VISIONARY

Win the latest iPad 2! Make a post-tax co-contribution to go into the draw

Fund performance for super and

pension plans

May 2011

Vision Super Newsletter

Income Protection:

Karen’s story

Choosing a pension that’s right for you

Have you nominated your super beneficiary?

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If you make a post-tax contribution before 30 June 2011 you could receive a matching contribution from the Government of up to $1,000 and be entered into our draw for the latest iPad 2. We have 2 on offer!

Sounds too good to be true? It’s called the Government co-contribution scheme and it’s real!

Co-contributions are special payments made by the government to super accounts of members whose total assessable income is less than $61,920 p.a. and who make personal contributions from their after-tax salary.

Receive up to 100% tax-free return on your investment!

What better way to increase your super nest egg than by getting the government to do it for you? The maximum co-contribution is $1,000. The maximum co-contribution decreases by 3.33 cents for every dollar of total income over $31,920 p.a., cutting out at $61,920 p.a.

Once you make a contribution, you don’t need to do anything. We’ll ����������� �����������������(ATO) about your contribution and they will do the rest once you submit your 2010/11 tax return.

If you’re eligible they will pay the co-contribution directly into your Vision Super account. You can make one big lump sum or several smaller contributions before the 30 June 2011 deadline.

If your contribution is processed on or after 1 July 2011 you will miss this year’s cut-off so the sooner you make a contribution the bestter. Avoid the end of year rush and make your contribution now! Everyone who makes a post-tax contribution before 30 June 2011 will go into the draw for the latest iPad 2. Everyone who has already made a post-tax contribution since 1 July 2010 will be automatically entered into the draw.

How much can you get?

Visit our website and click on the Co-contribution banner or call our Member Services team on (03) 9911 3222 (or 1300 300 820 for regional callers).

��� ����������������members who are making their compulsory 6% contribution post-tax may already qualify for a co-contribution and will qualify for the draw.

Our competition closes at 5:00pm on Thursday 30 June 2011. Names will be drawn on Thursday 21 July ���������� ������"�# ���������Level 5, 1 Spring Street, Melbourne at 9:30am.

&���� �'����*��������������results published on our website from 12 noon on Monday 25 July 2011.

Please note: Unfortunately due to lottery licence regulations this competition is only open to Victorian residents.

Have you ever wished for free money? What about a free iPad 2?

Is your income over $61,920 p.a.?

Even if you don’t qualify for a co-contribution you can still

boost your super. Check out our ���������������������������������out how much tax you can save.

Visit our homepage and click on Calculators.

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You’ve got email!Want your super information delivered straight to your in-box? Subscribe to our online super updates. Get important information delivered to your inbox, plus bonus tips on how to maxmise your super savings. Don’t miss out on competitions and giveaways sent exclusively via email.

Choose the online updates you want:

� Visionary newsletter – latest news on your super fund and the industry

��� Investment returns – Monthly investment returns for your super investment options

��� Growing your super – Never miss another savings opportunity with tips and case studies on how to grow your super

��� Retirement planning – Discover what you need to do to prepare for this important part of your life

��� Women and super – Super information tailored to women. Read stories from our staff and other members on how to reach your retirement goals

Some members query why we send out a paper newsletter. As your super provider we have an obligation to keep you informed on what is happening in the fund and the industry. The best way to get the most from your super is to stay up to date on what is happening with it. Sometimes we’re obligated by law to inform you of updates and we use the newsletter as the medium to do so. We try to do things in the most economical way, so although there are costs involved with sending this newsletter it only cost around $0.12c per member to produce. You can help us save money and help the environment by signing up to receive our newsletter via email, instead of receiving a printed copy in the post.

To subscribe visit: www.visionsuper.com.au/newsletter

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Fund Performance – Superannuation PlansSuperannuation Plans – returns shown are net of fees and tax.

RETURNS FOR THE PERIOD ENDING 31 MARCH 2011

OPTIONSRolling 12 months

net return (%)Financial year to date

net return (%)Quarter

net return (%)Month

net return (%)

Vision Premixed Options

Conservative 6.27 6.23 1.58 0.24

������� 7.09 8.49 1.90 0.18

��������+��'� 7.54 9.84 2.67 0.57

Growth 6.72 11.12 2.23 0.11

Just Shares 5.45 13.62 2.31 0.07

Vision Premixed Sustainable Options

Conservative* 5.66 5.78 1.52 0.26

�������; 3.29 5.15 1.63 0.07

��������+��'�; 4.91 8.20 2.04 0.19

Growth* 3.92 8.90 1.82 -0.01

Just Shares* 1.14 9.84 1.62 -0.13

Vision Single Sector Options

Cash 5.00 3.73 1.30 0.50

��<� �������� 4.95 2.81 1.18 0.47

Property* 9.47 8.36 2.60 0.92

Australian Equities 4.81 15.93 2.75 0.70

International Equities 6.87 11.46 2.08 -0.46

Alternative Assets* 19.76 14.13 4.86 1.13

* Please note that these options are now closed to new investors.

