Member Booklet. Issued 1 October 2017

Transcription

1 Member Booklet Issued 1 October 2017 This Member Booklet gives an overview of the benefi ts of investing with Club Plus Super and provides more details about fees, taxes and other relevant information. The information in this Member Booklet forms part of the Product Disclosure Statements (PDS) for the Industry Division and Personal Division both dated 1 October This Member Booklet has been issued by Club Plus Superannuation Pty Limited ABN AFSL No: RSE Licence No: L RSE Registration No: R the Trustee of Club Plus Superannuation Scheme (Club Plus Super) ABN For more detailed information about investments and insurance, you can refer to the Investment Booklet and Insurance Booklet located at clubplussuper.com.au/tools-resources.

2 Member Booklet CONTENTS 1. Benefi ts of investing with Club Plus Super 3 2. How super works 4 3. Additional explanation of fees and costs 7 4. Super and tax Claiming your benefi ts Other important information Club Plus Super privacy policy 17 This Member Booklet has been issued by Club Plus Superannuation Pty Limited ABN AFSL No: RSE Licence No: L RSE Registration No: R the Trustee of Club Plus Superannuation Scheme (Club Plus Super) ABN Any advice in this document is of a general nature only and does not take into account your personal objectives, fi nancial situation or needs. Prior to acting on any information in this document, you need to take into account your own fi nancial circumstances, consider the PDS for any product you are considering and seek independent fi nancial advice if you are unsure of what action to take. The material contained in this PDS was up to date when it was prepared. However, this information may be subject to change from time to time. If the change is not materially adverse, we will keep members informed via our website. You may request a copy of any updated material free of charge by contacting us. In the case of any inconsistency between this PDS and the Club Plus Super trust deed, the trust deed will prevail. To request a copy of the PDS, phone us on Club Plus Super Technical Factsheet - July

3 1 BENEFITS OF INVESTING WITH CLUB PLUS SUPER Run for members We don t pay commissions to fi nancial planners and all profi ts are returned to members after operating costs are deducted. Best value We are ranked as a best value for money superannuation fund by SuperRatings.1 Insurance We provide death, TPD, terminal illness and income protection insurance options, which you can vary at any time to suit your changing circumstances. Investment choice options We provide a range of professionally managed investment options as well as self-managed options through the Direct Investment Option (DIO). Flexible contributions In addition to your employer contributions, you can make regular personal contributions via direct debit, payroll deductions and BPAY. Online access With MemberAccess you can manage your super and keep your personal information up-to-date without having to complete and store loads of paperwork. Ongoing support and advice Even when you leave work and access your super in retirement via the Club Plus Pension, we can provide you with ongoing support to help you live the retirement you envisaged. Club Plus Super is an accumulation superannuation fund open to members from all industries. Contributions may be received from: Your employer Superannuation Guarantee (SG); salary sacrifi ce; employer additional contributions. The Government government co-contributions, low income super tax offset (LISTO). You member voluntary (after-tax) contributions and your contributions if you are self-employed. From others such as your spouse. Deductions are taken from your account for: Administration fees Insurance fees Commonwealth Government taxes Other activity fees, for example family law fees. Daily unit pricing Unit pricing applies to each of the seven investment options available in super and this methodology is used to calculate and report on your account balance. Whenever a contribution, rollover or transfer is made to your super, you will be allocated a number of units in the investment option(s) of your choice. Any deduction from your account such as withdrawals, transfers out, insurance premiums, taxes and administration charges will be processed using the unit sell price in your selected investment option(s). Unit pricing information Daily unit prices are included on the website at clubplussuper.com.au/investments. You can also check your account balance, the number of units and the unit price for each of your selected investment options online via MemberAccess. 1 SuperRatings Fundamentals Report, 31 May 2017 Club Plus Super Member Booklet - October

