Dowd Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 15,520 Words: 822 Item ID: Page 1 of 3 Hostplus bets against pack wisdom in bid to threepeat CLIONA O DOWD SUPER FUNDS Industry super fund Hostplus is taking a contrarian view on the market as it celebrates being named Australia s best-performing super fund for the second year running. The fund s balanced option posted a 12.5 per cent return for the 2018 financial year, smashing the median return of 9.2 per cent across the industry, according to figures from superannuation consultancy Chant West. That s an excellent result. It s a record-equalling ninth consecutive positive year and well ahead of the funds own performance targets, Chant West senior investment research manager Mano Mohankumar said. The better-performing funds in the year were those that had higher allocations to listed shares and to unlisted assets property, infrastructure and private equity. A lower exposure to traditional bonds and cash also helped, given they were the worst-performing sectors. Even the year s worst performers managed to hobble to the finish line with a respectable return of 6.5 per cent. The median growth fund has now delivered a cumulative return of about 135 per cent since the 2009 low point and 72 per cent since the pre-gfc high in late Hostplus chief investment officer Sam Sicilia said double-digit returns in its unlisted assets boosted the fund s performance. Its infrastructure and property portfolios each returned 12 per cent, while its private equity portfolio returned 15 per cent. And while others are warning of more subdued returns in the years ahead, Mr Sicilia is more upbeat. He s content to be an outlier in the market. If your view is the same as the market then you ll get the market return. The market believes four things right now: that trade wars are inevitable and will be disastrous for markets; that interest rates are surely going up; that inflation sooner or later will go up; and that equity markets are overvalued and surely there s going to be a correction. We take a contrarian view in all four of those, Mr Sicilia said. Sharemarkets would shrug off any trade war impact, he predicted, while interest rates in Australia were not going up any time soon, with the Reserve Bank starting to waver on their outlook. Inflation, meanwhile, would remain low because of the deflationary impact of technology. Unless you can find a way to switch off technology you re not going to find a way to generate inflation, he said. Hostplus s equity exposure, sitting at 53 per cent, is made up of 25 per cent Australian shares, 20 per cent international shares and 8 per cent emerging market shares. The fund is looking at taking a little bit off the table in Australian shares 1 per cent or 2 per cent at most and moving it to international shares to gain more exposure to a broader range of industries. It has a zero allocation to cash and a 2 per cent allocation to fixed interest that it would also soon move to zero, Mr Sicilia said. The second-placed AustSafe MySuper Balanced fund, which recently announced it was merging with industry super fund Sunsuper, booked an 11.4 per cent return. Statewide Super placed third with an 11.3 per cent return, while AustralianSuper s balanced option came fourth with an 11.1 per cent return. Cbus Growth rounded out the top five with an 11 per cent return. Industry funds overwhelmingly dominated as the top performers, taking out every spot in Continued on Page 21

25 The Australian, Australia Author: Cliona O'Dowd Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 15,520 Words: 822 Item ID: Page 2 of 3 Unless you can find a way to switch off technology you re not going to find a way to generate inflation SAM SICILIA HOSTPLUS CIO Top 10 performing growth funds (year to June 30) Survey median Hostplus Balanced AustSafe MySuper (Balanced) Statewide Super MySuper AustralianSuper Balanced Cbus growth (Cbus MySuper) Club Plus MySuper/Balanced Equip Balanced Growth Sunsuper Balanced HESTA Core Pool NGS Super Diversifed (MySuper) 12.5% 11.4% 11.3% 11.1% 11% 10.8% 10.7% 10.7% 10.6% 10.5% Growth funds five-year performance Annual returns (%) Growth fund median CPI +1.5% Source: Chant West

26 The Australian, Australia Author: Cliona O'Dowd Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 15,520 Words: 822 Item ID: Page 3 of 3 Hostplus bets against market Continued from Page 17 the top 10 and returning an average 10.3 per cent last year compared with retail funds, which averaged 9.3 per cent. Industry funds have also outperformed over the long term, returning 8.1 per cent over the past 15 years compared with their retail peers, which returned 7.2 per cent. Over the longer term, industry funds have outperformed retail funds largely because of the way they allocated their investments and their preparedness to vary those allocations to suit changing market conditions, Mr Mohankumar said. They tend to have higher allocations to unlisted assets such as private equity, unlisted property and unlisted infrastructure. This means they have less invested in traditional asset classes such as listed shares, REITs and bonds. Hostplus was the topperforming balanced fund in Australia over one, three, five, seven and 15 years, while UniSuper balanced was the bestperforming fund over 10 years. ALEX COPPEL Hostplus CEO David Elia

27 The Australian, Australia Author: Michael Roddan Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,497 Words: 635 Item ID: Page 1 of 2 Name, shame, ban poor performers: AustralianSuper EXCLUSIVE MICHAEL RODDAN SUPERANNUATION The nation s largest superannuation fund, the $130 billion AustralianSuper, has demanded that underperforming nest egg managers be named, shamed and banned from receiving the savings of workers. In its submission to the Productivity Commission s review of the $2.6 trillion super system, AustralianSuper executive Paul Schroder has split with policy advisory s main recommendation of a top 10 best in show list of default funds that would guide unengaged savers into wellperforming funds. Instead, Mr Schroder has requested that each industrial award list up to 10 MySuper default options for employees to choose from to manage their savings. Like other union and employee-ed industry funds, AustralianSuper also proposed that the process for selecting a default fund be handled through the Fair Work Commission. The continued inclusion of the FWC is unlikely to gain traction with the Productivity Commission or the government. The commission s damning report into superannuation found entrenched overcharging in the for-profit fund sector, a tail of underperforming trade union funds that refuse to merge despite it being in their members best interests, and an industry happy to preside over a system that acts as an unlucky lottery for many savers. Mr Schroder said the Productivity Commission s benchmark performance guide which compared fund performance to internal and stated targets and found a large slice of the industry underperforming for more than a decade should be published. He said funds should also meet benchmark performance targets to remain eligible to be counted as a low-fee generic MySuper default fund. MySuper products that underperform the member value benchmark should have their MySuper authorisation cancelled by APRA and be subject to a prudential transition process, Mr Schroder said. Cancelled MySuper products would not be eligible to Continued on Page 21 Ban poor performers, says AustralianSuper Continued from Page 17 receive new default members or superannuation guarantee moneys, Mr Schroder added. AustralianSuper said it supported the concept that members should only be defaulted once in their life, but made a carve-out for where enterprise bargaining agreements required opening a new default fund. AustralianSuper has not often found itself on the wrong side of superannuation regulation and has been on the front foot during the industry debate over the role of life insurance. Earlier this year the fund announced an industryleading move to cancel automatic life insurance cover for new members under 25 years of age. That position was made mandatory in the government s federal budget in May, and then recommended by the Productivity Commission in its recent report. But the fund is unlikely to be successful with a campaign to retain the Fair Work Commission in the default superannuation selection process. The Productivity Commission s proposed expert panel would choose the top 10 funds, be at arm s length of government, outside the FWC and subject to judicial review. This is unlike the Bill Shorten-appointed Fair Work Commission default super expert panel that was abolished in 2014 after the wealth management industry complained that it was not independent. Karen Chester, deputy chairman of the Productivity Commission, has proposed that Reserve Bank governor Philip Lowe take charge of appointing independent experts to the panel, assisted by the chairman of the Australian Competition & Consumer Commission and tax office commissioner.