Investors should be aware that returns may go up and down, so past returns are no guarantee of future performance.

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RETURNS FOR THE PERIOD ENDING 31 MARCH 2011

OPTIONSRolling 12 months

net return (%)Financial year to

date net return (%)Quarter

net return (%)Month

net return (%)

Vision Premixed Options

Conservative 7.35 7.18 1.88 0.37

������� 8.16 9.67 2.28 0.35

��������+��'� 8.55 11.11 3.12 0.79

Growth 8.05 12.86 2.75 0.40

Just Shares 7.24 16.12 2.93 0.41

Vision Premixed Sustainable Options

Conservative* 6.59 6.58 1.82 0.28

�������; 6.07 8.24 1.99 0.22

��������+��'�; 5.78 9.40 2.38 0.30

Growth* 4.90 10.54 2.31 0.18

Just Shares* 2.05 12.08 2.01 0.02

Vision Single Sector Options

Cash 5.90 4.41 1.43 0.49

��<� �������� 6.08 3.37 1.44 0.61

Property* 10.59 8.81 2.64 0.83

Australian Equities 5.97 18.42 3.49 1.21

International Equities 8.10 13.19 2.31 -0.53

Alternative Assets* 21.99 15.96 5.74 1.72

* Please note that these options are now closed to new investors.

Investors should be aware that returns may go up and down, so past returns are no guarantee of future performance.

Fund Performance – Pension PlansPension Plans are untaxed, returns shown are net of fees.

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Combining super with Centrelink

A comfortable retirement can be more achievable than you think if you factor in the Age Pension. Centrelink administers the Age Pension, and middle-income earners may qualify for partial pension payments in retirement. The graph on the next page shows a comparison of how much the Age Pension a couple could qualify for, based on having no other income from other sources, and different super balances. These estimates are based on drawing an income from age 65.

A comfortable retirement may be easier than you think

When starting to plan for retirement, it can be frustrating when trying to work out how much money you need to retire. The issue is compounded by moving goalposts, different recommended retirement amounts, or goals that seem too out of reach.

How much you need in retirement is as unique to you as your habits. It’s impossible to pin down a one-size-�� =�����>�����*��� ��'�>���money you need in retirement depends on the expenditures you have, and the kind of lifestyle you want to support.

How much retirement income do I need?

The Westpac-ASFA Retirement Standard for Victoria estimates the super retirement lump sum needed to generate different levels of yearly income. A single person retiring at age 55 needs a lump sum of $667,000 to generate a yearly income of $39,159. The lump sum required reduces by $127,000 if the person retires at 65. This makes a strong case for putting off retirement and extending your time in the working world. A rule of thumb is that you should look at having 60% and 70% of your pre-retirement income as your retirement income.

Yearly income

required ($p.a.)

Lump sum required at age

55 60 65

Single modest living $20,981 $357,500 $323,000 $289,000

Single comfortable living $39,159 $667,000 $604,000 $540,000

Couple modest living $30,399 $518,000 $467,000 $420,000

Couple comfortable living $53,565 $912,500 $823,000 $738,000

Source: Westpac – ASFA Retirement Standard Victoria March quarter 2010 & Vision Super

Assumes retirement with no mortgage payments, 7% return reinvested, 3% CPI. Calculations do not take into account any tax payable. Calculations based on female life expectancy, couple calculations assume couple are the same age.

Westpac-ASFA Retirement Standard (Victoria)

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If a couple had no other income or assets, the Age Pension would provide them with $28,069 a year ($539.79 per week). If they had a $200,000 super balance, they would qualify for around $28,069 Age Pension, and could draw $12,000 from an Allocated Pension and to have a total income of $40,069 p.a.

The larger your super balance, the smaller the Age Pension amount you receive. However the combination of super and Age Pension is crucial in providing you a modest to comfortable lifestyle. As your super balance decreases over time, the amount of Age �� �����������<������ ��������in a good proportion of the gap.

