More about Combined Super

Transcription

1 More about Combined Super 30 September Making Contributions to your Super 06 Tax and your Super What s Inside 02 The Basics of Investing 07 Super and your Spouse 03 Your Investment Options 04 Fees and Costs 08 We re Here to Help 09 Other Information 05 How to Access your Super Issued by Combined Fund Pty Ltd (ABN ; RSE L ; MySuper Authorised ), the Trustee of the Combined Super Fund (Combined Super) (ABN ; RSE R ) The information in this reference guide forms part of the Product Disclosure Statement (PDS) for Combined Super. You should consider this information and the information in the Combined Super PDS before making a decision to invest in the Fund. You can obtain a copy of the PDS from your employer, by visiting or by calling the Fund on This reference guide contains general information only and does not take into account your financial objectives, situation or needs. You should obtain financial advice tailored to your own personal circumstances before deciding to invest in Combined Super. Information in this reference guide may change from time to time. Changes that are not materially adverse are available on the Fund s website or on request, free of charge, at any time.

2 2 The Benefits of Membership with Combined Super Access to our financial advice team, who provide commission free financial advice. Free assistance with consolidating your super. No entry fee. Flexible contribution options. A choice of four sector investment options and four diversified investment options or any mix of these. Pension options for older members who want to take their super as a regular income in retirement or in the lead up to retirement. Refer to the Combined Super Pension PDSs for more information. A range of member communication options including our toll free phone line, online member access, member seminars and regular enews updates. Death and Total & Permanent Disablement cover provided automatically to members on joining without the need to provide medical evidence (conditions apply). Salary Continuance cover of 85% of your salary (75% to you and 10% as a contribution into your super account) may be payable should you be unable to work due to illness or injury. Optional additional insurance cover may be available with lower premiums based on group insurance rates. Further details are available by calling or from our website at 1. Making Contributions to your Super Who can contribute to super Anyone between the ages of 18 and 65 may contribute to a super fund, whether working or not. If you re under 18, you generally have to be in the workforce to make super contributions. Between the ages of 65 and 74, a work test applies to determine whether salary sacrifice and personal contributions can continue to be made. From age 75, only SG employer contributions can be accepted. Types of contributions There are limits to the types and amounts of contributions that can be made to your super. Refer to Consessional and non-concessional limits on page 7 for further information. Employer contributions In accordance with Superannuation Guarantee (SG) Law, your employer must generally contribute a minimum of 9.5% (until 30 June 2021) of your ordinary time earnings into super. These contributions, known as Superannuation Guarantee contributions, are compulsory employer contributions which must be paid to eligible employees, being employees over 18 years of age earning $450 or more per month, or employees under 18 years of age working over 30 hours per week. Full-time, part-time employees and some casual employees are eligible for SG contributions, which must be paid at least every 3 months. Some awards, enterprise agreements and other registered employment agreements have extra terms about superannuation. These terms apply on top of the superannuation guarantee. For more information on how the SG rules work, including who is eligible, visit the ATO website Personal contributions You can boost your super by making voluntary contributions to your super account. Annual limits, known as contribution caps, apply to both pre-tax and after-tax contributions. See page 7 for more information. Pre-tax contributions (classed as Concessional contributions) You may make additional contributions to your super account from your pre-tax salary (by reducing your taxable salary by the amount of contribution you select). This is known as salary sacrifice and it enables you to obtain the equivalent of a tax deduction for the selected contributions. You should speak to your employer to find out if they support salary sacrifice arrangements. After-tax contributions (classed as Non-concessional contributions) You may make additional contributions to your super account from your after-tax salary. This money is not taxed as you ve already paid tax on it at your normal rate. These contributions can be made on an ad-hoc or regular basis either directly to Combined Super by EFT or via your employer from your after-tax salary. By submitting a Notice of Intent to Claim a Tax Deduction on Personal Contributions Form, you can have some or all of your after-tax contributions treated as pre-tax contributions. Before submitting your Notice, there are important things you should consider, such as whether you are eligible to claim a deduction and if you will exceed the contribution caps. There are also time limits to claiming a deduction. We recommend you seek professional tax advice if you are considering making personal contributions in this way.

3 3 Spouse contributions Your spouse may make contributions into your super account, either as a lump sum contribution from their after-tax salary, or under a contribution splitting arrangement whereby your spouse arranges for their contributions that have been paid into their super account be split into your account. For further information, please refer to our Fact Sheets Superannuation Contribution Splitting; and Spouse Contributions. Government low income super support options If you are a low income earner there are Federal Government initiatives that may provide you with more incentive to save money through superannuation. The figures used in this section are correct for the 2018/19 financial year. For up-to-date information outside of this timeframe, visit Low Income Super Tax Offset (LISTO) Under the Low Income Super Tax Offset (LISTO) scheme, if you earn less than $37,000 per annum, you will receive a refund of up to $500 of the 15% contributions tax paid on concessional (before-tax) contributions paid into your super account. You don t need to apply to be eligible for the LISTO. At the end of each financial year, the ATO will receive your Tax Return and a statement from Combined Super listing all of the contributions that have been made to your super account. The ATO will then determine if you are eligible to receive the tax offset, and the amount of the offset, based on your income and contribution history, and will make a payment directly into your super account. Government Co-contribution The Government co-contribution is a contribution made in recognition of the non-concessional (after-tax) contributions you have made during the financial year. The co-contribution depends on your total assessable income* and the amount that you contribute. If your income for the 2018/19 financial year is $37,697 or less, for every $1 you personally contribute to your super account as a nonconcessional (after-tax) contribution (other than personal contributions for which you will claim a tax deduction), the government will pay you 50 cents. As your income increases above $37,697, the amount that the government contributes reduces and phases out completely once you earn $52,697 per annum or more. The following table illustrates how much you may receive based on your income for the 2018/19 financial year. Co-contribution calculator Total Assessable Income* for the Financial Year After-Tax (Non-Concessional) Contribution Made Maximum Government Co-Contribution Up to $37,697 ** $1,000 $500 $43,697 $1,000 $300 $46,697 $1,000 $200 $49,697 $1,000 $100 $52,697 $0 $0 * Your total assessable income is your income, plus reportable employer super contributions and reportable fringe benefits. ** The lower income threshold is indexed in line with Average Ordinary Weekly Time Earnings (AWOTE) each income year.

4 4 There is no paperwork required to apply for the government co-contribution. The ATO does all the work for you. To qualify: a. You must make a personal non-concessional (after-tax) contribution to your super by 30 June and not claim a tax deduction for it. (You must also not exceed the nonconcessional (after-tax) contributions cap.) b. Your total assessable income must be less than $52,697 for the financial year. c. You must receive at least 10% of your assessable income from employment or self-employment activities. d. You must be less than 71 years of age at the end of the financial year. e. You must have not been a temporary resident of Australia for any part of the financial year (unless you are a New Zealand citizen). f. You must lodge an income tax return with the ATO for the financial year. g. You must have provided your Tax File Number (TFN) to Combined Super. h. You must have a Total Superannuation Balance of less than $1.6 million on 30 June of the year before the year the contributions are being made. As long as you meet these criteria, the ATO will: 1. Confirm your non-concessional (after-tax) contributions with us, and your income; 2. Determine the payment on the basis of your contribution history and your income; and 3. Pay the money directly into your super account. Co-contributions are worked out on a financial year basis. So it doesn t matter if you make several non-concessional (after-tax) contributions throughout the year or make a one-off payment, so long as the contribution is in your super account on or before 30 June. Once you lodge your tax return, your co-contribution will be worked out using your total income for that financial year and your personal contributions. The ATO then deposits the co-contribution into your super account and you ll receive a letter confirming the deposit. Contributions that do not qualify for the government cocontribution include: Employer SG contributions, Salary sacrifice contributions, Contributions for which you have claimed a tax deduction, Any super you choose to transfer in from other super funds or transfer from overseas super funds. The government co-contribution will not be subject to contribution tax when paid into your account, nor will it count against the super contribution limits. First Home Super Saver Scheme contributions If you are an eligible first home buyer you re now able to use your super account to save for a home deposit through the Government s First Home Super Saver Scheme (FHSS Scheme). As of 1 July 2018, voluntary super contributions (and associated investment earnings) can be withdrawn and used for a first home deposit. To qualify, you must be 18 years of age or over, intending to purchase a residential home or land you intend to build a home on, and not previously have owned property in Australia. The FHSS Scheme applies to voluntary contributions made into your super account after 1 July First home buyers can contribute up to $15,000 per year, and $30,000 in total per person. Voluntary contributions include concessional (before-tax) contributions, such as salary sacrifice contributions, and non-concessional (aftertax) contributions, such as making an additional lump sum payment into your super account. The contributions will still count towards the contribution caps, so if you re considering adding more to your super, it s worth keeping track of your balance against these caps. For more information, visit the ATO s website

