[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Hi everyone, my name is Brad Zaknich \NGESB, and I'd like to thank you very much
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,for logging onto today's recorded webinar,\Nso it's not a live one today,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,it's recorded and it's about investing\Nin super 101. So we're gonna go through
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the ideas of investing through \Nsuperannuation compared to investing
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in other formats. So, for those who\Nhaven't used webinars before, very simple
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,technology, sit back and relax. Some of \Nthe normal interactive opportunities we
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,have with webinars has been turned off\Nfor today's session, obviously things like
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,typing in questions and clicking send, \Nyou can't do that today because there's
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,no-one to reply to them. So what we'll do \Nis get through some of the housekeeping.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,What we're showing you here is what you\Nalready would have received, well, in fact
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,what you're going to be receiving, is a \Nwebinar survey follow-up email, we do
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,still love to get feedback, even with \Nrecorded webinars, so if you wouldn't mind
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,setting a few moments it takes to complete\Nthat, that'd be greatly appreciated.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The webinar, like I said, is being \Nrecorded, and you'll be able to sit back,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,watch it at your own leisure. You can move\Nforward, you can go back in the slides,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and you can watch it as many times as you\Nlike, and from my understanding, this
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,webinar will be staying live on the GESB \Nwebsite, so probably around the end of
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the financial year, at which point we'll\Nmost likely get a new presentation up.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now, I'd first love to show my respect\Nand acknowledge the traditional custodians
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of this land, of Elders past, present and\Nemerging, on which this event takes place.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And then you've got the all-important \Ndisclaimer. When talking about
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,superannuation, investing, money, finance,\Nit's important that you understand that
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,we're not giving you personalised\Nfinancial advice today. My job today it to
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,provide you with information, explain \Nthings, explain how things work.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,It's not to get you to make a decision\Nbased on what I'm saying. So if you do
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,need personalised financial advice, \Nyou'll need to go elsewhere to get that,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,as GESB only provides you general advice.\NNow in today's session there is a lot to
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,get through, some of which might be\Nconcepts that you're familiar with,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and some maybe not. So in this session \Nwe're gonna talk about the basics of
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,investing, and we're gonna talk about \Nthings like income tax, and how that
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,impacts investing, budgeting, where to use\Nyour money, borrowing, and debt.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Also going to talk about with investment\Nconcepts, the idea of compounding
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,interest, the value of superannuation, \Nunderstanding the different asset classes
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that exist within super, and what \Ninvestment options are available.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now hopefully you all know who GESB is,\NI work for GESB, GESB is a state
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,government department, and it just stands\Nfor Government Employee Superannuation
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Board. Now we've been around for over\N85 years, we've grown over $42 billion
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in funds under management as of 31st \NDecember 2024, and GESB, being a
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,government department, we're a\Nnot-for-profit organisation.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So the only fees we collect from you, \Nthrough your super, through your ??
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,are to run the fund, we are \Nnot-for-profit. And our returns are
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,competitive and long-term.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,In regards to GESB's product structure,\Npeople often get a little confused,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but it's quite simple. GESB at the top\Nof the tree there stands for Government
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Employee Superannuation Board. Below that\Nare the different schemes that we
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,administer. Now we're got some old \Nlegacy schemes like the Pension scheme
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and the Gold State Super scheme,\Nwe're not going to be talking about
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,those at all today, okay, they don't sit\Nwithin the ??? of today's presentation.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,We're predominantly going to be talking\Nabout superannuation, that are in the
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,accumulation phase, and are accumulation\Naccounts, so West State Super, GESB Super,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and some of the other invest, general\Nsuper funds that work in a similar fashion.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,When we speak about stuff that is general,\Nsuperannuation, I'll make that very
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,well-known. When we're talking about \Nanything that might be GESB specific,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I'll also make that well-known. What we're\Nnot going to talk about in great detail
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,today, or if at all, are the allocated \Npensions. They are the retired products
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that most people use to draw down their\Nretirement savings.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Well let's quickly talk about West State\Nand GESB Super because there are some
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,differences between the two of them, \Nand you need to be aware. So, West State
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Super was the default super fund for \NWA State Public Servants who commenced
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,working for the government prior to \N15 April 2007. The reason that is
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,important is that after April 2007, new\Nemployees to the public sector might have
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,had a GESB Super account open, or perhaps\Nsome other super fund, Australian Super,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Hostplus, something like that. The reason\Nit's important to know, is that most
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Australian funds like GESB Super, and most\Nother funds, are considered to be taxed
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,super scheme. Why is this important?\NThe government allows super contributions
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to be contributed at a lower rate of tax\Nthan your normal pay. We need to remember
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that super comes under the tax regime, \Nand GESB super, like most Australian funds
