Accumulation Account Guide

Transcription

Issued 1 July 2016
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Our superannuation product identification number (SPIN) is QSU0101AU (Accumulation)
Our superannuation fund number (SFN) is 2610 419 41
Our MySuper authorisation number is 60905115063329
The ABN of the Board of Trustees of the State Public Sector Superannuation Scheme (QSuper Board) is 32 125 059 006
The ABN of the State Public Sector Superannuation Scheme (QSuper Fund) is 60 905 115 063
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Contents
Contents
p4
What makes QSuper super?
p6
Contributions
p12
Accessing your super
p16
Fees and other costs
p23
How super is taxed
p26
Important information
This is the Accumulation Account Guide. It gives you all
the details about the Accumulation account product, and
other important topics like fees and taxation as they apply
to the account.
The information in this document forms part of the QSuper
Product Disclosure Statement for Accumulation and Income
Accounts (PDS) issued on 1 July 2016, as the PDS references
information that you’ll find in this guide. Other important
information is contained in the Investment Choice Guide,
Income Account Guide and Accumulation Account Insurance
Guide which also forms part of the PDS.
You should consider the information contained in the PDS
and the guides before making any decisions about the
Accumulation account. If you need copies of any of the
documents we refer to in this guide, you can download them
from our website. Can’t get to a computer? No problem, just
give us a call and we’ll send them to you.
Keeping you informed
There may be changes from time to time to information
contained in this document and the guides. You can find out
information about any changes that aren’t materially adverse
by visiting our website at qsuper.qld.gov.au or calling us
on 1300 360 750. We’ll also send you a copy of the updated
information on request, free of charge.
This guide is for all QSuper members who hold an
Accumulation account. It outlines super arrangements for:
•
Queensland Government or related entity employees
•
former employees of the Queensland Government or
related entities who have kept their membership
•
spouses of QSuper members who have an account
•
non-spouse members who have an account opened as
a result of a family law split.
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Hello, and welcome to QSuper
QSuper has a proud history of helping members just like you reach their retirement goals for
more than 100 years. It’s a job we take seriously because after all, we want you to be able to
retire with enough super to meet your needs.
So who is this guide for?
If you have a QSuper Accumulation Account, then this guide is for you. It explains everything
you need to know about your super account. Before we get started, let’s take a look at some
of the membership benefits that are in store for you.
We’re good at what we do – it’s why we’re an
industry-leading fund
We’re proud to be a leader in our industry and we have the
recognition to show for it – our products and services have been
consistently ranked by independent ratings companies as being
among the best in the country.
We offer some of the lowest fees in Australia1
We keep our fees as low as we can and we believe in keeping them
simple too, so with QSuper you don’t pay any entry fees, exit fees or
commissions.
We offer a range of financial advice to meet
your needs
If it’s advice you need, we can help. Whether you want advice on
a single super topic or comprehensive advice that considers your
whole financial situation, talk to us. And you can choose how you
get it too, from online, over the phone or face-to-face – whatever
you prefer.2
We help you get more out of your super
Want to learn more about your super and some strategies to make
the most of it? We run a range of seminars designed to give you the
information you need to make super choices that are right for you.
It pays to have an Accumulation account
When you have a QSuper Accumulation account and transfer some
or all of your super to a QSuper Income account or Transition to
Retirement Income account you could receive a payment called
the QSuper Income Account Transfer Bonus.
It’s an industry first and it means if you’re eligible, we may be able
to pay you money that has been previously provisioned for capital
gains tax. Think of it as a potential boost to your super balance
that’s automatically added to your Accumulation account, but only
when you open a QSuper Income account.3
Subject to legislation being passed, from 1 July 2017, earnings from
assets supporting Transition to Retirement accounts will no longer
be tax free.
A flexible range of investment options
Whether you want us to manage your investments, or you want
to choose your own investment strategy for your super, we’ve got
options to suit.
We make it easy for you to keep track of your
super
Want your super at your fingertips? With our convenient Member
Online portal you can do just that with personalised access to your
super whenever it suits you.
1 SuperRatings Fundamentals report as at February 2016. SuperRatings does not issue, sell, guarantee or underwrite this product. 2 QInvest Limited (ABN 35 063 511 580, AFSL and Australian Credit
Licence Number 238274) (QInvest) is ultimately owned by the QSuper Board (ABN 32 125 059 006) as trustee for the QSuper Fund (ABN 60 905 115 063). QInvest is responsible for the financial
services and credit services it provides. Advice fees apply. 3 Subject to more details being released, the amount payable may be impacted by the proposed changes to tax rules for a Transition to
Retirement Income account from 1 July 2017.
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We help you crunch your numbers with a
range of tools and calculators
If you’re not sure how your super balance measures up or if you
want to understand your current super situation better, our website
has a range of calculators and online tools you can use to explore
your options and understand things a bit better.
We’re here to talk to you about your super
If you want to have a conversation with us about your super, our
award-winning Contact Centre1 is just a phone call away. And
because conversation leads to knowledge, you can be sure talking
to us is the right move when it comes to your super.
