nissan superannuation plannsp.nissan.com.au/documents/reports/nsp_annual_report_2013.pdf · and the...

Highlights~~ The~Plan’s~investment~options~continue~~to~perform~strongly~(see~page~2)

~~ Net~assets~in~the~Plan~are~$30.4~million~~ Find~out~what's~new~in~super~on~page~8

N i s s a n S u p e r a n n u a t i o n P l a n

AnnuAl RepoRt2013

ContACt usGeneral~enquiriesThe Plan administrator Nissan Superannuation Plan PO Box 1442 Parramatta NSW 2124 Phone: 1800 127 953 Fax: (02) 8571 6222 Email: [email protected]

The~TrusteeMarcus Wappet Chairman Nissan Superannuation Plan C/- Nissan Motor Co. (Australia) Pty Ltd 260-284 Frankston Dandenong Road Dandenong South VIC 3175 Phone: (03) 9797 4290 Fax: (03) 9797 4409 Email: [email protected]

About this

This Annual Report has been prepared for members of the Nissan Superannuation Plan (ABN 24 774 305 410). It outlines how the Plan has performed during the past 12 months, how your Plan is managed and includes some general news about super.

The information in this document is general information only and does not take into account your particular objectives, financial circumstances or needs. It is not personal or tax advice. Any examples included are for illustration only and are not intended to be recommendations or preferred courses of action. You should consider obtaining professional advice about your particular circumstances before making any financial or investment decisions based on the information contained in this document.

Issued by NSP Superannuation Pty Ltd (ABN 53 063 927 202) as Trustee of the Plan. Preparation of this Annual Report was completed on 19 June 2013.

1~ Welcome~From~The~TrusTee

2~ Your~suPer~reTurNs

4~ hoW~Your~suPer~is~iNvesTed

8~ WhaT’s~NeW~iN~suPer?

9~ hoW~suPer~is~Taxed

10~ Fees~aNd~oTher~cosTs

12~ ThiNGs~You~Need~To~kNoW

14~ The~PlaN’s~FiNaNcial~sTaTemeNTs

InsIde…

Welcome~to~the~ ~for~members~of~the~Nissan~superannuation~Plan~(‘the~Plan’)~~for~the~year~to~31~march~2013.

How your super performedDespite the instability in the global economy, particularly the debt issues in the Eurozone, Australian and international share markets produced solid gains during the year. Property and fixed interest investments also produced good gains. The returns from the Plan's investments are pleasing. The annual net return for the Plan's Growth option at 14.4% places it at the top end of super funds with similar investment strategies.

How your super performed will depend on the investment option you have chosen and the type of assets the option invests in. You can read more on how the Plan’s investment options have performed on page 2. You can also review the types of assets the Plan’s options are invested in on pages 4 to 7.

If you are a Defined Benefit member, remember that the defined benefit part of your retirement benefit is generally not affected by investment returns.

What’s new in super?It has been another busy year for super funds. The Government has introduced a number of changes that may impact you now as well as proposed changes that may affect your super and retirement savings in the future. Learn more about these changes on page 8.

Changes to the trusteeWe are pleased to announce that Towers Watson Superannuation Pty Ltd (ABN 56 098 527 256, AFSL 236049) has been appointed as Trustee of the Plan and will assume responsibility from 1 July 2013. As a member, you will not notice any differences in the way the Plan is run on a day-to-day basis and there will be no changes to your benefits, the fees charged, how your investments are managed or to the features offered by the Plan. You will have received more information on this change in recent weeks.

In closingWe encourage you to spend some time reading this Report to understand how the past year has affected the Plan and your super.

As Trustee, our role is to manage the Plan for your benefit. As always, we welcome your questions and feedback – see the inside front cover for our contact details.

Marcus Wappet Chairman Nissan Superannuation Plan

Your super at a glanceinvestment~returnsPast performance is not necessarily a reliable indicator of future performance.

0

5

10

15

20

25

30

35

20122013

$M

0

10

20

30

40

50

60

70

80

20122013*

80

28,029,92430,354,207

72

0

3

6

9

12

15

Cash

Balanced 50/50

Growth

10-year compound

average return (per year)

Five-year compound


2013

Growth Balanced 50/50 Cash

14.4

%

5.9%

8.2%

11.4

%

3.0%

Plan~assets

membership

0

5

10

15

20

25

30

35

20122013

$M

0

10

20

30

40

50

60

70

80

20122013*

80

28,029,92430,354,207

72

0

3

6

9

12

15

Cash

Balanced 50/50

Growth

10-year compound


Five-year compound


2013


14.4

%

5.9%

8.2%

11.4

%

3.0%

* Note: Total includes 18 members who have left Nissan but have elected to continue membership in the Retained Benefits Division.

0

5

10

15

20

25

30

35

20122013

$M

0

10

20

30

40

50

60

70

80

20122013*

80

28,029,92430,354,207

72

0

3

6

9

12

15

Cash

Balanced 50/50

Growth

10-year compound


Five-year compound


2013


14.4

%

5.9%

8.2%

11.4

%

3.0%

1

WelCome fRom tHe tRustee

Note: Investment returns are net of tax and investment fees.

