Members of Navigator super funds will have the comfort knowing that their beneficiaries could gain from an important – but often overlooked – tax break.
Members of Navigator super funds will have the comfort knowing that their beneficiaries could gain from an important – but often overlooked – tax break.
Navigator is ensuring all its super products include "anti-detriment" payments to beneficiaries from 1 July 2006.
"Anti-detriment" means that the funds automatically include an additional amount in the member’s benefit payment in the event of their death, which represents refund of the contributions tax paid by a member.
All Navigator’s retirement plans will now automatically include anti-detriment payments directly to dependants of a deceased member.
It is not compulsory for a super fund to provide for anti-detriment. As a result, not all super funds make these payments and this important benefit is often overlooked, even by large super funds. And unlike Navigator, some master fund platforms are unable to provide this service.
Navigator’s general manager – product Tim Cobb, said: “The contributions tax deducted by super funds can be significant, with the additional payment available to a deceased member’s dependants often reaching 5%, but sometimes more than 10% of the total member’s benefits. One recent example of an anti-detriment payment by Navigator was more than A$100,000, which is a huge additional death payment.
“Advisers and investors should look carefully when considering switching super funds to check whether the super fund they are switching to provides for additional anti-detriment payments.
“We believe inclusion of anti-detriment across all Navigator products further enhances their appeal to our customers and their advisers.” said Cobb.
“We are proud of this member benefit available on Navigator’s Access, Super Solutions and Personal Retirement Plans.”
-ends-
For further information please contact:
Simon Morgan
Group General Manager Public Affairs
Phone: (03) 9829 8892
Mobile: 0407 966 632
Notes to editors:
- Aviva Australia is a group of two specialist financial services companies: Navigator and Norwich Union Life Australia Ltd. Portfolio Partners is the Australian funds management arm of Aviva plc. Through these companies we provide products and services in the areas of wealth creation and wealth protection for more than 300,000 customers throughout Australia.
- Globally, Aviva Australia is part of Aviva plc, the world's sixth largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
- Aviva is a leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$77.6 billion, and more than A$683.9 billion of assets under management (as at 9 January 2006). The group has approximately 59,000 employees and 30 million customers worldwide.
- The information in this document reflects Navigator Australia Limited's ('Navigator') ABN 45 006 302 987 understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person and it is not a substitute for professional advice. A PDS is available from NULIS or your financial adviser.
- Before making an investment decision on the basis of the information above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the information is appropriate in the light of their particular investment needs, objectives and financial circumstances. Aviva does not receive any remuneration in relation to the provision of information available from this press release which is of a general nature only.