Exit fee (if you make a withdrawal)** $154 ($157 from. Switching fee (if you change your investment choice more than once each calendar year)

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1 Dow Australia Superannuation Fund Fees and Tax Sheet Super and tax The information in this document forms part of: the Product Disclosure Statement for Employee members (including Insurance Only members) Version 10, dated 7 May 2018; and the Product Disclosure Statement for Spouse members, Version 9, dated 7 May Important information This information should be read in conjunction with the other documents which form part of the relevant Product Disclosure Statement (PDS). You should consider this information before making a decision about the product. The information provided in this PDS is general information only and does not take into account your particular objectives, financial circumstances or needs. It is not personal or tax advice. Any examples included are for illustration only and are not intended to be recommendations or preferred courses of action. You should consider obtaining professional advice about your particular circumstances before making any financial or investment decisions based on the information contained in this document. Information on tax is current as at 7 May 2018 unless otherwise noted and may change. Information contained in this document that is not materially adverse is subject to change from time to time and may be updated if it changes. Updated information can be found on the Fund s website at towerswatson.com/super/ dow. In addition, we will provide a hard copy free of charge on request, by contacting the Fund Administrator on Fee summary This is a summary of the main fees that apply. Other fees can also apply. See pages 2 to 4 for details. Employee members Did you know? Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30-year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. You or your employer, as applicable, may be able to negotiate to pay lower fees. Ask the fund or your financial adviser. To find out more Employee members Insurance only Spouse members Retained Benefit members Investment fees* Administration fees (deducted from 0.41% p.a. 0.41% p.a. 0.41% p.a. 0.76% p.a. the investment return) Exit fee (if you make a withdrawal)** $154 ($157 from $154 ($157 from $154 ($157 from $154 ($157 from 1 July 2018) 1 July 2018) 1 July 2018) 1 July 2018) Switching fee (if you change your investment choice more than once each calendar year) $98 ($100 from 1 July 2018) $98 ($100 from 1 July 2018) $98 $98 ($100 from ($100 from 1 July 2018) 1 July 2018) * Fees vary depending on your investment option. See page 2 for details. ** Not payable when you transfer into the Retained Benefits section or an Account-Based Pension in the Fund. Fees and other costs ISSUED: 7 May 2018 If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website ( has a superannuation calculator to help you check out different fee options. This section shows fees and other costs that you may be charged. These fees and other costs may be deducted from your money, from the returns on your investment or from the assets of the superannuation fund as a whole. Other fees, such as activity fees and insurance fees for voluntary insurance, may also be charged, but these will depend on the nature of the activity or insurance chosen by you. Taxes, insurance fees and other costs are set out in the notes on pages 3 to 4. You should read all the information about fees and other costs because it is important to understand their impact on your investment. Issued by Towers Watson Superannuation Pty Ltd (ABN , AFSL ) as Trustee of the Dow Australia Superannuation Fund (ABN ). 1

2 Dow Australia Superannuation Fund Type of fee or cost Amount How and when paid Investment fee Assertive 0.80% to 0.85% per year ($8.00 to $8.50 per $1,000) Growth 0.60% to 0.65% per year ($6.00 to $6.50 per $1,000) Conservative 0.38% to 0.43% per year ($3.80 to $4.30 per $1,000) International Shares 0.90% to 0.95% per year ($9.00 to $9.50 per $1,000) Australian Shares 0.55% to 0.60% per year ($5.50 to $6.00 per $1,000) Property 0.70% to 0.75% per year ($7.00 to $7.50 per $1,000) Fixed Interest 0.05% to 0.10% per year ($0.50 to $1.00 per $1,000) Cash 0.08% to 0.13% per year ($0.80 to $1.30 per $1,000) Investment fees are deducted from investment returns before the Declared Earning Rate(s) are applied to your accounts. The fees vary depending on the option(s) you have chosen for your super. The fees shown are annualised estimates for the period from 1 January 2018 to 31 December 2018, and may change. Administration fee A percentage of your account balance, as shown: Employee, Spouse and Insurance Only members: 0.41% per year ($4.10 per $1,000) Retained Benefits and Transition to Retirement Pension members: 0.76% per year ($7.60 per $1,000) Account-Based Pension members: 0.75% per year ($7.50 per $1,000) The administration fee is deducted from investment returns before the Declared Earning Rate(s) are applied to your accounts. Buy-sell spread Nil Not applicable. Switching fee $98 per switch ($100 from 1 July 2018), excluding the first switch each calendar year Deducted from your Company Statutory Account (or Spouse Account or Retained Benefit Account or Account-Based Pension Account, as appropriate). Exit fee $154 ($157 from 1 July 2018) Deducted from any withdrawal from the Fund. No exit fee applies when you transfer your lump sum benefit into a Retained Benefit Account or Account-Based Pension in the Fund. Advice fees relating to all members investing in a particular MySuper product or investment option. Other fees and costs 1 Nil Other fees may also apply Not applicable. Indirect cost ratio Nil Not applicable. 1 Insurance fees for voluntary insurance and fees for certain activities you request may apply (see pages 3 to 4). 2