(TPD), and you can also get automatic income protection if you’re
eligible. So no matter what life throws at you, with QSuper you
have the protection you need. Just remember some eligibility
conditions apply.
We’re with you for the long term
We understand that super is part of the bigger picture when it
comes to your finances. That’s why we offer a range of tools and
services that help you get a better understanding of your whole
financial situation. We’re dedicated to working with you over your
lifetime, because we know that getting your finances in a better
position today means there could be more for you tomorrow.
We support you through the bad times
As a QSuper member you can have peace of mind that we’ve got
you covered when it comes to insurance. All eligible members are
automatically covered for death and total and permanent disability
You’re welcome at QSuper
Our commitment to you extends throughout your life,
so no matter where you work, you can continue to enjoy
the benefits of QSuper membership.
Make managing your super easier by
keeping it all together
If you’ve worked at a few different places, chances are you
have little bits of super all over the place, making it hard
for you to keep track of it. By consolidating all your super
into your QSuper account, you could reduce the number
of fees you’re paying.2 Our website has more information
about how easy it is to consolidate your super with us so
you can give up paying multiple fees for good.
1 Auscontact Association Awards 2014. 2 Before you consolidate your super you should check with your other super funds about fees and any loss of insurance or other benefits.
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Contributions
Not sure what rules apply when it comes to contributing to your super? In this section we talk you through the
different types of contributions you can make to your super and the conditions that apply.
First of all, the contributions that go into your super are split into two types.
Before-tax
After-tax
(known as
concessional
contributions)
(known as
non-concessional
contributions)
These are any contributions to your
super before income tax is paid, and
includes your employer contributions.
These are any contributions made to
your super after you’ve paid income tax.
Also, there are limits to how much you can add to your super every financial year before you’re charged extra tax.
$30,000
(or $35,000 if you’re 49 or over on or before 30 June 2016)
$180,000
Subject to legislation being passed, there could be changes to the amounts you’re able to contribute to super.
See page 7 for more details.
Contributions can be made to your super in three ways:
By you
You can make voluntary contributions to
your super either before or after tax.
If you work for the Queensland
Government you’re generally required
to make contributions of between 2-5%
to your super and we refer to these as
standard contributions.
By your employer
By the Australian Government
Your employer must contribute the standard
9.5% super guarantee amount to your super
as a before-tax contribution or up to 12.75%
if you work for the Queensland Government
and make standard contributions.
If you’re a low income earner, the
Government may contribute to your super
in two ways:
•
through the Super Co-contribution
scheme
•
through the Low Income
Superannuation Contribution scheme.
Your spouse can also make contributions
to your super.
You can find out more about the rules around contributions on the next page.
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Contributions
Contributions can come into your account in a number of ways (which are shown in the table below). We’ve also included some handy
information about the age limits that apply to the different types of contributions.
Contributions made
How
Age limit
By you
Before or after tax. Can be made up to and including age 74.
However if you’re aged 65-74, you must work at least 40 hours over 30 consecutive days
each financial year to be allowed to make contributions (this is called the work test).
By your employer
Before tax.
No age limit.
By your spouse
After tax.
Up to and including age 70, but if you’re aged 65-70, you must meet the work test.
If you’re on a lower income, you may also be eligible for contributions from the Australian Government – see over the page for details.
Subject to legislation being passed, from 1 July 2017 the work test age limit for members aged 65 to 74 will
be abolished. The age limit for spouse contributions will increase to age 75.
Contribution categories
Before-tax contributions
These are contributions made to your super before you pay tax on
your income. They are usually taxed at 15%1 and include:
•
contributions your employer makes
•
salary sacrifice contributions you make
•
contributions you’ve claimed a tax
deduction for.
It’s important we have your tax file number (TFN) on record so that
any contributions we receive for you are taxed at the proper rate.
If you’re making after-tax contributions you can contribute
up to $180,000 in a financial year before you exceed the cap.
However if you’re under 65 at any time during the financial year
you can contribute up to three times your after-tax cap (which is
currently $540,000) in a financial year without being penalised. Just
remember that as you’re essentially bringing forward contributions,
you couldn’t contribute any more for the next two years after tax
without exceeding the cap. Likewise if you’ve previously brought
forward contributions in the prior two financial years, this will limit
how much you can contribute in the current financial year without
exceeding the cap.
After-tax contributions
The Tax Explanation factsheet explains how tax is applied to any
excess contributions you make and the options that apply.
These are contributions made to your super after you’ve paid tax on
your income (and include spouse contributions).
You should note that there are some contributions that are exempt
from the caps. They are:
You don’t normally get charged extra tax on these contributions
unless you exceed your contributions cap.
•
Contribution caps
•
•
Some limits apply when it comes to how much you can add to
your super – they’re called contribution caps, and you’ll be charged
extra tax if you exceed them.
If you’re making before-tax contributions (don’t forget these
include your employer contributions) you can contribute up to
$30,000 (or $35,000 if you’re 49 or over on or before 30 June 2016)
in a financial year before you exceed the cap.
any super co-contribution payments you receive from the
Australian Government
certain profits you make from selling a small business
a total and permanent disability payment.
