Superannuated Commonwealth Officers Association (Federal Council) Inc. 2014/2015 Annual Report

Transcription

1 Superannuated Commonwealth Officers Association ( Council) Inc. 2014/2015 Annual Report

2 Published by the Superannuated Commonwealth Officers Association (SCOA) Council (Inc.) PO Box 107 Mawson ACT 2607 Phone Website Photo on front cover from left to right Merv Hazell, Vice President; Graeme Meyenn, (NSW); Barry Schafer, (VIC); Frank Mines, (ACT); Annette Barbetti, President; Alan Raftery, (SA); Ron de Gruchy,

3 (WA); John Coleman, Deputy President; George Szylkarski, (QLD) absent from photo. CONTENTS Page Executive summary 1 Introduction 2 office administration and support services 2 Council 2 Member services 4 SCOA Australia 5 Executive 5 Financial statement and audit report 6 Attachment A Council Register as at 26 March 2015 Attachment B Audited Financial Statement and Audit Report

4 EXECUTIVE SUMMARY The 2014/2015 financial year was a very active and eventful year for SCOA. Key achievements include: Further relationship developments with relevant stakeholders including the Commonwealth Superannuation Corporation and ComSuper, Department of Finance and Deregulation and a number of ministerial and parliamentary offices as well as members of the media; Participation in the political debate and advocacy on behalf of members on retirement related issues including a response to the 2014/15 federal Budget and a submission to the government s review of Australia s taxation system; Enhanced agreement with Union Shopper; Introduction of the SCOA Qantas Club Corporate Scheme. Although the financial position remains relatively sound, the membership numbers continue to decline. As a result, it has been necessary to increase both membership fees and the capitation fees with effect from 1 January 2016 in order to continue operations. Council wishes to express its appreciation of the efforts and commitment of the Office staff. The debate regarding the future of the organisation continues. With the continuing falling membership, Council recognises that reaching agreement on this issue is becoming critical for the organisation to have any chance of surviving in the medium to long term, and to enable us to focus our attention on making the association a truly national organisation that can continue to serve members well into the future. The audited financial statements for the period are attached. SCOA Office 3 September

5 1. INTRODUCTION SCOA continued to build important relationships with relevant stakeholders including the Department of Finance and Deregulation; the Commonwealth Superannuation Corporation (CSC) and ComSuper, Centrelink, Union Shopper as well as a number of ministerial and parliamentary offices and members of the media. These have all helped to raise SCOA s profile. SCOA continued to participate in the political debate and lobbied in areas such as the National Disability Insurance Scheme (NDIS), age discrimination affecting those who acquire a disability after age 65, changes to the Age Pension, access to the Commonwealth Seniors Health Card, as well as the current discussion about taxation reform, and a number of measures introduced in both the 2014/15 and 2015/16 Budgets, some of which have still not become law. SCOA is following developments very closely. SCOA has also continued to assist a number of members in their pursuit of their correct Comcare compensation entitlements. There continue to be a number of outstanding issues regarding the move to the national organisation. The resolution of these issues is becoming critical in order to secure the medium to long term survival of the organisation. 2. FEDERAL OFFICE ADMINISTRATION AND SUPPORT SERVICES a) Personnel There was no change in the personnel in Office. Office continues to operate very efficiently and effectively. Time spent by the two part time staff on matters relating to the administration or management of SCOA Australia was recorded and paid accordingly to Council on a monthly basis by SCOA Australia. 3. FEDERAL COUNCIL a) Government submissions SCOA continued to advocate for improved retirement conditions for its members, in particular improved indexation and fairer tax treatment of Commonwealth superannuation pensions, as well as other retirement and aged care issues. Along with other retiree organisations, SCOA opposed the government s unsuccessful attempts to change the indexation of the age pension to CPI only. SCOA lodged its 2015/16 pre-budget submission in early January Council wishes to thank Annette Barbetti and Ron de Gruchy for drafting the submission. The submission included the following recommendations: 1) The Government should ensure that Commonwealth and Defence Superannuation Pensions are indexed by an index that reflects movements in street prices, such as the indexation percentage increase for the Age Pension. 2) Superannuation pensions paid from an untaxed source should be paid as after tax nonassessable income and not added to non-superannuation income to determine the marginal tax rate to be applied to that non-superannuation income. 2