4 Member Booklet 2 HOW SUPER WORKS Superannuation is a great way of saving your hard earned money for when you retire. It s important to ensure you understand how it works and how you can make the most out of it. There are a number of ways you can boost your super balance. By contributing small regular additional amounts to your super, in addition to your employer contribution, you could accumulate a larger benefi t at retirement than you initially expected. Concessional or before-tax contributions Concessional or before-tax contributions include employer contributions and salary sacrifi ce contributions, as well as deductible contributions made by employees and self-employed workers. Generally, concessional contributions are taxed at 15%. Employer contributions Your employer is required to make a compulsory contribution of 9.5% of your salary to superannuation in most cases. This is called the Superannuation Guarantee (SG). There are some exceptions to this: If you earn less than $450 in a calendar month. If you are aged under 18 and work less than 30 hours/week and earn less than $450. Salary sacrifi ce contributions Salary sacrifi ce means instead of receiving your pay in full, you arrange to have some of your pay invested directly into your super fund on your behalf. The contribution is taken out of your pay before income tax is deducted, so you will pay less tax on your income. As salary sacrifi ce is not offered by all employers, ask yours if they offer a salary sacrifi ce option. To make regular salary sacrifi ce contributions to Club Plus Super, download the Payroll Deduction Authority form and give it to your employer. Personal contributions You can choose to make personal contributions to your super from your take home pay, and claim a tax deduction. Previously, mainly self-employed workers could claim tax deductions on personal super contributions. Now everyone can. Non-concessional or after-tax contributions Non-concessional contributions include your aftertax contributions such as non-deductible personal contributions and spouse contributions. These are called after-tax contributions because you ve already paid income tax on the money before contributing it to your super. You can make regular after-tax contributions to Club Plus Super by completing a Direct Debit Authority form and we will deduct regular amounts from your nominated bank account. Alternatively, you can give your employer a Payroll Deduction Authority form and they will deduct nominated amounts from your salary and remit it to us. Personal contributions You can choose to make personal contributions to your super from your take home pay and not claim a tax deduction, these are classed as non-concessional contributions. Spouse contributions You can contribute to a super fund on behalf of an eligible spouse and claim a tax offset of up to $540 if your spouse now earns up to $40,000, rather than a maximum income of $13,800 previously. If your spouse has an account with Club Plus Super, download the Member Voluntary Contribution form and complete the Spouse contributions section. Club Plus Super Member Booklet - October

5 Limits to contributions When deciding how much you can afford to contribute, it s important to be aware of the annual limits set by the Government, as you may be liable for extra tax. More information is provided in Section 4 Super and Tax in this Booklet Concessional contributions limit From 1 July 2017, the concessional contributions cap is reduced to $25,000 per year for everyone. Previously, it was $35,000 for people 49 years and older at the end of the previous fi nancial year and $30,000 for everyone else. You can also make catch up contributions over 5 years, based on any unused portion of your concessional contributions cap, and if your total super balance is less than $500,000. This starts from 1 July Non-concessional contributions limit The non-concessional contributions cap has reduced from $180,000 per year to $100,000 per year. If you are under age 65 at any time during the fi nancial year, and depending on your total superannuation balance, you may also be able to bring forward up to three additional future years of contributions so you can make a larger one-off non-concessional (after-tax) contribution. This means you could contribute up to $300,000 in a single year; however, you will not be able to make further contributions for at least the next two fi nancial years. If you have more than one super fund, all non-concessional contributions made to all of your funds are added together and counted towards the non-concessional contributions cap. The Government co-contribution If you make voluntary contributions and you earn less than $36,813 a year, you may be entitled to the Government co-contribution of up to $500 per fi nancial year. If you earn over $36,813 but less than $51,813 you may still be entitled to co-contributions but the amount will be reduced based on your actual income and your contribution amount. Government co-contributions make up part of your non-concessional cap. You must also have a total superannuation balance of less than $1.6 million for the fi nancial year. The low-income super tax offset The low-income super tax offset (LISTO) is the new name for the former low-income superannuation contribution (LISC). If you earn income up to $37,000, you may be able to receive a refund into your superannuation account. This is on the tax paid on your concessional superannuation contributions up to a cap of $500. It means you ll effectively pay no tax on your super contributions. You don t need to apply, as the ATO will generally make LISTO payments directly into your super account. Your total super balance Your total superannuation balance is the current value of your total super interests (including any retirement pension accounts). It is used to work out whether you can make use of any unused concessional and non-concessional contribution amounts. For example, if your total superannuation balance is equal to or greater than your general transfer balance cap (which is $1.6 million in the fi nancial year) you cannot make any more contributions to super that fi nancial year. Your total super balance is also used to determine whether you can access the Government co-contribution or the tax offset for spouse contributions. Rollovers Consolidating your super into a single account will help you better manage and monitor your super. This means you only pay one set of fees. However, other funds may charge fees for withdrawing and moving your super. You should also check if any insurance cover you may have with other funds would change when you move your super. Club Plus Super Member Booklet - October

6 Member Booklet 2 HOW SUPER WORKS (CONT.) The transfer balance cap There is now a maximum amount of super you can transfer to a pension account without having to pay tax. This amount is known as the transfer balance cap and is $1.6 million for 2017/18. If you have more than one pension account, the cap applies to the combined amount of these. Transitionto-retirement pensions will not count towards your transfer balance cap. Preservation ages and accessing your super The rules governing when you can receive your super are as follows: When you reach age 65 When you reach preservation age (see table below) and retire Under the rules of a Transition to Retirement pension (if you are eligible) Your benefi t is less than $200 and you leave your employer You take out a transition to retirement pension if you are aged 57 or more and continue to work. Once you meet your preservation age or one of the conditions of release above, you have three options available to you: You may keep your funds in a super account and withdraw a lump sum from time to time; You may roll over your funds to an account based pension and receive regular payments (like an income stream); or You can withdraw the funds. Keeping your money in the super system can be a tax-effective approach but the advantages of doing so will depend on your overall situation. DATE OF BIRTH PRESERVATION AGE From 1 July July June July June July June July June Before 1 July You may also be able to access your super under the following special conditions: Financial hardship (conditions apply) Compassionate grounds, e.g. to cover medical treatment, funeral expenses or to prevent foreclosure on your home Total and permanent disability Terminal illness You are a temporary resident departing Australia permanently Club Plus Super Member Booklet - October