3 Example of annual fees and costs This table gives an example of how the fees and costs in the Growth option for this superannuation product can affect your superannuation investment over a 1 year period. You should use this table to compare this superannuation product with other superannuation products. Example Growth Option Balance of $50,000 Investment fees 0.65% per year* For every $50,000 you have in the superannuation product you will be charged $325 each year* Plus Administration fees 0.41% per year for Employee members or 0.76% per year for Retained Benefit members And, for every $50,000 you have in the superannuation product you will be charged $205 each year if you are an Employee member, or $380 if you are a Retained Benefit member Plus Indirect costs for the superannuation product Equals Cost of product Nil And, indirect costs of nil each year will be deducted from your investment If your balance was $50,000, then for that year you will be charged fees of $530 if you are an Employee member, or $705 if you are a Retained Benefit member, for the superannuation product. * The fee shown is the maximum investment fee applicable, on a gross of tax basis. Note: Additional fees may apply. And if you leave the superannuation fund, you may also be charged an exit fee of $154 ($157 from 1 July 2018) and a buy-sell spread. The buy-sell spread for exiting is 0% (this will be equal to $0 for every $50,000 you withdraw). Additional explanation of fees and costs Buy-sell spread A buy-sell spread may be charged by a fund to reflect costs incurred by the fund or charged by the investment managers when you make contributions, roll money into the Fund, or change investment options. The Fund does not currently charge a separate buy-sell spread; instead, these costs are included in transactional and operational costs. See below for more information. Any buy-sell spread is in addition to the switching fee which also applies when you change investment options (excluding the first switch in any calendar year). Administration fees These fees include administration, consulting, audit, legal and other fees incurred by the Fund. The percentage-based fee is deducted from investment returns earned by your chosen option before the Declared Earning Rate(s) are applied to your accounts. Investment fees The investment fee ranges that apply to the Fund s investment options are shown in the table on page 2. They are estimates of the ongoing fees that will be charged. Taxes and insurance fees The following taxes and insurance fees are deducted from your accounts in the Fund: The fee for your voluntary death, terminal illness and total and permanent disablement insurance cover for Employee members is $5.00 per month per unit of cover. For Spouse members, the fee for voluntary death cover is $3.00 per month per unit of cover. For details, refer to the Fund s Insurance Guide. Contributions tax generally at the rate of 15% from Company contributions and any salary sacrifice contributions to your accounts. Any deductions available to the Fund, such as for expenses and insurance fees, reduce the amount of tax deducted. Excess contributions tax in certain circumstances if your contributions exceed caps set by the Government (see page 6). No-TFN tax on your concessional (employer and before-tax) contributions if you have not provided the Fund with your TFN. Any surcharge tax assessed by the ATO as being applicable to you. The tax is deducted from your accounts when the assessment is received by the Fund. The surcharge was abolished with effect from 1 July 2005, but the Fund may still receive assessments for you in respect of earlier years. More information on tax can be found on page 5. Transactional and operational costs These costs are incurred by the Fund and its investment managers, and may include brokerage, settlement and custody costs, the difference between the acquisition and disposal prices paid by the managers for the Fund s investments, clearing costs, costs associated with currency hedging and stamp duty on investment transactions. They may also include additional fees charged by some of the Fund s investment managers if they out perform their specified objective. These additional fees are only charged on the portion of the assets of the relevant investment option held by the manager. Transactional and operational costs related to explicit transaction costs are included in the investment fee, based on the amount of these costs incurred by the Fund or its investment managers during the Fund year prior to the date of this PDS (i.e. the year ending 31 December 2017). They therefore represent a cost to you. Implicit transaction costs (eg bid/ask spreads) are also included in the total transactional costs shown in the table on page

