ASIC Disclosures

1. Background

Following a lengthy review and consultation process, the Australian Securities and Investments Commission (ASIC) recently adopted a new approach to the regulation of employee entitlement schemes, such as PPTEF, in recognition of the growth in size of funds under their management and the expansion of their activities (including funding long service and sick leave, insurance and training benefits to employees).

As a result, following a transitional period ending on 1 September 2026, ASIC will require the operators of employee entitlements schemes to hold an Australian Financial Services Licence (AFSL).

During this transitional period, PPTEF as an operator of an employee entitlement scheme is required to provide certain explanations on its website about PPTEF to help workers and employers understand how PPTEF works and how funds under its control are managed.

2. How are employer contributions used?

All employer contributions received by PPTEF for Workers are credited to the individual Worker’s Accounts based on information provided by the relevant employer. The contributions are held in trust and used to pay severance benefits to the Workers for whom those contributions were made and as well as other benefits as provided for in the PPTEF trust deed.

The contributions are pooled and invested by PPTEF to generate investment earnings that are used as described below.

3. How does PPTEF use income derived from contributions and other parts of the fund?

Income earnings are used to pay the costs of operating PPTEF, such as administration fees, advisers’ fees, industry related sponsorships and other legitimate expenses.

Surplus income is then used to pay income distributions to Workers, to create and maintain reserves for any contingencies and/or (after being capitalized) to make capital distributions to PPTEF’s sponsors. The way PPTEF’s income may be used is governed by the trust deed and the restrictions set out in Division 13 of the Fringe Benefits Tax Assessment Act 1986 (Cth).

4. Rights to benefits

(a) Severance

Workers are entitled to make a claim for severance benefits when their employment is terminated. Where a Worker has died, the benefits are payable to their legal personal representative and/or their dependants.

(b) Long service leave

PPTEF does not hold any long service leave entitlements.

(c) Other entitlements incidental to employment

PPTEF does not make payments for any entitlements that are incidental to employment.

5. Annual financial reports

Annual Reports including the initial balance sheet, profit and loss statement and cashflow statement are now available for download from the “About” page on PPTEF’s website. From 1 September 2026, PPTEF’s annual financial statements and auditor’s reports will be publicly available in the same location.

6. Significant risks

The significant risks associated with holding an interest in PPTEF are:

• Investment performance due to economic and market conditions which may impact the value of PPTEF’s assets
• Regulatory changes which may impact how PPTEF operates or how benefits are taxed
• Changes in employer contribution arrangements, and
• Operational risks such as cyber-security issues or system outages.

PPTEF works to manage these risks and operate the fund in a manner which safeguards its assets and the interests of all beneficiaries.

7. Fees

PPTEF is entitled to claim its reasonable administration and other operational expenses from the Fund. PPTEF has engaged Incolink, an unrelated company, to provide administration services to the fund under a formal Administration Agreement. The fees paid to Incolink for its administration services are typically paid from PPTEF’s investment earnings and are not deducted from any Worker’s Accounts.

8. Benefits payable to PPTEF or Associates

PPTEF may engage external providers such as administrators, auditors and investment managers who are paid for their services.

Other than the payments outlined in paragraphs 7 and 8, there are no agreements or arrangements under which a benefit may be paid to PPTEF or an associate.

9. Complaints

If you have a complaint, you can contact us by:

• Phone: 1300 346 033
• Email: [email protected]
• Completing an online form

To learn more about how your complaint will be handled, click here.

As part of obtaining an AFSL, PPTEF will establish an internal dispute resolution system that meets ASIC’s requirements for AFSL holders that are employee entitlement schemes, including membership of the Australian Financial Complaints Authority.