7 3 ADDITIONAL EXPLANATION OF FEES AND COSTS Advice fees Additional fees may apply if a fi nancial adviser is consulted. If you require personal fi nancial advice, we can refer you to Club Plus Financial Planning who will advise you of any costs that could be incurred before you proceed based upon your individual needs. Also, if you are issued with a Statement of Advice from Club Plus Financial Planning, it will include details of these fees. Administration fees As a fund that is run for members, we do not pay commissions to service providers employed by the Trustee or any Director of the Company. All fees deducted from your account (along with the benefi ts of any tax deduction) are used to pay the operating costs of Club Plus Super. From time to time, fees may be changed by Club Plus Super without member consent. In the event of any material change, you will be advised a minimum of 30 days prior to the effective date. The current Administration Fee is $1.80 per week, which is deducted from your member account at the end of each month. The current Asset Based Fee is 0.20% p.a. of your account balance and is deducted at the end of each month. Activity fees Additional expenses incurred in attending to certain enquiries and administrative work in relation to Family Law and superannuation matters will apply. Service fees in relation to Family Law fees are set out in the below table: TYPE OF FEE OR COST Enquiry Fee The fee charged for a Family Law request AMOUNT Member enquiry $100 Family Law Split Fee Fee to split an account under Family Law Non-member enquiry $110 $70 (generally split between member and non-member spouse) WHEN DEDUCTED Deducted from the member s account if the enquiry is made by the member spouse. Payable by the non-member spouse when the request is made. Club Plus Super Member Booklet - October 2017 When an account split is processed as part of a Family Law superannuation agreement. This fee will generally be deducted from both the member and spouse accounts at the time of the split. Borrowing costs Borrowing costs refers to costs relating to any credit facility used within any underlying fund as part of implementing the investment strategy of each option. The estimated borrowing costs (if any) for each of the investment options for the year ending 30 June 2017 are: OPTION ESTIMATED BORROWING COSTS Cash 0.00% Conservative Balanced 0.09% MySuper/Balanced 0.10% Growth 0.10% High Growth 0.10% Australian Shares 0.00% International Shares 0.00% Borrowing costs are an additional cost to investors. They are not included in costs disclosed in the Investment Fees shown for each investment option. The costs for the current period will vary from the above and may be greater than past experience. Buy-sell spreads With unitisation, buy-sell spreads are used to ensure transaction costs incurred in buying or selling assets (for example, brokerage fees) held in each investment option are fairly allocated to members as members enter or leave the fund. These costs are included as part of unit prices and paid for by those members who buy or sell units in a particular investment option. The cost is an additional cost to members. Buy/sell spreads are retained in pooled investments and are not paid directly to Club Plus Super or any external managers. Exit fees A fee of $55 will be deducted when you leave the fund or make a withdrawal. 7

8 Member Booklet 3 ADDITIONAL EXPLANATION OF FEES AND COSTS (CONT.) Investment fees The investment fees shown for each investment option include investment related fees and costs, including Transactional and Operational Costs charged by investment managers and through underlying investment vehicles and incurred by the Fund. These fees and costs are estimated by reference to investment related fees and costs, including any performance related fees of underlying investment managers, incurred for the 12 months to 30 June Accordingly, actual investment related fees and costs incurred in the period from 1 July 2017 may vary and may be greater in that period. OPTION ESTIMATED BASE FEE PER ANNUM* FEE AMOUNT PER $50,000 PER ANNUM BUY/SELL SPREADS Cash 0.09% $ % / 0.00% Conservative Balanced MySuper/ Balanced 0.83% $ % / 0.10% 1.03% $ % / 0.15% Growth 1.13% $ % / 0.20% High Growth 1.19% $ % / 0.20% Australian Shares International Shares 0.73% $ % / 0.20% 0.73% $ % / 0.25% * Estimated fees for the investment options as at 30 June Investment Fees are estimates based on current manager structure and asset allocation. Where an investment manager has exceeded the agreed benchmark a performance fee may be payable. Performance related fees Where an underlying investment vehicle or manager is used to invest the assets of an investment option they may charge a performance related fee. These fees are refl ected in the unit price of the investment option and form part of the investment fees of each investment option. Underlying investment vehicles and managers that charge a performance related fee will generally only apply those fees when performance is greater than an agreed target. Accordingly performance related fees in each year will generally only arise when higher returns, relative to a specifi ed target for a particular manager, are achieved. Property operating costs Property Operating Costs refers to costs relating to the management of real property as part of implementing the investment strategy of each option. The estimated property operating costs (if any) for each of the investment options for the year ending 30 June 2017 are: OPTION PROPERTY OPERATING COST Cash 0.00% Conservative Balanced 0.10% MySuper/Balanced 0.11% Growth 0.12% High Growth 0.12% Australian Shares 0.00% International Shares 0.00% Property operating costs are an additional cost to investors. They are not included in costs disclosed in the Investment Fees shown for each investment option. The costs for the current period will vary from the above and may be greater than past experience. Tax For information on tax, please refer to Page 11 of this booklet. Club Plus Super Member Booklet - October

