This is an extract of our Investment Trusts document, which we sell as part of our Trusts Notes collection written by the top tier of Griffith University students.
The following is a more accessble plain text extract of the PDF sample above, taken from our Trusts Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
TRUSTS | PAGE 53 INVESTMENT TRUSTS
* Superannuation is a way of saving money for retirement * Superannuation is compulsory * Superannuation funds are managed by trustees and they must ensure the
money is invested with care * Trustees must act honestly and prudently, and make decisions in the best
interests of all members
* Three government agencies regulate and enforce legal standards:
o ASIC (Australian Securities and Investments Commission)
SS? Regulates what information funds give members and how
they abide by company law * Corporations Act 2001
o APRA (Australian Prudential Regulation Authority)
SS? Regulates how funds operate (not self--managed funds)
SS? Superannuation Supervision Act 1993
o ATO (Australian Taxation Office)
SS? Regulates self--managed funds, employer contributions, co--
contributions and superannuation tax rules
Significance of Superannuation
* Why super is important?
o How serious is population ageing?
SS? #of retires living longer
SS? # of workers supporting future retirees
SS? Labour force
SS? Pressure on government * Superannuation is desirable:
o Save money
o Save on taxation of savings
o Makes Australian shares a great investment * But there are alternatives to super:
SS? More people pay tax
o Increased labour productivity
SS? Rich economy to pay retirementincomes
o Taxation incentives
TRUSTS | PAGE 54
Buy the full version of these notes or essay plans and more in our Trusts Notes.