The Balanced 50/50 and Cash investment options were introduced on 1 April 2012 and therefore no longer-term returns are available. Defined benefit assets are invested in the Balanced 50/50 option.

2

What rate of return do I receive?accumulation~membersYour accounts receive the actual investment return for your chosen investment option, whether positive or negative, after allowing for tax and investment fees. If you have not made a choice, your super will be invested in the Growth option and will receive the actual investment return from the option.

The rates apply to accumulation accounts, including the voluntary contributions and rollovers of Defined Benefit members. The full year returns to 31 March 2013 for each investment option are shown above.

defined~Benefit~membersYour retirement benefit is generally not affected by investment returns. This benefit is linked instead to your salary. However, investment returns are applied to your additional voluntary contribution and rollover accounts. These accounts receive the actual investment return for your chosen option, whether positive or negative, after allowing for tax and investment fees.

The Plan’s defined benefit assets are invested in the Balanced 50/50 option. Prior to 1 April 2012 your defined benefit assets were invested in what is now referred to as the Plan’s Growth option.

interim~rateIf you leave Nissan or transfer to another super plan, an interim crediting rate will be used to update your benefit. This will cover the period from the previous 1 April until the date your benefit is paid or your transfer request is processed.

The interim crediting rate is based on the Plan’s estimated monthly net investment returns in accordance with the Trustee’s crediting rate policy. Interim rates may be either positive or negative and are calculated daily.

If you are a Defined Benefit member, the defined benefit portion of your benefit will be converted to an accumulation-style benefit at your date of leaving employment. On transfer to the Plan's Retained Benefit Division, this portion of your benefit will be invested in the Balanced 50/50 option. If you have additional accumulation accounts, they will continue to be invested in your chosen investment option (or the Growth option, if you have not previously made a selection).

Returns to 31 marchPast performance is not necessarily a reliable indicator of future performance.

The performance of your super might vary from year to year. In most cases though, super is a long-term investment. This means that returns over a longer term (like ten years, rather than one or two years) will be a better indicator of how your super is performing in general. Returns are shown here and on your Benefit Statement.

YouR supeR RetuRns

-20

-15

-10

-5

0

5

10

15

20

25

30DB

Cash

Balanced50/50

Growth

10-year compound


Five-year compound


20092010201120122013

Declared rate %

Growth

Balanced 50/50

Cash

Defined Benefit*

14

.4%

11

.4%

3.0

%

11

.4%

5.9

%

5.3

% 8.2

%

7.9

%

6.5

%

25

.4%

25

.4%

-15

.2%

-15

.2%

6.5

%

2.6

%

2.6

%

i Key super terms An investment return is the amount that your super earns. Positive returns increase your super while negative returns decrease your super.

Note: Investment returns are net of tax and investment fees.

* Up until 31 March 2012, the assets of Defined Benefit members were invested in what is now referred to as the Plan’s Growth option. From 1 April 2012, the assets have been invested in the Balanced 50/50 option. The longer-term return figures take this into account.

The Balanced 50/50 and Cash investment options were introduced on 1 April 2012 and therefore no longer-term returns are available.

3

How investment markets performedBusiness confidence and conditions in Australia improved marginally over the year, particularly in the second half of 2012. In response to the uncertain international outlook and contained inflation, the Reserve Bank of Australia cut the cash rate on four separate occasions by a total of 125 basis points from 4.25% to 3.00% over the year. The labour market softened over the year, and the national unemployment rate rose to 5.6% in March 2013.

US growth remained stagnant throughout the year, but its labour market improved over the year, with the unemployment rate decreasing to 7.6% in March, its lowest level since January 2009. On 1 January 2013, the US Senate and House of Representatives passed the American Taxpayer Relief Act of 2012. This Relief Act avoids most of the spending cuts and tax increases which had threatened to hinder economic growth in the US. The US Federal Reserve continued their monetary stimulus policy in a bid to revive the economy.

While the European sovereign debt crisis continued to intensify, particularly in Greece, Italy, Portugal and Spain, it was met with multiple bailout packages and the establishment of the OMT Plan by the European Central Bank. The OMT Plan’s goal is to decrease interest rates and take pressure off government finances by making large scale purchases of short-term government bonds. Despite various efforts, the region’s unemployment rate continued to rise over the year, with manufacturing and services businesses continuing to be affected by weak domestic and export markets.

The A$ closed the year up slightly at 104.3 US cents (from 103.5 US cents). The A$ remained above parity for almost the entire calendar year, only briefly dipping below parity in May 2012 on the back of falling commodity prices and interest rate cuts, before recovering in June 2012 due to positive domestic economic data and encouraging news from the Eurozone. While the change against the US$ has been slight over the year, against a basket of other currencies, there has been strong appreciation of the A$.

The Australian share market performed positively over the year with the S&P/ASX 300 Accumulation Index increasing by 19.2%, far surpassing expectations given a strong Australian dollar, relatively weak global growth outlook and falling commodity prices. Telecommunications Services (45.9%) and Healthcare (43%) were the best performing sectors over the year, while the Energy (-5.6%) and Materials (-11.3%) sectors performed the worst.