28 The Australian, Australia Author: Michael Roddan Section: Business News Article type : News Item Classification : National : 94,448 Page: 17 Printed Size: cm² Market: National Country: Australia ASR: AUD 5,497 Words: 635 Item ID: Page 2 of 2 AustralianSuper also said it supported a requirement for funds to report to the regulator instances of failed mergers. The $2.6 trillion super sector is bracing for a bruising fortnight of hearings at Kenneth Hayne s financial services royal commission that start on August 6. Fund directors are expected to face a grilling on governance issues, whether super boards have acted in the best interests of members rather than union groups or shareholders, why failed mergers did not proceed, and on the dealings between related parties and subsidiaries. MySuper products that underperform... should have their authorisation cancelled PAUL SCHRODER AUSTRALIANSUPER

29 Sydney Morning Herald, Sydney Author: Eryk Bagshaw Section: General News Article type : News Item Classification : Capital City Daily : 88,634 Page: 1 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 32,655 Words: 677 Item ID: Page 1 of 2 REVENUE WARNING Collapsing tax base to burden workers Eryk Bagshaw Economics reporter Workers will shoulder a greater burden of Australia s tax system unless government delivers major reform as companies minimise their tax obligations, consumers shun luxury items and fuel tax revenue plummets. A review of 15 years of the tax system by the Parliamentary Budget Office has brought key vulnerabilities into focus just months before the Turnbull government and Labor go head to head over tax in a federal election. The report shows that a future government is likely to face the politically fraught decision of either making motorists pay more for petrol or slugging them with road-use charges to make up for billions of dollars in lost fuel excise, after revenue fell by more than 30 per cent due to a decade-long indexation freeze to 2014 and a steady decline in petrol use. To add to revenue concerns, soaring healthcare and education costs which are GST exempt have meant consumers battling historically low wage growth are increasingly restricting their spending on discretionary items that contribute to GST revenue, weakening the tax base. The budget office also sounded a warning on Australia s resource tax take, finding that despite the nation s rise to the top of the world s gas exporters there is a significant likelihood that this will not translate into higher revenue. The review found that, in the absence of reform, maintaining tax revenues as a share of GDP will lead to an increasing reliance on the personal income tax system if the risks eventuate. It said the Turnbull government s decision to cut company taxes and increasing tax avoidance by multinationals meant workers were likely to shoulder more of the burden as company tax receipts as a share of GDP are expected to come under further downward Continued Page 5

30 Sydney Morning Herald, Sydney Author: Eryk Bagshaw Section: General News Article type : News Item Classification : Capital City Daily : 88,634 Page: 1 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 32,655 Words: 677 Item ID: Page 2 of 2 Crumbling tax base set to increase burden on workers From Page 1 pressure. The budget office said the gap between company profits and tax receipts was expected to close as the costs associated with an unprecedented growth in resources investment declined. But increasingly aggressive tax minimisation meant there was uncertainty over when company profits are likely to translate into company tax receipts to the same extent experienced in the early 2000s. The report, which assesses the sustainability of current trends for the coming decade, does not have implications for Treasury s current revenue forecasts over the forward estimates. It found that while individual taxpayers will get relief from bracket creep through the government s $144 billion personal income tax cuts, the overall tax burden could fall on labour as other parts of the tax base erode. Treasurer Scott Morrison said the report showed the importance of protecting against bracket creep while a growing economy delivered revenue growth. You don t guarantee the revenues you need for essential services like Medicare, hospitals and schools from higher taxes, Mr Morrison said. You do this by having and implementing your plan for a stronger economy. Shadow treasurer Chris Bowen said the report showed that, left unchecked, Australia would continue to rely on higher income tax from individuals to fund basic services. The report took aim at the government s recent injection of $7.2 billion into the GST pool, warning that this might prevent states from reforming inefficient taxes such as stamp duty. Since the GST was introduced in 2000, households have spent progressively more of their income on goods and services that are exempt from GST and less on luxury goods as the cost of living has increased. Any ongoing decline in GST receipts could lead to calls to make increased payments to the states and territories, the report warned. Weaknesses in GST receipts could provide an incentive for the states and territories to make better use of their tax bases. This incentive may be somewhat muted by the precedent now set for topup funding being provided by the Australian government. The report found wages and tax receipts could also come under pressure from frozen superannuation guarantee increases that are due to take compulsory payments from 9.5 per cent to 12 per cent by Households are spending less on luxury goods. 1HERSA1 A005

31 Sydney Morning Herald, Sydney Author: Matt O'Sullivan Section: General News Article type : News Item Classification : Capital City Daily : 88,634 Page: 3 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 21,210 Words: 589 Item ID: Page 1 of 1 LABOR PLAN Toll cash would boost WestConnex Matt O Sullivan Transport Labor s promise to reintroduce a scheme that allows motorists to reclaim the M4 motorway toll would deliver a free kick to the earnings of the new WestConnex owners. Analysts and academics also expect a surge in traffic from a cash scheme on the widened M4 between Parramatta and Homebush to funnel more motorists onto the rest of the WestConnex toll road in which private investors will soon gain a controlling stake. They say a toll subsidy on the M4 if Labor won the state election in March would also raise questions about inequity if cashs did not apply to other toll roads. Figures show the annual bill to taxpayers of refunding motorists who drive on the M5 South West the only toll road in Sydney to which a cash scheme now applies rose to $111 million in the 12 months to June, from $105 million. Andrew Chambers, a funds manager at Martin Currie, said a cash scheme would increase traffic on the M4 and so boost earnings for the new WestConnex owners. Effectively, you have a situation where people who don t use that toll road are seeing their taxes going to those that do use [it], he said. The government and its Goldman Sachs bankers are in the final stages of auctioning a 51 per cent stake in WestConnex to a Transurban-led consortium or heavyweight IFM Investors. The bidders are expected to model the impact of Labor s M4 cash plans. Tolls were reimposed on a widened section of the M4 last year as part of the first stage of WestConnex. Martin Locke, an adjunct professor at the Institute of Transport and Logistics Studies at the University of Sydney, said an M4 cash would provide a free kick to the earnings of the large WestConnex investors by encouraging more motorists to use the motorway. And he said cash schemes eroded the ability to pay for major new roads. Unless you get people to pay for infrastructure, you are creating a financial hole that the government needs to fill, he said. If you don t charge the user, the only other way is for the taxpayer to pay. As for the rest of WestConnex, distance-based tolls of up to $4.74 for cars using the widened M4 rise at 4 per cent a year or the rate of inflation, whichever is greater. That means the liabilities for taxpayers from subsidising motorists who claim the M4 cash could rise at a faster rate than inflation. The previous M4 cash ended in 2010 when the road s ownership returned to the state and the then Labor government decided against maintaining a toll. At the time, the M4 scheme was costing taxpayers about $40 million a year. NSW taxpayers have now paid almost $1.6 billion in refunds to motorists since the cash schemes were introduced by Labor in the 1990s. That total excludes the cost of administrating the schemes. Mr Locke said any return to an M4 cash was contrary to Infrastructure Australia s push towards a national road pricing scheme to help offset declines in revenue from fuel excise. This approach also raises concerns over inequity given the fact that cash doesn t apply to other toll-road users. What about the people paying for the M7, the M2, the Lane Cove Tunnel and the Eastern Distributor? Premier Gladys Berejiklian has attacked Labor s policy as a con that would benefit only a select group of motorists. But she sidestepped questions last week about whether her government would rule out putting a cash on the M4.

32 The Australian, Australia Author: Anthony Klan Section: General News Article type : News Item Classification : National : 94,448 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 6,810 Words: 779 Item ID: Page 1 of 2 It s simple: fees erode returns SAVE OUR SUPER EXCLUSIVE ANTHONY KLAN One of the world s top experts on superannuation has called out claims from the major banks and financial services giants AMP and IOOF that it is factually incorrect or misleading to use the officially audited data, which they are legally required to file with the regulator, to judge their performance. University of NSW Business School academic Kevin Liu, who earned his PhD investigating superannuation fund performance and is a former internal researcher for banking and super watchdog the Australian Prudential Regulation Authority said that the data was in fact the most accurate way to determine the performance of major funds. The theoretical argument is there can be many reasons for the underperformance of the retail funds such as that analysis doesn t compare apples with apples, Dr Liu told The Australian. But we have created performance benchmarks and this is not difficult and the methodology is not new. This systemic underperformance is not (due to) asset allocation. It s not an investment manager s skills. It s fees and charges. Continued on Page 2 It s simple: big fees lead to low returns Continued from Page 1 Audited super-fund data provided to APRA by law shows that the biggest single-umbrella super funds operated by each of the CBA, Westpac, NAB, ANZ banks and AMP and IOOF performed vastly below market rates over the 10 years to June 30, Those major funds have five million member accounts and hold $260 billion of the public s money raised through the compulsory super scheme. They have performed about half as well as the major so-called not-for-profit industry funds, and about half as well as super schemes that three of the major banks operate for their own staff members. CBA s Commonwealth Bank