5

6 6 Downsizer contributions As of 1 July 2018, if you are 65 years or older and meet the eligibility requirements, you may be able to choose to make a downsizer contribution into your super account of up to $300,000 from the proceeds of selling your home. This measure only applies where the contract of sale is exchanged after 1 July 2018, and does not include investment properties, holiday homes, caravans or other mobile homes. Your downsizer contribution is considered to be a one-off non-concessional (after tax) contribution, but it will not count towards your non-concessional contribution cap. The downsizer contribution can still be made even if you have a total super balance greater than $1.6 million. The downsizer contribution is not tax deductible and will be taken into account when determining your eligibility for the Age Pension. You can only make downsizer contributions from the sale of one home. If you sell your home and make a downsizer contribution, there is no requirement for you to purchase another home. If you wish to make a downsizer contribution, you will need to complete the Downsizer Contribution into Super Form available from the ATO s website and provide the completed form to us when making, or prior to making, the contribution. For more information, visit the ATO s website gov.au/individuals/super/super-housing-measures/downsizingcontributions-into-superannuation/ Consolidate your super accounts If you ve worked before, it s likely you ve got more than one super account. Combined Super can help you consolidate your super accounts, into one account which means you can: save costs by paying only one set of fees, reduce your paperwork, make it easier to keep track of your super. All you have to do is provide the details of each super account by completing and returning a Transfer In Form available from or by contacting us on and we ll do the paperwork to get your money consolidated. Warning: Before you consolidate your super into your Combined Super account, check: if you will loose any benefits, such as insurance cover (in some cases insurance cover may be transferred to Combined Super); if you will be charged any exit fees; whether the available investment options are suitable, and consider getting financial advice.

7 7 Concessional and non-concessional contribution limits The Government sets limits (caps) on how much you can contribute into your super account each year at lower tax rates. It s important to know these limits and track the amount you contribute to all your super funds each year. If contributions to your super are over the cap limits you will be subject to higher tax. Visit the ATO website for more information on tax. The figures used in this section are correct for the 2018/19 financial year. For up-to-date information outside of this timeframe, visit Definition Includes Cap Limits Concessional contributions Contributions are made from beforetax money, or money from which a tax deduction has been claimed. Compulsory employer (SG) contributions, any additional contributions your employer makes, any costs (such as super admin fees or insurance premiums) your employer pays on your behalf, salary sacrifice contributions, contributions split with your spouse and any personal contributions for which a tax deduction has been claimed. $25,000 per year. Members between the ages of 65 and 74 may make concessional contributions provided they meet the work test in the year in which the contribution is made. Members aged 75 or older may only receive SG contributions into their super account. Non-Concessional contributions Contributions are made from after-tax money. Personal contributions that have not been claimed as a tax deduction, spouse contributions and concessional contributions which have exceeded the concessional (before-tax) cap. $100,000 per year. Members aged under 65 can bring forward two years of non-concessional contributions. This is known as the bring-forward rule and enables you to make three years worth of non-concessional contributions in a single financial year. If you take advantage of the bring-forward rule, you cannot make any more non-concessional contributions into your super account for the next two years. Members between the ages of 65 and 74 may contribute up to $100,000 p.a. provided they meet the work test in the year in which the contribution is made. The bring forward rule is not applicable. If you are aged 75 or older, you can no longer make non-concessional contributions to your super account.

8 8 Concessional contributions Contributions up to the concessional cap are generally taxed at the standard rate of 15% (unless you earn over $250,000 p.a. and are classified as a higher income* earner - your concessional contributions will be taxed at 30%).** If you exceed the concessional contributions cap, the excess amount will be included in your assessable income in your tax return and will be taxed at your top marginal tax rate. You will also have to pay a charge (interest) on the excess amount. You can choose to withdraw the excess concessional contributions (and up to 85% of any associated earnings) from your super account to help pay your tax liability, or you can leave the excess concessional contributions in your super account, and pay the income tax from your personal cash flow. Any retained concessional contributions will count towards your nonconcessional contributions cap. * Income means taxable income, concessional super contributions, adjusted fringe benefits, net investment loss, target foreign income and tax-free Government pensions and benefits, less child support. ** If concessional contributions themselves push you over the $250,000 limit, the higher rate of tax will only apply to the part of the contributions that are in excess of the threshold. Unused concessional cap carry-forward If your Total Superannuation Balance (includes all balances if you have more than one super account) is less than $500,000 on 30 June of the previous financial year, you may be entitled to start accumulating the unused portion of your concessional contribution caps from previous years (up to 5 years worth) and make additional concessional contributions into your super account. The first year you will be entitled to carry forward unused amounts is the financial year. Unused amounts are available for a maximum of five years, and after this period will expire. Total Superannuation Balance Non-concessional contributions Non-concessional contributions up to the non-concessional contributions cap do not attract tax when paid into your super account, as you have already paid tax on this money. Contributions that exceed your annual limit are taxed at your top marginal tax rate if you choose to leave them in your super account. You have the option to withdraw from your account any excess non-concessional contributions, plus 85% of any associated earnings. These earnings will be included in your assessable income and taxed at your marginal tax rate. Warning: The contribution caps are applied per person, not per fund. If you hold more than one super account, contributions made to all of your accounts in a single financial year are added together and count towards the contribution caps. The bring forward amount is also influenced by your Total Superannuation Balance. Total Superannuation Balance* Non-Concessional Contribution and Bring Forward Available Less than $1.4 million Access to $300,000 cap over three years Greater than or equal to $1.4 million, and less than $1.5 million Greater than or equal to $1.5 million, and less than $1.6 million Access to $200,000 cap over two years Access to $100,000 cap over one year Fact Sheet Contribution Caps Please refer to the Contribution Caps Fact Sheet for more information or call our Financial Advice team (at no charge) on Greater than or equal to $1.6 million Nil * Your Total Superannuation Balance is the total amount that you hold in super in the Australian superannuation system (across multiple funds if applicable). Transitional arrangements may apply. For more information, see the ATO s website