Keep in mind that contribution caps apply to the combined
contributions going into your super funds, not just the amount
paid to us. Want more information about these? Simply check out
the Personal Contributions Guide.
Subject to legislation being passed, from 1 July 2017 the before-tax (concessional) contribution cap will be
reduced to $25,000 regardless of age. If your balance is less than $500,000 you’ll have the option to catch
up on unused cap amounts over a rolling five year period, up to age 75.
The after-tax (non-concessional) contribution cap will also be limited to a lifetime cap of $500,000
subject to legislation being passed. This change will be effective from 3 May 2016 and includes after-tax
contributions made since 1 July 2007. If you’ve already exceeded this cap you won’t be penalised, however if
you make further after-tax contributions, you’ll be liable to pay a penalty tax.
Additionally all Australians up to age 75 will be able to claim a tax deduction for personal contributions
made, regardless of their work circumstances, up to the concessional contribution cap.
1 If your adjusted earnings (this is your income for surcharge purposes plus your concessional contributions, less reportable super contributions and excess concessional contributions) is
more than $300,000 a year – see the Personal Contributions Guide for more information. Subject to legislation being passed, from 1 July 2017 the adjusted earnings threshold will reduce from
$300,000 to $250,000.
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Contributions from the Australian Government
•
the super co-contribution
Australian Government contributes up to 50 cents for every $1 you
contribute after tax to your super, to a maximum of $500. You can
find out more about the eligibility rules that apply in the Personal
Contributions Guide.
•
the low income superannuation contribution.
Low Income Superannuation Contribution (LISC)
The two other types of contributions you need to know about are:
Let’s take a quick look at both.
Super co-contribution
This initiative encourages you to add more to your super. To be
eligible you must earn less than $51,021 a year, in which case the
This initiative is to help boost your retirement savings. If you’re
eligible, the Australian Government will refund the tax you paid
on your before-tax contributions back into your super, up to a
maximum of $500. To be eligible, you must earn less than $37,000
a year.1
The Australian Parliament has passed legislation to end the LISC payment at the end of the 2016/2017
financial year. Subject to legislation being passed the LISC payment will be replaced with the Low
Income Superannuation Tax Offset (LISTO), from 1 July 2017. With the LISTO you may be entitled to have
up to $500 of concessional contribution tax refunded to your super account if your adjustable taxable
income is less than $37,000.
Making contributions
Contributions can be made to your super a number of different ways. These are listed below and we’ll give you a bit more detail about each one too.
Employer contributions – the contributions your employer must pay into your super
If you’re eligible for compulsory super guarantee contributions, your employer must contribute the standard super guarantee rate of 9.5% to your super.
Queensland Government employees
Police officers
For most Queensland Government or related entity employees,
there’s an incentive system in place to help you get the most
out of your super – it’s called standard contributions. This is
generally part of your employment contract and is when you
contribute between 2-5% of your salary to super, and your
employer contributes between 9.75-12.75% on a sliding scale.
Different standard contribution arrangements apply for
police officers. When you start work as a police officer you’ll
automatically contribute 6% of your salary to super and your
employer will contribute 18%. You can choose to contribute
less in which case, so will your employer.
This is how it looks:
This is how it looks:
You pay
Your employer
pays
Total contributed
to your super
3%
12%
15%
13.75%
4%
14%
18%
11.75%
15.75%
5%
16%
21%
12.75%
17.75%
6%
18%
24%
Your employer
pays
Total contributed
to your super
2%
9.75%
11.75%
3%
10.75%
4%
5%
In some circumstances, or if you’re a casual employee, you may
have other arrangements in place and your employer may
only pay the super guarantee amount. In some cases they may
let you make standard contributions but you should speak to
them about what conditions are in your employment contract.
You pay
If you’re a commissioned police officer (and have a contract to
let you stay in the service over the age of 60) you contribute
between 2-5% of your salary, plus any approved allowances,
while your employer contributes between 9.75-12.75%.
1 Your adjusted taxable income is the income you get taxed on, plus any adjusted fringe benefits, target foreign income, total net investment loss, any pension or benefit that you get from the
Australian Government that’s tax free and any reportable superannuation contributions that have had a child maintenance amount deducted.
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Contributions
Voluntary contributions – the contributions you choose to make
If you want to give your super a boost, you can contribute extra to your account either as a before-tax or after-tax contribution.
Generally, all the contributions you make to your super, big or small, grow over the long term ultimately increasing the value of your super.
You can make voluntary contributions to your account in four different ways:
Through your employer
Via BPAY®
•
Complete a Start or Change Regular Contributions to Your Super
form and give it to your payroll office – do this if you work for
the Queensland Government or a related entity employer.
•
Use the individual BPAY details listed on your annual statement
or you can find these through Member Online – if you can’t find
them, give us a call and we can help.
•
Talk to your employer directly about setting this up – do this
if you don’t work for the Queensland Government or a related
entity employer.