33 The Australian, Australia Author: Anthony Klan Section: General News Article type : News Item Classification : National : 94,448 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 6,810 Words: 779 Item ID: Page 2 of 2 Group Super, which is open to CBA staff and their spouses, and which has 74,009 members with $11.06bn invested, delivered an average return of 5.4 per cent a year over the decade to June By contrast, the biggest fund CBA sells to the public, the $72.1bn Colonial First Choice Superannuation Trust, which has 783,474 members, delivered overall average returns of just 2.9 per cent a year for the decade. ANZ s $36.2bn OnePath Masterfund, which is sold to the public via its vast network of financial advisers, and which had 949,486 members at June 30 last year, earned an overall return of 2.7 per cent a year over the decade. However, the ANZ Staff Superannuation fund, which reported 31,688 members with retirement nest eggs worth $4.23bn, earned overall average returns of 4.7 per cent for the same period. The major banks, AMP and IOOF have aggressively fought against this data being used to compare their performance and have provided a wide range of reasons why it is incorrect to do so. However Dr Liu said not only were these claims incorrect, but that using this data provided the most reasonable and accurate assessment performance of a fund because it reflects the overall efficiency of the firm as an independent operating entity. Further, APRA had long been aware this was the case: Dr Liu was the co-author of the peerreviewed APRA paper that proved it, and contained those exact words, in July Dr Liu, then completing his PhD on the subject, had been employed as a researcher and his coauthor, Dr Bruce Arnold, was at the time APRA s head of policy, research and statistics. APRA chairman Wayne Byres and deputy chairman Helen Rowell have repeatedly declined to comment when contacted about these issues by The Australian in recent weeks. In a statement, an NAB spokeswoman said it was inappropriate and misleading to compare its performance using the legally audited APRA data. The data shows that the super fund NAB operates for its own staff delivered vastly higher overall average returns over the past decade than a major fund it operated for the public. As we have previously stressed, to compare the performance of the MLC Superannuation Fund, which is a composite view of members individual investment choices, to the NAB Staff Super Fund, which is one investment option, is inappropriate and misleading, the statement said. The major umbrella funds, or master trusts, operated by the major banks, AMP and IOOF, typically have many underlying funds. These funds in turn have hundreds of thousands of investment options, which invest in the actual assets, such as cash, shares, or government bonds. Do you know more? klana@theaustralian.com.au NEST EGG Super fund returns compared to cash rate % Cash Australian Super CBA BT AMP ANZ MLC IOOF ANZ Staff CBA Staff NAB Staff Source: APRA

34 Canberra Times, Canberra Author: Eryk Bagshaw Section: General News Article type : News Item Classification : Capital City Daily : 17,579 Page: 3 Printed Size: cm² Market: ACT Country: Australia ASR: AUD 9,246 Words: 782 Item ID: Page 1 of 2 ECONOMY Shrinking tax base to fall heavily on workers Eryk Bagshaw Workers will shoulder a greater share of Australia s tax burden unless the government delivers majorreform, as companies minimise their obligations, consumers shun luxury items and fuel-tax revenue plummets, a report has warned. A review of 15 years of the Australian tax system by the Parliamentary Budget Office has brought key tax vulnerabilities into focus just months before the Coalition and Labor go head to head over tax in the next federal election. The report shows a future government is likely to face the decision of making motorists pay more for petrol or slugging them with road use charges to make up for billions of dollars in lost fuel excise. This is after taxes fell more than 30 per cent because of a decade-long indexation freeze until 2014 and a steady decline in petrol use. To add to revenue concerns, soaring healthcare and education costs which are GST exempt have meant consumers contending with low wage growth are increasingly restricting their spending on discretionary items that contribute to the GST, weakening the tax base. The independent budget office also sounded a warning over Australia s resource tax take, finding that despite Australia s rise to the top of the world s gas exporters, there is a significant likelihood that this will not translate into higher revenue. The review found in the absence of other taxation reforms, maintaining tax revenues as a share of GDP would lead to an increasing reliance on taxes through the personal income tax system if the risks eventuate. It said the Turnbull government s decision to cut company taxes and increasing multinational tax avoidance meant workers were likely to shoulder more of the burden as company tax receipts as a share of GDP are expected to come under further downward pressure. The budget office said the gap between company profits and tax receipts was expected to close as the costs associated with the growth in resources investment fell. But increasingly aggressive tax minimisation meant there was uncertainty over when company profits are likely to translate into company tax receipts to the same extent experienced in the early 2000s. The report which assesses the sustainability of current trends for the coming decade does not have implications for Treasury s current revenue forecasts over the forward estimates. It found that while individual taxpayers will get relief from bracket creep through the Turnbull government s $144 billion personal income tax cuts, the overall tax burden could fall on labour as other parts of the tax base eroded. Treasurer Scott Morrison said the report showed the importance of protecting against bracket creep while a growing economy delivered revenue growth. You don t guarantee the revenues you need for essential services like Medicare, hospitals and schools from higher taxes, he said. You do this by having and implementing your plan for a stronger economy. Shadow treasurer Chris Bowen said the report showed that, left unchecked, Australia would continue to rely on higher income tax from people to fund basic services. The report took aim at the government s recent injection of $7.2 billion into the GST pool, warning it could prevent states from reforming inefficient taxes such as stamp duty. Since the GST was introduced in 2000, households have spent progressively more of their income on goods and services that are exempt from the GST and less on luxury goods as the cost of living has risen. Any ongoing decline in GST receipts could lead to calls to make increased payments to the states and territories, the budget office warned.

35 Canberra Times, Canberra Author: Eryk Bagshaw Section: General News Article type : News Item Classification : Capital City Daily : 17,579 Page: 3 Printed Size: cm² Market: ACT Country: Australia ASR: AUD 9,246 Words: 782 Item ID: Page 2 of 2 Weaknesses in GST receipts could provide an incentive for the states and territories to make better use of their tax bases. This incentive may be somewhat muted by the precedent now set for top-up funding being provided by the Australian government. The report found wages and tax receipts could also come under pressure from frozen superannuation guarantee increases that are set to take compulsory payments from 9.5 per cent to 12 per cent by If superannuation contributions increase this is likely to lead to lower wage increases, the report said. Since employer superannuation contributions are typically taxed concessionally [15 per cent] compared to wages, higher superannuation contributions would be expected to result in lower tax receipts overall. The new figures also show fuel excise is looming as a key political battle over the next decade, despite the government s decision to index the tax rate in the budget. The budget office found even though indexation was reintroduced, fuel tax revenue has continued to decline due to improvements in car fuel efficiency. Electric vehicles are expected to make up 19 per cent of the light vehicle fleet in Australia by , according to the Australian Energy Market Operator.

