Home' Australian Ageing Agenda : AAA Spt-Oct 2013 Contents The journey to retirement
"I liked the idea of preparing for retirement in
a way that was beneficial financially and at the
same time didn't reduce my fortnightly income,"
says NSW-based HESTA member, Kerrie, of a
decision to start using a HESTA Income Stream.
Kerrie is one of many Australians taking
advantage of the government's transition to
retirement (TTR) rules.
This option is ideal if you're at least 55
and would like to ease into retirement by
reducing your hours of work --- but not your
With a TTR income stream you can
maintain your net income, while continuing to
contribute to super.
"I wasn't aware of some of the benefits
available," says Kerrie, who first attended a
local HESTA retirement planning seminar
and then spoke with a HESTA Superannuation
Adviser before making her decision.
The key benefit of TTR is in the taxation
effect: by moving your current super funds
from an environment where the investment
earnings are taxed at up to 15%, to an income
stream environment where investment
earnings are tax-free. And if you're 60 years of
age or over --- like Kerrie --- you pay no tax on
your income payments.
Kerrie says the different options "were
explained in a very clear, concise and easy
to understand manner" by one of HESTA's
national team of Superannuation Advisers who
provide personal advice around Australia.
Kerrie is now quick to tell colleagues and
friends "who may be eligible to receive the
benefits I'm enjoying."
As a HESTA member, Kerrie was able to
take advantage of our one-on-one personalised
advice service covering retirement planning,
pensions and income streams for a fixed fee,
deducted from her super account.
"And I'm grateful for the expert advice and
assistance I received throughout the process,"
This material is issued by H.E.S.T. Australia Ltd ABN 66 006 818 695 AFSL No. 235249, the Trustee of Health Employees Superannuation Trust Australia (HESTA)
ABN 64 971 749 321. Information provided is of a general nature. It does not take into account your objectives, financial situation or specific needs. You should look
at your own financial position and requirements before making a decision and may wish to consult an adviser when doing this. This information contains H.E.S.T.
Australia Ltd's interpretation of the law but should not be relied upon as advice. For more information about HESTA Income Stream, free call 1300 734 479 or visit
hesta.com.au/ispds for a copy of the HESTA Income Stream Product Disclosure Statement which should be considered when making a decision.
Want to find out more?
1. Visit hesta.com.au/seminars for our seminar
schedule or to register online. There is no fee
for attending our presentations and seminars.
2. Go to hesta.com.au/ispds and download
the HESTA Income Stream Product Disclosure
Statement (which includes application forms).
3. Free call 1300 734 479 to have information
posted, and if you're a HESTA member
you can arrange an appointment with a
this knowledge must extend beyond the
jurisdiction in which they operate.
There are different legislative regimes
across Australia which impact upon the
form of ACDs, the health decisions which
may be made, and their validity.
New South Wales does not have a
legislated form of ACD and the common
law applies. The court in Hunter and New
England Area Health Service v A 
NSWSC 761 sets out the common law
principles of what constitutes a valid ACD.
In South Australia the recently enacted
Advance Care Directives Act 2013
is yet to come into operation (as at 5
August 2013). The Act creates a single
form of ACD and contains protections
for those who complete and apply ACDs,
particularly substitute decision-makers
and health practitioners.
The common law and statutory
provisions in Western Australia govern
ACDs. The Guardianship and
Administration Act 1990 allows a person
to appoint an enduring power of attorney
and complete an advance health directive.
In Tasmania the Guardianship
and Administration Act 1995 allows
an enduring guardian to be appointed
who can then make decisions about
healthcare and management. The Powers
of Attorney Act 1998 in Queensland
provides for an enduring power of
attorney and an advance health directive
which can both cover health matters.
The Guardianship and Administration
Act 1986 and Medical Treatment Act 1988
in Victoria allow for the appointment of an
enduring guardianship agent (medical),
an enduring power of attorney (medical
treatment) and the creation of a Refusal of
Each of these legislative regimes has
different provisions about the protection
given to healthcare providers relying
upon ACDs or other documents created
pursuant to the Act.
Providers must therefore be very
careful in relying upon ACDs drafted
in another state or territory to that
in which it is being used. If the ACD
does not comply with the local Act, the
common law will need to be considered to
determine whether the ACD is valid and
a healthcare provider is protected when
acting in reliance upon the ACD. However,
the laws may be different across Australia.
Until Australia moves to a nationally
consistent statutory regime for ACDs,
healthcare providers will still need to
consider whether the eHealth registered
ACD is valid in the state or territory it is
being used in. Registration on eHealth
does not make it valid across Australia. n
Victor Harcourt is a Principal with the
Melbourne-based law firm Russell Kennedy.
have in place appropriate security to
manage the access to the information.
Currently, eHealth record users
are able to upload information about
the custodian of their ACD, including
the name and contact details of their
custodian, at the point of registration.
The practical benefit of eHealth and
assisted registration is that individuals
are encouraged to articulate their end
of life preferences and are able to easily
disseminate this information. This has the
potential to reduce the distress experienced
by family and friends in relation to end of
life decisions and their loved ones.
Further, the eHealth system and
assisted registration provides the
opportunity for healthcare providers to
engage in proactive consultation and
collaboration with an individual, their
family and friends and relevant health
practitioners. Such a process may further
assist in facilitating understanding and
acceptance of (and ultimately compliance
with) the wishes articulated in the ACD.
The electronic form of an ACD does
not, in itself, change its legal effect. If the
ACD complies with the requirements of
the laws in the state or territory in which
the ACD operates, the fact that it is in
electronic form should not invalidate it.
The practical outcome of the Minister's
announcement is that healthcare
providers will now, more than ever, need
to understand their obligations in relation
to ACDs and end of life planning. Ideally,
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