•
Make sure you use the correct biller code and customer
reference number otherwise your contribution will be returned
or incorrectly allocated.
•
Download and complete this form either from our website
or ask us to send you a copy.
•
•
Include a cheque or money order for the amount you want
to deposit.
You can make contributions in person by cash (there’s a
maximum deposit amount of $1,000) or by EFTPOS (any daily
transaction limits set by your bank will apply).
Complete a Deposit form
Visit a Member Centre
Are you self-employed?
Generally, you’re considered self-employed if more than 90% of your total income comes from your own business.1 If this is
the case, you can make personal contributions to your super and you may be able to claim a tax deduction on them. Some
conditions apply to making these types of contributions so it’s a good idea to get financial advice if you’re in this situation.
Salary sacrificing – a tax-effective way to grow your super
Salary sacrificing – it really isn’t as scary as it sounds! Essentially it’s when you contribute a portion of your salary to your super before you pay
any tax on it, which lowers the amount of salary you pay tax on. It can be a very tax-effective way of making contributions, as when you salary
sacrifice you’re paying 15%2 tax on your contributions, instead of your marginal tax rate. And if you’re already making contributions and you
re-contribute your tax savings back into your super, you’ll be boosting your super without necessarily decreasing your take-home pay.
There’s plenty of information about salary sacrificing in the Personal Contributions Guide, or have a conversation with us and we can talk about
your options.
®Registered to BPAY Pty Ltd ABN 69 079 137 518. 1 Subject to legislation being passed, from 1 July 2017 all Australians up to age 75 will have the ability to claim a tax deduction for personal
contributions up to the concessional contributions cap. 2 If your adjusted earnings (this is your income for surcharge purposes plus your concessional contributions, less reportable super
contributions and excess concessional contributions) is more than $300,000 a year – see the Personal Contributions Guide for more information. Subject to legislation being passed, from 1 July 2017
the adjusted earnings threshold will reduce from $300,000 to $250,000.
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Super and your spouse
1
It’s always nice to give your loved ones something special. So why not open a QSuper account for your spouse?
Opening an account
Opening an account for your spouse is easy. You just need to complete and send us your Open an Account as the Spouse of a QSuper Member
form along with a minimum deposit of $10 and once we’ve set it up, you can start making contributions into it. Your spouse can then arrange
for their employer to contribute their super to this account and they can also consolidate all their super into it too. Before consolidating, you
should check with your other super funds about fees and any loss of insurance or other benefits.
Making spouse contributions
Making contributions to your spouse’s account can be a real win-win because, depending on their income, you may be able to claim a tax
offset. So here’s how it works. If your spouse earns2 $10,800 or less, you’re entitled to a tax offset of 18% for the first $3,000 of any spouse
contribution you make, up to a maximum amount of $540 per year. If your spouse earns more than $10,800 a year but less than $13,800 a year,
you could be eligible for a partial tax offset. Just remember that any contributions you make on behalf of your spouse count towards their
non-concessional contributions cap.
This case study shows this in action:
Steve3 is 39 and earns $75,000 a year. Amy3 is 37, works 10
hours a week and earns $12,500 a year. Steve contributes $120
a fortnight to Amy’s account ($3,120 a year). Remembering
only the first $3,000 receives the tax offset, Steve’s tax offset is
calculated like this:
($3,000 – ($12,500 – $10,800)) X 18%
So... Steve gets a total tax offset of $234!
Subject to legislation being passed, from 1 July 2017 the threshold
for spouses will be increased from $10,800 to $37,000 for the full
offset and up to $40,000 for a partial offset. Under this scenario,
Steve will be entitled to the full tax offset of $540.
Contribution splitting
Contribution splitting lets you split any eligible contributions you
made in the previous financial year with your spouse. You can do
this by splitting whichever is less:
•
up to 85% of the before-tax (concessional) contributions you
made
•
your concessional contributions cap for that year.
Splitting your contributions with your spouse can also have
some tax advantages although you should know that only your
before-tax (concessional) contributions can be split, and some
eligibility conditions apply. Our Contribution Splitting factsheet has
all the information you need to know about this. Because this may
have financial and tax implications for you, it’s a good idea to get
financial advice.
Family law split
If you and your partner split up, family law legislation
allows you to split any super either of you hold. If we’re
required to action a split on your account, we’ll open
an Accumulation account for your partner (if they don’t
already have one) and this is where any of this super will
go. Because the legislation around splitting your super is
complex and may have financial and tax implications for
you, it’s a good idea to get financial and legal advice. You
can find out more in our Family Law Legislation factsheet.
1 A spouse includes someone you’re legally married to, someone you’re in a relationship with that’s registered under a law of an Australian State or Territory, or someone you’re not legally
married to but who you live with on a genuine domestic basis in a relationship as a couple. 2 Income is defined as assessable income plus any reportable fringe benefits and reportable employer
superannuation contributions (RESC). 3 Steve and Amy are not real and this hypothetical case study is provided for illustrative purposes only.