36 The Australian, Australia Author: Robert Gottliebsen Section: Business News Article type : News Item Classification : National : 94,448 Page: 28 Printed Size: cm² Market: National Country: Australia ASR: AUD 7,194 Words: 842 Item ID: Page 1 of 1 HOW PROPERTY SCAM SNARED SAVERS Banks are in the spotlight over an investment racket ROBERT GOTTLIEBSEN Lurking behind the decision by Westpac and other big banks to stop lending to self-managed superannuation funds is a property racket that threatens significant losses to those caught. It is highly likely some banks will be caught up in it but I strongly emphasise that I have no knowledge of which banks may have been ensnared. And just because Westpac has withdrawn from the property-lending super market does not mean it has been caught. But many of those self-managed super funds that were caught are already down about 20 per cent and we have a big blame game ahead of us. Before detailing how the racket worked, I want to ground the situation. The self-managed fund movement really boosted the quality and depth of our super movement at a time when too many of the big funds did not provide the right products, concealed fees and allowed other rip-offs. The retirement community, with the help of their accountants and advisers, found a wonderful, lowcost way of managing super funds in the interests of the beneficiary. That continues for the vast majority of self-managed super funds, many of whom are widening their scope to bring in family members. To help that process the government has increased the number of people who can be members of a SMSF from four to six. The ALP is looking after its mates in the big funds with a poorly conceived attack on those retirees who do not have millions in their funds by depriving these smaller retirees of franking credits. The big self-managed funds can dodge the ALP bullets with ease but the smaller self-managed funds will have to work harder to avoid being hit, although most are already making plans to adapt. What concerns many people, whether they invest their money via big industry/retail funds or selfmanaged funds, is that they can t get enough money into the fund to finance a decent retirement. Accordingly, leveraging a selfmanaged fund offered an opportunity to break through. Such people, and they represented a major part of the workforce, are therefore vulnerable to get rich schemes from salespeople who suggest high borrowing on property to deliver big net returns. When Australia first allowed self-managed superannuation funds to borrow to invest in property I was very nervous. I could see there were clear advantages for wealthy individuals because they could select a property that had good prospects of gain and fund it partly with tax-deductible money. But, for the unwary, there were clear dangers particularly as it ended diversification of investment. David Murray in his report raised a red flag but neither David nor I realised what would happen if the desire to generate more money for retirement was exploited in a racket. Michael Roddan, writing in this paper, detailed how borrowing by self-managed funds for property has ballooned from $2.5 billion in 2012 to $25bn this year. Remember there is almost $750bn in selfmanaged super (about 30 per cent of the broader market) so the borrowings represent less than 4 per cent of the SMSF pool. But there are a large number of funds and people involved. Many have made sensible investments in property that have achieved the rewards they aimed for but an unknown number have been caught in the scam. This is how the scam worked. There are a huge number of unsold, used and new, small inner city apartments that sellers are desperate to get rid of. They engaged a series of real estate salespeople on truly enormous commissions to sell the apartments at inflated prices. The salespeople were linked to people who would set up self-managed funds (or use existing ones) and arrange the borrowings. Melbourne was the home of many of the scams but they existed in Sydney and Brisbane. Most apartments were sold above the top of the market and they have fallen at least 20 to 25 per cent in value. And if the unfortunate self-managed fund beneficiary bought an apartment in Melbourne that was clad in flammable material the fall might be 50 per cent or greater if they can find a buyer at all. To what extent were the financiers, usually banks, aware of the scam? I do not know the answer but given the deals were done quickly there is an opportunity for liaison between banker and the salesperson. If that can be proven, there is at least a chance that the loan may be voidable. The community is in no mood to treat kindly banks who may have engaged in bad conduct, and if a bank is innocently lending on these scam deals they have to hope their staff are also clean and not receiving handers to push the loan through. When big money is on the table sometimes people do strange things. Meanwhile, there are an unknown number of people who have been devastated and I suspect, unfairly, the wider selfmanaged fund movement will cop the blame. Salespeople on truly enormous commissions sold the apartments at inflated prices

37 Sydney Morning Herald, Sydney Author: David Crowe Section: General News Article type : News Item Classification : Capital City Daily : 88,634 Page: 5 Printed Size: cm² Market: NSW Country: Australia ASR: AUD 22,010 Words: 471 Item ID: Page 1 of 1 Labor faces fresh fight on tax policy RETIREMENT David Crowe Chief political correspondent A new campaign is being launched to urge Opposition Leader Bill Shorten to stage another retreat on a major budget policy, as older Australians intensify their warnings of a hit to retirement incomes from a $55.7 billion revenue increase. The new alliance, which claims up to 200,000 direct members, is vowing to intensify its campaign in the lead-up to the next federal election to warn voters about the impact on their household budgets from the Labor plan to alter tax rules on share dividends. The Alliance for a Fairer Retirement System is acting on a survey of its members that found twothirds believe the Labor policy remains unfair despite attempts to soften the impact on pensioners. We ll keep fighting to change it. We re not going to give up because we owe it to our members to do this, said Ian Henschke, the chief advocate at National Seniors Australia. The spokeswoman for the new alliance, Deborah Ralston, said the voters who were likely to pay for the Labor policy were not highflyers and included small business owners who were counting on the dividend rules in their plans for retirement. The organisations behind the new alliance are the Australian Shareholders Association, the Australian Listed Investment Companies Association, National Seniors Australia, the Self Managed Super Fund Association, the Self Managed Independent Superannuation Funds Association, the Stockbrokers & Financial Advisers Association, the Association of Independent Retirees, the Australian Investors Association and the Association of Financial Advisers. Mr Shorten unveiled the plan to scale the tax credits allowed under dividend imputation rules in early March but retreated two weeks later to issue a pensioner guarantee that limited the impact on those with lower incomes. The down offered a complete exemption for 277,000 Australians on the full or part pension as well as another 29,000 people on allowances such as war widows pensions. The policy now aims to collect $55.7 billion instead of the original $59 billion over 10 years after excluding the pensioners. An estimated 893,000 individuals and self-managed superannuation funds will still feel the impact of the changes by losing tax refunds on the credits they can claim for dividend imputation. Ms Ralston, a former professor of finance and now professorial fellow at Monash University, told the Herald that many Australians did not understand they would be hit by the changes because their eyes glaze over at talk of dividend imputation. We do have to take action to stop it, Ms Ralston said. Business owners, she said, could suffer if they were relying on dividends from their businesses to retire on the expectation that tax refunds on imputation credits could supplement their incomes. They feel very let down because they thought they were doing the right thing, funding their retirement, she said. Spokeswoman for the new alliance Deborah Ralston. Photo: Ryan Stuart

38 Hobart Mercury, Hobart Author: Jeff Whalley Section: Business News Article type : News Item Classification : Capital City Daily : 28,265 Page: 34 Printed Size: 85.00cm² Market: TAS Country: Australia ASR: AUD 614 Words: 129 Item ID: Page 1 of 1 House price concerns ease, says super boss JEFF WHALLEY THE head of Australia s bestperforming superannuation fund has praised banking regulators for their efforts to cool the housing market. House prices no longer loom as a risk to the economy following efforts to strip heat from the market, Hostplus chief David Elia says. But Mr Elia says he is still wary about the potential de-globalising effect of the trade stoush between the US and China. Hostplus will today reveal that its balance fund delivered a return of 12.5 per cent over the year to June, again topping the league table, according to research house SuperRatings. TOP AGAIN: David Elia. That is down slightly from 13.2 per cent the previous year but it is significantly higher than the median return of 9.3 per cent across Australia s low-fee MySuper funds.

39 Hobart Mercury, Hobart Author: Guy Barnett Section: General News Article type : News Item Classification : Capital City Daily : 28,265 Page: 23 Printed Size: cm² Market: TAS Country: Australia ASR: AUD 2,096 Words: 605 Item ID: Page 1 of 2 Growing our reputation as a renewable state Guy Barnett gets behind Tasmania s green energy push into the mainland TASMANIA is the nation s number-one renewable state, and we have a chance to take our potential to the next level. Last week, exciting initiatives were announced to unlock Tasmania s nationleading potential in renewable energy. A report released by Australia s leading renewable energy body, ARENA, identified 14 high potential pumped-energy storage sites in our Central Highlands and on the North and West coasts. Combined, they could deliver up to 4800 megawatts of new energy capacity. The next step is to narrow these 14 potential sites to executable projects estimated to deliver 2500 megawatts double existing hydro-electric capacity. This is a game-changing, state-building, nation-leading discovery and underpins the future of the energy sector in Tasmania and Australia with potential to create up to 3000 jobs and generate up to $5 billion investment. A second report by ARENA cemented what many in Tasmania already knew we can deliver the nation s lowest energy costs. This report confirmed Tasmania s strategic advantages should make pumped-hydro investment a national priority. Married with new interconnection, they become nation-building projects, according to federal Energy Minister Josh Frydenberg. As more coal power stations retire and more intermittent renewables such as wind enter the market, a reliable energy source is required to fill that gap. Tasmania s geography and topography and the location of our existing hydro assets make our state strategically placed to deliver low cost, 100 per cent renewable dispatchable power energy on tap! Currently, we have 30 power stations across the heart of Tasmania. This was established through decades of toil and innovation by our forebears over the great era in Tasmanian history known as hydro-industrialisation. We are entering a new era characterised by pumpedhydro storage, regarded the world s most mature electrical energy storage system, making up 97 per cent of energy storage globally. Pumped hydro energy storage is Next Generation Hydro for Tasmania. Put simply, it involves pumping water uphill to a storage reservoir and releasing it through a turbine to provide additional energy into the electricity grid when needed. However, it s not just about Next Generation Hydro, with Tasmania s wind potential also playing a critical role in the state s energy future. Cattle Hill and Granville Harbour wind farms are under way, with plans for expansion elsewhere, including at Robbins Island. Tasmania s wind is not just a powerful resource for us in the state, but our wind often blows when it s not blowing elsewhere in the country, enabling us to provide windgenerated electricity when it s needed elsewhere in the National Electricity Market. The combination of Tasmania s pumped hydro, wind and interconnection is said to be cost-competitive against all other realistic options for the future. ARENA s The Battery of the Nation analysis of the future National Electricity Market says Tasmania s hydro power could translate to a 20 per cent reduction in energy costs and an additional reduction of up to nine million tonnes of greenhouse gas emissions per year. This 20 per cent competitive advantage includes the cost of additional interconnection to the mainland. New and increased interconnection underpins this development, and the Australian Government agrees, referring to it as national infrastructure, and Infrastructure Australia is considering it a priority. Potential terminal sites on Victoria and the North of the island have been identified. TasNetworks last week met with cable manufacturers in Europe to discuss the issue. The State Government is shoulder-to-shoulder with the

