Welcome to the 2011 HESTA Breakfast Seminar

5025 10/11)
Welcome to the
2011 HESTA Breakfast Seminar

General advice warning & disclaimer
This information is issued by H.E.S.T. Australia Limited ABN 66 006 818
695 AFSL No. 235249. Trustee of HESTA Super Fund ABN 64 971 749
321
It is of a general nature. It does not take into account your objectives,
financial situation or specific needs so you should look at your own
financial position and requirements before making a decision. You may
wish to consult an adviser when doing this. The information should not be
relied on as legal advice.
For more information about HESTA free call 1800 813 327 for a copy of
our Product Disclosure Statements, which should be considered before
making a decision about the Fund. Past performance is not a reliable
indicator of future performance. Third-party services are provided by
parties other than the Trustee and terms and conditions apply. H.E.S.T.
Australia Limited are not licensed to provide advice on specific credit
products and do not recommend specific credit products

Your super: in it for the long haul
• Like all super funds HESTA’s investments are affected
by share market and global economic changes
• HESTA has always focused on the long-term nature of
super
• Markets will always go up and down, but Core Pool’s
above-average returns since inception* show its
strength over the long term
• Core Pool’s return is in the top quarter of funds in
Australia over the long term
*Source: SuperRatings Lifetime of Difference Calculator June 2011
Past performance is not a reliable indicator of future performance.

$10,000 invested in Core Pool
Since From Inception August 1987
$90,000
$80,000
$70,000
$75,043.24
$60,000
$50,000
$40,000
$30,000
$54,025.48
5%
CPI + 4%
Core Pool
$31,730.73
$20,000
$10,000
$-
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Investments can go up and down. Past returns are not a reliable indicator of future performance.

5025 10/11)
Proposed changes to super
& Budget update (2011)

2011 Budget announcements
• On 10 May 2011 the Government delivered its
budget for the 2011-2012 financial year.
• Following is a summary of proposals that would
affect superannuation.
• It is important to note that these are proposed
changes and will need to be passed by
Parliament before they become law.
• HESTA will provide members with further
updates if the changes are made law.

2011 Budget proposals
Co-contribution payments
• Maximum government co-contribution to remain at
$1,000 (subject to eligibility criteria).
• $31,920 income threshold for maximum co-contribution,
and $61,920 income threshold for no co-contribution to
remain for 2011-12 and 2012-13 financial years.
See HESTA Budget 2011 fact sheet for more information.

2011 Budget proposals
Before-tax: concessional contributions caps
• Higher before-tax contributions cap for eligible workers
aged 50+ of $25,000 above general concessional cap.
• General concessional contribution cap will increase in
future due to indexation, but extra $25,000 for eligible
over 50s will not be indexed.
• Higher limit is restricted to those 50+ with a total super
balance of less than $500,000, from 1 July 2012
(available for all over 50s until June 2012).
See HESTA Budget 2011 fact sheet for more information.

2011 Budget proposals
Refund of excess concessional contributions from
2011-12
• Eligible individuals can request refund of excess
before-tax contributions made from 1 July 2011.
Refund will be assessed at marginal tax rate, rather
than as excess concessional contributions (46.5%).
• Only applies to excess contributions up to $10,000
and only on one occasion.
See HESTA Budget 2011 fact sheet for more information.

2011 Budget proposals
Less generous minimum drawdown relief for super
income streams in 2011-12
• Government to phase out minimum drawdown relief
provided over last three years.
• In 2011-12, relief will be less than in previous years at
only 25%, rather than the 50% in place since 2009.
• Standard minimum to apply from 1 July 2012.

How does it work?
Age
Minimum
percentage payment*
before relief
New minimum
percentage*
(until 30 June 2012)
Under 65 4% 3%
65-74 5% 3.75%
75-79 6% 4.5%
80-84 7% 5.25%
85-89 9% 6.75%
90-94 11% 8.25%
95 or over 14% 10.5%

5025 10/11)
Proposed changes to super
Budget 2010 – still to be legislated

2010 Budget announcements
Increase the Super Guarantee to 12% by
July 2019
Year Rate (%)
2013-2014 9.25
2014-2015 9.5
2015-2016 10
2016-2017 10.5
2017-2018 11
2018-2019 11.5
2019-2020 12
See HESTA Budget 2010 Fact Sheet for more information.