9 9 2. The Basics of Investing To help you decide which of the investment options may be suitable for you, it s important to understand some of the essentials of investing. Below are some of the fundamentals that affect investment choices. Growth vs Defensive assets Combined Super s investment options are invested in Growth Assets and Defensive Assets or a mix of the two. Growth Assets Growth assets seek to produce returns significantly above inflation over the long-term. Examples of these assets include: Australian and International Shares and Property. They are often considered higher risk investments because their returns can be quite volatile in the short-term. However, over the longer term, these assets are expected to produce higher returns than defensive assets. vs Defensive Assets Defensive assets focus on capital preservation in real terms. Examples of these assets include: Fixed Interest Securities and Cash. These are the types of investments used to reduce the chance of a negative return. They tend to produce lower long-term returns but their returns tend to be more stable compared to growth assets. Risk vs Return Using basic principles of asset allocation and diversification - to invest in a way that matches your time frame, risk tolerance, and financial needs - will help you get on the right path to achieve your retirement savings goals. Asset allocation refers to the way you split your investment mix among asset classes. Diversification is the benefit you receive from asset allocation. Super, like any investment, involves some level of risk. The types of risk super may be exposed to are listed on page 10. Growth International Shares Australian Shares Generally, all investments have the potential to increase in value, decrease in value, or stay the same. An increase in value generates a positive return while a decrease in value generates a negative return. Generally, the greater an investment s potential return, the greater the risk associated with that investment. Your investment timeframe Many investors try to predict market cycles and make short-term speculative decisions in order to try and achieve superior returns. History has shown, however, that the best way to invest is to consistently buy quality investments and to hold them for the long term. Having enough time in the market is an important consideration when selecting investments and strategies. Short-term fluctuations in investment returns are generally less important when your focus is on achieving a longterm growth objective. Conservative Interest Property Balanced Note: This chart represents the potential risk and potential return characteristics of each investment option. It is not a forecast of actual risk or returns. This scale is indicative only. Sector options Diversified options

10 10 Investment risk Investment risk is the possibility your chosen investment option(s) may produce a negative or lower than expected return for a period of time. Types of investment risks to consider are: Market risk Economic, natural, political and monetary (for example, inflation and interest rates) factors can influence market valuations. Mismatch risk The risk the investment(s) you choose may not suit your needs or circumstances. Inflation risk The risk of the purchasing power of your money being eroded by inflation. Interest rate risk The risk that changing interest rates may reduce your returns or cause you to lose money. Market timing risk The risk of the timing of your investment decision exposing you to lower returns or capital losses. Concentration risk Concentrating your investments adds risk. A lack of diversification can increase volatility and expose you to unexpected changes in market conditions. Currency risk The risk of currency movements affecting your investment. Liquidity risk The risk you may not be able to access your money quickly when needed. This is particularly relevant for the property investment option as some of the assets are invested in direct property funds that can have restrictions on access. Credit risk The risk of the investment managers you invest with not meeting their obligations (for example, default on interest payments). Sovereign risk The uncertainty of return on a foreign investment due to the possibility the foreign Government might take actions which are detrimental to the investors interests. Other significant risks Other risks you should consider include: Legislative risk The risk the Government will change the rules relating to superannuation (for example, rules dealing with tax on benefits or access to benefits). Legislative risk could also apply to certain investments resulting in loss of capital or reduced returns. Termination risk Trustees of superannuation funds reserve the right to modify or terminate a super fund at any time. If this should happen, any benefits which have been secured for you up to the date of change will be maintained and transferred to a fund of your choice. Combined Super has been operating since 1959 and is not expected to close in the foreseeable future. Standard Risk Measure The Standard Risk Measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. The Standard Risk Measure is not a complete assessment of all forms of investment risk. For example, it does not detail what the size of a negative return could be or the potential for a positive return to be less than you may require to meet your objectives. Further, it does not take into account the impact of administrative fees and tax on the likelihood of a negative return. You should still ensure you are comfortable with the risks and potential losses associated with your chosen investment option(s). The following table details the Standard Risk Measure: Risk Band Risk Label Estimated Number of Negative Annual Returns Over any 20-year Period 1 Very Low Less than Low 0.5 to less than 1 3 Low to Medium 1 to less that 2 4 Medium 2 to less than 3 5 Medium to High 3 to less than 4 6 High 4 to less than 6 7 Very High 6 or greater

11 11 3. Your Investment Options Combined Super offers members a choice of four sector investment options and four diversified investment options. Sector options: Australian Shares International Shares Property Interest Diversified options: Growth Balanced (MySuper default) option Sustainable Responsible Investment (SRI) Conservative Each investment option has a different investment objective, strategy and level of risk and return. If you do not make a choice, (or your application form is not complete or incorrect) your super will be wholly invested in the Balanced investment option. This is the Fund s MySuper default option. You decide how many options to invest in You can invest your super in any number of the Fund s eight investment options. You can also choose a different mix of options for your existing account balance and for your future contributions. If you choose more than one investment option you must ensure the total percentage split adds up to 100%. You can change your investment choice You can change your investment selection at any time, at no cost. Investment switching requests are processed on a forward-pricing basis. This means your investment switch will be processed using the unit price for the month in which the request is received. For example, a switching request received in July will be processed in mid-august, when the unit price for July is calculated. It may be in your best interests to seek professional advice before making or changing your investment option(s). Combined Super offers members the opportunity to speak with or meet with our in-house Financial Advice team.

12 12 Sector Options: Australian Shares Option Investment objective To provide an investment return which exceeds the changes in the Consumer Price Index (CPI) by 4.5% per annum over rolling ten-year periods. Investment strategy Invests in a range of Australian share investment trusts. Minimum investment timeframe Long term if you choose this investment option be prepared to stay invested in it for more than ten years before it meets its objectives. Standard risk measure Estimated frequency of a negative annual return over any 20-year period: +6 years Risk band: 7 Risk label Very High risk returns can fluctuate from year to year, either moderately or considerably. International Shares Option Investment objective To provide an investment return which exceeds the changes in the Consumer Price Index (CPI) by 4.5% per annum over rolling ten-year periods. Investment strategy Invests in a range of International share investment trusts. Minimum investment timeframe Long term if you choose this investment option be prepared to stay invested in it for more than ten years before it meets its objectives. Standard risk measure Estimated frequency of a negative annual return over any 20-year period: +6 years Risk band: 7 Risk label Very High risk returns can fluctuate from year to year, either moderately or considerably. Strategic asset allocation range Benchmark Asset Class Investment Range (%) 97% Listed Australian Shares % 97% Growth Assets 3% Cash 0-10% 3% Defensive Assets Strategic asset allocation range Benchmark Asset Class Investment Range (%) 97% Listed International Shares % 97% Growth Assets 3% Cash 0-10% 3% Defensive Assets

13 13 Sector Options: Property Option Investment objective To provide an investment return which exceeds the changes in the Consumer Price Index (CPI) by 3% per annum over rolling ten-year periods. Investment strategy Mainly invests in Unlisted Property Trusts with some Listed Property Investment. Minimum investment timeframe Long term if you choose this investment option be prepared to stay invested in it for more than ten years before it meets its objectives. Standard risk measure Estimated frequency of a negative annual return over any 20-year period: less than 6 years Risk band: 6 Risk label High risk returns can fluctuate from year to year, either moderately or considerably. Interest Option Investment objective To provide an investment return which exceeds the changes in the Consumer Price Index (CPI) over rolling five-year periods. Investment strategy Invests in deposits, cash investment trusts, money market instruments and similar assets that aim to provide stable returns. Minimum investment timeframe Short term the expected volatility of this option is low, so it is appropriate for short-term investments. Standard risk measure Estimated frequency of a negative annual return over any 20-year period: less than 0.5 years Risk band: 1 Risk label Very low risk returns are unlikely to fluctuate from year to year. Strategic asset allocation range Benchmark Asset Class Investment Range (%) 48.5% Direct Property 0-100% 48.5% Listed Property 0-100% 97% Growth Assets 3% Cash 0-10% 3% Defensive Assets Strategic asset allocation range Benchmark Asset Class Investment Range (%) 100% Cash 0-100% 100% Defensive Assets