40 Hobart Mercury, Hobart Author: Guy Barnett Section: General News Article type : News Item Classification : Capital City Daily : 28,265 Page: 23 Printed Size: cm² Market: TAS Country: Australia ASR: AUD 2,096 Words: 605 Item ID: Page 2 of 2 Federal Government in capitalising on our unique renewable energy advantage to create jobs, investment and low-cost power to benefit next-generation Tasmanians. Guy Barnett is Tasmania s Energy Minister. This is a gamechanging, statebuilding, nationleading discovery

41 West Australian, Perth Author: Jeff Whalley Section: Business News Article type : News Item Classification : Capital City Daily : 147,676 Page: 48 Printed Size: cm² Market: WA Country: Australia ASR: AUD 3,752 Words: 354 Item ID: Page 1 of 1 Efforts to cool market welcomed Jeff Whalley The head of Australia s best-performing superannuation fund has praised banking regulators for their efforts to cool the housing market. Hostplus chief David Elia said house prices no longer loomed as a risk to the economy following efforts to strip heat from the market. But Mr Elia said he was still wary about the potential deglobalising effect of the trade stoush between the US and China, Australia s biggest trading partner. Mr Elia, who visited Washington DC last month to look at potential US infrastructure investments, also said Hostplus was getting closer to making inroads in that market. Hostplus will today reveal that its balance fund delivered a return of 12.5 per cent over the year to June, again topping the league table, according to research house SuperRatings. That figure is down slightly from 13.2 per cent the previous year, when Hostplus was also top of the ladder. But it is significantly higher than the median return of 9.3 per cent across Australia s low-fee MySuper funds the default funds offered to employees over the past financial year. The Hostplus MySuper fund has also been the best-performing over three, five, seven and 15- year time frames, but slips slightly down the table measured over the past 10 years, to fifth spot. Mr Elia said he saw two economic risks that, in the short to medium-term, could affect the performance of super funds broadly. The first is central banks largely acting in advance of inflation and stifling economic growth (by) increasing interest rates, he said. Mr Elia said RBA governor Phillip Lowe had sensibly noted there was no case to raise the cash rate here, but rates were still broadly rising globally. The housing market did not loom as a risk thanks to the good work of the RBA and regulators, he said. The housing market seems through proper regulation and tightening lending practices to have cooled off, Mr Elia said. The other economic threat was that of trade wars and potential de-globalisation, he said, in a nod to the trade conflict between China and the US. Across its funds, Hostplus has $34 billion under management.

42 West Australian, Perth Author: Shane Wright Section: General News Article type : News Item Classification : Capital City Daily : 147,676 Page: 12 Printed Size: cm² Market: WA Country: Australia ASR: AUD 4,102 Words: 396 Item ID: Page 1 of 1 Workers to carry Budget load Shane Wright Economics Editor The Federal Budget will rely even more heavily on ordinary workers to pay for day-to-day services as money from business, GST and superannuation funds dries up, an independent analysis of the nation s finances reveals. Work by the Parliamentary Budget Office also shows the Turnbull Government s latest tax cuts will not stop bracket creep from hitting ordinary workers. The PBO looked at how Federal tax collections had changed this century, with big swings because of technology changes, business approaches to tax and changes in tax rates. The biggest hits to the Budget come from the business sector, with firms able to write-off spending on big capital investments and reduce tax via losses in previous years. The oil and gas sector will be able to writedown their tax bills for years because of the heavy investment in LNG plants in WA and Queensland. The Federal Government s plan to reduce the corporate tax rate will also keep a lid on business tax collections. Changes in spending patterns have reduced the proportion of revenue collected by the GST, while as more people retire they will pay less income tax and rely more heavily on lightly taxed superannuation. According to the PBO, this will leave ordinary taxpayers on the hook for Budget spending. Given current policy settings, and recent consumption and structural trends, there is a likelihood that taxes on consumption will continue to trend downwards, taxes on capital will be flat or trend downards and an increasing proportion of labour income will be taxed concessionally through superannuation. If these risks to tax receipts eventuate and in the absence of other taxation reforms, then maintaining Commonwealth Government revenue at recent levels as a share of GDP will lead to an increasing reliance on taxes on labour income through the personal income tax system. The single biggest fall is in fuel excise, tipped at $6.2 billion this year, caused partly by the now abandoned freeze on excise, sharp improvement in the efficiency of the nation s car fleet and a switch to electric cars. Shadow treasurer Chris Bowen said the report showed the nation would have to rely on more income tax collections from ordinary people to pay for basic services if no changes were made. The only major party going to the next election with a tax reform agenda which broadens Australia s tax base is the Labor Party, Mr Bowen said.

43 Australian Financial Review, Australia Author: james frost Section: General News Article type : News Item Classification : National : 44,635 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 8,819 Words: 877 Item ID: Page 1 of 2 Regulator stands up for right to call in loans APRA s banks over Hayne probe James Frost The banking regulator has ed the banks' right to make a profit and take enforcement action when borrowers can't repay loans, in a powerful defence of the industry delivered to the Hayne royal commission. The Australian Prudential Regulation Authority has also reminded Commissioner Ken Hayne that sometimes tough decisions have to be made by the banks to protect depositors and ensure the financial stability of the Australian economy. "At its most basic level, an Authorised Deposit-Taking Institution's business is to take money on deposits and make loans to generate a profit" APRA said. The regulator's defence of the industry is contained in its submission to the royal commission's fourth round of public hearings focusing on farming finance that took place in Brisbane and Darwin. It follows APRA chairman Wayne Byres' recent warning to bank customers they should not expect to be bailed out of every failed business or investment - declaring the principle of caveat emptor, or buyer beware, to be alive and well. With its latest submission APRA has sought to remind the public once more that banking is not a public service and that bad loans will be called in when necessary. "Prudent banking generally requires assessing a borrower's ability to repay as the primary means of a loan, with collateral used as a drop." The regulator's submission hammers home the competing priorities of a bank, which include the right to make a profit within the restrictions placed on it by the regulator. "As with any other business, it seeks to maximise returns and minimise losses on its business operations. "Overlaid on this commercial interest are an ADI's prudential obligations, which are intended to meet broader policy objectives of depositor protection and, ultimately, financial stability." The paper was written by the regulator in response to questions posed by Commissioner Hayne about balancing the interests of the banks and die borrower when the customer experiences financial difficulty. Among the banks under scrutiny were ANZ, National Australia Bank, Bankwest and Commonwealth Bank of Australia. APRA noted that banks provide credit to the borrower with no expectation of sharing in the upside. As such they were necessarily focused on die downside and what to do in the event a borrower becomes unable to pay. "Subject to not acting unethically, Continued p2 From page 1 APRA s banks over Hayne inquiry unfairly or unlawfully, the ADI will quite reasonably put its interest in achieving repayment first, and focus on the downside risks." The obligations of the bank were first and foremost to the depositor and the shareholder, but they should also act "fairly and responsibly" towards the borrower. APRA said there would invariably be circumstances when tensions between the two groups emerged. "In circumstances when conditions deteriorate and the borrower's ability to service the loan is threatened, the parties' interests - and assessment of how to protect those interests - may diverge. "The borrower is not simply interested in repaying its debt but may also want to minimise the loss of, for example, the family home or business. "The ADI, on the other hand, will AFRGA1 A002 NR remain primarily concerned to ensure repayment of the loan within a reasonable time and to minimise the risk that this may not occur." Corporate regulator ASIC had a slightly different perspective but one that nevertheless supported the banks' right to make decisions in their interests when loans turned bad. "Often, interests of the customer may align with corporate benefits flowing to the bank. Other times, what is in the interests of the customer may be detrimental to the bank's business. In ASIC's opinion, however, the interests of the two are never mutually exclusive," ASIC said. Case studies from the fourth round of hearings on farming finance were complex and included some farmers whose businesses were under pressure and had no real hope of recovering. In some cases the banks moved in forcing farmers to sell their family homes.