What this means is:

Retirement doesn’t have to be a daunting goal you fear you may never achieve. If you qualify for a full or part Age Pension, you may not need as large a super retirement lump sum to achieve a modest to comfortable income in retirement.

How do I know if I qualify for ��������������� �

“When planning for retirement, professional advice can help you maximise your super position to help you qualify for Centrelink *��� BK� �� ��� ������"��Retirement Planning Services Manager, Debra Morrow.

X�� ������"�����������"����� �offer professional advice to help our members take advantage of the complex rules and regulations that govern super to get the best � ���������>ZK�

If you are aged 55 and over, Vision Super offers retirement planning advice in relation to your Vision Super account at no extra cost. This professional advice could make the difference in helping you achieve the level of retirement income you want and need.

To get the advantage of professional advice, contact our Member Services team on (03) 9911 3222 (for regional callers 1300 300 820).

Age Pension & Super$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0No Super – Pension only

$200K Super balance

$300K Super balance

$400K Super balance

$500K Super balance

$600K Super balance

$28,069 $28,069$26,431

$22,531$18,631

$14,731

$40,069

$44,431$46,531

$48,631$50,731

Age Pension Allocated Pension

$12,000 $18,000 $24,000 $30,000 $36,000C

om

bin

ed

inco

me

Retirement balance

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Income Protection – Karen’s story

The morning after a heavy hailstorm, Vision Super staff member Karen Olesen was checking on the chooks at her parents’ hobby farm in Yarram, when without warning she slipped and fell on a muddy concrete path.

For the next 6 weeks, Karen was unable to do anything other than lie on her left side. It took 6 more months, a battery of tests and numerous hospital visits for doctors to discover that she had torn the >� �� ��������\���\�����<�places.

The hidden cost of waiting

“After 60 days I’d used up all my annual and sick leave. I also needed to pay rent and bills. I hadn’t applied for social security because I didn’t think my injury '� ����� ���� Z��������>����became two, and two became three, and my leg wasn’t healing ]���^������\ZK

As a Vision Super Saver member, Karen had automatic Income Protection cover with a waiting period of 90 days.

_��'� �����������������\����wait out the 90 day period, but eventually she was able to lodge ��*��������>Z�X_�'� ����^��because I could stay with my parents, friends looked after me ����_���� �>� �<��\ Z�����_#��see my bank balance go down and think to myself, how am I going to pay for the next doctor’s *���`�_#�������������>>���people think about changing their waiting period to 60 or 30 ��� ZK�

Freedom to be independent

After 9 months, Karen resumed working two days a week, gradually increasing to 3 and then 4 days. While she eased back into work, she also received partial *����"��>�� Z�

Today Karen still needs her walking stick to get around, and has many more hours of physiotherapy ahead of her. ���� � ������� ���������Z

“With income protection, I can take a cab if I need to. I’m not as fully reliant on people to take me places; I can still have my independence and do things on >���'�ZK

“Something as simple as slipping on a path I’ve walked hundreds of times…I’m lucky I had income protection from the start, but I didn’t think I’d ever have to use ��ZK

Is your income protected?

Unfortunate incidents are often completely unexpected; by the time the need arises, it is often too late to take out insurance cover.

Find out if your income is adequately protected. Contact our Member Services team on (03) 9911 3222 or 1300 300 820 for regional members.

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|�<�������>����������� �"��*�������`Jasmine was married to Tom and ����� ��B�}�����B����>����� ��marriage. She wanted to leave all of her super to Julian. However when Jasmine died suddenly, her super fund Trustee distributed �� �"������*����]������between Tom and Julian. Even though Jasmine’s will stated that she wanted 100% of her super to be given to Julian, he was unable to reverse the Trustee’s decision.

Why did the Trustee choose to split the payment?As Jasmine hadn’t nominated any *������� �����\��� �"��fund, the Trustee had to decide '�����"�����*������Z�_��making its decision, the Trustee takes into account the member’s wishes, however the Trustee has a legal responsibility to pay the ����*���������"� ������persons most entitled to it (in this case the deceased’s husband and son). The Trustee makes this decision taking into account the alternatives allowed by legislation and the Trust Deed and must pay ��*����'������� �������\���guidelines, even if the decision it makes is an unpopular one.Super fund Trustees are not legally obligated to follow the instructions in a person’s will, and can distribute �� �"������*���������person’s dependents and/or legal personal representative at their discretion. The only way to control who receives your super when you ���� ����>�^���������\�����

�������>�������Z�

How do I control who receives my super?��^���������\����������Nomination. This allows you to instruct the Trustee how you want your super to be distributed to your dependents and/or legal personal representative. The Trustee is legally obligated to honour a valid ������\������������>�������Z

Can I nominate anyone to ���������������������Nomination?��������\����������Nomination only binds the Trustee if you nominate your dependent(s) and/or legal personal representative. These include: your spouse, children, and any other person with whom you have an interdependency relationship.

