The Australian Securities and Investments Commission (ASIC) is the government agency that enforces and regulates company and financial services laws. The Australian Taxation Office (ATO) is the Commonwealth Government's main revenue collector, and the statutory authority responsible for the administration of Australia's taxation system.





The functional roles of these agencies make for a great source of advices on superannuation.

• Choice of Superannuation Fund: Meeting your obligations by Tax Commissioner, Michael Carmody, and Chairman of ASIC, Jeffrey Lucy, is a booklet that outlines the compliance approach to super choice. The authors made aware that "By completing these steps and ensuring that basic records are kept, an employer's obligations are effectively met."

The booklet contains this essential information:

-- From 1 July 2005, many employees will be able to choose the fund into which their superannuation guarantee contributions will be paid.

-- From 1 to 28 July 2005, employers were made to identify eligible employees for super choice; were provided with a standard choice form; and, were arranged for super guarantee paid to the chosen fund - either the employee's fund of choice or the employer's fund when the employee waives their right to choose in the first instance.

-- During the first year of super choice, the Tax Office, the ASIC and the Australian Prudential Regulatory Authority (APRA) will be ensuring that employers, financial advisers and super funds are aware of, and understand their obligations.

• Guide to Advisers. ASIC have issued on 24 June 2005 - developed in close consultation with the Financial Planning Association (FPA) and the Investment & Financial Services Association (IFSA) - a guide for advisers to help them comply with the Corporations Act when they give personal advice about switching super funds. It explains what investigations, disclosures and comparisons need to be made in relation to a client's existing super fund and any new fund that might be recommended.



• G uidance to employers about super choice advice. On June 2005 ASIC provided guidance to employers, and other individuals or organisations which are likely to talk with employees about choice of superannuation fund (super choice). It covers the type and nature of information they can provide without holding an Australian financial services (AFS) license.



• Is self managed super right for you? -- a fact sheet released on 22 May 2005 by ASIC and ATO suggesting four key questions about self managed super funds or questions that people considering moving into a self managed superannuation fund (SMSF) should ask themselves:

1. Is the fund strictly for retirement benefits only?
The assets and money in your fund are strictly for retirement benefits only. You can't get a benefit now, e.g. buy a holiday home and then use it or have access to the money. Avoid illegal early access schemes.

2. Do you have the time and skills?
'Self managed' means that you do the work. You must work out an investment strategy. You must be the trustee of your own fund. You remain legally responsible.

3. Will the benefits be worth the cost?
Many commentators suggest that you need around $200,000 in super to make the costs of a SMSF competitive with other super alternatives. The booklet Super Choicesprovides helpful information for comparing and choosing a fund.

4. How will switching to a self managed fund affect your current super?
Changing funds means changing benefits, services and fees. Make sure you don't leave yourself without life or other important insurances and compare costs. Keep fees and charges down. If you can't figure it out yourself, get professional help from a licensed financial advisory business.

• Super Choices: your super, your future, your choice . A booklet released jointly by ASIC and the office of Mal Brough, Minister for Revenue and the Assistant Treasurer on 4 May 2005, aimed at helping Australians to “understand more about their retirement nest egg, make informed financial decisions, and maximise their superannuation savings.”



• ASIC calculator. Comparing super funds has just become easier with the launch of the newest version of the ASIC superannuation calculator. It is essential tool for consumers considering switching super funds. From 1 July 2005, regulations require all super funds to refer to the FIDO super calculator in their product disclosure statements if people want to see the impact of fees based on their own circumstances.

The calculator also helps you to check the effect of: topping up your super through after-tax contributions or salary-sacrifice; taking advantage of government co-contributions if you're eligible; or, taking a break from full-time work, for example, for parenting or study leave.

Note: All resources mentioned are available from www.superchoice.gov.au, the Tax Office website www.ato.gov.au or information line 13 10 20, the ASIC website at www.asic.gov.au. The calculator is available on ASIC's consumer protection website at www.fido.gov.au or Infoline 1300 300 630.