44 Australian Financial Review, Australia Author: james frost Section: General News Article type : News Item Classification : National : 44,635 Page: 1 Printed Size: cm² Market: National Country: Australia ASR: AUD 8,819 Words: 877 Item ID: Page 2 of 2 APRA said in the circumstances where it was not economic to continue propping up these businesses the banks should seek to act "An ADI should not be expected to provide forbearance to a borrower in financial difficulties where it is clearly apparent that doing so will generate larger economic loss for the ADI relative to the likely outcome of enforcement action," APRA said. The regulator said that although it did not direct banks to enforce collateral or renegotiate loan terms in relation to particular loans or exposures, it recognised the rights of banks to make these decisions and make their own assessment of what the best course of action was. "While pursuing enforcement action is usually viewed as likely to itself produce a loss of economic value, the ADI will need to weigh up and make a judgment as to whether the future prospects for the repayment of the loan (and earning an adequate rate of interest in the meantime) are within its risk tolerance, or whether pursuing immediate recovery action is preferable. "A borrower, however, may be of the view that there is a long-term value in retaining the property that will hot be realised with a near-term sale." APRA has sought to remind people once more that banking is not a public service. Wayne Byres has emphasised the principle of caveat emptor. PHOTO: RYAN STUART

45 Australian Financial Review, Australia Author: David Marin-Guzman Section: General News Article type : News Item Classification : National : 44,635 Page: 6 Printed Size: cm² Market: National Country: Australia ASR: AUD 7,605 Words: 570 Item ID: Page 1 of 2 Unions push for worker reps on boards David Marin-Guzman Workplace correspondent Unions will pressure a Labor government to the appointment of employee representatives on the boards of major private companies. The Australian Council of Trade Unions congress passed a resolution on Wednesday that called on Labor to "implement a policy of installing employees on company and government managed boards", including at the Reserve Bank. A 220-page industrial relations policy passed at the end of the congress also ed scrapping ballots for protected industrial action, outlawing employer lockouts, restoring sectorwide bargaining rights and prohibiting non-union enterprise agreements. The employee board member resolution has the ing of ALP president Wayne Swan and calls on a future Labor government to "immediately appoint a representative from a union to the Reserve Bank of Australia as an important first step in that process". The ACTU pointed to industry funds and Germany and Sweden as examples where there are private sector boards with employee representation. "Overseas experience shows that employee representation on boards will allow for a culture of honesty, transparency and joint ownership in the future of the enterprise - this should lead to higher wages outcomes and better company performance in a mutually beneficial exchange. "Importantly, it will allow for employee interests to be tabled at a board level in a non-confrontational manner." Finance Sector Union secretary Julia Angrisano argued employee board representatives would help prevent some of the banking scandals seen in the Hayne royal commission, pointing to banks selling customers products they could not afford or did not want Despite the Sedgwick review last year recommending banks remove sales targets, Ms Angrisano claimed banks were simply replacing them with "customer needs analysis". The process involved bank employees quizzing customers to find out their needs to sell more products. "Front-line staff are put on performance management which endangers their ongoing employment by referencing how many customer needs analyses did you get today," she told the congress. While the Sedgwick review recommended banks not use leaderboards to compare sales performances, Ms Angrisano said "they're not called leaderboards any more, they're call visual management tools". "Banks are still setting unfair and unreasonable targets and the regimes that pressure workers to push products is acute," she said. "If a customer says no, if s an invitation." The ACTU congress also, passed resolutions to jail employers for breaching safety laws that resulted in a death and for a Labor government to not replace the building industry watchdog when it abolished it Earlier, Mr Swan spoke at the congress where he called for board reform and for shareholders to "agitate for a binding vote to cap CEO pay", which he said was "out of control". ACTU secretary Sally McManus told reporters industry super fund trustees may also consider executive pay levels when making decisions to invest members' money. "I do know many of those trustees have raised many times that you've got to ensure within your company ethical standards," she said. And when you do have a situation like at Domino's when they're wholesale engaging in wage theft and they're rewarding the CEO who is part of an operation that has been breaking our laws, that's not a business model we would support" Key points The ACTU cited industry funds and Germany and Sweden as examples. The unions also ed scrapping ballots for protected industrial action.

46 Australian Financial Review, Australia Author: David Marin-Guzman Section: General News Article type : News Item Classification : National : 44,635 Page: 6 Printed Size: cm² Market: National Country: Australia ASR: AUD 7,605 Words: 570 Item ID: Page 2 of 2 Newly-elected ACTU president Michele O'Neil and Sally McManus, secretary of the ACTU, during the congress in Brisbane this week. PHOTO: AAP

47 Australian Financial Review, Australia Author: Joanna Mather Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 15 Printed Size: cm² Market: National Country: Australia ASR: AUD 7,565 Words: 638 Item ID: Page 1 of 2 Hostplus stays upbeat on unlisted, alternative assets Joanna Mather Hostplus chief executive David Elia sees "no end in sight" for the outsized returns industry super funds will be able to deliver from unlisted and alternative assets. Hostplus expects to post returns of 12.5 per cent after fees and taxes for its MySuper balanced option for the last financial year. The fund will on Thursday be named as the top performing fund by both SuperRatings and Chant West SuperRatings recorded a 9.3 per cent return by the top 50 funds over the 12 months to June 30. Mr Elia attributes two thirds of Hostplus' outperformance to its longterm investment strategy, which includes heavy allocations to unlisted assets and active management Like many industry funds, Hostplus has invested in infrastructure, including seaports and airports. This has helped it achieve higher returns, especially compared to retail funds. Some observers say the strategy will inevitably become less potent as market conditions change. Politicians and regulators are also targeting the monopoly owners of infrastructure assets amid community anger over perceived gouging. But Mr Elia is unperturbed. "All governments have announced significant budget allocations towards long-term infrastructure," he said. "I can't see that ending in any shape or form. We are continuing to look at various assets available to us, including Continued pt8 From page 15 Hostplus stays upbeat on alternative assets WestConnex. And broadly we are looking to the rest of the world in relation to infrastructure opportunities. I can't see an end in sight" Hostplus has a young and growing membership base. Thanks to a heavy marketing effort - and a mention in the Barefoot Investor's latest book - Hostplus gained 200,000 members and doubled its contribution flows to add an extra $7.5 billion in funds under management last financial year. "What that means is the fund is an incredibly liquid fund," Mr Elia said. "We have great liquidity, which allows us to then deliver real scale benefits to our members." While unlisted infrastructure and property continued to deliver "strong, bedrock returns", a proactive shift in private equity towards niche and bespoke investments was also bearing fruit Mr Elia said. Hostplus has a 6 per cent exposure to private equity. "The key component within the private equity class has been venture capital," Mr Elia said. "Hostplus has largely pioneered investment in that asset class. "We have about $900 million now allocated towards venture capital. "Among our managers Blackbird Ventures returned 27 per cent and Artesian returned 18 per cent [last financial year]. So weve done incredibly well having ed venture capital in Australia." Mr Elia said there were no plans for big changes to asset allocation, although in the past 18 months the fund shifted to a greater weighting to international shares compared to Australian equities. SuperRatings chief executive Kirby Rappell said returns for the 12 months to June were variable. "We're expecting returns to range anywhere from about 5.5 per cent up to 12.5 per cent" he said. Returns were driven up by Australian and international shares, which had risen by 13.4 per cent and 12.3 per cent respectively. "Property delivered about 9.5 per cent for the year," Mr Rappell said. "Then there has been this fascinating alternatives bucket The reality is if you've been in that alternatives space over that past 15 years in particular that's been a very competitive, strong returning asset class. Hostplus has been leading the charge in this area." SuperRatings expects Australian shares to move higher through the rest of 2018, but will likely continue to underperform global markets. "With the Australian share market dominated by the banks, it is sensible to expect softer growth in the wake of the royal commission into financial services," Mr Rappell said. "The Australian economy has a bit of extra baggage, including low wages growth and a cooling property sector which could impact sentiment but overall our outlook is positive."