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is a tax scheme and that simply means\Nwhen your employer puts money into your
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,super fund, through your employers' 11.5%\Nguarantee, or you put extra money in
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,through your payroll process called \Nsalary sacrifice. Those contributions are
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,only taxed at 15%, compared to \Nyour normal tax rates through your income.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But it happens on the way into your \Naccount, and while your money's still
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,invested. If however you've got a West\NState Super account, your money's are
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,not taxed on the way in, because it's \Ncalled an 'untaxed super scheme'.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So the money's from your employers'\Ncontributions and any salary sacrifice are
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,not taxed on the way into your account so\Nthe full contribution hits your account.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Any investment earnings or growth in your\Nfund would normally be taxed at 15% in
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,a regular fund, they are not taxed in \NWest State Super whilst the money remains
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in West State Super, but what happens\Nhowever is when you take your money
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,out of the West State scheme, that is \Nwhen the 15% tax gets applied.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So it's important that you understand the\Ndifference, and there are some other
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,differences to talk about in a little\Nwhile as well.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now, when we talk about tax, you need\Nto remember as well that the way the
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Australian tax system works is relative to\Nyour income, is the more income that
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,you earn, the more tax you generally pay.\NSo up to the first $18,200 you earn in
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,earnings through your salary, through your\Nincome, there is no tax applicable to that
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,income for most Australians. But once your\Nsalary gets above $18,201, up to $45,000,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I shouldn't say salary, I should say\Nincome, in that bracket your income is
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,taxed at 16%, okay, for every dollar over \N$18,201, up to $45,000.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Then, if you're earning over $45,001 per\Nyear, the earnings between $45,001 and
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,$135,00, that portion alone is taxed at \N30%. So people often think 'well I'm
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,earning over $45 grand a year, I must be\Npaying 30% tax. Yes, but only on the money
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,you're earning, above $45,000. And as your\Nsalary goes into the new higher brackets,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,you pay more tax on the extra earnings. \NNow, as I said earlier, money's going into
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,superannuation from your employer's \Ncontributions, and through the process
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,called salary sacrifice. They are not \Ntaxed at your marginal, personal tax rate.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,They are instead taxed at 15%. So when you\Ntalk about that, you can see that money's
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,being earned over $45 grand are normally \Ntaxed at 30%, money going into your super
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,only going to be taxed at 15% maximum. \NThat is the benefit of superannuation,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,so let's go through this. Let's start\Ntalking investing money, finances,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,all those sort of things, and first thing\Nwhen I talk about this is the basics of
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,investing and knowing where your money\Ncomes from.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So knowing where your money goes is \Nextremely important, being able to track
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,your spending is an extremely important\Npart of looking after your money.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Planning your goals, whether they be\Nshort-term, medium-term, or long-term,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,basics of knowing where your money comes\Nfrom, and what you're gonna spend it on.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But also being a smart borrower. There's \Nnothing wrong with borrowing money,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but some would argue, borrowing money to\Npurchase something that is declining in
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,value may not be a smart borrow, but\Nthat's up to the individual to decide how
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,they want to do that. Also understanding\Ncompounding interest.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Interest earnt, understand that maybe I'm\Nmaking, for example, a 7% return on
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,my money, but when you understand that\Ncompounding interest is interest on top
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of interest on top of interest, that's \Nextremely powerful.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Albert Einstein once said 'compound \Ninterest is the eighth wonder of the
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,world, he who understands it, earns it. \NHe who doesn't, pays it.' Something to
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,think about there. Well let's firstly talk\Nabout budgeting.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So there is a concept called the \N'bucketing approach', cause when we talk
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,about budgeting, people get quite \Nconcerned and they think very heavily
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,about every cent that this, and every \Nindividual item, and that is fair enough.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But if you simplify things in budgeting\Ninto a simpler approach, it might be as
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,simple as dividing your income into three\Nbuckets, or three aspects of your income.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And you might allocate, for example, 50% \Nof your income to your needs, so for
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,example your home loan, your rent,\Ngroceries, utilities and your insurances.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So 50% is just a concept, you might have\Nmore than that, you might have less,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but when you identify an amount of\Nmoney, that is used for your needs, set
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that money aside and you know that your\Nneeds are covered.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And then you might have your wants, and\Nyou might decide to allocate maybe 30%
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of your income to your wants. And they can\Nbe things like your, upgrading needs,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,money's for evenings out, hobbies, \Nsporting events, holidays, but upgrading
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,needs we might talk about maintenance\Non your home, new cars, things like that.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And then you might decide to allocate \N20% of your income towards savings.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And that might be an emergency fund for\Nwhen things go wrong, or maybe long-term
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,savings for things off in the future, \Nthat might include other investments like
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,superannuation, shares, property, but it \Nalso might include the overpayment of your
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,debt, so paying extra money to pay off\Nloans might be considered to be savings.