Aviva has paid more than A$1 million in tax benefits to eligible dependants of its members in the past 12 months.
Aviva has paid more than A$1 million in tax benefits to eligible dependants of its members in the past 12 months.
The company built-in automatic "anti-detriment" testing processes for eligible beneficiaries in all its superannuation products from 1 July 2006. "Anti-detriment" means that an additional amount is included in a member's benefit payment in the event of their death, which represents a refund of the contributions tax paid by the member.
Andrew Barker, general manager Wealth Management, said the contributions tax deducted by super funds can be significant. "The additional payment available to a deceased member's dependants is typically around 3-5% of the total member's benefits but potentially up to 10% or even higher depending on particular criteria.
"The average payment Aviva has made to date has been around A$9,000 while the highest has been almost A$100,000" he said.
"Our members have the comfort of knowing that their beneficiaries could gain from an important - but often overlooked - tax break."
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. Furthermore, unlike Aviva's Navigator platform, some platforms do not provide this service.
"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," Andrew said.
"We believe inclusion of anti-detriment across all Aviva products further enhances their appeal to our customers and their advisers. We are proud of this member benefit available on our Navigator Access, Business Super and Personal Retirement Plans."
-ends-
For further information please contact:
Tim Cobb
General Manager Marketing and Public Relations
Phone: (03) 9829 8509
Mobile: 0418 529 387
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.
- Aviva is one of the leading providers of life and pensions to Europe with substantial positions in other markets around the world, making it the world's fifth largest insurance group based on gross worldwide premiums at 31 December 2005.
- Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £41.5 billion and assets under management of £364 billion at 31 December 2006.
- The information in this document reflects Aviva Australia Holdings Limited (ABN 38 095 045 784) and its related entities ("Aviva") 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. Applications to invest in a financial product issued by Aviva must be made by completing the application form attached to the applicable Product Disclosure Statement ("PDS"). A PDS is available from Aviva 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.