2010 Budget announcements
Raise the SG age limit from 70 to 75
• Workers aged 70 to 74 would be eligible for SG
contributions
• Proposed commencement date: 1 July 2013
See HESTA Budget 2010 Fact Sheet for more information.

2010 Budget announcements
Low income earners government super
contribution
• Government to provide up to $500 annually as a
super contribution for workers earning up to
$37,000
• Proposed commencement date: 1 July 2013
See HESTA Budget 2010 Fact Sheet for more information.

Tax File Number Legislation
• Super funds can now use TFN as the primary identifier
of accounts
• Will help to help uncover and prevent multiple accounts
• Don’t pay extra tax – super funds need your TFN

Need more information?
One-on-one advice about your super
is available from HESTA staff
Read Budget 2010 & 2011 factsheets
www.hesta.com.au

Helping members take control
Education and advice service
tailored education programs
individual intra-fund personal advice at no extra cost
• contribution options
• investment options
• insurance cover
transition to retirement advice – small charge $495
a team of qualified Superannuation Advisers
phone advice
full financial planning advice – fee for service

Education sessions include
• General superannuation
• Topping up your super
• HESTA’s insurance
• Member investment choice
• Transition to retirement
• Easy money management
• Understanding your HESTA statement

Member Education Team
Led by Neil Saxton, our team of Member Education
Managers specialise in delivering quality education on
super and related matters.
Neil Saxton
Executive Manager -
Member Education
Flavio Alessio
NSW
Natasha Dreger
VIC
Irene Duncanson
VIC
Luke Fraser
QLD
Cheryl Heath
NSW/ACT
Marian Hegarty
QLD
Tony Kotsonis
NT
Sharon Knightley
WA
John Leitch
VIC
Connie Letizia
SA
Jaime Seletto
VIC
Eric Thomson
NSW
Don Wishart
TAS

Member Advice Team
Led by Debby Blakey, our team of Superannuation
Advisers and Superannuation Advice Officers specialise
in the delivery of advice about super. HESTA Financial
Planners provide holistic financial advice.
Debby Blakey
Executive Manager -
Member Advice
Superannuation Advisers
Superannuation Advice Officers
Ester Cibasek
NSW/ACT
General Manager
- Member Advice
Megan Cottrell
VIC
Erik Donert
VIC
John Fox
VIC/TAS
Michelle Kerlin
NSW/ACT
Tim Johnston
Financial Planners
David Logan
Sam Thompson
QLD
Patrick Toffoli
SA/NT
Bernadette Missen
WA
Cameron Peebles
NSW
David Francis
SA/WA/NT
Betty Tran
ACT/NSW/QLD
Emily Wheatley
TAS/VIC

5025 10/11)
Low cost insurance through HESTA
Case Study

Case study: Rebecca
Rebecca is:
• a 42-year-old nurse
• married with two children under 10
• works part-time at her local hospital
• earning $42,000 pa before-tax
• paying off a mortgage of $350,000 with her partner on
their family home (no other debts), and
• has $20,000 invested in HESTA’s Core Pool

Case study: Rebecca
Rebecca’s current cover
through HESTA
New cover recommended
by HESTA SA
IP Cover
2 units
$850 pm payable
to age 60
(after a 90 day waiting
period)
IP Cover
7 units
$2,975 pm
payable to age 60
(after a 90 day waiting
period)
Death Cover
$114,000
Death Cover
$456,000
2 units
8 units
Total cost of $3.00 pw
Less tax deductions — actual
cost to Rebecca: $2.55 pw
Total cost of $11.10 pw
Less tax deductions — actual
cost to Rebecca: $9.44 pw
Insurance cover is subject to acceptance by HESTA’s insurer