9 Transactional and Operational Costs Transactional and Operational Costs ( T&O Costs ) are incurred within each investment option. They include costs associated with trading within the underlying investment funds in which Club Plus Super investment options are invested and to implement the relevant investment option strategies. Such costs include brokerage, buy-sell spreads; settlement costs (including custody costs) clearing costs, stamp duty on investment transactions and costs incurred through underlying investment funds. T&0 Costs generally are additional costs to investors and are paid out of the assets of the Fund or deducted from the underlying investments before unit prices are applied to member accounts. T&O Costs also arise as a result of member transactions and some of those costs are recovered by the Fund from transacting members through the application of the Fund s Buy/Sell spread on member investment options. Details of the Fund s estimated T&O Costs for the fi nancial year to 30 June 2017 and their treatment in respect of each option are as follows: OPTION ESTIMATED GROSS TRANSACTION COSTS ESTIMATED TRANSACTION COSTS RECOVERED FROM BUY/SELL SPREAD ESTIMATED TRANSACTION COSTS AFFECTING RETURNS ESTIMATED TRANSACTION COSTS INCLUDED IN INVESTMENT FEE ESTIMATED TRANSACTION COSTS NOT INCLUDED IN INVESTMENT FEE i.e. implicit costs Cash 0.00% 0.00% 0.00% 0.00% 0.00% Conservative Balanced MySuper/ Balanced 0.16% 0.03% 0.13% 0.09% 0.06% 0.26% 0.04% 0.22% 0.17% 0.09% Growth 0.26% 0.05% 0.21% 0.17% 0.09% High Growth 0.29% 0.05% 0.24% 0.20% 0.09% Australian Shares 0.36% 0.05% 0.31% 0.14% 0.22% International Shares 0.14% 0.06% 0.07% 0.14% 0.00% The costs for the current period may vary from the above and may be greater. Note: During the 2016/17 year the Fund incurred greater Transaction and Operating costs and performance related fees than may typically be expected to arise, year on year, in connection with the disposal of certain unlisted property assets. Those costs and fees, which are included in the disclosed investment fees of four of the Fund s investment options, had an estimated impact in the range of basis points depending on the investment option. Defi ned Fees The following are defi nitions of the different fees and costs that may apply to your superannuation: Activity fees A fee is an activity fee if: (a) the fee relates to costs incurred by the trustee of the superannuation entity that are directly related to an activity of the trustee: (i) that is engaged in at the request, or with the consent, of a member; or (ii) that relates to a member and is required by law; and (b) those costs are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee, an exit fee, an advice fee or an insurance fee. Club Plus Super Member Booklet - October

10 Member Booklet 3 ADDITIONAL EXPLANATION OF FEES AND COSTS (CONT.) Administration fees An administration fee is a fee that relates to the administration or operation of the superannuation entity and includes costs that relate to that administration or operation, other than: (a) borrowing costs; and (b) indirect costs that are not paid out of the superannuation entity that the trustee has elected in writing will be treated as indirect costs and not fees, incurred by the trustee of the entity or in an interposed vehicle or derivative fi nancial product; and (c) costs that are otherwise charged as an investment fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee. Advice fees A fee is an advice fee if: (a) the fee relates directly to costs incurred by the trustee of the superannuation entity because of the provision of fi nancial product advice to a member by: (i) a trustee of the entity; or (ii) another person acting as an employee of, or under an arrangement with the trustee of the entity; and (b) those costs are not otherwise charged as an administration fee an investment fee, a switching fee, an exit fee, an activity fee or an insurance fee. Buy-sell spreads A buy-sell spread is a fee to recover transactional costs incurred by the trustee of the superannuation entity in relation to the sale and purchase of assets of the entity. Exit fees An exit fee is a fee to recover the costs of disposing of all or part of members interests in the superannuation entity. Indirect cost ratio The indirect cost ratio ( ICR ), for a MySuper/ Balanced product or an investment option offered by a superannuation entity, is the ratio of the total of the indirect costs for the MySuper/Balanced product or investment option, to the total average net assets of the superannuation entity attributed to the MySuper/ Balanced product or investment option. Note: A fee deducted from a member s account or paid out of the superannuation entity is not an indirect cost. Insurance fee A fee is an insurance fee if: (a) the fee relates directly to either or both of the following: (i) insurance premiums paid by the trustee of a superannuation entity in relation to a member or members of the entity; (ii) costs incurred by the trustee of a superannuation entity in relation to the provision of insurance for a member or members of the entity; and (b) the fee does not relate to any part of a premium paid or cost incurred in relation to a life policy or a contract of insurance that relates to a benefi t to the member that is based on the performance of an investment rather than the realisation of a risk; and (c) the premiums and costs to which the fee relates are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an advice fee. Investment fees An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes: (a) fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and (b) costs that relate to the investment of assets of the entity, other than: (i) borrowing costs; and (ii) indirect costs that are not paid out of the superannuation entity that the trustee has elected in writing will be treated as indirect costs and not fees, incurred by the trustee of the entity or in an interposed vehicle or derivative fi nancial product; and (iii) costs that are not otherwise charged as an administration fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee; but does not include property operating costs. Switching fees A switching fee for a superannuation product, other than a MySuper/Balanced product, is a fee to recover the costs of switching all or part of a member s interest in the superannuation entity from one investment option or product in the entity to another. Club Plus Super Member Booklet - October