14 14 Diversified Options: Growth Option Investment objective To provide an investment return that exceeds the changes in the Consumer Price Index (CPI) by 4% per annum over rolling ten-year periods. Investment strategy Invests in a cross section of diversified assets with an emphasis on growth over the long term. Minimum investment timeframe Long term if you choose this investment option be prepared to stay invested in it for more than ten years before it meets its objectives. Standard risk measure Estimated frequency of a negative annual return over any 20-year period: less than 6 years Risk band: 6 Risk label High risk returns can fluctuate from year to year, either moderately or considerably. Balanced Option MySuper default Investment objective To provide an investment return that exceeds the changes in the Consumer Price Index (CPI) by 3% per annum over rolling seven-year periods. Investment strategy Invests in a cross-section of diversified assets with a large proportion in Australian and International shares, Property, Infrastructure and Fixed Interest Securities. Minimum investment timeframe Long term if you choose this investment option be prepared to stay invested in it for more than seven years before it meets its objectives. Standard risk measure Estimated frequency of a negative annual return over any 20-year period: less than 6 years Risk band: 6 Risk label High risk returns can fluctuate from year to year, either moderately or considerably. Strategic asset allocation range Benchmark Asset Class Investment Range (%) 29% Australian Shares 0-50% 37% International Shares 0-50% 4% 15% Listed Property & Infrastructure Direct Property & Infrastructure 0-15% 0-50% 4.5% Growth Alternatives 0-25% 89.5% Growth Assets 7.5% Defensive Alternatives 0-20% 0% Australian & International Fixed Interest 0-20% 3% Cash 0-20% 10.5% Defensive Assets Strategic asset allocation range Benchmark Asset Class Investment Range (%) 21% Australian Shares 0-50% 27% International Shares 0-50% 3.5% 16.5% Listed Property & Infrastructure Direct Property & Infrastructure 0-15% 0-50% 15% Growth Alternatives 0-35% 83% Growth Assets 2.5% Defensive Alternatives 0-20% 4.5% Australian & International Fixed Interest 0-20% 10% Cash 0-20% 17% Defensive Assets Actual asset allocation may vary within the strategic asset allocation range due to market movements, investments into or withdrawals from the investment option, or changes in the nature of the investment. This information is current as at 1 August 2018 and is subject to change. International Shares are benchmarked to the MSCI All Country World Index (Net Dividends Reinvested), approximately 13% of which is exposed to emerging market shares, and 20% of the International Shares exposure is hedged to Australian dollars in the long-term benchmark. Alternatives may include private equity, forestry and infrastructure.

15 15 Diversified Options: Conservative Option Investment objective To provide an investment return which exceeds the changes in the Consumer Price Index (CPI) by 1.5% per annum over rolling five-year periods. Investment strategy Invests in a cross-section of diversified assets with an emphasis on security of capital. Minimum investment timeframe Medium term if you choose this investment option be prepared to stay invested in it for more than five years before it meets its objectives. Standard risk measure Estimated frequency of a negative annual return over any 20-year period: less than 3 years Risk band: 4 Risk label Medium risk returns can fluctuate from year to year, either moderately or considerably. SRI Balanced Option Investment objective To provide an investment return that exceeds the changes in the Consumer Price Index (CPI) by 2.5% per annum over rolling seven-year periods. Investment strategy Invests in a cross-section of diversified assets with an emphasis on growth from socially responsible investments over the medium term. Minimum investment timeframe Long term if you choose this investment option be prepared to stay invested in it for more than seven years before it meets its objectives. Standard risk measure Estimated frequency of a negative annual return over any 20-year period: less than 6 years Risk band: 6 Risk label High risk - returns can fluctuate from year to year, either moderately or considerably. Strategic asset allocation range Benchmark Asset Class Investment Range (%) 8% Australian Shares 0-20% 10% International Shares 0-20% 3% 9% Listed Property & Infrastructure Direct Property & Infrastructure 0-15% 0-30% 18.5% Growth Alternatives 0-35% 48.5% Growth Assets 14% Defensive Alternatives 0-50% 15% Australian & International Fixed Interest 0-50% 22.5% Cash 0-50% 51.5% Defensive Assets Strategic asset allocation range Benchmark Asset Class Investment Range (%) 27% Australian Shares 15-40% 28% International Shares 15-50% 4% 8% Listed Property & Infrastructure Direct Property & Infrastructure 0-10% 0-20% 1% Alternatives 0-10% 68% Growth Assets 7.5% Defensive Alternatives 0-45% 16.5% Australian & International Fixed Interest 0-45% 8% Cash 0-25% 32% Defensive Assets Actual asset allocation may vary within the strategic asset allocation range due to market movements, investments into or withdrawals from the investment option, or changes in the nature of the investment. This information is current as at 1 August 2018 and is subject to change. International Shares are benchmarked to the MSCI All Country World Index (Net Dividends Reinvested), approximately 13% of which is exposed to emerging market shares, and 20% of the International Shares exposure is hedged to Australian dollars in the long-term benchmark. Alternatives may include private equity, forestry and infrastructure.

16 16 Unit pricing and your account Your contributions and rollovers are credited to your account in Combined Super and are used to purchase units in the investment option(s) you have chosen. Your account at any time is simply the number of units you have in each option multiplied by the unit prices for those options at that time. Unit prices move up and down as a result of changes in the market value of investments and investment income (interest, dividends, rents, etc). Tax and indirect investment-related expenses are also taken into account in determining unit prices. The movement in unit prices from 1 January to 31 December each year determines the annual return for each investment option. You can access the latest unit prices, annual returns and past performance in the Investments section of our website at Timing of unit prices and transactions Unit prices are calculated at the end of each month and published in the middle of the following month. Contributions and transfers from other funds purchase units in your chosen investment option(s) at the unit price for the month preceding the date on which the request is received. (For example, a contribution received in March will purchase units using the unit price for February.) The value of benefits paid is calculated using the latest published unit price at the date of payment. For example: a request for payment received on 5 July will be processed using the unit price as at 31 May because it was received before the middle of July and the June unit price has not been calculated. a request for payment received on 25 July will be processed using the unit price as at 30 June because it was received after the middle of July and the June unit price has been calculated. Combined Super may suspend the determination of a unit price in abnormal circumstances such as where there is sharp market volatility or there is a disruption to information required for the determination. How your investments are managed The assets of the Fund are invested in funds managed by professional, external investment managers. The performance of the investment managers is continuously monitored and changes may be made from time to time. The Trustee carries out a review of the Fund s investment strategy at least annually. The Trustee has in place a process to actively manage the investment strategy and may allow the allocation to a specific investment sector to fall below the minimum of the stated range should it become concerned by extreme asset valuations. The Trustee can also increase the Fund s exposure to sectors that are undervalued and can protect the capital base by reducing exposure to over-valued sectors. Derivatives Policy Derivatives are financial contracts whose values depend on or are derived from assets, liabilities or indices. They include options, warrants, futures, swaps and forwards. The Trustee has determined that it will not invest in derivatives directly in its own right. However, the Trustee may appoint agents (such as transition managers) who may transact in derivatives on behalf of the Fund. The Trustee may also invest in derivatives under the terms of appointment set out in a mandate or collective investment offer document. The Trustee requires each of its investment managers to provide a statement of compliance with its own derivatives policy each quarter. Reserves Policy The Trustee maintains an Operational Risk Financial Requirement Reserve within the Fund to cover losses arising from operational risks which are defined as the risk of loss resulting from inadequate or failed internal process, people and systems or from external events. It includes legal risk but excludes strategic and reputational risk.