Great improvements to insurance
Effective 1 March 2012
• cover to protect income up to new pension
age of 67 – benefit payable for additional 7 years
• 25% increase in death benefit at age 40
• 74% increase in death benefit at age 50
• Able to combine lump sum TPD and
• IP to age 67
Changes will benefit the typical HESTA
member

Co-contributions
• Help members grow their super faster
• $1 for every $1 up to $31,920 - includes reportable
fringe benefits
• Maximum co-contribution reduces on a sliding scale -
cuts out at $61,920
• Co-contributions received in 2010/2011
59,168 members
$32.7 million

Access to extra services
Competitive and award winning products to
meet HESTA members’ needs:
• Transaction & savings accounts
• Home loans
• Personal loans
• Business loans
• Equipment finance
• Credit cards
• Term deposits
• Novated leasing

Industry support
• HESTA continuing partnerships with all sectors
across health and community services
– conferences
– seminars
– educational material
– articles for publications

Client Relations Team
Led by Lynn Hart, our dedicated Client Relationship
Managers ensure HESTA remains a key partner across
health and community services.
Lynn Hart
Executive Manager -
Client Relations
Alison Dixon
TAS
General Manager -
Client Relations
Mark
Ashby
NSW
Nick
Cowling
VIC
Helena
Higginbottom
VIC
Colleen
Hogan-Manning
SA
Graham King
WA
Tony Kotsonis
NT
Elaine Lawler
NSW/ACT
Carole Menere
NSW
Michael Scanlon
QLD
Anthony Smolic
VIC

Industry support – HESTA Awards
Reward and recognition for health and community
services
5 th year - 2011 Inaugural year - 2010
Inaugural year - 2011
Inaugural year - 2011
Sponsored by

Need more information ?
Review our handout – HESTA’s
financial education and advice
service
Request a workplace education &
advice session from HESTA
hesta.com.au
Don’t be one of those people who does
nothing, take some control!

Solutions for employers
Client Service Advisors:
• Flavio Corbanese – NSW / ACT
• Greg Lovett – Qld
• Sam Ang – Vic / Tas
• Stacey Tsouflidis – SA
• David Billingham – WA

Topics
Superpartners – Who are we?
Client Service Advisor – What do we do?
Electronic Solutions – Who, What, Where
and Why
33

About Superpartners
Currently 1,700 employees,
located in Adelaide, Brisbane,
Canberra, Melbourne (HO),
Perth, Sydney and Tasmania.
Employers – 750,000 +
Australian
Super
HESTA
Superpartners
MTAA
Members – 6.4 Million +
Funds under administration
– $97 Billion
CBUS
34

My role as your Client Service Advisor
Employer
Client
Superannuation Administration
35

Electronic Solutions
I can save you time…
I can make your job easier!
36

Does this look familiar?
Paperwork compared to
no paperwork.
37

What is E-Commerce?
• Electronic transmission of data over an electronic medium;
• Results in straight through processing; and
• Eliminates paper.
PAYROLL
HESTA
MEMBERS
38

E-commerce products
Employer Online
Super File Manager
Membership base 30 members
Main function Data entry Upload payroll mapped file
Member details Add, terminate members Included in payroll file
39

Submitting the contribution
40

Creating a new submission - upload file
41

Action Items – Approve payment
42

Action Items – Approve payment method
43

What now?
Call me!
Solutions
Online
Options
Legislation
Fund
processes
44

If you’re a member of HESTA,
ME Bank is your Bank

ME Bank – shared values
Created by Industry Super Funds, like HESTA, who
brought Australians low cost, no commission super:
• Simple, low cost banking
• Transparent banking products with low fees, low
interest rates and higher returns built in for members
• Award winning great service
• Convenience of banking in the workplace and at
home
• Australian based Call Centre