11 4 SUPER AND TAX Superannuation may be taxed when contributions are made, while your money is invested, and when you access your benefi ts. The amount of tax you pay or any deductions you receive, are also dependent on your income level. Providing your tax fi le number (TFN) Firstly, it s important you provide us with your TFN. While this is voluntary and is not an offense if you don t provide it, the main advantage of giving your TFN is that no additional tax will be deducted when you start withdrawing your super benefi ts, other than the tax usually deducted. If we do not have your TFN, then tax will be withheld from the taxable component of your pension income and lump sum withdrawals at the highest marginal tax rate plus the Medicare Levy. By completing the Tax File Number Declaration form, you are supplying details, which will allow Club Plus Super to determine the amount of tax to be deducted from your pension income. Club Plus Super is allowed to collect your TFN under the Superannuation Industry (Supervision) Act Also, we will use it only for legal purposes and it will be treated as confi dential. This includes fi nding or identifying your superannuation benefi ts where other information is insuffi cient, calculating tax on any eligible termination payment you may be entitled to, and providing information to the Commissioner of Taxation. We may provide it to another superannuation provider if your benefi ts are transferred to them, unless you advise us in writing not to provide it to them. These purposes may change in the future. Tax and contributions It s essential to understand the role tax plays in the different ways you can contribute to super. Club Plus Super deducts a provision for tax from some contributions when they are received. Generally the rate of tax the fund is required to deduct depends on who is making the contribution. For example, employer contributions are usually subject to a 15% contributions tax, whereas personal contributions that are not claimed as a tax deduction are not taxed. In addition, excess contributions above the cap rates described in Section 2 How Super Works, are subject to a higher rate of tax. The following is a summary of the tax treatment of super contributions: Concessional (before-tax) Nonconcessional (after-tax) TYPES OF SUPER CONTRIBUTIONS Employer Super Guarantee (SG) contributions Salary sacrifi ce contributions Deductible personal contributions Personal after-tax contributions Spouse contributions Tax on concessional super contributions TAX 15% up to the cap No tax up to the cap All contributions where a tax deduction is claimed are called concessional contributions. Concessional (before-tax) contributions include employer contributions, salary sacrifi ce contributions and also include personal contributions where a tax deduction is claimed. Concessional contributions are taxed at 15%. For example, a contribution of $1,000 to your fund will have $150 deducted for tax, leaving $850 to be invested in your super. If you exceed the concessional contributions cap of $25,000 per year, you will pay extra tax, which is levied on you personally. You may choose to withdraw up to 85% of your excess concessional contributions from your superannuation account to help pay this additional tax. Excess concessional contributions will also be included in your non-concessional contribution limit. If you wish to claim a tax deduction on your personal contributions, you must request a Section notice from Club Plus Super to notify us of your intention before you lodge your income tax return, at which time a provision for tax must be deducted from your contribution at a rate of 15%. Club Plus Super Member Booklet - October