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Contributions
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Your super is designed to support you financially in retirement which is why it’s locked away, generally until you
retire after reaching what’s known as your preservation age.
Your preservation age is:
Between
55 and 60
(depending when
you were born)
You can usually access your super at retirement after reaching your preservation age. In some circumstances
though you can access some or all of your super early. These circumstances broadly include:
Severe financial hardship
Compassionate grounds
This covers situations where you’re receiving income support
payments and are unable to meet your immediate living expenses.
This covers things like medical treatment, mortgage assistance,
palliative care expenses and funeral expenses for a dependant.
Terminal medical condition
Total and permanent disability
This covers situations where you’re diagnosed with a terminal
illness or injury.
This is if you’re unlikely to ever be able to work again.
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You can access your super when you reach what’s known as a
cashing condition. The most common of these is retiring after
reaching your preservation age. Your preservation age is based on
your date of birth and is how old you must be before you can start
accessing your super. If you retire after reaching your preservation
age, you can access all of your super. If you’re under 60 when you
retire, the QSuper Board must be satisfied you don’t intend to ever
work again before they’ll release your super.
The table below shows the different preservation ages in place:
Your date of birth
Your preservation age
Before 01/07/60
55
01/07/60 – 30/06/61
56
01/07/61 – 30/06/62
57
01/07/62 – 30/06/63
58
01/07/63 – 30/06/64
59
01/07/64 or after
60
Additionally, there may be some scenarios where you can access
your super earlier.
Before we look at those though, you need to know that not all your
super is preserved. Any contributions made after 1 July 1999 are
preserved (and they’re not surprisingly called preserved benefits)
but if you contributed before this date, you could have two more
components:
Restricted non-preserved – these are contributions made before
1 July 1999 (either by you, or any employer contributions above
the super guarantee rate at the time) that you can only access
when you leave the employer you were working for when the
contributions were made.
Unrestricted non-preserved – again these include contributions
made before 1 July 1999, but as you’ve now left your employer
they’re unrestricted. It also includes any money you had in your
super when you met a cashing condition (such as becoming totally
and permanently disabled).
You’re also able to access your super once you turn 65 regardless of
whether you’re working or not.
Let’s look at how this works in action:
Liz1 is a nurse who started working for Queensland Health in 1985,
and made some personal contributions. In 2005 she changed jobs
and started working for Mater Health. At the time, her super had
two components – a $25,000 restricted non-preserved component
(which includes any personal contributions she made before 1
July 1999) and a $150,000 preserved component. As soon as she
left Queensland Health, her restricted non-preserved component
became unrestricted non-preserved and Liz could now take $25,000
in cash. However the remaining $150,000 preserved component
will stay preserved until she retires or meets a cashing condition.
Preserved $150,000
Preserved $150,000
LIZ CHANGES
EMPLOYERS
Restricted non
preserved - $25,000
Un-restricted non
preserved - $25,000
1 Liz is not real and this hypothetical case study is provided for illustrative purposes only.
14
When you’re eligible to access your super you can do any or all of
the following:
Partial and full transfers
•
keep your super in your Accumulation account
•
make a withdrawal from your Accumulation account
•
open an Income account using money from your
Accumulation account.
If you only want to use some of the money in your Accumulation
account to open an Income account, the transfer bonus will
only be calculated on the portion you’re using. At the time of the
transfer any bonus amount will be paid into your Accumulation
account and then form part of the starting balance of your new
Income account. Any money that remains in your Accumulation
account could qualify for the bonus (less any transfer bonus already
paid) in the future, at the time you make another transfer.
If you choose to open an Income account using money from
your Accumulation account you could be eligible for the QSuper
Income Account Transfer Bonus.
Where does money for the transfer bonus
come from?
In line with industry practices, we put aside money ready to pay
capital gains tax when the Fund sells assets we’ve invested on your
behalf that have made a profit – it’s called tax provisioning. When
you open a QSuper Income account we can identify these future
tax savings and if you’re eligible, we pass them on to you.
Factors that determine the transfer bonus
Everyone’s transfer bonus amount will vary and sometimes the
amount could be zero. How much bonus you may qualify for
depends on a few things like:
•
your super balance
•
your investment options (past and present)
•
the Fund’s tax position
•
the time of your transfer
•
your period of membership.
The investment options you’re invested in affect the amount of
bonus you may receive as some assets attract a higher bonus than
others.
Any money in the Cash and Diversified Bonds investment options
don’t qualify for the transfer bonus. Also, any money invested in
QSuper Self Invest doesn’t attract a bonus either because you’re
already benefitting from the ability to move your assets across to an
Income account without having to pay capital gains tax.
It’s important to note that as the calculation is historically based, if
you haven’t been a member of QSuper for more than two months,
your amount will be zero.
Partial transfer
Full transfer
If you’re using the total balance of your Accumulation account to
open a new Income account, the transfer bonus will be calculated
at the time of the transfer. Any bonus amount will be paid into your
Accumulation account and then form part of the starting balance
of your new Income account.