4 The total transactional and operational costs are shown in the table below. Option Transactional and operational costs included in investment fee Not included in investment fee Total Assertive 0.16% 0.02% 0.18% Growth 0.15% 0.01% 0.16% Conservative 0.10% 0.01% 0.11% International Shares 0.22% 0.00% 0.22% Australian Shares 0.01% 0.03% 0.04% Property 0.20% 0.07% 0.27% Fixed Interest 0.00% 0.00% 0.00% Cash 0.00% 0.00% 0.00% These amounts are estimates. To the extent they are part of the investment fee, these costs are deducted from the investment earnings of each investment option before those earnings are applied to your accounts. Borrowing costs These costs may be incurred by the Fund s investment managers and relate to the use of credit facilities that are not derivatives by the managers. Borrowing costs are calculated based on the amount of those costs incurred in the previous financial year and represent an additional cost to you. For the most recent Fund year to 31 December 2017, these costs are shown in the table below. Option Borrowing costs Assertive 0.000% Growth 0.003% Conservative 0.003% International Shares 0.000% Australian Shares 0.000% Property 0.000% Fixed Interest 0.000% Cash 0.000% Operational risk financial requirement reserve Super funds are required to set aside financial resources to address their operational risks. The Trustee has built up an operational risk financial requirement reserve in the Fund targeting 0.25% of the Fund s net assets, partly funded by setting aside a small portion of the Fund s investment earnings. The reserve is invested in the Growth option. The Trustee periodically monitors the reserve to ensure that it remains close to its target level. Should the reserve fall below a predetermined shortfall limit, the Trustee will enact a plan for its replenishment. This may include deducting further amounts from investment earnings. Any such deductions will be included in the investment fee of each investment option. Members will also be advised if such deductions are required. Activity fees A contribution splitting fee of $154 ($157 from 1 July 2018) is charged each time a splitting application is processed by the Fund Administrator on your behalf. If you or your spouse require information on your benefit in relation to a Family Law matter, a fee of $296 ($301 from 1 July 2018) will be charged for each date at which information is required. You, or your spouse, are required to pay this fee at the time of any request for information it is not deducted from your accounts. In addition, if your super is split under a Family Law agreement or court order, a fee will apply for the payment of an amount to your former spouse. This fee is normally deducted from the benefit payable to your former spouse, unless your agreement or court order provides otherwise. The fee for the payment to your former spouse is $154 ($157 from 1 July 2018). A fee of $154 ($157 from 1 July 2018) applies if excess contributions tax is paid to the ATO from your super account or if you elect to withdraw any excess contributions from the Fund. All fees include GST where applicable. Fee changes Some of the fees are dependent on the fees charged by the Fund s service providers. Some of these fees may be indexed annually (e.g. in line with increases in Average Weekly Ordinary Time Earnings); others depend on the services provided to the Fund each year. The Trustee reserves the right to increase the fees without your consent if necessary in order to manage the Fund. We may also introduce new fees. You will generally be given at least 30 days notice of any fee increases. The fees shown are current at 31 March 2018, unless otherwise stated. Further details of the fees, costs and taxes paid by the Fund can be found in the Fund s Financial Statements. A summary is included in the Fund s Annual Report which is issued for each year to 31 December. Fee definitions Activity fees A fee is an activity fee if: a the fee relates to costs incurred by the trustee of a superannuation fund that are directly related to an activity of the trustee: i ii that is engaged in at the request, or with the consent, of a member; or 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. Administration fees An administration fee is a fee that relates to the administration or operation of the superannuation fund and includes costs that relate to that administration or operation, other than: a borrowing costs; and 4

5 b indirect costs that are not paid out of the superannuation fund that the trustee has elected in writing will be treated as indirect costs and not fees, incurred by the trustee of the fund or in an interposed vehicle or derivative financial 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 a superannuation fund because of the provision of financial product advice to a member by: i ii a trustee of the fund; or another person acting as an employee of, or under an arrangement with, a trustee of the fund; 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 transaction costs incurred by the trustee of a superannuation fund in relation to the sale and purchase of assets of the fund. Exit fees An exit fee is a fee to recover the costs of disposing of all or part of members interests in the superannuation fund. Indirect cost ratio The indirect cost ratio (ICR), for a MySuper product or an investment option offered by a superannuation fund, is the ratio of the total of the indirect costs for the MySuper product or investment option, to the total average net assets of the superannuation fund attributed to the MySuper product or investment