Global share markets also experienced strong returns, with the MSCI World ex Australia Accumulation Index returning 16.8% in hedged Australian dollar (A$) terms and 10.8% in unhedged to A$ terms over the year.

The Australian property market, as measured by the S&P/ASX300 A-REIT Accumulation Index, returned 30.5% for the year. The Plan’s main exposure to property is through global listed property and that sector rose 23.2% over the year (measured by the UBS Global Listed Property Hedged Index).

The Australian fixed interest market performed very well over the year as a result of falling bond yields. The UBS Composite Bond Index (All Maturities) returned 7.1% for the year. Global fixed interest, as measured by the Barclays Global Aggregate Index (hedged to A$) returned 8.6%, outperforming the Australian fixed interest market.

Note: This investment commentary does not constitute advice. All investment figures quoted relate to before-tax performance of the relevant industry benchmark.

4

HoW YouR supeR Is Invested

The Plan has three different investment options for you to choose how your super is invested: a Growth, Balanced 50/50 or Cash option.

If you don’t choose an option, your super is invested in the Growth option. This is the default option. Defined Benefit members only have investment choice for their additional voluntary contributions and rollover accounts.

Investment objectivesInvestment objectives are specific goals that the Trustee sets for the performance of the Plan and each investment option. They are not intended as forecasts or guarantees of future investment returns.

Generally, the Trustee aims to:

~ Invest the Plan’s assets prudently as permitted by the Trust Deed and by superannuation law,

~ Invest across a diverse range of assets,

~ Ensure that the Plan is able to make benefit payments to members when they are due, and

~ Monitor the performance of the Plan’s investment managers to ensure they exercise integrity, prudence and professional skill in fulfilling the investment tasks delegated to them.

See pages 6 to 7 for the specific investment objectives for each option.

Investment strategyAn investment strategy is the plan the Trustee follows to achieve the objectives of an investment option. Each investment option has its own investment strategy. For details of each option’s investment strategy, see pages 6 to 7.

Investment managersThe Trustee appoints professional investment managers to manage the Plan’s investments. These managers and their products may be changed from time to time without prior notice to, or consent from, members.

The Plan’s investment managers at 31 March 2013 were:

~ Schroder Investment Management Australia Ltd (Schroder Australian Equities PST),

~ Zurich Australia Limited (Zurich Unhedged Global Thematic Shares),

~ State Street Global Advisors (SSgA Australian Fixed Income Index Trust),

~ State Street Global Advisors (SSgA Broad Investment Grade Fixed Income Trust),

~ BT Financial Group (BT Global Return Fund),

~ Deutsche Asset Management (DB RREEF Global Property Securities Fund),

~ Macquarie Investment Management Limited (Macquarie True Index Cash Fund),

~ Macquarie Investment Management Limited (Macquarie Australian Pure Index Equities Fund), and

~ MFS Institutional Advisors, Inc (MFS Fully Hedged Global Equity Trust).

The Trustee is committed to close monitoring of the Plan’s investment managers and returns to ensure that the Plan continues to deliver competitive investment results to members each year.

i Key super terms Asset classes are different types of investments such as shares, property, fixed interest and cash.

Growth assets include shares and property. The return from growth assets comes both from the change in the value of the asset (e.g. an increase in the price of shares) and the income you receive from your investment (e.g. dividends paid on shares). Returns are generally higher than other assets but can also be significantly negative from time to time.

Income assets include fixed interest and cash. The market value of these assets can also rise or fall, but usually with less volatility than is the case with growth assets.

5

derivativesA very small portion of the Plan’s assets (approximately 0.07%) has been invested in a hedge fund managed by BT Financial Group. The underlying managers for this investment have made use of derivatives to assist in achieving their objectives. During the year, BT has successfully finalised the liquidation of this hedge fund. The liquidated value resulted in a small loss to the Plan of around 0.06%. This is reflected in the Plan’s crediting rates for the year ended 31 March 2013.

The Plan’s other investment managers only use derivatives for risk-control purposes or to more efficiently shift asset allocations. The investment managers are required to have a risk management process in place in relation to the use of derivatives and the purposes for which they are used. Each year, the Trustee obtains confirmation from the investment managers that they have complied with their processes.

deferred tax AssetSuper funds normally pay tax on any capital gains. If a fund experiences capital losses (which can arise, for example, due to falls on share markets), they are allowed to accumulate the tax benefits associated with those losses and use them to offset the tax on future capital gains.

The accumulated losses are referred to as a ‘Deferred Tax Asset’.

The Trustee has a formal policy to monitor the Plan’s Deferred Tax Asset position in order for there to be an equitable allocation of tax benefits to all groups of members. As at the Plan’s balance date (i.e. 31 March 2013), the Deferred Tax Asset represented around 1.3% (previously 1.8%) of the Plan’s assets. At a level of 2%, the Trustee must take action to limit the recognition of the Deferred Tax Asset in the Plan’s financial statements. If this were the case, it would be necessary for the Trustee to adjust crediting rates accordingly.