We can help you and staff in your facilities with their…
HOME DAY-TO-DAY NEEDS SAVINGS BUSINESS
• Member Package –
award winning all-in-one
home loan solution bringing
together great benefits
2011 Gold Medal –
Best Bank Standard
Variable Member
Package Ultimate
Offset Account
• EveryDay Transaction Account
– comes with a Debit MasterCard
that gives your members more
flexibility and access to
their money
• Online savings accounts
– an online savings
account with no ongoing
account-keeping fees
2011 Silver Medal –
Best straight up online
savings account
• Business loans, vehicle
and equipment finance,
vehicle salary packaging,
high yield deposit
accounts and a
Business MasterCard
• Super Members
Home Loans – a range
of discounted home loans,
including standard, offset
and investment loans
providing variable, fixed or
split loan options
• A low rate ME MasterCard ® –
award winning low rate credit card
2011 Gold Medal –
Best Low Rate
Credit Card
• Super Members Term
Deposits – award winning
term deposits including
bonus interest of up to
0.25% p.a.
• Personal loans – we have one
of Australia’s cheapest
personal loans
• First Home Saver
Account – helps your
members save for their
first home sooner
2011 Money magazine’s
Best of the Best Awards,
Gold Winner,
Cheapest Personal Loan,
Bank Category

ME Bank - benefits to members
For the past 10 years, ME Bank’s standard variable home loan rate has been
lower than the major bank’s every single month.
Source: Graph created by ME Bank Pty Ltd from information provided by InfoChoice as at August 2011.

Customers of the major banks could have saved up to $23,590
Data sourced from Infochoice. Graph compares the ME Bank Super Members Home Loan (SMHL) standard variable rate with the standard variable home loan rates of ANZ, NAB, CBA and Westpac on the first day of each
month (01/06/01 – 01/06/11). *Savings calculated on a 30 year, $300,000, principal and interest home loan after 10 years (June 2001 - June 2011) on the ME Bank Super Members Home Loan standard variable rate vs the
standard variable home loan rates of ANZ, CBA, NAB and Westpac. Assumes the same monthly repayment is made to each loan, based on the minimum repayment of the loan with the higher interest rate. Interest calculated
daily and applied monthly. Graph and calculation do not include applicable fees, charges or discounts and do not consider other home loans products from these lenders that may carry different interest rates. ^Based on the
same assumptions as the aforementioned example, calculation based on the time taken for the loan balance to first drop below $260,000. SMHL range is available to eligible members of super funds and unions. Fees and
charges apply. Terms and conditions available on request. Applications are subject to credit approval. Members Equity Bank Pty Ltd ABN: 56 070 887 679 ACLN: 229500. 210222/0911 Bank ME Bank ANZ CBA NAB Westpac
Home Loan Product Super Members Home Loan Standard Home Loan ANZ Standard Variable Rate Home Loan CommBank Variable Rate Home Loan NAB Tailored Variable Rate Home Loan Westpac Rocket Repay Home
Loan Difference over 10 years on a $300,000 loan* $0 You paid $22,843 more You paid $22,842 more You paid $22,348 more You paid $23,590 more Time taken to pay off first $40,000 of principal^ 7 years 9 years, 10
months 9 years, 10 months 9 years, 10 months 9 years, 11 months Is your Home Loan with one of the major banks? 5.00 6.00 7.00 8.00 9.00 10.00 Interest rate (% p.a.) ME Bank ANZ CBA NAB Westpac Nov 10: Major
banks increase rates above RBA increase. ME Bank does not. 2008: Global financial crisis leads to deep interest rate 2005: Major banks continue to increase rates in unison. Customers of the major banks could have saved
up to $23,590. 10 years of home loan interest rates - ME Bank vs the major banks Through all the highs and lows of the last decade, it’s reassuring to know that ME Bank has consistently offered a standard variable home
loan rate that’s lower than the major banks - month after month, year after year. It reflects a commitment to act in your best interest, which is just as strong today as it was a decade ago

To find out more about the benefits of banking with ME Bank
call our Australian based Contact Centre on 131563
If you’re a member of HESTA, ME Bank is your bank.
This information does not take into account your objectives, financial situation or needs. Before acting on the information, you should
consider the appropriateness having regard to your own financial situation. Members Equity Bank Pty Ltd. ABN 56 070 887 679.
AFSL: 229500, ACLN: 229500

Questions?
More people in health & community services
choose HESTA than any other fund