Subject to legislation being passed, from 1 July
2017 a cap of $1.6 million will apply to how
much you can transfer to an Income account.
If you already have more than $1.6 million
in an Income account, you’ll be required to
reduce your balance to $1.6 million by 1 July
2017. Amounts in excess of $1.6 million can
be maintained in your Accumulation account,
and earnings will be taxed at 15 per cent. If you
exceed the cap you’ll pay tax on the excess
amount and the associated earnings.
Withdrawing your money or consolidating
with another super fund
Any money you withdraw from your Accumulation account or
ask us to send to another super fund isn’t eligible for the transfer
bonus. If you make a partial withdrawal or if you only transfer some
money to another super fund, the money left in your Accumulation
account may be eligible for a bonus at the time it’s used to open a
QSuper Income account.
15
Early release of super
Severe financial hardship and compassionate
grounds
As mentioned on the previous pages, there are some scenarios
where you can access your super before you reach retirement or
turn 65. You can read about these below.
You can also access some of your super in certain circumstances
known as severe financial hardship or compassionate grounds.
Total and permanent disability (TPD)
If you’re assessed as having a total and permanent disability, your
super is included as part of a TPD benefit. Just remember though
that you don’t have to take it as a lump sum, you can choose to
leave it in your Accumulation account and draw it as you need
it. You can also choose to open an Income account (you need a
minimum of $30,000 to do this).
Terminal medical condition
If you’re diagnosed with a terminal medical condition (that is
an illness or injury that will likely result in your death within
24 months) you may be able to access your super. Your super
balance will be available to you to withdraw tax free, including any
contributions you make during the 24 months from the date you’ve
been certified as having a terminal medical condition. When this
period is up, any money that was made unrestricted non-preserved
will still be available to you, but you may have to pay tax on any
withdrawals (unless you’re once again certified as having a terminal
medical condition). However after the end of your certification
period, any new contributions you make, and any investment
returns you earn on your balance, will be preserved. You may also
be able to access any insurance benefit you have and you can find
out more information in the Accumulation Account Insurance Guide.
Severe financial hardship – this is if you’re receiving income
support payments and are unable to meet your immediate living
expenses. If you’ve reached your preservation age, slightly different
conditions apply which you can find out by reading the Early Release
of Superannuation Benefits Due to Severe Financial Hardship factsheet.
Compassionate grounds – this is if you need assistance paying
your mortgage and in certain other cases, for example where you
require medical treatment or need to make modifications to your
home because you have a disability, or to pay for palliative care or
a dependant’s funeral. Before you can access your super on these
grounds you must apply to the Government’s Department of
Human Services. You can find more about the conditions of release
in the Compassionate Grounds Guide.
Death benefits
Many people are surprised to know that your super doesn’t form
part of your estate. Instead it’s distributed by the QSuper Board,
generally to a dependant or legal personal representative. The
Death Benefit Guide has more information about who can receive
your super and any tax rules that apply. You can choose the
person/s who will receive your super when you die (as long as
they’re eligible) by completing and sending us your Make a Binding
Death Benefit Nomination form.
Less than $200 in account
You can withdraw your super if you have less than $200 in your
account when you leave your job.
Transition to Retirement (TTR)
If you’ve reached your preservation age and are still working, you
can access the preserved part of your super as an income stream
through the Transition to Retirement Income account. You can do
this by withdrawing regular payments to a maximum of 10% of
your account balance (in this scenario you can’t withdraw it as a
lump sum).
2017 investment earnings in a Transition to
Retirement Income account will no longer be tax
free. Instead they’ll be taxed at 15 per cent.
Departing temporary resident
If your temporary resident visa was cancelled or has expired, you
may be able to access all of your super when you leave Australia.
The Departing Temporary Resident Claim factsheet explains all the
conditions that apply in this scenario.
Moving money around your super accounts
While you can’t access your super early (unless one of the
scenarios above applies), you can move it between your
super accounts (if you have more than one). Don’t forget
that consolidating all your super together at QSuper has
its benefits like ensuring you’re not paying duplicate fees
(including insurance premiums) which means more to
invest for the future. Before you consolidate your super
you should check with your other super funds about fees
and any loss of insurance or other benefits.
If you’re employed you can transfer super you have with
QSuper to another fund as long as you leave $2,000
in your Accumulation account. If you’re a Queensland
Government employee you can only transfer funds once in
a 12-month period although you can transfer any rollovers
you made to QSuper to another fund at any time.
16
We know the lower we keep our fees, the more you have in your account, which is why we offer some of the
lowest fees in Australia and why we don’t charge our members any entry or exit fees.
As an Accumulation account holder
you pay the following fees:
You could also pay:
Investment fee
Administration
fee
This covers the costs of
managing your super.
Investment Investment
base
performance
fee
fee
This covers the costs that
relate to the investment
of assets for each option.
We deduct them from your
investment returns2
Insurance
premiums
Advice fees
This covers the cost
of insurance you have
through QSuper.
This covers the cost of
advice you get from
QInvest1 about your
QSuper account.