Actuarial reviewThe Plan’s financial position is reviewed by the actuary at least every three years. The actuary then makes a recommendation to the Company on the appropriate level of future contributions needed to maintain members’ benefits.

The most recent review at 31 March 2010 showed that the Plan was in a satisfactory financial position and at 31 March 2013, the Plan continues to be in a satisfactory financial position. The Company continues to contribute in line with the actuary’s recommendations.

ReservesThis is a defined benefit Plan, so the Trustee does not maintain formal reserves.

i Key super termsCompound interest occurs when you reinvest any income earned on your investments rather than spend it. By reinvesting this income, you start earning ‘interest on your interest’.

6

How your super is investedGrowth Balanced 50/50 Cash

What~are~the~investment~~objectives~for~this~option?

Real Return Objective

To achieve a return (net of tax and investment expenses) of at least 3% p.a. in excess of inflation (as measured by the Consumer Price Index (CPI)) over rolling 5-year periods.

Downside Risk Objective

To limit the probability of a negative return over rolling 12-month periods to 5-years in 20, or 25%.

Likely 1 in 20 year adverse return

-14.3%


To achieve a return (net of tax and investment expenses) of at least 2.5% p.a. in excess of inflation (as measured by the Consumer Price Index (CPI)) over rolling 5-year periods.


To limit the probability of a negative return over rolling 12-month periods to 3-4 years in 20, or 18%.


-8.4%




To ensure that the amount invested will not decrease in value at any time.


N/A

What~investment~strategy~does~this~option~use?

To invest 75% in growth assets and 25% in income assets. To invest 50% in growth assets and 50% in income assets.

To invest 100% in cash.

how~is~the~option~invested? Asset mix at 31 March 2013 Asset mix at 31 March 2012 Asset mix at 31 March 2013* Asset mix at 31 March 2013*

asset~allocation~range

exposure~ranges Growth assets 70% to 80%

Income assets 20% to 30%

Growth assets 45% to 55%


Growth assets 0%

Income assets 100%

australian~shares~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 28%~to~42%international~shares~(hedged)~~~~~~~~ 10.5%~to~24.5%international~shares~(unhedged)~~~~~ 10.5%~to~24.5%Global~listed~property~~~~~~~~~~~~~~~~~~~~~~~~~~ 3%~to~7%australian~fixed~interest~~~~~~~~~~~~~~~~~~~~~~ 8%~to~12%international~fixed~interest~~~~~~~~~~~~~~~~~~ 8%~to~12%cash~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 3%~to~7%

Cash

Int fixed

Aust fixed

GLP

Int share unhedged

Int shares hedged

Aust shares

23%

20%

10%

34%

18%

10%5%

5%

Growth Bal 50-50 cash

10% 100%

2013

18%

Cash

Int fixed

Aust fixed

GLP

Int share unhedged

Int shares hedged

Aust shares

30%

15%

14%

10%

6%

10%

2012

15%

Cash

Int fixed

Aust fixed

GLP

Int share unhedged

Int shares hedged

Aust shares

22%

12%

20%

11%

20%

3%

12%

Cash

Int fixed

Aust fixed

GLP

Int share unhedged

Int shares hedged

Aust shares

23%

20%

10%

34%

18%

10%5%

5%


10% 100%

2013

18%

Cash

Int fixed

Aust fixed

GLP

Int share unhedged

Int shares hedged

Aust shares

30%

15%

14%

10%

6%

10%

2012

15%

Cash

Int fixed

Aust fixed

GLP

Int share unhedged

Int shares hedged

Aust shares

22%

12%

20%

11%

20%

3%

12%

7

How your super is investedGrowth Balanced 50/50 Cash

What~are~the~investment~~objectives~for~this~option?




To limit the probability of a negative return over rolling 12-month periods to 5-years in 20, or 25%.


-14.3%


To achieve a return (net of tax and investment expenses) of at least 2.5% p.a. in excess of inflation (as measured by the Consumer Price Index (CPI)) over rolling 5-year periods.


To limit the probability of a negative return over rolling 12-month periods to 3-4 years in 20, or 18%.


-8.4%




To ensure that the amount invested will not decrease in value at any time.


N/A

What~investment~strategy~does~this~option~use?

To invest 75% in growth assets and 25% in income assets. To invest 50% in growth assets and 50% in income assets.

To invest 100% in cash.

how~is~the~option~invested? Asset mix at 31 March 2013 Asset mix at 31 March 2012 Asset mix at 31 March 2013* Asset mix at 31 March 2013*

asset~allocation~range

exposure~ranges Growth assets 70% to 80%


Growth assets 45% to 55%


Growth assets 0%

Income assets 100%

defined Benefit membersIf you are a Defined Benefit member, your defined benefit (including the compulsory member contributions you make) is invested in the Balanced 50/50 option. Your 3% Productivity account is also invested in the Balanced 50/50 option as it forms part of the defined benefit calculation which is used to ensure that all benefits payable from the Plan meet Superannuation Guarantee obligations. If you have a Surcharge Offset account, this is also invested in the Balanced 50/50 option.