option. Investment fees An investment fee is a fee that relates to the investment of the assets of a superannuation fund 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 fund, other than: i ii borrowing costs; and indirect costs that are not paid out of the superannuation fund that the trustee has elected in writing will be treated as indirect costs and not fees, incurred by the trustee of the fund or in an interposed vehicle or derivative financial product; and iii costs that are 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. Insurance fees A fee is an insurance fee if: a the fee relates directly to either or both of the following: i ii insurance premiums paid by the trustee of a superannuation fund in relation to a member or members of the fund; costs incurred by the trustee of a superannuation fund in relation to the provision of insurance for a member or members of the fund; 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 benefit 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. Switching fees A switching fee for superannuation products other than a MySuper product, is a fee to recover the costs of switching all or part of a member s interest in the superannuation fund from one investment option or product in the fund to another. Super and tax How are my contributions taxed? What are the caps on contributions? The Government sets limits or caps on how much can be contributed to super each year before extra tax applies. What is the annual cap? What tax applies if my contributions are within the cap? Concessional contributions $25,000 regardless of your age. Generally 15% contributions tax.*^ Non-concessional contributions # $100,000, however, if your total super balance on 30 June 2017 or 30 June 2018 was more than $1.6 million, any non-concessional contributions you make in the following financial year will be excessive. Nil # If you are under age 65 and you want to make larger non-concessional contributions to your super fund, you may be able to bring forward up to two years of caps, to make total contributions of up to $300,000 over three years. The maximum you can contribute over three years is $300,000 and further restrictions may apply if your total superannuation balance on 30 June 2017 or 30 June 2018 was greater than $1.4 million. Transitional rules apply if you brought forward contributions in the 2015/16 or 2016/17 years. *If your relevant income is over $250,000 per year, you may receive an additional tax assessment from the Australian Taxation Office (ATO). ^If you earn less than $37,000 per year you may receive a refund of the 15% contributions tax deducted from your compulsory employer contributions through the low income super tax offset. The refund ranges from $10 to $500 a year. Each year the ATO will determine whether you are eligible, and if so, will pay the refund to your super fund. 5

6 What happens if I exceed the caps? This table shows the extra tax applicable if you exceed the caps: How much tax applies to the excess if I exceed the limit? Concessional contributions Your marginal tax rate less 15% (reflecting tax already paid by the Fund), plus an interest charge. Non-concessional contributions If you withdraw the excess from super: Nil tax on contributions. Associated earnings taxed at your marginal tax rate. If you leave excess in super: up to 47%. If you exceed the concessional contributions cap, you can elect to release up to 85% of the excess contributions from the superannuation system. The amount will be paid by your super fund to the ATO and used to meet any of your outstanding tax liabilities (including the tax on the excess contributions) with the remainder then paid back to you. Amounts that you withdraw will not count towards your non concessional contributions cap. If you exceed the non-concessional contributions cap, you can elect to release the excess contributions from super, together with an amount of associated earnings. The amount of associated earnings is determined by the ATO and may not reflect the actual earnings on your super contributions. The ATO will send you a form to enable you to make your elections. What are concessional contributions? Concessional contributions include: Company contributions; Personal salary sacrifice contributions; and Personal contributions for which you have claimed a tax deduction. What are non-concessional contributions? Non-concessional contributions include: After-tax contributions for which you have not claimed a tax deduction; Excess concessional contributions not withdrawn from superannuation; and Certain other contributions from non-salary sources (e.g. certain overseas transfers). They do not include rollovers or co-contributions. Comparing concessional and non-concessional contributions PAYG tax Contributions tax Benefit tax Excess contributions tax Government co-contribution Spouse contributions Contribution splitting Concessional contributions You do not pay any PAYG tax on the contributions because they are deducted before tax is taken out of your pay. This reduces the income tax you pay. Generally 15% contributions tax is deducted. If your relevant income is over $250,000, you may receive an additional tax assessment from the ATO. Benefit tax may apply if the lump sum is taken before age 60 (see page 7 for details). Any contributions over the cap will be taxed at your marginal tax rate less 15% (reflecting tax already paid by