The Canberra Business Podcast
A podcast about all things Canberra Business.
The Canberra Business Podcast
All you need to know about super – and choosing a default scheme for your employees
In this episode, Greg Harford talks to Clarke Smith from CareSuper about his role, how CareSuper engages with businesses to help them support their employees, why employers need to offer a default super scheme for their teams, and upcoming changes to superannuation rules, including PayDay Super, coming in from next year.
Note: the information discussed in this podcast is general information only and doesn’t take into account your objectives, financial situations or needs. Before making a decision about CareSuper, you should consider if this information is right for you. Consider the PDS and TMD at caresuper.com.au.
Issued by CareSuper Pty Ltd (Trustee) (ABN 14 008 650628, AFSL 238718. CareSuper (Fund) (ABN 74 559 365 913). Any advice is provided by CareSuper Advice Pty Ltd (ABN 78 102 167 877, AFSL 284443).
Past performance isn’t a reliable indicator of future performance. The value of investments can rise or fall, and investment returns can be positive or negative.
Hello and welcome to the Canberra Business Podcast. I'm Greg Harford, your host from the Canberra Business Chamber, and today I'm talking about superannuation with Clark Smith, the Manager of Employer Growth for CareSuper. Clark, welcome to the podcast. Thanks, greg. It's good to be part of the show Now. Look, it's great having you here, but I know at the beginning we do, because we're talking about superannuation. We do just need to cover off a bit of a disclaimer. So this information on the podcast here today is general information only right and doesn't take into account the objectives, financial situations or needs of individuals. So if you are listening to this podcast, before making a decision about superannuation or CareSuper, you should consider if the information is right for you, and you can read the PDS and TMD at caresupercomau. But, clark, tell us a little bit to begin about yourself and your role at CareSuper.
Speaker 2:Fantastic Thanks, greg. Yeah, look, I've been at CareSuper for over 15 years now with a variety of different roles, so I've really seen CareSuper grow from a relatively modest super fund to what it is today. So currently I now manage a team of employee growth here at CareSuper, and what that means is I oversee a national team of employee development managers who look to transition new employers or businesses using CareSuper as their default super fund. So look, greg, I really enjoy working alongside my team to develop strong relationships with our employer network and ensuring they're navigating the superannuation landscape smoothly. So look, they're navigating the superannuation landscape smoothly. So, look, we are the super experts and we're on hand for any education needs, as well as supporting the employer's staff with a customised financial wellness programme.
Speaker 1:Now every employer needs to have a default super scheme. So you're a good person for people to know. Tell us a little bit more about what's going on at CareSuper. Caresuper has been a supporter of the Canberra Business Chamber for quite a long time, but I know that it merged with SpiritSuper back in late 2024. So what does CareSuper look like today?
Speaker 2:Yeah, look, we pursue this merger with SpiritSuper because we believe that together we're stronger for our members over the longer term. So this merger was have. We've increased in scale, which has also helped create efficiencies, and now more capable of innovating to meet our members needs today and in the future. So today we have more than 570,000 members and 57 billion in funds under management and, as you probably noticed, we've also retained the CareSuper name. So for many of our members and employers, you won't have noticed much change at all. We're still a leading not-for-profit super fund, which is great, and for those familiar with CareSuper and something that is new, that we now have an in-house administration model which is already paying dividends, as we're rated as the best super fund for customer experience by Customer Benchmarking Australia, and this award is in thanks to part of our contact centre in Hobart and in Melbourne.
Speaker 1:So, Clark, it's great that you've got your teams here in Hobart and Melbourne to look after customers, but you've also got people on the ground here in Canberra, right, we do, which is great. Yes, that's right. And obviously same name, but Swish New Logo coming into the market with the merger. But what differentiates CareSuper from other funds in the market today? Sure.
Speaker 2:Look, greg, pardon the pun, but look, we really do care. It's in our name and it's in every interaction we have with our members and employer partners. So we've got an experienced employer relationship team dedicated to supporting employers and their staff with all super related inquiries, and this is something not all funds can offer. And, as I mentioned previously, our award-winning in-house administration model is really a key differentiator for CareSoper when you call us, your call is answered by a real person here in Australia without any long waits or any hold music wherever possible. We're also a top-ten fund for long-term investment performance, and that's thanks to our unique active investment strategy that aims to smooth the ups and downs of investment market volatility. And, greg, as you expect from a leading not-for-profit fund, our fees are competitive and transparent.
Speaker 1:So, apart from competitive and transparent fees, what are some of the additional benefits that Care Super members can take advantage of? Sure?
Speaker 2:Look, greg, I'll probably start off with a stat that I did here recently, and that's approximately 2.5 million Australians are expected to retire over the next 10 years, so education advice should be accessible to all Australians. So at CareSuper, we help empower our members through workplace financial education, seminars and online tools and education. Importantly, our members can access expert advice about their super account as part of their membership. We also offer comprehensive and complex advice for a fee. We also offer wellbeing services through our MetLife 360 health program, which provides members with virtual access to professional health and medical services at no extra cost. No-transcript.
Speaker 1:Now investment superannuation ultimately is all about getting a good return on investments. Can you tell me a bit about CareSuper's investment strategy?
Speaker 2:Sure. So at CareSuper, we use an actively managed and long-term investment strategy. So what this means is we're always seeking the best investment opportunities in Australia and overseas to increase returns over the longer term. Opportunities in Australia and overseas to increase returns over the longer term. So, greg, rather than passively investing our member super and replicating an index you know, like the ASX 300, our investment managers search for and select every investment. So taking care to select what we do and don't invest in has resolved in stronger long-term returns for our members. And this also reduces the risk for our members and smooths out the typical highs and lows of markets. Protecting against downside rifts gives our members confidence that their savings are in safe hands, and that's during good times and uncertain times, and that's like we've experienced over the last couple of months in the markets.
