This Significant EventNotice is to advise you of an important change to the Trustee’s capitalarrangements, required in response to legislative changes governingsuperannuation funds.
BUSS (Queensland) Pty Ltd, Trustee of the BUSSQ Fund, has made the decision toprovide the trustee company with capital to ensure the Trustee’s ongoingcapital adequacy, by charging a fee that will be paid from the Fund’s GeneralReserve to a new Trustee Capital Reserve. The fee is to be called the TrusteeService Fee.
The fee will not be deducted from your member account.
Why we made this change
With effect from 1 January 2022, changes to superannuation legislation meanthat if a penalty is imposed on a superannuation trustee, the trustee is notallowed to pay the penalty from the superannuation fund’s assets. Thesesuperannuation law changes apply to all superannuation trustees.
If the Trustee incurs a penalty and does not have access to capital to pay thepenalty, there is a risk of the Trustee becoming insolvent and/or losing itsRegistrable Superannuation Entity licence. To address the superannuation lawchanges, the Trustee will add capital to the Trustee company.
What does the change mean for you?
The fee will not be deducted from your member account.
The Trustee Service Fee, will be 0.0082% p.a. of the Fund’s net assets and willbe charged for the financial years ending 30 June 2022 and 2023. This fee willbe paid from the General Reserve and held in the Trustee Capital Reserve.
The Trustee Capital Reserve will be used to maintain the Trustee’s solvency.The Trustee will monitor the Trustee Capital Reserve on an ongoing basis andassess its target Trustee Capital Reserve amount at least annually. Any excessabove the amount that the Trustee determines is required to be held in theTrustee Capital Reserve will be returned to the General Reserve.
The Fund’s Annual Report to members will include the amount of the TrusteeService Fee transferred from the Fund’s General Reserve to the Trustee CapitalReserve in the year, the Trustee Capital Reserve’s balance, and details of anypayments from the Trustee Capital Reserve