the Fund), plus an interest charge. See above for more details. Do not count towards eligibility for the co-contribution. You cannot make before-tax contributions for your spouse. You can split up to 85% of your concessional contributions with your spouse. Note that these contributions still count towards your concessional contributions cap, not your spouse s. Non-concessional contributions PAYG tax is deducted from your pay before after-tax superannuation contributions are made. Because you have already paid income tax on this money, contributions tax is not deducted from after-tax contributions. Benefit tax does not apply to after-tax contributions. If you withdraw the excess from super: Nil tax on contributions. Associated earnings will be taxed at your marginal tax rate. If you leave excess in super: Any contributions above the cap will be taxed at 47%. See above for more details. May count towards the co-contribution depending on your income and eligibility. See page 7 for details. You can make after-tax contributions for your spouse.* These count towards your spouse s non-concessional contributions cap, rather than your own. A tax offset may apply (see page 7 for details). Non-concessional contributions cannot be split. * Employee members (excluding Insurance Only members). 6

7 How are investment earnings taxed in the Fund? Investment earnings are generally taxed at the rate of 15%. This rate reduces if deductions and imputation credits are available to the Fund s investment managers. This tax is deducted from the Fund s investment earnings before they are applied to your account(s). There is no tax deducted from investment earnings in the Account-Based Pension Section. However, investment returns for Transition to Retirement Pension members are not tax free from 1 July 2017, so these members receive the same returns as other Fund members from that date. How is my super benefit taxed? The tax payable on benefits depends on a number of factors, including: The type of benefit being paid (retirement, disability or death); Who receives the benefit; Whether you were an Australian citizen or permanent resident when the benefit was paid. Higher tax applies to benefits paid to temporary residents who permanently leave Australia; Whether you provided your TFN to the Fund; and How you receive the benefit (e.g. lump sum amount or pension) and your age. If you are age 60 or over, generally all lump sum payments and pensions paid to you from a taxed super fund (such as this Fund) will be tax free. Death benefits paid to non-dependants are taxed, as are certain disablity benefits. Benefits paid to departing temporary residents may also be taxed. Tax on lump sums Age Lump sum tax rate # Less than your preservation age* Between your preservation age* and age 59 20% plus Medicare levy The first $200,000** is tax-free and the remainder is taxed at 15% plus Medicare levy * See to the right for details. ** This is a lifetime limit and not a per-payment limit. This is the limit for the 2017/18 year. It will be $205,000 for 2018/2019 and is indexed each year on 1 July. # Excluding departing temporary residents. Your preservation age Your preservation age depends on when you were born. More details are in the Super Guide (and Spouse Super Guide) available on the website at com/super/dow or from the Fund Administrator. Date of birth Before 1 July July 1960 to 30 June July 1961 to 30 June July 1962 to 30 June July 1963 to 30 June July 1964 or later Co-contributions Preservation age The Government pays a superannuation co-contribution for an eligible member s after-tax contributions up to certain limits. The Government will contribute $0.50 for every dollar of member contributions to a maximum of $500 per year for those on incomes of $36,813* per year or less. This maximum co-contribution gradually reduces for each dollar that a person s total annual income exceeds $36,813*, until it phases out altogether for those on incomes of $51,813* per year and above. Your income, for the purpose of determining your eligibility for the co-contribution, is your total assessable income, including Company contributions made to your Company Additional account, any before-tax super contributions and certain other employer super contributions, and any reportable fringe benefits. You cannot receive the co-contribution for contributions for which you claim a tax deduction. Other eligibility conditions also apply. The ATO automatically determines your eligibility for the co-contribution based on your personal income tax return lodged each year. If you are in the relevant income bracket and believe that you can benefit from the co-contribution, you may wish to speak to a licensed financial adviser, or contact the ATO on or au/super. See the Fund s website for any changes to these income limits or co-contribution amounts over time. * This is the threshold for the 2017/18 year. From 1 July 2018, the lower threshold increases from $36,813 to $37,697. The upper threshold increases from $51,813 to $52,697. The spouse tax offset Employee members who make contributions on behalf of their spouse may be entitled to claim a tax offset if their spouse is on a low assessable income. Your spouse does not claim the offset; you do. To be eligible, you must be an Australian resident at the time you contribute. The maximum offset is $540 per year. The spouse rebate is calculated as 18% of the lesser of: $3,000 reduced by $1 for every dollar that your spouse s annual assessable income exceeds $37,000; and The total of the spouse contributions you make during the year. Therefore, you (Dow employee) can only claim an offset if your spouse s annual assessable income is less than $40,000. Please note, you cannot claim the tax offset on contributions split with your spouse. Remember, everyone s financial situation and goals are different. So, before you decide to make contributions for your spouse, speak to a licensed financial adviser. 7