6 3) The superannuation pensions paid from an untaxed source, where superannuation benefit accruals commenced before 1 st July 1988, be treated (for tax purposes) in the same manner as superannuation pensions paid from a taxed source that commenced before 1 st July ) The CSS and PSS pension income that is from an untaxed source should be excluded from the income test for the Commonwealth Seniors Health Card (CSHC) and the Senior Australian and Pensioner Tax Offset (SAPTO). 5) The current income thresholds for the CSHC should be increased to $60,000 for singles, and to $90,000 for couples, and be indexed annually in the same way as the thresholds for the Age Pension. 6) That the PBS and Medicare Safety Net limits for single persons aged over 65 should be 65% of the Safety Net limits for couples or families. 7) That the provisions of the NDIS (Disability Care Australia) be extended to all Australian citizens regardless of age. 8) Holders of the Commonwealth Seniors Health Card (CSHC) should receive the same concessions for hearing tests, and the fitting and maintenance of hearing aids, as those who hold a Centrelink Pensioner Concession Card. 9) Medicare to be extended to cover dental benefits for all those over 65 who hold either a Pensioner Concession Card or a Commonwealth Seniors Health Card and/or have a chronic illness. 10) That retirees aged over 65 should be able to transfer funds into superannuation, at the prescribed contribution levels, without having to satisfy any work test; and that the age limit for non-compulsory contributions (currently 75) should be removed. 11) That access to the Net Medical Expenses Tax Offset (NMETO) be retained or at least be retained for people aged over 65. In June 2015, Council lodged a submission to the government s review of Australia s taxation system. SCOA s recommendations included: Increase taxation of superannuation funds in the accumulation phase; Provide adequate compensation for any increase in the rate or scope of GST; Retain franking credits; Treat untaxed defined benefit superannuation funds as a separate head of taxation; Implement taxation of the earnings of superannuation funds in excess of $40,000, other than untaxed defined benefit funds, in the pension phase; Waive stamp duty for purchases of low value dwellings by those of age pension age; and Introduce a tax offset of 10% for the interest on pensioner savings accounts. In addition, SCOA communicated with a number of government ministers regarding a number of issues including: Minister for Human Services regarding Older Australians Working Group; Prime Minister regarding alignment of the age pension age with the age of cessation of Comcare benefit payments; 3

7 Prime Minister regarding CPI indexation; Minister for Social Services regarding NDIS; and Minister for Social Services regarding proposed changes to the age pension income and assets tests and indexation. SCOA continues to monitor age and retirement policy developments and other relevant policy proposals very closely and will continue to lobby strongly on behalf of members as appropriate in consultation with other retiree organisations. b) Bereavement Book The publication is free to all SCOA members and for sale to non-members. Although it has proven difficult to get other retiree organisations interested in purchasing the publication for distribution to their members, it has been used very successfully as a recruitment tool. This was helped along by ComSuper agreeing to include (on a continuing basis) an item about the Bereavement Book in their biannual pension update newsletter. As a result of this advertisement, Office received many phone calls from people interested in the publication. Many were not members of any branch of SCOA, but decided to sign up during the phone conversation with Office. To save time and make the procedure easier, an order form has been uploaded to the website for people to use. This has also been successful in that about 50% of new purchases are now received via this order form. The publication was first printed in February In May 2015, Office, in consultation with the Public Trustee for the ACT, reviewed the publication and updated the information where required. The updated pages have been uploaded to the relevant page on the website and inserted in the publication when mailed to members. It is not intended to print the document until the current stock is used up. c) Recruitment strategies SCOA continued to rely on a number of true and tested recruitment strategies. These included a presence at a variety of fairs and expos, as well as stalls in supermarkets and malls, although the most reliable source again appeared to be the word of mouth method. See also paragraph above regarding the use of the Bereavement Book as a recruitment tool. 4. MEMBER SERVICES a) SuperTime SuperTime remains the most important method of communicating with our members. Despite the considerable workload in producing SuperTime, it is considered a justifiable cost. With the impending significant increases in Australia Post postage rates, every effort is being made to encourage members to agree to receive the newsletter by only. b) Union Shopper The agreement with Union Shopper has been renewed for another twelve months. It does not generate a huge amount of sales for Union Shopper. However, Council considers this an important service to members. And as it has no impact on the workload of Office, Council agreed to continue with the arrangement. 4