Defined Benefit members have investment choice for additional voluntary accounts and rollover accounts (if any).

Australian shares

International shares (hedged)

International shares (unhedged)

Global listed property

Australian fixed interest

International fixed interest

Cash

australian~shares 16%~to~30%international~shares~(hedged)~ 5%~to~19%international~shares~(unhedged)~ 5%~to~19%Global~listed~property 0%~to~10%australian~fixed~interest 13%~to~27%international~fixed~interest 13%~to~27%cash 3%~to~17%

cash 100%

Cash

Int fixed

Aust fixed

GLP

Int share unhedged

Int shares hedged

Aust shares

23%

20%

10%

34%

18%

10%5%

5%


10% 100%

2013

18%

Cash

Int fixed

Aust fixed

GLP

Int share unhedged

Int shares hedged

Aust shares

30%

15%

14%

10%

6%

10%

2012

15%

Cash

Int fixed

Aust fixed

GLP

Int share unhedged

Int shares hedged

Aust shares

22%

12%

20%

11%

20%

3%

12%

Cash

Int fixed

Aust fixed

GLP

Int share unhedged

Int shares hedged

Aust shares

23%

20%

10%

34%

18%

10%5%

5%


10% 100%

2013

18%

Cash

Int fixed

Aust fixed

GLP

Int share unhedged

Int shares hedged

Aust shares

30%

15%

14%

10%

6%

10%

2012

15%

Cash

Int fixed

Aust fixed

GLP

Int share unhedged

Int shares hedged

Aust shares

22%

12%

20%

11%

20%

3%

12%

* This option was only introduced on 1 April 2012.

FeaTure

WHAt's neW In supeR?

8

upcoming changes to superYou may have read about the Government’s Stronger Super changes. Three of four parts of the Stronger Super legislation have now been passed by Parliament, with the remaining part of the legislation currently being considered.

A lot of the changes will happen behind the scenes and are intended to make superannuation fund administration and processing more efficient.

What~is~mysuper?From 1 January 2014, all Superannuation Guarantee (SG) contributions (your employer’s contributions) for Accumulation members who have not advised their employer of their preferred fund are required to be paid into a superannuation fund that offers a MySuper product.

The main feature of a MySuper product is that it will only have a single, diversified investment option. Where a member has not made an investment choice in the past, the trustee will be required to direct that member's contributions into a fund offering a MySuper product.

MySuper will apply to Accumulation members of the Plan. Defined Benefit members are not affected by the MySuper regime.

All Accumulation members will be contacted later in the 2013 calendar year and will be provided with further information about MySuper and any choices that need to be made.

2013 federal Budget updateThere were no explicit changes to super announced in the Federal Budget on 14 May that had not already been announced during April. This year’s Budget confirms a number of previous announcements, including:

~ The announced changes to the excess contributions tax regime – it was proposed that individuals (regardless of age) will be able to withdraw any excess concessional contributions made from 1 July 2013 from their super fund. In addition, the Government will tax excess concessional contributions at your marginal tax rate rather than the top marginal tax rate. There will also be an interest charge imposed as this tax is collected later than normal income tax.

~ The changes to the concessional contributions cap for individuals aged 60 or over from 1 July 2013, and to individuals aged 50 or over from 1 July 2014 – by increasing the cap to $35,000 (not indexed) for these individuals.

~ The change to the tax exemption on pension earnings above $100,000 p.a. – to apply a tax of 15% from 1 July 2014 on individuals who have total investment earnings of more than $100,000 per year generated in pension products.

Perhaps the biggest change affecting super will be the flow-on effect of the increase in the Medicare levy from 1.5% to 2.0% from 1 July 2014 which will be used to help fund the National Disability Insurance Scheme – called DisabilityCare Australia. The Medicare levy is added to a number of tax rates that apply to super, and these flow on changes are now law.

There continues to be uncertainty about some of the proposed changes. With a Federal Election scheduled for mid-September 2013, it is unclear whether all of the announced changes will be implemented.

i Key super termsA binding nomination obliges the Trustee to pay your death benefit according to your stated wishes (provided that the nomination is valid at the time of your death). Your nomination must be witnessed and is only valid for three years. Please check your latest Benefit Statement to ensure that your beneficiary details are current and, if you have made a binding nomination that it has not expired.

9

How are my contributions taxed?When concessional contributions are paid into the Plan, generally a contributions tax of 15% applies.

How are investment earnings taxed in the plan?Investment earnings are generally taxed at the rate of 15%. This rate reduces if deductions and imputation credits are available to the Plan’s investment managers.

How is my super benefit taxed?The tax payable on benefits depends on a number of factors, including:

~ The type of benefit being paid (retirement, disability or death),

~ Who receives the benefit,

~ Whether you were an Australian citizen or permanent resident when the benefit was paid. Higher tax applies to benefits paid to temporary residents who permanently leave Australia, and

~ How you receive the benefit (e.g. lump sum amount or pension) and your age.

If you are age 60 or over, generally all lump sum payments and pensions paid to you from a taxed super fund (such as this Plan) will be tax free.

