Super news

Message from CEO Justin Hoare

2022-23 Bendigo Super Year in Review

During the 2022-23 financial year we welcomed 1,969 new members. With more than $1.45 billion in funds under administration, we continue to help members with their retirement goals.

From assisting over 1,864 members make voluntary contributions to build their retirement savings, to releasing payments to over 2,419 members so they can enjoy their hard-earned retirement, along with everything in between.

Important update about The Bendigo Superannuation Plan

You would have recently received communication from us about an important update about The Bendigo Superannuation Plan.

On 27 September 2023, Bendigo and Adelaide Bank (Bendigo Bank) announced it had signed an agreement to sell Bendigo Superannuation Pty Ltd (Bendigo Super) to Betashares Australia Holdings Pty Ltd (Betashares), subject to certain conditions and regulatory approval.

This decision was a result of an extensive review by Bendigo Bank that considered whether Bendigo Super can continue to be sustainable and cost effective into the future, as well as to align with Bendigo Bank’s strategic focus.

Our focus remains the same

It’s important to note that upon completion of the sale, while the ownership of Bendigo Super will change from Bendigo Bank to Betashares, the trustee and management team of Bendigo Super is expected to remain the same.

In the midst of change, our focus remains strongly positioned on improving our member outcomes. SuperRatings continues to rate Bendigo SmartStart Super as one of Australia’s lowest fee funds¹. Flexible life insurance options also continue to be offered via TAL Life Limited - along with our range of diversified investment options, including a socially responsible and cash fund.

Message from CIO Thadeus McCrindle

Market & Economic Outlook

We have seen stronger economic performance through the first half of 2023 than in 2022. The Australian economy was growing at 2.1% p.a. according to the June 2023 release from the Australian Bureau of Statistics, which led stronger returns for growth assets. The ASX200 rose 14.8% during the 2022-23 financial year, and over the same period the Bendigo Growth Index Fund, our most popular investment option, generated returns of 8.74%².

The Reserve Bank of Australia has also aggressively raised interest rates during the last financial year. While inflation has begun to recede from high levels, as a result of the higher interest rates, risks of it rising again remain.

My Investment team’s outlook expects a slowdown in economic growth and company profitability, as well as higher inflation. If these expectations prove correct, they may be quickly followed by a period of stronger economic growth and asset class returns.

The team are somewhat cautious and have a modestly defensive asset allocation position. Underweights to Government bonds and Australian shares are balanced with overweights to inflation linked bonds, alternatives and listed infrastructure. Through much of the 2022-23 financial year, we were more defensively positioned, which resulted in lower returns than some of the broad benchmarks. Pleasingly, we’re still well on track to meeting our long-term investment return objectives for most of our Bendigo Super investment options. I’ve always maintained that the best time to underperform is when there are robust total returns for most markets.

The team continue to actively monitor and respond to current market conditions, and plans to change its positioning, with the objective of adding to returns and reducing risk through time, for all investment options. Doing so will allow us to seek other investment opportunities and continually test our approach as markets and the economy change.

Join us online for our next update.

Our Annual Members’ Meeting will be held in February 2024, where you have the opportunity to hear from us in a live online forum. All Bendigo Super members will receive an invite later in the year, so don’t forget to register your attendance. We look forward to giving you a further update then.

On 27 September 2023, Bendigo and Adelaide Bank ABN 11 068 049 178 AFSL 237879 announced it had signed an agreement to sell Bendigo Superannuation Pty Ltd ABN 23 644 620 128 AFSL 534006 (Bendigo Super) to Betashares Australia Holdings Pty Ltd, subject to certain conditions and regulatory approval.

Bendigo Super is the trustee for The Bendigo Superannuation Plan, which incorporates the following products:

• Bendigo SmartStart Super (Personal division);
• Bendigo SmartStart Super (Employer division); and
• Bendigo SmartStart Pension

We've prepared some Frequently Asked Questions to help our members understand more about the sale and what it means for them.