12 Member Booklet 4 SUPER AND TAX (CONT.) Tax on non-concessional super contributions Non-concessional contributions include your aftertax contributions such as personal contributions and spouse contributions that are not claimed as a tax deduction. These are called after-tax contributions because you ve already paid income tax on these amounts before contributing it to your super. Tax is not payable on non-concessional contributions as long as the total of these contributions each year is below a set cap of $100,000. Exceeding this cap will attract extra tax at the top marginal tax rate. If you are under age 65 at any time during the fi nancial year, and depending on your total superannuation balance, you will be able to contribute up to $300,000 (3 x $100,000) in a single year and not be charged additional tax. However, you will not be able to make further contributions for at least the next two fi nancial years. Tax and your income Depending on how much you earn, you may be able to benefi t from a tax offset or the Government cocontribution. You may need to pay additional tax if your income exceeds a certain amount. Low-income super tax offset (LISTO) If you earn less than $37,000 a year, you may be eligible for a low income super tax offset of up to $500 in a fi nancial year. This means you ll pay reduced or no tax on your super contributions. Government co-contribution If you make personal contributions and earn less than $51,813 per year, the Government will make a contribution (called a co-contribution) to your account up to a maximum of $500. You don t have to do anything to receive the Government co-contribution. The ATO will assess your eligibility based on your tax return and information supplied by us. Personal income levels If your income plus concessional contributions now exceeds $250,000 (previously $300,000), you will pay an additional 15% tax on the contributions that are in excess of this threshold. The ATO will assess your liability for the additional tax and will issue you with an assessment notice. Income includes taxable income, reportable fringe benefi ts, total net investment losses, target foreign income, and taxfree government pensions and benefi ts. Any excess contributions that have been subject to excess contributions tax are excluded. Tax while your money is invested What makes super so special is the way in which investment returns are taxed. Unlike other comparable investments, which are typically taxed under marginal income tax rates (as high as 45%) the investment returns of your super fund are generally taxed at only 15%. This low rate of tax means your super can potentially grow in value at a faster rate than other investments invested in the same assets. Additionally, assets invested in Australian and international equities may benefi t from imputation credits for franked dividends and foreign tax credits that offset the tax payable on the earnings of the fund. Assets that are sold after being held for at least 12 months in the fund, are generally taxed at a discounted rate. Tax during transition to retirement If you are aged less than 60, still working and receiving a Transition to Retirement pension, the ATO will assess your tax based on your combined income. The ATO will assess your income tax liability based on the information contained in your tax return after taking into account all income, deductions and rebates. Investment earnings from a Transition to Retirement pension are now taxed at 15%. Club Plus Super Member Booklet - October

13 Tax when you receive a benefi t payment The amount of tax you pay when you receive a benefi t payment depends on factors including your age, how you take your benefi ts, why you ve received benefi ts, whether its taken as a lump sum or a pension, and the amount of your payment including its tax-free and taxable components. Generally though, all retirement benefi ts paid after age 60 are tax-free. Prior to age 60, they may be subject to tax. The tax-free component is generally made up of your non-concessional contributions plus any crystallised tax-free amounts at 30 June No tax is payable on this component. The taxable component is the total of your benefi t less the tax-free component. If you are within the preservation age range, between age 55 and 60 depending on your date of birth, a low rate lifetime cap of $200,000 applies. Any amounts paid to you within this cap are tax-free but amounts over this cap are subject to 15% tax. If you are under your preservation age when you receive your lump sum benefi t, the low rate cap does not apply and the taxable component will be subject to 20% tax (plus the Medicare levy). The table below summarises the tax applicable for lump sum payments. COMPONENT Tax-free component Made up of non-concessional contributions ASSESSABLE PORTION 100% 0% Taxable component Made up of your account balance less the tax-free component. TAX RATE* Taxation of other benefi ts Special tax rules apply when the payment relates to death benefi ts, permanent/temporary incapacity benefi ts, and terminal illness. Tax on lump sum permanent incapacity benefi ts If you have total and permanent disability (TPD) insurance and make a successful disablement claim which results in a lump sum payment, it may include both a tax-free and a taxable component. The tax-free component is calculated in a similar manner to the tax-free component on any other lump sum withdrawal, but may also include an additional amount based on your future service to retirement. The taxable component is the difference between your total benefi t and the tax-free amount. The tax rates that apply will depend on your age and other factors. Tax on income protection benefi ts If you have income protection (IP) insurance and make a successful claim that results in regular insured IP benefi ts being paid, the benefi ts will be subject to tax based on your marginal tax rate. Tax on terminal illness benefi ts If you fulfi l the terminal illness requirements under the relevant insurance policy (if applicable) and superannuation legislation, your benefi t will be tax-free (if it is paid during your medically certifi ed terminal illness period). Anti-detriment payments Following the removal of the anti-detriment tax deduction, for members who die on or after 1 July 2017, the Trustee will no longer include a refund of the member s superannuation contributions tax in death payments to eligible benefi ciaries. Under preservation age 100% 20% Between preservation age and age 60 $0 $200,000 balance 0% 15% Over age % 0% * Tax rates shown do not include the 2% Medicare Levy. Club Plus Super Member Booklet - October