HoW supeR Is tAxed

Arrangements for defined Benefit membersSpecial arrangements are in place to determine the amount of concessional contributions that count toward the cap in respect of your defined benefit. The Plan’s actuary determines a “notional” employer contribution using a formula set by the Government. It is not necessarily the actual amount your employer pays to the Plan. Any other concessional contributions you make (such as additional voluntary salary sacrifice contributions) also count towards the cap, in addition to the “notional” amount.

Under certain circumstances, if your ‘notional’ employer contribution is greater than the concessional contributions cap, you may be entitled to have your “notional” contribution deemed equal to the cap.

Defined Benefit members last received information on their notional employer contribution in May 2012. Should you have any questions on concessional contribution caps, please contact Marcus Wappet (see the inside front cover for contact details).

limits on contributionsThe Government has set limits or caps on the amount that can be contributed to super each year before extra tax applies. These limits apply for the financial year ended 30 June 2014.

Concessional contributions

Non-concessional contributions

What is the annual limit?

Under age 59: $25,000

59 or over at 30 June 2013: $35,000*

$150,000**

What tax applies if my contributions are within the cap?

15% contributions tax Nil

How much tax applies to the excess if I exceed the limit?

46.5% (including 15% contributions tax)

46.5%

* It is proposed that from 1 July 2013, the cap will increase to $35,000 (not indexed) for individuals who are aged 59 or over as of 30 June 2013. This proposal is not yet law.

** Members under age 65 can generally bring forward two years of caps to make total contributions of up to $450,000 over three years.

If you exceed the limits, the ATO will send you a tax assessment. For excess concessional contributions, you can either pay the extra tax directly to the ATO or arrange for it to be debited from your benefit. For excess non-concessional contributions, the extra tax must be paid from your super plan. The tax cannot be paid from any defined benefit super you may have.

10

Did you know?

Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns.

For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30-year period (for example, reduce it from $100,000 to $80,000).

You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs.

You may be able to negotiate* to pay lower contribution fees and management costs where applicable. Ask the fund or your financial adviser.

To find out more

If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (www.moneysmart.gov.au)

has a superannuation fee calculator to help you check out different fee options.

fees And otHeR Costs

Please note that this calculator does not apply to defined benefits. * The Trustee has already negotiated the fees and costs of the Plan on your behalf. There is no scope to negotiate lower fees and costs on

an individual basis.

This section shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the Plan assets as a whole. Taxes and insurance costs are set out in the notes on the following page.

You should read all of the information about fees and costs because it is important to understand their impact on your investment.

Type of fee or cost Amount How and when paid

Fees when your money moves in or out of the Plan

Establishment fee: The fee to open your investment.

Nil Not applicable.

Contribution fee: The fee on each amount contributed to your investment – either by you or your employer.

Nil Not applicable.

Withdrawal fee: The fee on each amount you take out of your investment.

Nil Not applicable.

Termination fee: The fee to close your investment.

$138.10 Charged to your account.

Management costs

The fees and costs for managing your investment.

$9 per week Active members only

Deducted from your account balance each week.

0.90% p.a. of assets ($9.00 per $1,000)

Retained members only

Account keeping fee, deducted from your account balance on a monthly basis.

Growth

0.40% to 0.50% p.a. of assets ($4.00 to $5.00 per $1,000)

Balanced 50/50

0.28% to 0.36% p.a. of assets ($2.80 to $3.60 per $1,000)

All members

Investment fees are deducted from your investment returns before they are applied to your accounts on a monthly basis.

These fees only apply to benefits that are linked to investment returns. They do not apply to defined benefits.

Cash

Nil

Service fees1

Investment switching fee: The fee for changing investment options.

Nil Not applicable.

1 Details of other service fees are described in the “Additional explanation of fees and costs” section on the following page.

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Additional explanation of fees and costs1.~Buy/sell~spreadThis is a fee charged by the Plan to reflect any costs charged by the investment managers when you change investment options.

It is deducted from your account balance when you change investment options (based on the option you transfer into) and is therefore an additional cost to you.

There is no buy/sell spread for switches between the Growth and Balanced 50/50 options, or switches to the Cash option. However, there is a buy/sell spread to switch from the Cash option to either the Balanced 50/50 or Growth options. These fees are:

Cash to Balanced 50/50 : 0.34% of the amount switched

Cash to Growth: 0.42% of the amount switched

These buy/sell spreads will be deducted from your account at the time of your switch. No investment switching fee applies.

2.~insurance~cover~for~NsP~membersA feature of the Plan is the members’ insurance cover with AXA, for Death and Total Permanent Disability. Additional contributions are made by Nissan to fund such insurance cover for members.

3.~management~costsThese costs include administration, consulting, audit, legal and other fees incurred by the Plan.

The fees shown in the table on the previous page are gross of tax.

Any management costs not covered by deductions from your accounts are met by additional Company contributions to the Plan.

4.~investment~feesThe investment fees shown in the table on the previous page are deducted from the investment returns earned by the Plan’s investments before they are applied to your accounts. This means that the returns shown on pages 1 and 2 of this Annual Report have been reduced by these fees and taxes.