48 Australian Financial Review, Australia Author: Joanna Mather Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 15 Printed Size: cm² Market: National Country: Australia ASR: AUD 7,565 Words: 638 Item ID: Page 2 of 2 Hostplus chief executive David Elia (centre) and CIO Sam Siciiia (right) with SuperRatings chief executive Kirby Rappell. PHOTO: ARSINEH HOUSPIAN

49 Australian Financial Review, Australia Author: Joanna Mather Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 18 Printed Size: cm² Market: National Country: Australia ASR: AUD 8,070 Words: 576 Item ID: Page 1 of 2 Super funds notch ninth year of growth Joanna Mather The best-performing superannuation funds cracked double-digit territory to continue a stretch of positive returns not seen since the post-recession uptick of the 1990s. Hostplus, with its rapidly expanding membership base, pulled clear of the pack to deliver 12.5 per cent for the year ended June 30,2018. Unisuper was ranked the best over 10 years after notching up an annual rate of return of 7.6 per cent Even without the standouts, results were generally good, with the median growth super fund finishing the financial year at 9.2 per cent "We've seen stellar returns from private equity, unlisted property and infrastructure," Chant West research manager Mano Mohankumar said. "Even the worst-performing fund in the growth category returned a respectable 6.5 per cent" Last financial year was a recordequalling ninth year of positive returns for super funds, raising inevitable questions about whether the run can continue. "Growth funds have now delivered nine consecutive positive financial year returns, averaging about 9 per cent a year," Mr Mohankumar said. "This year's 9.2 per cent is better than most experts, including ourselves, expected a year ago. "The only other time we've seen such a long sequence of positive returns was from to " The $33 billion Hostplus MySuper offering tops the list for one-year returns on tables published on Thursday by both Chant West and SuperRatings. The research houses each ranked Unisuper in the top spot for returns over 10 years. No retail funds appear among the top 10 over either one year or 10 years. "We've had outstanding results," Hostplus chief executive David Elia said, who puts the fund's success down to a combination heavy allocation to unlisted assets and active management It has also had strong membership growth and added $7.5 billion to its funds under management tally during the financial year. Hostplus features at the top of Chant West's tables for performance over one year, five years, seven years and 15 years. "Our long-term investment in unlisted infrastructure and property continues to deliver strong, bedrock returns," Mr Elia said, "while our proactive shift in the private equity asset class towards niche and bespoke investments is now also bearing fruit" The typical return objective for growth funds - which Chant West defines as funds with between 61 per cent and 80 per cent allocated to growth assets - is to beat inflation by 3.5 per cent "The better performers for the year would be the ones that had higher exposures to listed shares and unlisted assets such as unlisted infrastructure, unlisted property and private equity," Mr Mohankumar said. "At the same time a lower exposure to traditional bonds and cash would have helped greatly because those two asset classes were the worstperforming sectors." In second place for one-year returns on both the Chant West and SuperRatings lists is AustSuper, which this month announced it would merge with Sunsuper. AustSuper, Statewide Super and AustralianSuper all achieved returns of around 11 per cent according to Chant West The results can vary between the research houses because they have developed slightly different methodologies. Mr Mohankumar said most growth funds aimed to beat inflation by 3 per cent to 4 per cent a year. "We now have data going 26 years to July 1992, the start of compulsory super," he said. Over that period, the annualised return had been 8.3 per cent and the annual CPI increase 2.5 per cent giving a real return of 5.8 per cent per annum.

50 Australian Financial Review, Australia Author: Joanna Mather Section: Companies and Markets Article type : News Item Classification : National : 44,635 Page: 18 Printed Size: cm² Market: National Country: Australia ASR: AUD 8,070 Words: 576 Item ID: Page 2 of 2 Super spoils Top balanced funds by 1-year returns Hostplus Balanced j AustSafe MySuper (Balanced) Statewide Super MySuper J AustraianSuper Balanced Cbus Growth (Cbus MySuper) ] Club Plus MySuper/Balanced 1 Equip Balanced Growth j Sunsuper Balanced HESTA Core Pool NSG Super Diversified (MySuper) i Top balanced funds by 10-year returns UniSuper Balanced J CareSuper Balanced?? Rest Core J Equip Balanced Growth 1 Hostplus Balanced J AustralianSuper Balanced 'if Catholic Super Balanced (MySuper) Q QSuper Balanced j Cbus Growth (Cbus Mysuper) jj TelstraSuper Balanced SOURCE: CHANT WEST

51 Cairns Post, Cairns Author: Glen Norris Section: General News Article type : News Item Classification : Regional : 13,896 Page: 23 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 1,294 Words: 462 Item ID: Page 1 of 1 Markets not so super Difficult conditions for state s big funds GLEN NORRIS QUEENSLAND S biggest superannuation funds have joined growing skittishness about stock investments amid rising concerns about global trade wars and inflation. QSuper, which manages $72 billion in pension funds, said that while equities had been strong in recent years, it remained difficult to forecast how this could be sustained. Sunsuper, the Brisbanebased manager of $55 billion in funds, says it has been reducing its allocation to equities and lifting investment in private equity, property and infrastructure. QSuper chief investment officer Brad Holzberger said QSuper would continue to stick to a more diversified investment strategy, especially when it came to equities. We don t rely on the performance of the sharemarket or any one asset class, said Mr Holzberger. We see a 60 per cent to 70 per cent allocation to equity as a big bet which may pay off when markets are strong but could be equally costly when markets fall. Prior to 2009, QSuper had an equity weighting of around 55 per cent but felt that was too high. We know that in a year of unexpected downturn, like the Global Financial Crisis, equities exposure at that level can produce losses of up to 25 per cent, said Mr Holzberger. Sunsuper chief investment officer Ian Patrick said concerns about trade wars and rising inflation in the US were impacting on stock markets. It can be very difficult to pick the turning point in the market and you can become defensive too early, Mr Patrick said, adding corporate earnings remain strong. Mr Patrick said Sunsuper s flagship balance fund had about a 60 per cent allocation to listed equities and would reduce that progressively by between 2½ and 3½ per cent. Both QSuper and Sunsuper join Australia s biggest superannuation fund, AustralianSuper, in expressing concerns that future stock market gains may be limited. AustralianSuper last week said it will reduce its exposure to the sharemarket amid expectations interest rate hikes overseas will bring an end to the equities boom. AustralianSuper has about 62 per cent of its cash invested in listed equities. By contrast, QSuper s balanced fund held 36.9 per cent in equities, 23.5 per cent in fixed interest and the rest in other asset classes including real estate, infrastructure and cash. QSuper s balanced fund returned 6.87 per cent during the financial year with a 10-year annual performance of 6.75 per cent. AustralianSuper s balanced option returned per cent over the financial year to June and per cent annually over the past five years. Sunsuper s balanced fund returned 10.7 per cent last year and 6.9 per cent annual over the past decade. The benchmark ASX 200 Index returned 8.3 per cent last financial year and has had a 1.9 per cent annual return average over the past decade.