Is there an expiry date on ��������������������Nomination?

������\������������>������� �are only valid for three years. If you die without renewing your binding nomination, it will be invalid and ���������*����'�����<������being at the Trustee’s discretion.

����� �� �������������������������*���������� ���money in your super account at the time you die plus any �� ������*���B���������������cover as part of your super fund >>*� �"Z��� �*����� �����taxed, subject to certain conditions,

���"��������"�����*������� Z

Avoid being slugged with tax����� �"������*����� ����=free if paid to your dependant(s) as a one-off lump sum. If paid as a pension, it may attract tax depending on the age of your dependent(s). Many people fall into a tax trap by assuming that their children are always dependants. Adult children above the age of 18 are not considered dependants for tax purposes. If your adult child cannot prove they were dependent �����������������B����������interdependent relationship with you, the super payout will be subject to tax. Talk matters over with people who may need to "��<���������������"�����on you. It can help to give them � ����� ������<�������������records or written agreements about the support you were giving them, in case they need to prove their claim. Taxation of ����*��� �����*�����>"���issue, and we strongly recommend you seek advice from a licensed taxation adviser.

For more information or assistance, please call our friendly Member Services team on (03) 9911 3222

(for regional callers 1300 300 820) or email us.

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Retirement planning is vital if you do not want to face drastic lifestyle ���\ �'��������� �'��^��\Z��� ��� �������� ���������*��way to manage your investments, and are designed to provide a tax-effective income stream during retirement. �� ����������� �<�� ���>"��� ������"� ����"������ Z�����'��^��\�out which pension to choose can be a challenge.

Tips for comparing pension products1. Investment returns from

superannuation are very important but performance alone should not be the only factor you look at when ��� �����\���"� ���Z��������mind that past performance is no guarantee of future returns.

2. Understand what fees you will be paying for the advice you are getting. Some planners charge ongoing fees in commissions while others charge

���������Z��� ������"���� �not charge members any fees to ���<������������"���Z

3. Understand what other fees you’ll pay. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce the amount of money you have left for your pension payments.

The comparison below shows how pension plans can differ in fees and investments.

Choosing a pension – work out which one is best for you

Our 0.35% administration fee is one of the most competitive in the super pension industry. It’s also capped so no matter how much you have in super, you never pay more than $1,050 p.a* in administration fees. The right pension provides peace of mind, so take the time to choose a product that you are comfortable with. It’s always ��\��������������������������� ��� �������>�����������B�"����\������������������"����Z�����>���information about Vision Super’s Allocated Pension, contact our Member Services team on (03) 9911 3222 or 1300 300 820 for regional callers. *That is when your account balance reaches $300,000 or over. � �>"���� ����� ����_�< �>����"���������������+��'�Z������������_�< �>����"������������������������������� ����>�����]������������� Retail fund upfront fee option exercised. Assumes no upfront or deferred cost to Retail fund.

PENSION PLAN COMPARISON TABLE

ACCOUNT BALANCE $300,000.00

Vision Allocated Pension Typical Retail Pension

Rate $ Amount Rate $ Amount

Administration Fee (per annum) 0.35% $1,050.00 0% $0.00

Investment Management Cost (per annum) 0.55% $1,650.00 1.54% $4,620.00

Other Investment Cost (per annum) 0.35% $1,050.00 0.31% $930.00

Income Payment Fee (per payment) Nil $0.00 $4.25 $51.00

Total fees $3,750.00 $5,601.00

Dollar difference +$1,851.00

Gross fee as % 1.250% 1.867%

11

CONCESSIONAL CONTRIBUTIONS:

For members aged under 50 in the 2010/2011 and 2011/2012 ������������ B������������>������concessional super contributions (also known as before-tax contributions) per person per year is set at $25,000, (indexed in future years). Concessional contributions include your employer Super Guarantee (SG) contributions, ������ �������������*����� �and any personal (deductible) contributions made into your account. There are serious tax implications for anyone exceeding the limit, for example by salary ��������\�����>��Z�

For members aged over 50, a transitional limit of $50,000 (not indexed) per person per year, applies until 30 June 2012. If you are turning 50 leading up to 30 June 2012, you will be able to take advantage of the increased transition limit from the time you turn 50. The Federal Government has proposed to retain this higher $50,000 limit only for people aged 50 or over, with total super balances below $500,000 from 1 July 2012. Vision Super will continue to monitor this proposed change.