Tax is deducted from the Plan’s investment earnings at the rate of 15%, less any applicable deductions and imputation credits available to the investment managers or the Plan. None of the Plan’s investment managers charge performance-based fees.

5.~TaxesThe following taxes are deducted from your accounts in the Plan:

~ Contributions tax, generally at the rate of 15%, from Company contributions and any salary sacrifice contributions (collectively known as concessional contributions) to your accounts.

~ Excess contributions tax if your contributions exceed the concessional or non-concessional contributions caps and you requested to have the excess tax deducted from your benefit.

~ Additional tax if you have not provided your Tax File Number to the Plan by the end of the Plan’s financial year.

6.~other~service~fees~If you, or your spouse, require information on your benefit in relation to a Family Law matter, a fee of $220 will be charged for each date at which information is required. You, or your spouse, are required to pay this fee at the time of any request for information – it is not deducted from your accounts.

In addition, if your super is split under a Family Law agreement or Court Order, fees will apply for the splitting of your super and the payment of an amount to your former spouse. These fees are normally shared evenly between you and your former spouse. The fees may be paid by you and your spouse by cheque, or otherwise will be deducted from the applicable benefits. The fees are:

Defined Benefit members

~ Establishment of an entitlement to your spouse: $165,

~ Payment of an amount to your spouse: $165.

Accumulation members

~ Establishment of a base amount and payment to your spouse: $165.

The Plan administrator receives a commission of 0.25% p.a. ($2.50 per $1,000) of the assets held in the Plan’s bank account. This fee is not negotiable and cannot be rebated.

For Defined Benefit members, your benefits are subject to a minimum benefit which is calculated in accordance with the Superannuation Guarantee legislation. The minimum benefit includes an allowance of 0.60% of salary to cover expenses and the cost of providing your death and disablement benefits. (This excludes ex-NEST members).

All fees include GST where applicable.

7.~Fee~changesSome of the fees are dependent on the fees charged by the Plan’s service providers. Some of these fees may be indexed annually (e.g. in line with increases in Average Weekly Ordinary Time Earnings); others depend on the services provided to the Plan each year. The Trustee reserves the right to increase the fees without your consent if necessary in order to manage the Plan. You will be given at least 30 days’ notice of any fee increases.

The fees shown are effective from 1 August 2013.

Details of the fees that applied to you for the year ending 31 March 2013 are shown on your Benefit Statement.

The fees charged may depend on your employment status or category of membership in the Plan. If you change categories, you will be advised of any changes to the fees that apply to you.

Further details of the fees and taxes paid by the Plan can be found in the Plan’s Financial Statements. A summary is included on the back cover of this Annual Report, or a copy can be obtained from the Plan administrator on 1800 127 953.

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How your plan is managedThe~TrusteeThe Trustee of the Plan is NSP Superannuation Pty Ltd (ABN 53 063 927 202). The sole purpose of this company is to be Trustee of the Plan.

The Trustee’s responsibilities are carried out by a Board of four directors. Half of the directors are appointed by the Plan's sponsoring companies and half are elected periodically by Plan members.

At 31 March 2013, the Trustee directors were:

Company-appointed Member-elected

Marcus Wappet Bob Hanley

Steve Hogan David Lloyd

There were no changes to the directors during the year.

indemnity~insuranceThe Trustee is currently covered by a Trustee Professional Indemnity insurance policy that protects the Plan’s assets from a legal liability to the extent allowed by law and the policy conditions.

advisers~to~the~PlanThe following organisations provide specialist services to the Trustee.

Consultant and actuary

Towers Watson Australia Pty Ltd

Administrator Towers Watson Australia Pty Ltd (outsourced to Link Super Pty Limited (ABN 68 146 993 660) a Corporate Authorised Representative (No. 401938) of Pacific Custodians Pty Limited (ABN 66 009 682 866, AFSL 295142))

Investment consultant

Towers Watson Australia Pty Ltd

Legal adviser Minter Ellison

Auditor Ernst & Young

Insurer AXA

leaving the planIf you leave your employer or choose another super fund, the Plan administrator will ask you how you want to receive your super benefit.

You can obtain an Exit Package which includes information on the options and steps you need to take when leaving and withdrawing your benefits from the Plan. For a copy of the Exit Package, please contact Julye Godwin, Payroll Officer at Nissan on (03) 9797 4262.

If your benefit is greater than $10,000, it will be held in the Plan’s Retained Benefits Division (RBD) where it will continue to be invested in your chosen investment option (or the default option if you have not made a selection), less any fees that apply (refer to the Plan’s RBD leaflet for more information). The investment returns, whether positive or negative, will apply to your account until the Plan administrator processes your completed payment/transfer instructions.

You have the choice to leave your benefit invested in the Plan’s RBD for as long as you like. You can transfer it out of the RBD at any time or have it paid to you in cash if you satisfy the Government’s preservation requirements.

In all instances it should be remembered that the insurance cover you had through the Plan whilst you were employed by Nissan ceases on the day you leave Nissan. It may be possible to continue your cover directly with the Plan’s insurer, AXA at your own expense without the need to provide evidence of good health. Please refer to the Exit Package for details on how you go about continuing your cover. Time limits apply, so please don't delay making a decision.