17 17 Sustainable Responsible Investments (SRI) Policy Our policy is to appoint investment managers to invest the Fund s assets but not interfere with the investment processes of those managers. In keeping with this policy, the Trustee does not take into account labour standards or environmental, ethical or social considerations and does not have a predetermined view of such considerations or how far they should be taken into account when investing on behalf of members. At present, only one investment manager, AMP Capital has been appointed to manage our SRI Balanced investment option, but other managers may be appointed in the future. AMP Capital invests in the Responsible Investment Leaders Balanced Fund using its own multi-manager strategy. In selecting underlying managers for the SRI Balanced investment option, consideration and assessment is made from a financial, governance, social and environmental perspective. From a social and environmental perspective, AMP Capital seeks out managers that identify leaders across industries, in their responsible approach to the following SRI issues: Environmental considerations including energy and resource use and product stewardship (for example, where a company takes into account the life cycle of the product, from manufacture to the extent to which the product can be recycled); Social considerations including indigenous relations and community involvement; Ethical considerations including meeting fundamental human rights and articulating and implementing a Code of Conduct; Labour standards including the Occupational Health and Safety, International Labour Organisation standards, working conditions and the exclusion of child labour; and Governance considerations including meeting corporate governance guidelines on board structures and remuneration. Additionally, investment managers and funds are well regarded if they actively participate in corporate engagement and governance initiatives. Underlying managers are also required to avoid companies operating within sectors with recognised high negative social impact. This means that investments will avoid exposure, either directly or indirectly through underlying managers and funds, to companies with material exposure to the production or manufacture of alcohol, armaments, gambling, pornography, tobacco and nuclear power (including uranium). Material exposure is considered to be where a company derives more than 10% of its total revenue from these industries. However, a zero revenue test applies for those companies manufacturing tobacco or controversial weapons. If a company falls below the nominated SRI standards, the underlying manager is required to sell its investment in the company within six months. This policy is monitored and a breach may result in the termination of the underlying manager. The policy also requires that underlying managers review individual companies if there are major changes to the companies, such as takeovers or major environmental incidents. Combined Super is certified by the Responsible Investment Association Australasia (RIAA) under their Certification Program in the category of Superannuation Fund. The Certification Symbol signifies that Combined Super s SRI Balanced investment option is of an investment style that takes into account environmental, social, governance or ethical considerations. The Symbol also signifies that Combined Super has adopted strict disclosure and education practices required under the Responsible Investment Certification Program for the category of Superannuation Fund. The Certification Symbol is a Registered Trade Mark of the Responsible Investment Association Australasia (RIAA). Detailed information about RIAA and Combined Super s methodology and performance, can be found at www. responsibleinvestment.org.au, together with details about other responsible investment products certified by RIAA*. * The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that this financial product is a suitable investment or that returns are guaranteed. RIAA is not a financial services business and does not hold an Australian Financial Services Licence.

18

19 19 4. Fees and Costs Did you know? Small differences in both investment performance and fees and costs can have a substantial difference 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 justifies higher fees and costs. You may be able to negotiate to pay lower administration fees*. Ask the Fund or your adviser**. To find out more 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 super fee calculator to help you compare the different fee options. * The superannuation calculator can be used to calculate the effect of fees and costs on account balances. Don t pay more in fees than necessary. You can t control whether you ll make a profit or loss on any investment, but you can control what you pay to acquire and hold the investment. The fees and costs you may be charged are set out below. These fees and costs may be deducted from your account, from the returns on your investment or from the Fund s assets as a whole. Taxes are detailed on page 26 of this reference guide and insurance costs are detailed in the Insurance booklet available from the Fund on You should read all of the information about fees and costs to understand their impact on your investment. For Combined Super accounts Type of Fee Amount How and When Paid Investment Fee Nil Not applicable Administration Fees Account-keeping fee: $1 per week Administration fee: 0.355% p.a. The account-keeping fee is deducted from your account quarterly. The administration fee accrues monthly and is included in the calculation of the unit price and is not deducted directly from your account. Buy-Sell Spread Nil Not applicable Switching Fee Nil Not applicable Exit Fee Advice Fees Lump sum withdrawals: $67 Termination: Nil Nil Deducted from your account Not applicable No advice fee is payable to receive general and simple personal advice about your Combined Super account. Other Fees and Costs 1 Various Deducted from your account where applicable. Indirect Cost Ratio (ICR) 2 Underlying manager costs: range between 0.035% p.a. and 0.950% p.a. Transaction/operating costs: range between 0.002% p.a. and 0.387% p.a. Indirect costs are deducted from the assets of the option(s) or the assets of underlying vehicles before the unit price for an investment option(s) in which you invest in is determined. See the Indirect Cost Ratio table on page 22. Indirect costs are not deducted directly from your account. The fees shown are current for the 2018/19 financial year and are subject to change. 1. Other fees and costs, such as Family Law fees or advice fees for personal advice may apply. Refer to the Additional explanation of fees and costs on the following pages for further information. 2. The ICR is an estimate for the 2018/19 financial year, based on the investment related costs incurred for the 12 months ended 30 June Actual costs may vary depending on the investment option(s) you choose. It may change from year to year. If actual costs vary considerably from this estimate, the estimate will be updated. * This text is required by law. Combined Super does not negotiate fees and costs. ** Not applicable. Combined Super has a set fee structure and does not pay commissions to advisers.

20 20 Additional explanation of fees and costs Other fees and costs Family law fees The Fund will charge a fee of $80 for completing a Family Law Form 6 Declaration. Financial adviser fees General financial advice and simple personal advice to members is provided at no additional charge. The cost of this service is included in the Fund administration fees charged to member accounts; therefore you will not incur a direct fee. There may be a cost for providing comprehensive personal financial advice, which can be deducted directly from your Combined Super account. Comprehensive personal financial advice can assist you in areas including non-super investment product advice, retirement planning and wealth accumulation strategies. Personal advice may be provided by phone or face-to-face and is provided at a fixed fee based on the extent of your advice requirements. For personal advice, we will provide you with a quote detailing any potential fees before you decide to proceed. In determining this quote we consider the scope of the advice you are seeking, the level of complexity of the advice you require and the time it is likely to take us to gather and consider information about your personal circumstances, undertake product research, prepare the Statement of Advice and present it to you. Combined Super advisers do not receive commissions, fees or bonuses for the advice services that they provide to you. Insurance premiums Insurance premiums (if relevant) are deducted from your account quarterly. Details of insurance costs are set out in the Insurance booklet available from the Fund on Fee increases or changes Combined Super reserves the right to change the fees charged at any time. Should fees increase, we will ensure you are notified in writing at least 30 days before any increase takes effect. The administration and investment fees reflect the actual costs paid by the Fund and may change from time to time. If this happens, we will tell you in the next Annual Report. Definition of the types of fees you may be charged Superannuation law provides the following general definitions of the fees that funds are allowed to charge. Activity fees A fee is an activity fee if: (a) the fee relates to costs incurred by the Trustee of the super fund 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. Buy-sell spreads A buy-sell spread is a fee to recover transaction costs incurred by the Trustee of the super fund in relation to the sale and purchase of assets of the fund. No buy-sell spreads currently apply to your Combined Super account. Administration fees An administration fee is a fee that relates to the administration or operation of the super fund 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 super 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. Exit fees An exit fee is a fee to recover the costs of disposing of all or part of members interests in the super fund.

21 21 Advice fees It is an advice fee if: (a) the fee relates directly to costs incurred by the Trustee of the super fund because of the provision of financial product advice to a member by: (i) the Trustee of the fund; or (ii) another person acting as an employee of or under an arrangement with, the 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. Indirect Cost Ratio The Indirect Cost Ratio (ICR) is the ratio of the total indirect costs for the investment option based on the total average of net assets the super fund attributed to the investment option. Note: A fee deducted directly from a member s account or paid out of the super fund is not an indirect cost. ICRs are deducted indirectly from your Combined Super account. A breakdown of these costs for each investment option is provided on page 22. Investment fees An investment fee relates to the investment of the assets of a super 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 super fund, other than: (i) borrowing costs; and (ii) indirect costs that are not paid out of the super fund and the Trustee has elected in writing will be treated as indirect costs and not fees, incurred by 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; but does not include property operating costs. Insurance fees An insurance fee relates directly to either or both of the following: (a) insurance premiums paid by the Trustee of a super fund in relation to a member or members of the fund; (b) costs incurred by the Trustee of a super fund in relation to the provision of insurance for a member or members of the fund; and (i) 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 (ii) 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. Contact the Fund to help you (at no charge) consolidate all your super accounts into your Combined Super account. Another way to help you save paying additional fees and costs.