Staying up to date with what is going on in the world, and how it can affect your superannuation is important. That’s why we want to keep you informed with recent updates, and how they may impact your retirement savings.

Treasurer Jim Chalmers handed down the 2023-24 Australian Federal Budget, including updates to key economic forecasts, on Tuesday, 9 May 2023. Below is a summary of key announcements directly relating to superannuation:

• Aligning the payment of super and wages for all employees
  From 1 July 2026, employers will be required to pay their employees' super at the same time they pay their wages. This will enable employees to track their entitlements to ensure they are being paid on time and in full.
• Improving the equity and sustainability of the superannuation system
  From 1 July 2025, earnings on balances exceeding $3 million will attract an increased concessional tax rate of 30 per cent. Earnings on balances below $3 million will continue to be taxed at the concessional rate of 15 per cent.
• End of reduced minimum pension drawdown rate
  From 1 July 2023, the temporary halving of the minimum account-based pension drawdown rates will lapse, reverting to pre-COVID levels.
  The minimum drawdown percentages were reduced by 50% in the 2020 Budget to allow retirees to better manage their affairs in light of the COVID-19 pandemic. However, the normalisation of financial conditions since has negated the need for this relief measure to continue.

To view the Budget in detail, visit budget.gov.au.

Changes that may affect you and your super

Following the Federal election in May, the 2022-23 Federal Budget was delivered on Tuesday, 25 October 2022. Key announcements specific to superannuation, included:

• Maintaining the temporary 50% reduction in the minimum required drawdown rates for retirees with account-based pensions for the remainder of the 2022-23 financial year.
• Reduction of the minimum eligibility age for downsizer superannuation contributions from age 60 to 55. This measure is currently before Parliament and, if passed, it will take effect at the beginning of the first quarter following Royal Assent.

There were many other initiatives discussed within the budget. These include changes to Centrelink thresholds and benefits, funding for aged care, and cost of living relief, just to name a few. You can review the budget in detail at budget.gov.au

Join chief executive officer Justin Hoare and chief investment officer Thad McCrindle to reflect on the 2021/22 financial year.

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Bendigo Super 2021/22 Year in Review

The Australian federal government has recently announced an extension of the temporary reduction in superannuation drawdown rates for a further year, until 30 June 2023. 

The Trustee and issuer of Bendigo SmartStart Super and Bendigo SmartStart Pension is changing from Sandhurst Trustees Limited to Bendigo Superannuation Pty Ltd (Bendigo Super) as of 1 May 2022. 

Bendigo Super is a newly established subsidiary company of Bendigo and Adelaide Bank Limited. It has been established with the purpose of being the Trustee of the Bendigo Superannuation Plan (BSP) and looking after the interests of the BSP and its beneficiaries. Bendigo Super has been issued all relevant licences and authorisations by the regulators to operate as a Superannuation trustee.

There will be no change to the products or operation of members’ accounts and no action is required from members. However, as a result of this change, the product disclosure statement (PDS), letters and forms, including the direct debit form, will be updated to reflect the new trustee details.

Existing members of the BSP were notified of the upcoming change to the Trustee, please see a copy of the Significant Event Notice that was mailed to members here. Bendigo Super will follow any instructions members have given to Sandhurst, including continuing to process any direct debits from their superannuation or pension accounts, without interruption.

Please see the new leadership team including Board members and executive here.

The annual Member Outcomes Assessment for FY 2020-21 is now complete. A summary of the results is now available.

The Federal Budget 2021/22 was announced on Tuesday, 11 May 2021. We’ve outlined some key announcements that may affect you and your retirement savings. Read the full update here. 

The annual Member Outcomes Assessment for FY 2019-20 is now complete. A summary of the results is now available.

Superannuation

In April 2020, the Australian Government provided a stimulus package in response to the COVID-19 pandemic. Measures included income support for individuals, additional payments to support households and temporary limited access to your superannuation fund.  Applications for access to your superannuation closed on 31 December 2020.  For the latest information, please go to www.treasury.gov.au/coronavirus/households for further information.