8 Providing your TFN Under the Superannuation Industry (Supervision) Act 1993, the Fund is authorised to collect your Tax File Number. The Trustee may disclose your Tax File Number to another superannuation provider, when your benefits are being transferred, unless you request the Trustee in writing that your Tax File Number not be disclosed to any other superannuation provider. Declining to quote your Tax File Number to the Trustee is not an offence. However, giving your Tax File Number to the Fund will have the following advantages: The Fund will be able to accept all permitted types of contributions to your account/s; Other than the tax that may ordinarily apply, you will not pay more tax than you need to - this affects both contributions to your superannuation and benefit payments when you start drawing down your superannuation benefits; and It will make it much easier to find different superannuation accounts in your name so that you receive all your superannuation benefits when you retire. Tax for Account-Based Pension members The Trustee recommends that you consult a tax adviser or licensed financial adviser before transferring your super into an Account-Based Pension. Following is a brief overview of the taxes that currently may apply to Account-Based Pension members. Pension payments If you are over age 60, you will not have any tax deducted from your regular pension payments. If you are under age 60, tax will automatically be deducted from your regular Account-Based Pension payments on a Pay As You Go (PAYG) basis, in the same way as tax is deducted from an employee s salary. Provided you are aged between your preservation age (at least 55) and 60 years, you can claim a 15% rebate on most pension payments made to you (less any tax-free amount). Investment earnings The Fund pays no tax on the investment earnings of Account-Based Pension members. As a result, Account-Based Pension members currently receive different investment returns to Employee, Spouse and Retained Benefit members. However, investment returns for Transition to Retirement Pension members are not tax free from 1 July 2017, so these members receive the same returns as other Fund members from that date. Withdrawals No tax applies to lump sum withdrawals from the Account-Based Pension Section if you are over age 60 at the time of payment. If you are under age 60, lump sum superannuation tax applies (see page 7). Death benefits Any death benefit from your Account-Based Pension Account will be paid to your estate or your reversionary beneficiary. Your death benefit is not taxed on payment from the Fund if it is paid to your estate; however, the administrator of the estate has to make the appropriate tax deductions when it is paid from your estate. If you have nominated for your Account- Based Pension to continue to be paid to your spouse (i.e. a reversionary beneficiary) and they are aged 60 or more at the time of your death or you are over age 60 at the time of your death, then the reversionary payments will be tax- free. If your spouse is aged less than 60 at the time of your death and you were aged less than 60 at the time of your death, the payments from the Account-Based Pension account will be taxed at your spouse s marginal tax rate (less the 15% tax rebate) until your spouse is aged 60, when they become tax free. Social Security and the Government age pension How much you receive (if any) from the Government s age pension will depend on how you rate under the Government s income and assets tests. This is because if your income and/or assets are over a certain level, you will not be entitled to a full age pension. From 1 January 2015, new Account-Based Pensions are treated as financial assets and subject to the deeming rules for the purpose of the Income Test. Existing Account-Based Pensions held by pensioners in receipt of Centrelink benefits on 31 December 2014 continue to be assessed under the rules in place on that date. Social Security and age pension rules can be complex and the Trustee recommends that you contact the relevant Government agency and/or a licensed financial adviser to determine the impact on your social security and pension entitlements before you commence an Account-Based Pension. For more details about the taxes that apply when you retire, refer to the leaflet, How tax applies to your retirement or redundancy payments, available on the Fund s website. Contact us The Fund Administrator Dow Australia Superannuation Fund PO Box 1442 Parramatta NSW 2124 Phone: dowsuper.australia@towerswatson.com Website: Current employees can also contact: James Foster Human Resources Generalist Dow Chemical (Australia) Pty Ltd Level 17, 8 Exhibition Street Melbourne VIC 3000 Phone: FosterJ@dow.com 8 XX Issued by Towers Watson Superannuation Pty Ltd (ABN , AFSL ) as Trustee of the Dow Australia Superannuation Fund (ABN ).