Speaker 1:What about ethics? How does CareSuper?
Speaker 2:approach. Responsible investing, yeah, Greg, look. We believe incorporating environmental, social and governments which is ESG considerations into investment decision-making can help better manage risk and can contribute to stronger investment returns in certain circumstances for our members. So, look, we also believe that stewardship, you know, which involves company engagement, voting and policy advocacy, can assist with the careful and responsible management of our members' capital.
Speaker 1:Now, many of the people listening to this podcast today will be small business owners, or business owners and employers. What should they be considering when they consider choosing a super fund?
Speaker 2:Sure, Look, to start at the beginning, I think it's good to explain what a default super is and why they're important. So look, it is a legal requirement for businesses to nominate a default super is and why they're important. So look, it is a legal requirement for businesses to nominate a default super fund. So default super funds are employer nominated super funds that you pay your employees super into if they haven't chosen a fund and they don't have a stapled fund and we'll talk about stapled funds in a moment.
Speaker 2:So there are several rules you need to consider when choosing a default fund. Number one is the fund must be a complying fund that meets specific requirements and obligations under super law. So I can confirm that CareSuper meets these requirements and is a fund of choice for employees across a broad range of industries. Number two, the fund must be registered by APRA, which is the Australian Prudential Regulation Authority, and it must offer a MySuper product, and MySuper products are cost-effective superannuation products with a basic set of features. Number three, employers should check their modern award or enterprise agreement for any extra rules about default funds. But look, most awards set out a list of super funds from which an employer is required to nominate a default fund.
Speaker 1:Now, Clark, you mentioned stapled funds a moment ago. Tell us a little bit more about that.
Speaker 2:Sure. So this was an initiative that was introduced a few years ago to reduce the likelihood of workers having multiple super accounts. So in the past, when people start a new job and they didn't provide their super account details, their new employer would simply open an account for them with their default super provider. Open an account for them with their default super provider. So with super stapling, an employee's stapled fund is an existing super account that is linked to them and automatically follows them to the new employer, unless they actively choose to switch to a different fund. So there's a lot of information on the ATO website about checking for a new employee's stapled fund and, of course, no-transcript.
Speaker 1:So if you're an employer, you have to have a default super fund. That's a legal requirement. Why should employers consider CareSuper as their default Sure?
Speaker 2:Look Greg. Superannuation guarantee is a big investment for many employers out there, so it's important to be able to get value from your default super provider. So at CareSuper, we offer a personalised service tailored to super requirements, to aid your employees with all questions. Super Look super can be complex and there are frequent changes to legislation, so CareSuper and my team keep employers and members informed of these changes and we're always happy to help. Our dedicated relationship managers, our education specialists, are available to support your staff with education about super finances and any questions they may have. We also offer wellbeing services, discounted health insurance, financial education and super advice from our in-house super experts at no extra cost and super advice from our in-house super experts at no extra cost.
Speaker 1:So tell us a little bit more about the workplace education services that you offer.
Speaker 2:Sure, our education specialists come out to your workplace and run sessions virtually for your teams about anything super. So we also have a customised induction program for new employees, but we can cover everything from the basics of what super is through to investing and retirement planning as well. We can tailor a series of seminars specifically for your workplace, and this can be virtually or in person, greg, the feedback that we've received from our employees who run these sessions is that they're a valuable resource and help to show that the employer's invested in their employer's financial wellbeing, which is critical during these times of high cost of living like we're experiencing today.
Speaker 1:And Clark, just to clarify the workplace education services that you offer to employers who have CareSuper as a default scheme. Are they available only to CareSuper members or to all employees of those default employers?
Speaker 2:Greg, they're available to all employers, so everyone can benefit from the education. Fantastic.
Speaker 1:Now, super is a regularly changing beast and there are some Super changes coming up, so tell us a little bit about what's happening in the world of Superannuation.
Speaker 2:Sure Look. As most employers will be aware, the superannuation guarantee rate will increase to 12% on the 1st of July this year, so all employers are ready for that. Also, from the 1st of July this year, the government will begin paying super on government paid parental leave, which is a big win for all new parents out there, and this will be managed by the ATO, so it's not a cost to employers. Payday super is also likely on many employers' minds. It is proposed that from the 1st of July 2026, employers will need to pay their employees super at the same time as their salary and wages. So since the Labor government was re-elected early this year, we expect payday super will go ahead. So, greg, we're having discussions with our employers now and supporting them through to implement payday super. So if you've got any questions, we're always happy to help.
Speaker 1:So, clark, thanks for that overview. If there's anyone out there listening to this who wants to learn more about Care Super, either for the business or for themselves, how can they get in contact?
Speaker 2:Sure, look. I encourage you to connect with me on LinkedIn. My details will be provided. Or you can visit our website on caresupercomau forward slash employers, or you can simply call the contact centre on 1800 005 166 and ask to speak with an employer relationship manager.
Speaker 1:Excellent. Thank you very much, clark Smith. Manager of Employer Growth for CareSuper. Thank you so much for joining us here today on the Canberra Business Podcast. Thanks for having me. Greg Really appreciate it. And just a reminder that this episode of the Canberra Business Podcast has been brought to you by the Canberra Business Chamber with the support of CareSuper. You can learn more, as Clark says, at caresupercomau and don't forget to follow us on your favorite podcast platform for future episodes of the Canberra Business Podcast. We'll catch you next time.