We deduct them directly
from your account
It’s important that you have a good understanding of the fees you’re charged and how they impact your
investment. This section covers everything you need to know about the fees and costs of your account.
1 QInvest Limited (ABN 35 063 511 580 AFSL and Australian Credit Licence Number 238274) which is ultimately owned by the QSuper Board (ABN 32 125 059 006) as trustee for the QSuper Fund
(ABN 60 905 115 063). QInvest is a separate legal entity responsible for the financial services and credit services it provides. Advice fees apply. 2 Except for Self Invest, see page 21.
17
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 account 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. Your employer may
be able to negotiate to pay lower administration fees. Ask the fund or your financial 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 (www.moneysmart.gov.au) has a superannuation fee calculator to help you check out
different fee options.
Our fees
Keeping our fees low is important to us which is why we keep an
eye on them and regularly review them to make sure this is the case.
How our fees work
Our management fee is made up of a fixed component (which
includes the administration fee that covers the general costs of
managing your super) and a variable component (which can’t be
precisely calculated in advance and includes the investment fee).
The QSuper Board has the right to change fees and costs without
your consent. But if our fixed fees (which include the administration
or advice fees) do increase, we’ll be in touch with you to let you
know and we’ll give you at least 30 days’ notice. Our website at
qsuper.qld.gov.au/fees always has the latest fees information.
Our website will show you an estimate of the fees payable, and
then when the variable components are confirmed after the end
of the financial year, you’ll also find them there. Just remember that
actual investment fees may be different to the estimated fees.
The investment fee and administration fee for all our investment
options (except Self Invest) are deducted from the unit price each
day, before the unit price is declared. Because Self Invest isn’t a
unit-based option, fees are deducted a little differently. You can
find out how it works for Self Invest by reading the information
on page 21.
On the following page we explain the fees you could pay for your
Accumulation account. These are the only fees we currently charge
although this could change in the future. If we do introduce new
fees we’ll let you know before it happens.
This document 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 entity as a whole.
Other fees, such as activity fees, advice fees
for personal advice may also be charged, but
these will depend on the nature of the activity
or advice chosen by you. Taxes are set out in
another part of this document. You should read
all the information about fees and other costs
because it is important to understand their
impact on your investment.
18
Fees for the Lifetime option
Type of fee
Amount
How and when paid
Investment fee
Outlook
Aspire
Focus
Sustain
0.59% p.a.
0.50% p.a.
0.43% p.a.
0.29% p.a.
Fees are deducted each day from the unit price.
Administration fee
0.20% p.a.
Fees are deducted each day from the unit price. If you pay more than $1,000 in
a financial year (totalled across all your Accumulation and Income accounts),
we’ll refund you any amount over the administration fee cap in July of the
following financial year.
Buy-sell spread
Nil.
Nil.
Switching fee
Nil.
Nil.
Exit fee
Nil.
Nil.
Advice fees
Nil.
No advice fees are deducted as part of managing your account. If you choose
to get advice from QInvest you’ll be charged an advice fee of
$0 - $2,000. We can deduct a portion of your advice fee from your QSuper
account for financial advice you get from QInvest about your QSuper account.
Relating to all members in Lifetime
For more information see the ‘Additional explanation of fees and costs’ section
on page 19.
Other fees and costs1
Indirect cost ratio
The indirect cost, to the extent known, has been included in the investment fee.
Insurance premium2
Death
$0.43 – $1.28 per See the Accumulation Account Insurance Guide for more information.
unit, per week.3 Your premiums are deducted from your account monthly in arrears.
($0.86 – $2.56
per unit, per
week for police
officers3)
$0.03 – $3.18 per See the Accumulation Account Insurance Guide for more information.
unit, per week.3 Your premiums are deducted from your account monthly in arrears.
TPD
($0.06 – $6.36per
unit, per week for
police officers3)
Income protection
(salary based cover)
0.161% –
2.888% of
salary.4
(0.145% –
1.504%4 of
salary for police
officers)
See the Accumulation Account Insurance Guide for more information.
Income protection insures you for 87.75% of your insured salary, including
contribution replacement benefit (12.75% contributions paid directly to your
Accumulation account).
Your premiums are deducted from your account monthly in arrears.
Note: The investment fee and administration fee are deducted daily from the unit price relevant to your investment option or options
before the unit price is declared. The investment fee is estimated on 2016/2017 financial year management costs as at the issue date of this
document, which may differ from the future fee. QSuper Self Invest fees are calculated differently. Please see the table under the heading ‘Fees
for Self Invest’ for more information.
1 For more information see the Additional explanation of fees and costs section on page 19. 2 Premium deductions may be rounded to two decimal places. 3 Premiums shown are for default cover.
Personalising your cover could increase or decrease your cost per unit. 4 Premiums are for default cover and will vary depending on your employment situation. Personalising your cover or buying units of
cover could increase or decrease your premiums.
19
Fees and costs for Lifetime
The investment fees you’re charged for your Lifetime account depend on which of the eight Lifetime groups you’re placed in.