14 Member Booklet 5 CLAIMING YOUR BENEFITS Preservation Your Club Plus Super account may consist of up to three different types of benefi t classifi cations. These classifi cations will determine when you can access your super. 1. Preserved benefi ts The preserved portion of your super benefi t cannot be paid to you until you meet one of the following conditions of release: Reached preservation age and retired from the workforce Ceased an employment arrangement on or after age 60 Aged 65 or over (even if you haven t retired) Permanent incapacity Death Terminal Illness Financial hardship (limited amount) Compassionate grounds (limited amount) The following table shows the minimum age (preservation age) you can access your super if you have retired. DATE OF BIRTH PRESERVATION AGE From 1 July July June July June July June July June Before 1 July Restricted non-preserved benefi ts If you resign and leave your current employer, any restricted non-preserved portion may become an unrestricted non-preserved benefi t (see below). You may leave this amount in your Club Plus Super account. Restricted non-preserved benefi ts include all contributions made to your super between 1 July 1983 and 30 June Unrestricted non-preserved benefi ts If any of your Club Plus Super account balance is classifi ed as unrestricted non-preserved, you can withdraw it (less any tax payable and withdrawal fee) at any time. Your Member Statement will show the portions of your Club Plus Super account that are preserved, restricted non-preserved and unrestricted nonpreserved. Benefi t payments You can elect to receive your super as a lump sum or pension (see Club Plus Pension). The benefi t payable will be: the balance of your account from contributions received; plus, earnings applied (positive or negative) for the investment option(s) in which your account balance is invested; plus, an insurance amount, if applicable; less any taxes and withdrawal fees. Pension options Club Plus Super provides pension options for members over their preservation age. You can commence a pension by transferring your super to the Club Plus Pension. If you re still working and over your preservation age, you can access your super as a Transition to Retirement (TTR) Pension. Money is invested in your choice of investment options, with a pension paid to you as long as there is enough money in your account. You can elect to receive payments twice-monthly, monthly, quarterly, half yearly or annually. For more details, download the Club Plus Pension PDS or the Transition to Retirement Pension PDS at clubplussuper.com.au/tools-resources, or contact the Club Plus Pension Hotline on Club Plus Super Member Booklet - October

15 Permanent incapacity You may be entitled to apply for a Total and Permanent Disablement benefi t if you become permanently incapacitated. You may apply for: payment of your Club Plus Super account balance; and, if you have Death and Total and Permanent Disablement (TPD) insurance cover, your insurance benefi t. Please note that the criteria for payment of your insurance benefi t may be different to the criteria for payment of your Club Plus Super account balance. If you apply for payment of your insurance benefi t, the Trustee will determine your entitlement for release of your account balance at the same time. Departing Australia Superannuation Payment (DASP) Temporary residents who work in Australia and have super contributions paid by their employer, may be entitled to receive their super benefi ts once they leave Australia. This payment is called a departing Australia superannuation payment (DASP). To fi nd out more information about DASP and eligibility, call the ATO on or visit ato.gov.au. The Trustee relies on ASIC relief not to provide exit statements. Death When you die, your benefi t may be paid to your dependants and/or legal personal representative/s. The following benefi ts are payable from Club Plus Super: your Club Plus Super account balance; and if you have Death Only cover or Death and TPD insurance cover at the time of your death and a claim is payable, an insurance benefi t You may advise the Trustee as to whom you wish to receive your death benefi t. If you wish to nominate one or more benefi ciaries, simply complete a Change of Membership Details form, available at clubplussuper.com.au/tools-resources, or log in to your account at clubplussuper.com.au/ memberaccess. A benefi ciary is a person or legal representative you have nominated to receive your super on your death. A non-binding nomination is an indication of who you would like to get your super, however the Trustee is not obligated to follow your instructions. If you have not made a binding nomination, the Trustee will need to take into account all potential dependants and assess your claim in accordance with the Trust Deed. Binding Death Benefi t nomination A binding death nomination is a written direction you make to the Trustee of Club Plus Super nominating who you want to receive your benefi t in the event of your death. The Trustee will pay a death benefi t to your nominated benefi ciary or benefi ciaries, in the proportions noted, only if they are your legal personal representative or dependant (s) and the nomination is valid and in effect at the date of your death. A binding death benefi t nomination form is available at clubplussuper.com.au/tools-resources. How to make a benefi t claim To claim your super, you (or your benefi ciaries) will need to complete a Payment of Benefi ts form. This form can be obtained by contacting Club Plus Super on Club Plus Super Member Booklet - October

16 Member Booklet OTHER IMPORTANT 6 INFORMATION Member reporting As a member of Club Plus Super in August/ September you will receive a statement of your account balance at 30 June and details of all transactions, deductions and investment earnings applied to your account for that fi nancial year. Annual Report A copy of the Club Plus Super Annual Report will be available in late October each year. Please contact us on for a copy or visit our website at clubplussuper.com.au/tools-resources. Complaints Club Plus Super has established a formal procedure for you and your benefi ciaries to: make enquiries into, or complaints about, the operation and management of Club Plus Super; and have an enquiry or complaint properly considered and dealt with within 90 days of receipt of the complaint or enquiry. Enquiries and complaints should be made in writing specifying whether it is a Notice of Enquiry or Notice of Complaint on the front of the envelope, and addressed to: The Enquiries and Complaints Offi cer Club Plus Super Locked Bag 5007 Parramatta NSW 2124 If you or your benefi ciaries are not satisfi ed with the Trustee s handling of your complaint or its decision, you may refer the complaint to the Superannuation Complaints Tribunal (SCT). The SCT is an independent body set up by the Federal Government to assist members and benefi ciaries to resolve certain types of complaints with superannuation fund trustees. The SCT may be able to help you to resolve your complaint. However, it will not review any matter unless it has fi rst been through the Fund s complaints process. If the SCT accepts your complaint, it will try to resolve the matter through conciliation, which involves assisting you and the Trustee to come to a mutual agreement. If conciliation is unsuccessful, the SCT is empowered to determine whether the Trustee has acted fairly, and make orders if appropriate. If you want to fi nd out whether the SCT can handle your complaint, and the type of information you need to provide, contact the SCT on Upon receipt of a letter of complaint, you will receive a letter of acknowledgment within 30 days from the date your correspondence is received. The Trustee will respond to your complaint as soon as possible. In some cases it may be necessary to obtain further information before a response can be provided. The Trustee must, however, provide a response within 90 days of the date your letter of complaint was received. Club Plus Super Member Booklet - October