Excess concessional contributions tax of 31.5% is payable for exceeding the cap. This is in

addition to the 15% contribution tax, which brings your tax liability on the contributions to 46.5% (the top marginal rate). So, it’s worth checking that your total concessional contributions made �������������������*��'���limits noted.NON-CONCESSIONAL CONTRIBUTIONS:

For the 2010/2011 and 2011/2012 ������������ ����������limit on non-concessional super contributions (also know as after-tax contributions), per person per year is set at $150,000. This limit is calculated at 6 times the under age 50 concessional contribution limit. Excess non-concessional contributions are taxed at 46.5%.

It is possible to boost your non-concessional contributions for a particular year by taking

advantage of the ‘bring forward’ rules.

Individuals under age 65 can bring forward 2 years’ worth of non-concessional contributions for a $450,000 limit to apply over 3 years. See the table below for examples of how to bring forward non-concessional contributions.

You can check your account online via the member secure site available through www.visionsuper.com.au.

Want to access your account online? Download our Web Access Form 50 or call us on 03 9911 3222 (1300 300 820 for regional callers) for more information.

Important information about contribution limits

Non-concessional contribution limit examples

2010-11 2011-12 2012-13 2013-14

X����\����'���K���>"��� $150,000 $450,000 $0 $0

X����\����'���K���>"��� $100,000 $200,000 $250,000* $0

Note: Concessional (before-tax) contributions in excess of the age-based limit will also count towards your non-concessional limit. To the extent your contributions exceed both the ���� �������������=���� ������������*��������" ������������������B����� ��>�����������end up being taxed at an overall rate of 93% (ie: 15% + 31.5% for the concessional contributions and 46.5% for the non-concessional contributions). The Government co-contribution does not count toward your non-concessional (after-tax) contribution limit.

The ‘bring forward’ option is only available for those under the age of 65.

*$250,000 is the maximum non-concessional contribution in 2012/2013 as the ‘bring forward’ rule was triggered in 2011/2012, meaning a maximum of $450,000 applies in the 2011/2012 and the following two years.

The information in this newsletter was current at the time of publication. Vision Super (ABN 50 082 924 561 AFSL 225 054) believes the editorial content is correct and not misleading but we give no warranty in relation to it. Save for any statutory liability, we disclaim all liability for any loss or damage that may arise from anyone acting on the content. All services and products detailed in this newsletter are subject to Australian laws that may change from time to time. This information is not intended to act as financial advice. Remember, your circumstances and financial needs are unique. Before acting on the basis of anything contained in this document, you should consider whether it is appropriate to your needs and circumstances. You should obtain and read the relevant Product Disclosure Statement before acquiring any financial product. We suggest you seek professional advice to make the best choice for your circumstances.

Do you want to get the most from your super but don’t have the time to >��'��������������"�����`�����������^������]� ���� ����#���>"�������enough to warrant getting personal advice?

We’ve just extended the range of services that our Member Services team can offer, so we can now give you quick and easy limited personal advice over the phone. Simply call our Member Services team on (03) 9911 3222 or 1300 300 820 for regional callers to get advice on these popular topics:

�� X��=�������"� �=����������*����� �'��� �����_���� `K

�� X���_�]�������������+�<��>�����=������*�����`K

�� X|�'�>����� ���������_���`K

�� Assistance with helping you choose an investment option

Personal advice you can trust

�����>*����<�� ���>�� �]����������"��<�������\�����������>����personal advice about your Vision Super account. We provide simple and clear advice delivered to you at no additional charge. We’ll even send you all the information you need to get started.

Not sure what to ask? Give us a call and we’ll make sure your super’s working its hardest for you. Contact our Member Services team or send us an email to: memberservices@visionsuper.com.au to get started.

Getting super advice just got easier

Research* has shown that individuals who have professional advice tend to have:

�� ���������������� ^�����\���<� ��������������< �>�� B

�� ��*����>����*�'������ �"����< �>��������� ^�"����B

�� ����������� ��"��������\����� �<��\ Z

It’s your money, make sure you get the most from it.

Disclaimer: Please note the general and personal advice provided is limited to your Vision Super account.

*‘Value Proposition of Financial Advisory Networks’, KPMG EconTECH, 29 October 2009.