If your benefit is less than $10,000 and you do not give the Plan administrator instructions within 90 days of receiving details of your benefit, or if your chosen super plan does not accept your benefit, the Trustee may roll over your benefit to an Eligible Rollover Fund (ERF).

The Trustee has nominated:

The Administrator AMP Eligible Rollover Fund PO Box 300 Parramatta NSW 2124 Phone: 1300 158 587

If your benefit is transferred to the ERF, you will no longer be a member of, or have any rights under the Plan and you will need to contact the ERF directly in relation to your benefit.

You can also obtain a Product Disclosure Statement from the ERF using the contact details on the previous page.

You should note that the investment and crediting rate policy of the ERF may be different to those that applied in the Plan. In addition, the ERF does not offer any insurance cover. You should seek advice from a licensed financial adviser as to whether the ERF is a suitable investment vehicle for your purposes.

tHInGs You need to KnoW

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establishing proof of identityBefore you withdraw a benefit from the Plan, you may need to establish your identity by providing certified copies of certain documents. The Trustee may also need to obtain additional identification information and to verify your identity from time to time.

Withdrawals cannot be processed until you (or your nominated representatives) have supplied the required proof of identity to the Plan administrator. In some cases, the Trustee may have to disclose information about you to the Australian Transaction Reports and Analysis Centre (AUSTRAC), the regulator of this legislation. Due to the sensitive nature of the information, the Trustee is not permitted to inform you if this happens.

Complaints and dispute resolutionWe try to ensure that the Plan’s level of service meets your expectations. Sometimes however, problems may arise. When you first have an enquiry or complaint, you should contact the Plan administrator (see the inside front cover for contact details). Privacy-related enquiries should be directed to the Plan administrator.

The Trustee has a formal process for reviewing enquiries and complaints if you are not satisfied with the response you receive. To make a formal enquiry or complaint, please obtain an Enquiry or Complaint form from the Plan administrator or directly from the Trustee. The Trustee will respond to you within 90 days.

If you are not happy with the Trustee’s handling of your enquiry or complaint, you may then contact the Superannuation Complaints Tribunal. The Tribunal is an independent body set up by the Federal Government to deal with certain enquiries or complaints that the Trustee has not dealt with to your satisfaction. You can contact the Tribunal on 1300 884 114 or by email to [email protected].

There are some complaints that the Tribunal cannot consider, such as those relating to the management of the Plan as a whole. Time limits also apply to certain complaints relating to total and permanent disability claims and to complaints about objections to the payment of death benefits. If your complaint is in relation to one of these areas, please contact the Plan administrator or refer to the Tribunal’s website on www.sct.gov.au as soon as possible for further information.

For privacy-related matters, the Office of the Australian Information Commissioner (OAIC) may review your complaint. You can contact the OAIC on 1300 363 992.

looking for more information?Other information is available if you are interested. This includes information about your benefits such as your choices for contributions and investments. Refer to the booklets, Guide to your benefits (Defined Contribution Division – Section A) or Guide to your benefits (Defined Benefit Section) for more information. Members, former members and their dependants are also able to request copies of documents such as the Trust Deed, the actuarial review summary and audited accounts. For more information or to request a copy of these documents, contact the Plan administrator on 1800 127 953.

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Here is a summary of the Plan’s unaudited financial accounts for the year to 31 March 2013. The full audited financial accounts and auditor’s report are available on request from the Plan administrator on 1800 127 953.

Change in net assets during the year $Net assets at the beginning of the year 28,029,924

Plus income Contributions 1,480,698

Rollovers 37,434

Investment income and distributions 3,612,399

Interest 11,345

Other 34,970

Less outgoings Benefit payments 2,129,323

Insurance premiums 54,000

Tax due 431,998

Expenses and charges 237,242

Net assets at the end of the year 30,354,207

net assets at the end of the year 2012 2013$ $

Investments Schroder Investment Management Australia Ltd 4,185,964 4,542,494

Zurich Unhedged Global Thematic Shares 4,070,100 4,361,626

SSgA Broad Investment Grade Fixed Income Trust 3,921,366 4,628,567

SSgA Australian Fixed Income Index Trust 1,647,013 4,525,684

BT Global Return Fund 57,220 –

DB RREEF Global Property Securities Fund 2,719,337 1,177,977

Macquarie True Index Cash Fund 2,559,351 2,513,031

Macquarie Australian Pure Indexed Equities Fund 3,804,072 3,741,795

MFS Fully Hedged Global Equity Trust 4,146,965 4,467,917

Current assets Cash and equivalents 562,444 13,475

Deferred income tax asset 508,342 387,474

Other assets/receivables 50,891 219,545

Current liabilities Benefits payable – –

Taxation payable/Deferred income tax liability 110,466 108,205

Other 92,675 117,173

Net assets at the end of the year 28,029,924 30,354,207

Current assets include amounts in the Plan’s bank account. All contributions due at 31 March 2013 have now been paid to the Plan.

tHe plAn’s fInAnCIAl stAtements

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