17 CLUB PLUS SUPER 7 PRIVACY POLICY Your right to privacy Club Plus Super understands the importance of protecting your right to privacy and have prepared this statement to help you understand how we aim to protect the privacy of your personal information. Please note that although we refer to Club Plus Super throughout this document, generally it is Australian Administration Services Pty Ltd (AAS) that collects and uses your details on our behalf. AAS is the company that administers Club Plus Super, (in which you may have an interest) on behalf of the Trustee. The Privacy Act 1988 regulates the way private organisations, like Club Plus Super and our service providers, handle personal information, including sensitive information such as health details. The Act includes thirteen Australian Privacy Principles that regulate, among other things, how organisations collect, store and protect the quality of personal information. It also regulates how these organisations should use and share personal information with other organisations. The Australian Privacy Principles form part of all our procedures and policies and the way our members accounts are administered. The Club Plus Super Privacy Policy is available on our website clubplussuper.com.au/privacy-policy. What personal information will Club Plus Super keep about me? Club Plus Super collects personal information from members to administer their accounts. The type of personal information collected about you includes your name, address, date of birth, telephone number and tax fi le number. Club Plus Super collects personal information when members lodge their forms, such as membership application and change of personal details forms, or if members send documents containing personal information. There may also be circumstances when your employer may send personal details to Club Plus Super for you. For example, if you provide your tax fi le number to your employer, you will be deemed to have authorised your employer to provide your tax fi le number to Club Plus Super. Why does Club Plus Super need my personal information? The personal information Club Plus Super collects about you is used to establish your Club Plus Super membership account, process payments to your account, correspond with you and provide you with superannuation benefi ts and options. The provision of some benefi ts and options to you requires the provision by you of your personal information and, should you choose not to provide necessary information, it may not be possible to provide those benefi ts and options to you. There are other organisations that are connected to the services we provide to you and which may have access to your personal information. They include: Mailing companies organisations contracted to do all mailing for Club Plus Super; Archiving companies organisations contracted to ensure that all documents are stored in a secure environment; Auditors, lawyers, the administrator and Regulators; Insurance companies organisations that provide insurance cover for Club Plus Super members. Organisations that ensure Club Plus Super is complying with legislation and contractual obligations. Club Plus Super Member Booklet - October

18 Member Booklet 7 CLUB PLUS SUPER PRIVACY POLICY (CONT.) Anti-money laundering and counter terrorism fi nancing Under the Anti-Money Laundering and Counter Terrorism Financing Act 2006 (AMLCTF) superannuation funds are required to identify, monitor and mitigate the risk that the fund may be used for the laundering of money or the fi nancing of terrorism. Because of this you may be required to provide proof of your identity before you withdraw your benefi t from the fund or commence a pension. At a minimum, you may be required to provide the fund with evidence that verifi es your full name, your date of birth, and your residential address. Privacy Offi cer phone: (02) Fax: In writing: privacy@clubplussuper.com.au Privacy Offi cer Club Plus Super GPO Box 3774 If you are dissatisfi ed with the response of the Privacy Offi cer, you may lodge a complaint with the offi ce of the Australian Information Commissioner by ing enquiries@oaic.gov.au or by phoning Can I see the personal information Club Plus Super has about me? Under the Australian Privacy Principles, you have a right to know what information Club Plus Super holds about you, and you are entitled to see this information to ensure it is correct. To obtain this information, please contact Club Plus Super. The Privacy Act gives limited circumstances in which some or all access to this information may be denied. If this applies to you, Club Plus Super will explain this to you when you ask for your information. The Trust Deed Club Plus Super is governed by a Trust Deed that sets out matters such as how Club Plus Super operates, your entitlements as a member and the obligations of the Trustee. The Trust Deed and other fund documentation may be inspected at the Fund Administrator s offi ce. Copies may also be obtained by writing to Club Plus Super. Club Plus Super is a complying fund and operates in accordance with the rules of the Superannuation Industry (Supervision) Act 1993 and the Superannuation Industry (Supervision) Regulations 1994 as amended from time to time. Club Plus Super Member Booklet - October