22 22 Switching fees A switching fee is a fee to recover the costs of switching all or part of a member s interest in the super fund from one class of beneficial interest to another. No switching fees currently apply to your Combined Super account. No commissions Combined Super s financial advisers are paid a salary. They are not paid commissions to provide advice or recommendations about Combined Super. Performance-related fees We do not deduct any performance fees from members accounts. However, some of the external managers of the unlisted trusts that Combined Super invests in may charge a performance-related fee that is payable when the manager s investment performance exceeds a specified benchmark. These are included in the indirect cost ratio and are indirectly borne by members who are invested in that investment option. The amount of performance-related fees payable is dependent on the individual arrangement Combined Super has with the relevant managers. The actual performance-related fees are taken into account when calculating the unit price of each investment option (where applicable) and may vary from year to year. Interposed vehicles Combined Super offers members investment opportunities into funds they may not be able to access as individuals, which allows for greater access to a broader asset pool. These underlying investments often have costs associated with them. If these investments meet ASIC s definition of an interposed vehicle, we are required to disclose the costs associated with these underlying investments. We have disclosed them as indirect costs. A vehicle such as an unlisted property trust may be an interposed vehicle if it is invested in as a means of gaining exposure to property as part of a balanced option s asset allocation to property. To determine whether an investment is an interposed vehicle, ASIC has determined certain tests that must be met. For details of this definition, refer to ASIC Regulatory Guide 97: Disclosing fees and costs in PDSs and periodic statements, as well as ASIC s website for any guidance notes. Indirect Cost Ratio (ICR) table based on each investment option The ICR table represents the estimated investment-related costs for investing your super in each of the Fund s investment options. It includes costs in relation to interposed vehicles. The indirect costs are factored into the calculation of the unit price for each investment option. The table below includes the Fund s estimated indirect cost ratio per investment option for the 2018/19 financial year, based on the investment related costs incurred for the 12 months ended 30 June The actual cost may vary from year to year. Investment Option Sector Options Indirect Cost Ratio (estimated pa) 1 Underlying Manager Costs Transaction / Operating Costs Total Australian Shares 0.724% 0.096% 0.820% International Shares 0.449% 0.387% 0.836% Property 0.489% 0.167% 0.656% Interest 0.035% 0.002% 0.037% Diversified Options Growth 0.554% 0.271% 0.825% Balanced (MySuper default) 0.543% 0.262% 0.805% Conservative 0.490% 0.284% 0.774% SRI Balanced 0.950% 0.020% 0.970% 1. The ICRs are an estimate based on the investment-related costs incurred for the 12 months ended 30 June Actual costs may vary depending on the investment option(s) you choose. If actual costs vary considerably from these estimates, the estimates will be updated.

23 23 5. How to Access your Super Super is a long-term investment and the Government has placed restrictions on when you can access your benefits. Special eligibility tests, commonly known as Conditions of Release, must be satisfied first before access to your superannuation is permitted. Benefits can generally only be paid from the Fund when one of the following Conditions of Release is satisfied: you retire permanently from the workforce on or after attaining your preservation age as shown in the following table: Date of birth Preservation age Before 1 July July 1960 to 30 June July 1961 to 30 June July 1962 to 30 June July 1963 to 30 June After 30 June you terminate an employment arrangement on or after age 60; you reach age 65 (even if you haven t retired); you are unable to work due to permanent or temporary disability; you are experiencing severe financial hardship;* on specified compassionate grounds, as determined by the Australian Taxation Office (ATO); you are an eligible temporary resident who has permanently departed Australia; you are terminally ill (subject to any conditions prescribed by law); you terminate an employment arrangement and the value of your super account is less than $200; you die (your benefits will be paid to your dependants or your estate). you are participating in the First Home Super Savers Scheme. * Government legislation sets out a maximum amount per year that can be paid to you if you qualify for payment under financial hardship. For further information contact the Fund on You may have some benefits in the Fund classified as restricted non-preserved benefits or unrestricted benefits. In certain circumstances you may be able to withdraw these superannuation benefits earlier. For example, when you change jobs you may be able to withdraw restricted non-preserved benefits. These benefits will be identified on your Combined Super Annual Member Statement. Payment of benefits Your superannuation balance may be paid as a cash lump sum or you can transfer the balance to another complying super fund, approved deposit fund, or retirement savings account. If you are eligible, you may elect to open a Pension account and commence a pension income stream. We recommend you seek professional advice before making a withdrawal, particularly if you are under age 60 as there could be tax implications. "We re here to help you.

24 24 If you change employers If you leave your employer, your super with us can be maintained and we can continue to accept contributions. Benefits of taking us with you You can still: receive ongoing contributions (made personally and/or by a new employer); maintain your investment choice; draw down non-preserved monies; and access our financial advice services (at no charge). Your Insurance Cover You are able to retain your insurance cover as follows: If your new employer is one of Combined Super s preferred default employers, you may maintain your existing insurance cover (subject to some limitations) or choose the insurance cover offered by your new employer. If your new employer is not a preferred default employer of Combined Super, you may need to undergo a medical examination in order to maintain your existing insurance cover 1. If you die If you die whilst you are a member of Combined Super, your account balance and any other benefits payable to you will be distributed by us in accordance with the requirements contained in the Superannuation Industry (Supervision) Act 1993 (the SIS Act) and with reference to your preferred beneficiary nomination (if any). Under the SIS Act, your dependants that you can nominate to receive your death benefit are: (a) Your spouse (this includes a de-facto spouse of the same or opposite sex); (b) A child; (c) A person with whom you have an interdependency relationship; or (d) Someone who is financially dependent on you. Two people may have an interdependency relationship if: They have a close personal relationship; They live together; One or each of them provides the other with financial support; and One or each of them provides the other with domestic support and personal care. An interdependency relationship may also exist where there is a close personal relationship between two people that do not satisfy the other criteria because either or both of them suffer from a physical, intellectual or psychiatric disability. Where you make a preferred beneficiary nomination, we will take into account your nomination, but it will not be binding. In this situation, in the event of your death, we will pay your benefit to your dependants or legal personal representative in proportions determined by us while giving consideration to your preferred nomination. This allows us to take account of any changes to your personal situation even if you did not previously advise us of these changes. If you are a temporary resident departing Australia If you have worked in Australia as a temporary resident and you leave the country, you may be eligible to claim the super benefit you have accumulated while working here, less any tax. The payment is called a Departing Australia Superannuation Payment (DASP). A DASP can be claimed if: (a) You visit Australia on an eligible temporary resident visa; and (b) Your visa ceases to be in effect (it has expired or been cancelled); and (c) You leave Australia. If you are a temporary resident and you permanently leave Australia, you have six months to claim your benefit. If you do not claim it within this time it will be transferred to the Australian Taxation Office (ATO) as unclaimed money. If that happens, you will need to contact the ATO to claim it. For more information, visit the ATO website 1 Insurance cover is not automatically available to casual employees or part time employees working less than 15 hours per week. If a change in employment has resulted in you becoming a casual employee or a part time employee working less than 15 hours per week, please contact the Member Services Team on to discuss your options for continuing insurance cover.

25 25 If you are a First Home Super Saver If you have made voluntary contributions to your super account since 1 July 2017, and wish to access these contributions under the Government s First Home Saver Super Scheme (FHSS Scheme), you will need to apply to the Australian Taxation Office (ATO), who manages and administers the Scheme, to have these funds released. The ATO will then determine how much you can withdraw and the tax payable on the withdrawal, and will let Combined Super know if your application has been approved. We will then arrange to release the money from your super account in line with the ATO s instructions within a reasonable processing time. Contributions withdrawn under the FHSS Scheme will be taxed at your marginal tax rate, less a 30% tax offset. You ll have 12 months from the time you release the savings to purchase a home. You must also occupy the property for at least six months in the first year of ownership after it s practical to do so. If you don t comply with the rules, you must either transfer the funds back into super or pay tax equal to 20% of the amount released. Lost and inactive members and unclaimed monies It is important that you keep your contact details up to date and your account active so that you are not classified as a lost or inactive member. The Fund is obliged to report and transfer to the ATO any lost and inactive member accounts, unclaimed benefits and, in certain circumstances, former temporary resident accounts every 6 months. The threshold for reporting lost member and inactive accounts is currently $6,000. For members over age 65, there is no threshold. Transferring your account to the ATO means you will no longer be a member of the Fund and any insurance cover you hold through the Fund will cease. The Fund does attempt to contact all members before reporting and transferring benefits to the ATO. Keep your details up to date! Simply call us on or login at and access your online account. There you'll be able to update your contact details.