8 c) Qantas Club The SCOA Qantas Club scheme has been a success in terms of existing members taking advantage of the significantly reduced renewal and joining fees. It has not resulted in any new members joining SCOA. However, as there is no cost to SCOA, Council agreed to continue with the scheme and also agreed to widen the scope and allow members of other retiree organisations, e.g. DFWA, to also take advantage of the reduced fees. Our thanks go to Alan Raftery and Merv Hazell for taking the initiative to arrange this member benefit. d) Sponsorships No specific sponsorships were in place during the financial year 2014/ SCOA AUSTRALIA The discussion about the future structure of SCOA Australia, to make it a truly national organisation, continued at Council level. Regrettably, Council has yet to agree on a model to take forward. 6. FEDERAL EXECUTIVE Section 73 of the Associations Incorporations Act (ACT) 1991 requires that the names and the members of the Executive and any changes be included in this report. During the 2014/2015 financial year, the Executive members were: President Annette Barbetti was elected as the President at Council s meeting in September 2015 for a two year term. Deputy President There were no candidates for election to the position of Deputy President at the Annual General Meeting held on 2 October In the absence of a candidate, John Coleman nominated himself during the meeting, and was duly appointed to the position. John Coleman stood down from the position at Council s meeting on 26 March Nominations were called for in the May 2015 issue of SuperTime (and on the website), however by the deadline of 30 June 2015, no nominations had been received. Vice-Presidents Merv Hazell was elected on 2 September His two year term expires in November Lance Garraway was elected on 12 September 2013; he resigned from this position on 3 February Council, at its meeting on 25 March 2015 agreed not to fill this position and to amend the Rules, at the next Council Annual General Meeting in September 2015, to require only one Vice President. 5

9 Treasurer At its meeting on 20 March 2013, Council agreed to amend the Council Rules to include the Treasurer as a Member of Council. Tom Dent was subsequently elected as a Member of Council for a period of two years from September He is due for re-election in September The Council Register as at 26 March 2015 is attached (Attachment A). Public Officer Peter Hocking, Office Manager, is the Public Officer. 7. FINANCIAL STATEMENTS a) 2014/2015 audited financial statements An audited loss of $1,474 was recorded for the 2014/15 financial year, which was not unexpected, in view of the comments provided below; this compared to a loss of $8,797 in 2013/14, after taking into account the exclusion of revenue and expenses associated with the 2013 indexation campaign. The major issue remains the lack of growth in net capitation fees received this year; an increase of only $265 was recorded for this year despite an increase in the capitation fee. However, annual expenses of $207,247 this financial year were $683 less than the previous year; this presents a year of steady progress in identifying and effecting continuing cost savings during the 2014/15 financial year. The critical issue for Council remains the sharp decline in membership numbers, which has not permitted any effective growth in capitation fee revenue. Continuing improvements are being made to all internal financial and administrative systems, resulting in the streamlining of financial reports and providing more timely and relevant information to all stakeholders; it enables Office staff and the Executive to allocate more time to administrative and non-financial matters. The forthcoming discussion on The Future of SCOA at the September 2015 Council meeting will likely be very challenging; the consequences of this discussion will probably have significant impact on Council s 2015/16 finances and beyond. b) Auditor s report A full audit of all financial information was conducted on 15 July The auditor did not return any adverse findings. The audited financial statements and auditor s report are attached. President Executive Officer 24 September September

10 ATTACHMNT A. Council Register as at 26 March Name State Role Elected/Appointed Annette Barbetti John Coleman Merv Hazell Lance Garraway Tom Dent Frank Mines Graham Meyenn Alan Raftery George Szylkarski Ron de Gruchy Barry Schafer Pam Frost 2 ACT ACT QLD VIC N/A ACT NSW SA QLD WA VIC VIC President Deputy President Vice President Vice President Treasurer 1 Proxy Victoria Due for Reelection / Reappointment 2 October 2014 November 2016 Resigned 2 October 2014 November March March 2011; 12 September September 2013 November 2015 November March 2013 November March 2012; 10 March 2013; 3 March 2014; 2 March 2015; 12 February March October February April August 2013 N/A N/A 4 February At its meeting on 20 March 2013, Council adopted amendments to Council Rules giving full Officer status to the Treasurer. 2 Pam Frost appointed as Proxy to accompany Barry Schafer to Council meeting on September