52 Age, Melbourne Author: David Crowe Section: Edition Changes - 2nd Edition Article type : News Item Classification : Capital City Daily : 83,229 Page: 11 Printed Size: cm² Market: VIC Country: Australia ASR: AUD 13,035 Words: 416 Item ID: Page 1 of 1 Seniors ready for fight against Shorten s tax hit David Crowe A new campaign is being launched to urge Opposition Leader Bill Shorten to stage another retreat on a major budget policy, as older Australians intensify their warnings of a hit to retirement incomes from a $55.7 billion revenue increase. The new alliance, which claims up to 200,000 direct members, is vowing to intensify its campaign in the lead-up to the next federal election to warn voters about the impact on their budgets from the Labor plan to alter tax rules on share dividends. The Alliance for a Fairer Retirement System is acting on a survey of its members that found two thirds believed the Labor policy remained unfair despite attempts to soften the impact on pensioners. We ll keep fighting to change it. We re not going to give up because we owe it to our members to do this, said Ian Henschke, the chief advocate at National Seniors Australia. The spokeswoman for the new alliance, Deborah Ralston, said the voters who were likely to pay for the Spokeswoman Deborah Ralston. Labor policy were not high flyers and included small business owners who were counting on the dividend rules in their plans for retirement. The organisations behind the new alliance are the Australian Shareholders Association, the Australian Listed Investment Companies Association, National Seniors Australia, the Self Managed Super Fund Association, the Self Managed Independent Superannuation Funds Association, the Stockbrokers & Financial Advisers Association, the Association of Independent Retirees, the Australian Investors Association and the Association of Financial Advisers. While the groups have up to 200,000 members directly, they seek a wider audience for their message given there are 1.1 million selffunded superannuation funds and thousands of older Australians who fund their own retirement. Mr Shorten unveiled the plan to scale the tax credits allowed under dividend imputation rules in early March but retreated two weeks later to issue a pensioner guarantee that limited the impact on those with lower incomes. The policy now aims to collect $55.7 billion instead of the original $59 billion over 10 years after excluding the pensioners. An estimated 893,000 individuals and self-managed superannuation funds will still feel the impact of the changes by losing tax refunds on the credits they can claim for dividend imputation. Ms Ralston, a former professor of finance and now professorial fellow at Monash University, told The Age we do have to take action to stop it. [Business owners] feel very let down because they thought they were doing the right thing, funding their retirement, she said.

53 West Australian, Perth Author: Shane Wright Section: Edition Changes Article type : News Item Classification : Capital City Daily : 147,676 Page: 12 Printed Size: cm² Market: WA Country: Australia ASR: AUD 4,120 Words: 396 Item ID: Page 1 of 1 Workers to carry Budget load Shane Wright Economics Editor The Federal Budget will rely even more heavily on ordinary workers to pay for day-to-day services as money from business, GST and superannuation funds dries up, an independent analysis of the nation s finances reveals. Work by the Parliamentary Budget Office also shows the Turnbull Government s latest tax cuts will not stop bracket creep from hitting ordinary workers. The PBO looked at how Federal tax collections had changed this century, with big swings because of technology changes, business approaches to tax and changes in tax rates. The biggest hits to the Budget come from the business sector, with firms able to write-off spending on big capital investments and reduce tax via losses in previous years. The oil and gas sector will be able to writedown their tax bills for years because of the heavy investment in LNG plants in WA and Queensland. The Federal Government s plan to reduce the corporate tax rate will also keep a lid on business tax collections. Changes in spending patterns have reduced the proportion of revenue collected by the GST, while as more people retire they will pay less income tax and rely more heavily on lightly taxed superannuation. According to the PBO, this will leave ordinary taxpayers on the hook for Budget spending. Given current policy settings, and recent consumption and structural trends, there is a likelihood that taxes on consumption will continue to trend downwards, taxes on capital will be flat or trend downards and an increasing proportion of labour income will be taxed concessionally through superannuation. If these risks to tax receipts eventuate and in the absence of other taxation reforms, then maintaining Commonwealth Government revenue at recent levels as a share of GDP will lead to an increasing reliance on taxes on labour income through the personal income tax system. The single biggest fall is in fuel excise, tipped at $6.2 billion this year, caused partly by the now abandoned freeze on excise, sharp improvement in the efficiency of the nation s car fleet and a switch to electric cars. Shadow treasurer Chris Bowen said the report showed the nation would have to rely on more income tax collections from ordinary people to pay for basic services if no changes were made. The only major party going to the next election with a tax reform agenda which broadens Australia s tax base is the Labor Party, Mr Bowen said.

54 Courier Mail, Brisbane Author: Rob Harris Section: Edition Changes - Metro Article type : News Item Classification : Capital City Daily : 135,007 Page: 6 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 2,968 Words: 307 Item ID: Page 1 of 1 Wine leaving us in the red ROB HARRIS THE nation s greater preference for a chardonnay rather than a beer is hurting attempts to return the Budget to surplus. The overall tax take from alcohol as a proportion of GDP has fallen over the past decade. Australians are drinking less overall in , the average alcohol consumption was 10.8 litres; by , that had fallen to 9.7 litres. And beer now accounts for only about 40 per cent of alcohol consumed, down from about 50 per cent in Wine now accounts for about 38 per cent of consumption, up from 32 per cent over the same period. A new Parliamentary Budget Office report on trends affecting tax collection said alcohol excise in was 0.3 per cent of GDP, down from 0.4 per cent in worth about $5 billion. Unlike beer, wine is not subject to alcohol excise, but to a wine equalisation tax. However, the greater consumption of wine has not increased receipts because the WET is levied on the value of wine, and prices have fallen. The PBO report found there had also been: A fall in fuel excise, driven by a long-time freeze on indexation and greater fuel efficiency in new cars; A fall in customs receipts as a result of free-trade agreements and tariff changes; and A rise in tobacco excise, as higher excise rates more than offset falling consumption. Personal income tax accounts for almost 54 per cent of total federal receipts. The report warned that despite the Government s plan for tax cuts in three phases over seven years, bracket creep would still see the overall personal income tax take increase. It said recent trends meant taxes on consumption were likely to continue to trend down, taxes on capital would be flat or down, and an increased proportion of labour income would be taxed concessionally through superannuation.

55 Gold Coast Bulletin, Gold Coast QLD Author: Jeff Whalley Section: General News Article type : News Item Classification : Regional : 21,468 Page: 20 Printed Size: cm² Market: QLD Country: Australia ASR: AUD 2,164 Words: 557 Item ID: Page 1 of 1 Fund hosts best returns Superannuation league table topped with plus size gains JEFF WHALLEY THE head of Australia s bestperforming superannuation fund has praised banking regulators for their efforts to cool the housing market. House prices no longer loom as a risk to the economy following efforts to strip heat from the market, Hostplus chief David Elia says. But Mr Elia says he is still wary about the potential deglobalising effect of the trade stoush between the US and China, Australia s biggest trading partner. Mr Elia, who visited Washington DC last month to look at potential US infrastructure investments, also says Hostplus is getting closer to making inroads in that market. Hostplus will today reveal that its balance fund delivered a return of 12.5 per cent over the year to June, again topping the league table, according to research house SuperRatings. That figure is down slightly from 13.2 per cent the previous year, when Hostplus was also top of the ladder. But it is significantly higher than the median return of 9.3 per cent across Australia s lowfee MySuper funds the default funds offered to employees over the past financial year. The Hostplus MySuper fund has also been the best performing over three, five, seven and 15-year timeframes, but slips slightly down the table measured over the past 10 years, to fifth spot. Mr Elia said he saw two economic risks that, in the short to medium term, could affect the performance of super funds broadly. The first is central banks largely acting in advance of inflation and stifling economic growth (by) increasing interest rates, he said. Mr Elia said RBA governor Phillip Lowe had sensibly noted there was no case to raise the cash rate here, but rates were still broadly rising globally. The housing market did not loom as a risk thanks to the good work of the RBA and regulators, he said. The housing market seems through proper regulation and tightening lending practices to have cooled off, Mr Elia said. Everything I now read seems to talk about the property market coming off. The other economic threat was that of trade wars and potential de-globalisation, he said, in a nod to the trade conflict between China and the US. Across its funds, Hostplus has $34 billion under management. Mr Elia said the fund s success over the past year validated its decision to avoid the noise in the market, whereby many other funds moved into cash in preparation for a downturn. Hostplus was planning to stick to its more active equity management model, he said We have a very low allocation to index hugging managers. Mr Elia said Hostplus would also maintain its focus on unlisted assets, which make up 47 per cent of its portfolio. Hostplus is one of 30 super funds that was asked to make a submission for the next round of hearings, starting on August 6, in the financial services royal commission. SUPER RETURNS Australia s top 10 funds: 1. Hostplus Balanced 12.5%* 2. AustSafe Super MySuper (Balanced) 11.4% 3. AustralianSuper Balanced 11.1% 4. Cbus Growth (Cbus MySuper) 10.9%* 5. Club Plus Super MySuper 10.8% 6. Equip MyFuture Balanced Growth 10.7% 7. Sunsuper for Life Balanced 10.7% 8. Hesta Core Pool 10.6% 9. NGS Super Diversified (MySuper) 10.5% 10. UniSuper Accumulation 1 Balanced 10.5% * Interim results