26 26 6. Tax and your Super Taxation rules relating to super are complex and change from time to time. The Trustee recommends you seek professional advice in relation to tax and your super. The following is a summary of superannuation taxes as they relate to Combined Super. Different tax arrangements apply to funds such as public sector superannuation funds for government employees. Tax on contributions There are important contribution rules and caps for superannuation and it is important to understand these, as in some cases, you may have to pay additional tax at a higher rate if you breach the rules or exceed the caps. Type of Contribution Tax payable Additional information Paid by an employer on your behalf, such as: Employer superannuation guarantee (SG) contributions Additional employer contributions Paid from income on which tax has not been paid, such as: Salary sacrifice arrangements Paid from after-tax income which you claim as a personal deductible contribution and subject to age eligibility and rules. Those earning over $250,000 p.a. are required to pay a higher rate of contributions tax. 15% tax is payable on contributions. The tax is deducted from your account by the Fund and is remitted to the Australian Taxation Office on your behalf.* 30% tax is payable on contributions. Paid to the Fund personally from income on which tax has already been paid (that is, from after-tax income). Paid to your account by your spouse. Rollovers (consolidating and transferring money from one super fund to another). Government co-contribution made on your behalf. No tax is payable. Government co-contributions do not count towards either your concessional or non-concessional contribution caps. Those earning less than $37,000 p.a. May receive an offset of the 15% contributions tax. * Tax deductions which the Fund claims for administration fees and insurance premiums are used to reduce this tax rate and those savings are passed on to members.

27 27 Tax File Number Under current legislation, the Trustee is required to invite you to provide your Tax File Number (TFN). Your TFN may only be used by the Trustee for certain purposes and penalties apply should the Trustee misuse the information. Choosing not to provide your TFN is not an offence, but it may mean that you pay higher tax on your contributions and when you access your benefit. Unless the Fund has your TFN on record, employer contributions on your behalf will be taxed at your highest personal tax rate, plus the Medicare Levy. Personal contributions cannot be accepted if we do not have your TFN on file. It will also be more difficult to trace different super amounts in your name, so you can receive all your benefits when you retire. The following information regarding the taxation of super is based on the assumption that you have provided your TFN to Combined Super. Tax on investment earnings Tax relating to investment earnings is paid by the Fund. The rate of tax payable by super funds is usually no more than 15% but may be less due to the effect of tax credits and rebates. Tax on payments to you Before any account balance is paid to you from the Fund, Combined Super will arrange for the appropriate tax (if any) to be deducted as required by law. Lump sum retirement payments The tax on lump sum retirement and withdrawals is as follows: Benefits are tax-free from age 60. When you become entitled to a benefit prior to age 60, part of the benefit may be taxable. When you claim a benefit prior to age 60, Combined Super will give you a statement showing the breakdown of your account balance into tax-free and taxable components. The tax-free component includes, for example, your personal after-tax contributions and an allowance for super benefits arising from employment under old tax rules in place before July The taxable component forms the balance of your benefit and includes employer contributions and investment earnings. The tax-free component is always paid tax-free. If you are aged between 55 and 59, you will also receive the taxable component tax-free up to a lifetime limit of $205,000 (for the 2018/19 financial year), with any amounts above that limit taxed at 15% plus the Medicare Levy. If you are under 55 years of age, the entire taxable component will be taxed at 20% plus the Medicare Levy. Rollovers No tax is payable by you if you elect to transfer out your benefit to another complying super fund, an approved deposit fund, a retirement savings account or another approved super institution. Payment of tax by you is deferred until such time as the benefit is paid to you in cash. The exception is where the rollover contains an untaxed component, which will be taxed at 15% plus the Medicare levy. A higher rate of tax (30% plus the Medicare levy) also applies to transfers over $1,480,000 (for the 2018/19 financial year) from an untaxed scheme to a taxed scheme. Pensions If you elect to transfer your balance into a pension account, the regular payments are taxed as income but the tax-free proportion of your benefit is not subject to tax and a 15% tax offset (rebate) will also generally apply. No tax is payable on any pension payments made to you after age 60 and such payments do not count towards your assessable income. Temporary residents Lump sum payments made to temporary residents that have departed Australia permanently may be made up of two components - a tax free component and a taxable component (that may have a taxed element (35%) and an untaxed element (45%))*. A tax rate of 65% may be applied to your DASP if it includes amounts attributable to super contributions made whilst you were a working holiday maker under the 417 (working holiday) or 462 (working holiday subclass) visa. * These figures are applicable for the 2018/19 financial year. Tax on benefits received due to terminal illness Benefits released to a member with a terminal medical condition are tax-free. Tax on disability withdrawals Benefits paid to you if you become permanently incapacitated (as defined by superannuation law) receive concessional tax treatment. Your tax-free component may be increased to take into account the period where you could have expected to be gainfully employed if the disability had not occurred. Warning: Tax will be withheld at the top marginal rate (49% including the Medicare levy) if Combined Super has not been given your TFN.

28 28 Tax on death benefit payments Lump sums A lump sum death benefit payment will be tax free if paid to a person who is a dependant of the deceased member at the time of death. A dependent is: (a) A current or former spouse or de facto spouse (including different or same sex); (b) A child who is: (i) Under age 18; or (ii) Aged between 18 and 25 and financially dependent on the deceased member; or (iii) Disabled under Section 8 of the Disability Services Act 1986 (Cth); (c) A person with whom the deceased had an interdependency relationship* just before death; or (d) Any person who was financially dependent on the deceased member before death. If the death benefit is paid as a lump sum to anyone who is not a tax dependant, the tax on the taxable component will be 15% plus the Medicare Levy. A higher rate of tax may apply if a non-dependent has not provided their tax file number. Income streams Death benefits can be paid as an income stream to a dependant if the member dies before commencing an income stream. Death benefits can be paid as an income stream to a dependent child, although when the child turns 25, the balance in the account will be paid to the child as a lump sum (tax- free), unless the child is permanently disabled. An income stream cannot revert to or be paid to a nondependant upon the death of the member in receipt of the income stream. These income streams will be paid out to the non-dependant as a lump sum. Please seek professional advice or contact Combined Super on for further details. Tax on salary continuance payments The benefits paid under salary continuance insurance are paid as taxable income, the same as salary and wages. Any payments will be made after deducting pay-as-you-go withholding tax. * Two people may have an interdependency relationship if: (a) They have a close personal relationship; (b) They live together; (c) One or each of them provides the other with financial support; and (d) One or each of them provides the other with domestic support and personal care. An interdependency relationship may also exist where there is a close personal relationship between two people that do not satisfy the other criteria because either or both of them suffer from a physical, intellectual or psychiatric disability.

29 29 7. Super and your Spouse Your spouse, whether in the workforce or not, may join Combined Super. There are a number of ways they can build their super balance with the Fund. Spouse contributions In addition to eligible concessional (before-tax) and nonconcessional (after-tax) contributions, for example from their employer or from them directly, you can also make contributions into your spouse s account from your after-tax salary to help them top up their retirement savings. Contributions to your spouse s account can be accepted if, at the time the contributions are made: (a) your spouse is under the age of 65; or (b) your spouse is aged between 65 and 69 and has worked at least 40 hours in a period of not more than 30 consecutive days in the current financial year. If you make contributions to your spouse s account and they are a low-income or non-working spouse, you may qualify for a tax offset of up to 18% of up to $3,000 in contributions per annum to your own account balance. The maximum offset for a year of income is $540. The tax offset decreases as your spouse s income exceeds $37,000 per annum and cuts off when their income reaches $40,000 per annum or more. This doesn t mean that you can no longer contribute, it just means you won t receive a tax offset. Spouse contributions are not subject to the 15% contributions tax and they are tax-free on withdrawal. The amount that you contribute will count towards your spouse s non-concessional (after-tax) contributions cap ($100,000 per annum). Contributions in excess of the non-concessional (after-tax) contributions cap are taxed at 45% (plus the Medicare Levy). Contribution splitting with your spouse Contribution splitting allows you to transfer eligible contributions from your own super account to an account in the name of your spouse. This may be beneficial if your spouse is approaching preservation age. It can also be tax effective if both you and your spouse are planning to receive a pension between preservation age and age 59 inclusive, or if you simply wish to boost your spouse s super balance. You can transfer certain types of superannuation contributions to your spouse. You can split up to 85% of concessional (before-tax) contributions (which includes SG contributions, salary sacrifice contributions and additional employer contributions) up to the concessional contributions cap. You cannot split non-concessional (after-tax) contributions. Contributions can be split provided: (a) Each spouse/partner agrees to the split; (b) The eligible contributions were made during the previous financial year; (c) The couple is married or in a de facto relationship (including same-sex couples); (d) The receiving spouse has not reached preservation age, or is between preservation age and age 65 and not yet permanently retired; and (e) You, the member, have not already made an application to split contributions in respect of the same financial year. Split contributions are preserved until the receiving spouse reaches their preservation age and permanently retires, or turns age 65. Split contributions are considered rollovers and do not count towards the non-concessional (after-tax) contributions cap of the person receiving the split. * Don t forget, contributions you make to your spouse s account will count towards your after-tax (non-concessional) contribution cap. Make sure you don t exceed your cap! All figures in this section are correct for the 2018/19 financial year. Please refer to the Superannuation Contribution Splitting and/or Spouse Contributions Fact Sheets available from our website at for more information or call our Financial Advice team (at no charge) on

30 30 8. We re Here to Help There are a number of ways in which we provide information and assistance to our members. Telephone enquiries If you have a question about your super, we re here to help. Simply call us on for a discussion on any matter related to your membership with Combined Super or super in general. Face to face communication Representatives of Combined Super are available to address staff meetings as required. After these meetings time is always set aside for a personal face-to-face discussion for those members who have specific queries. Financial advice service Combined Super provides you with access to two types of advice services. General advice General advice does not take into account your particular financial objectives, situation or needs. Examples of general advice include how to add to your super or information about your insurance cover or investment options. You should assess your own financial situation and read the PDS before making an investment decision based on general advice. This advice is paid for by the Fund and is at no cost to members. Personal advice Personal advice is where one or more of your personal circumstances are considered when providing the advice. There are different types of personal financial advice that you can receive from an adviser: Simple, single issue advice addresses a particular aspect of your finances, for example, the best way to make personal super contributions. It s not comprehensive advice. Comprehensive financial advice involves developing a comprehensive financial plan to help you set and achieve your financial goals. It will cover things like saving, investments, insurance and superannuation and retirement planning. This sort of plan should be monitored and adjusted over time. You will receive a Statement of Advice (SOA) when comprehensive personal advice is provided. The SOA will contain the advice, the basis (reasons) on which it is given and information about fees, commissions and associations which may have influenced the provision of the advice. Copies of all documents are retained as required by law. If further advice is then provided to you, you will receive a Record of Advice. In the event we make a recommendation to acquire a particular financial product, we must also provide you with a Product Disclosure Statement (PDS). A PDS contains information about the particular product (features, costs, risks and benefits), which will enable you to make an informed decision in relation to the acquisition of that product. Website Our website at contains a range of information about the Fund including the latest unit price for each investment option. Online member portal When you join Combined Super we will give you a username and password which gives you access to information related to your super account 24 hours a day including current account balance, contribution history, nominated dependants and personal details. You can also check and/or change your personal details, investment choice, and other important information. Annual Member Benefit Statement The Fund s financial year end is 31 December. During March or April each year you will receive a Benefit Statement. This illustrates your benefits at the balance date along with full detailed transactions for the previous year to 31 December. You will also receive a Benefit Statement if you leave the Fund. The Fund s Annual Report The Fund s Annual Report for the year ending 31 December each year is available on the website (by April the following year) or upon request to the Fund. The report includes information regarding the Fund s management, investments and the year in review. Access to the Fund s documents Any document that Combined Super is required to make available to members will be provided to you within one month of your request, including the Annual Report, Trust Deed, the Fund's Financial Statements and the Auditor s Report. We will also provide, on request, any information that you may reasonably require to understand the operations of the Fund.

31 31 9. Other Information Enquiries and complaints Feedback is very helpful to us, so if you have a comment or a question feel free to contact us (see below for details). The Fund also has in place procedures to deal with any complaint you may have. Complaints about the Fund can usually be resolved promptly. However, if you are unhappy with our initial response, you may write to the Fund s Complaints Officer who will provide an initial response within 28 days. Super regulations stipulate that the Trustee then follows a formal complaints consideration procedure and provides a full response to you within 90 days. If your complaint has not been resolved to your satisfaction, you may be eligible to refer your complaint in writing to the Superannuation Complaints Tribunal (SCT) (up to 31 October 2018) or the Australian Financial Complaints Authority (AFCA) from 1 November 2018 onwards. For more information on eligibility or to lodge a complaint: Superannuation Complaints Tribunal Locked Bag 3060, Melbourne VIC 3001 (p) (e) info@sct.gov.au (w) Australian Financial Complaints Authority GPO Box 3, Melbourne VIC 3001 (e) info@afc.org.au (w) Eligible Rollover Fund If you leave employment and your super account balance is less than $1,000, your super account balance may be transferred to an Eligible Rollover Fund (ERF). If your benefit is transferred to an ERF your membership with Combined Super and your insurance cover through the Fund will cease and you will be subject to the governing rules of the ERF. A different fee structure and investment strategy may apply. Privacy Policy The Trustee is bound by the Australian Privacy Principles set out in the Privacy Act 1988 (Cth). The Act regulates the way the Trustee and the Fund s Administrator collect, hold and use members personal information. This personal information is collected to enable the Trustee and the Fund s Administrator to administer members entitlements under the Fund. The Trustee will not collect any personal information that it does not require to administer such entitlements. Members personal information is stored in secure facilities and databases and is only accessible to authorised personnel. Members are entitled to access their personal information (subject to some exceptions set out in the Trustee s Privacy Policy) and to request changes to any details that are incorrect or out of date. Other organisations may also have access to members personal information. The Trustee s Privacy Policy document is available at or by calling the Fund on Anti-Money Laundering and Counter Terrorism Financing Procedures The Trustee is required to carry out proof of identity procedures before cashing or transferring a superannuation benefit. These requirements arise under the Government s Anti-Money Laundering and Counter Terrorism Financing legislation. The Trustee is required to collect members identification information and to verify it by reference to a reliable independent source. You will be notified of these procedures when applicable. If you do not provide the information or the Trustee is unable to verify the information as required, your benefit payment may be delayed or affected. The contact details for the ERF used by Combined Super are: The Manager AUSfund Locked Bag 5132 Parramatta NSW admin@ausfund.com.au

32 We re here to help, so contact us today! combinedsuper.com.au Level 9, 155 Queen Street, Melbourne Vic 3000 GPO Box 4559, Melbourne Vic 3001 Issued by Combined Fund Pty Ltd (ABN ; RSE L ); MySuper Authorised ( ), the Trustee of the Combined Super Fund (Combined Super) (ABN ; RSE R ).