Your age
Under 40
Outlook
Group
Your Lifetime balance is:
Outlook
Any money
invested in
Lifetime
40-49 Aspire
50-57 Focus
Aspire 1 Aspire 2 Focus 1
Less than
$50,000
$50,000 or
more
Less than
$100,000
58+ Sustain
Focus 2 Focus 3 Sustain 1 Sustain 2
From
$100,000
to less than
$250,000
$250,000
or more
Less than
$300,000
$300,000
or more
Fees
Administration fee (%)
0.20
0.20
0.20
0.20
Estimated investment base fee (%)
0.43
0.36
0.32
0.22
Estimated investment performance fee (%)
0.16
0.14
0.11
0.07
Total estimated investment fee (%)
0.59
0.50
0.43
0.29
Total fee
Total fee on account balance of
$50,000
0.79
0.70
0.63
0.49
$395
$350
$315
$245
1
1
Example of annual fees and costs for Lifetime
This table gives an example of how the fees and costs for the Lifetime option for the Accumulation account 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 – Lifetime Outlook
Balance of $50,000
Investment fees 0.59% p.a.
For every $50,000 you have in Lifetime Outlook, you will be charged $295 each year.
PLUS Administration fees of 0.20% p.a.
And, you will be charged $100 each year in administration fees.
PLUS Indirect costs for Lifetime Outlook Nil
And, indirect costs of $0 each year will be deducted from your investment
each year.
EQUALS Cost of Lifetime Outlook 0.79% p.a.
If your balance was $50,000 then for that year you will be charged fees of $395
for Lifetime Outlook.
Notes: Additional fees may apply. The investment fee and administration fee are taken from the unit price of your investment option/s before
the unit price is declared. This figure is just to give you an idea about how much you may be charged. It’s based on the estimated 2016/2017
financial year management costs that we had at the time of printing, which may be different to what you’re actually charged. Self Invest fees
are calculated differently. Please see the table under the heading ‘Self Invest fees and costs’ on page 21 for more information. Each of our
investment options has a different objective, risk profile, and asset allocation, so different investment fees will apply. For more information see
the Investment Choice Guide.
Additional explanation of fees and costs
Administration fee
This fee covers the general costs of managing your super.
Investment fee
This fee covers the costs of managing the investment of assets
for each option. It’s made up of an investment base fee and an
investment performance fee (except in Self Invest).
Investment base fee – this covers the management of assets
within each investment option.
Investment performance fee – this is paid to investment
managers when their investment returns are above an agreed
return target. We work it out by applying a percentage to the part
of the return that’s above the agreed target.
The estimated investment fees are set out in the table above for
Lifetime and for all other investment options, are set out in the
table opposite entitled ‘Fees for the Ready Made and Your Choice’
options.
1 This fee is indicative only and is based on the estimated 2016/2017 financial year management costs, which may differ from the actual fee. Given the nature of the investment component, investment fees
cannot be precisely calculated in advance and are based on modelled return and fee data. While care is given to ensure projections are reasonable, they are estimates only.
20
Advice fee
This is charged for the advice you receive from QInvest. However when you’re getting advice about your QSuper account, we contribute to the
cost, so you aren’t paying for the full cost of the advice.1
The advice fee may vary depending on the type of advice you want – for example the fee for financial advice on your entire financial situation will
be very different to advice received on a single topic. Of course, QInvest will let you know upfront how much the advice will cost.
A portion of your advice fee can be deducted from your QSuper account. Any portion that can’t be deducted from your QSuper account can be
paid directly to QInvest. If you want to know more about QInvest’s advice fees, visit our website at qsuper.qld.gov.au/advicecosts
Insurance premium
We deduct a fee from your account to cover the cost of any insurance you have with QSuper. It’s important to remember that we can’t deduct your
insurance premiums from any money you have in Self Invest.
For the definitions of these fees please see
page 22.
Administration fee cap
We’ve taken our commitment to offering competitive
fees one step further by capping our administration fee at
$1,000 in any financial year across all your Accumulation
and Income accounts. This means you’ll get a refund of
any amount you pay over the cap into your account in
July of the following financial year, as long as you still
have an account with QSuper at the time of the refund.
Other charges and costs
We don’t currently charge you an additional fee for:
•
investment switches
•
family law transactions
•
contribution splitting
•
obtaining information about your Accumulation account
•
dishonoured contributions or rollover payments
•
attending a QSuper seminar.
Any refund for fees related to your Accumulation account
will be taxed. If the refund paid to your Accumulation
account is 5 per cent or more of the account balance on
the day it’s paid, it will count towards your concessional
contributions cap. Any investment fees you pay for our
Lifetime, Ready Made or Your Choice options or any
access, cash management and brokerage fees paid in
Self Invest aren’t included in the cap.
The QSuper Board has the right to introduce these fees in
the future and if we do, we’ll let you know.
Fees for the Ready Made and Your Choice options
Administration fee (%)2
Option
Moderate
0.20
Estimated investment fee (%)2
Investment
base fee
Investment
performance fee
Total
investment fee
0.23
0.08
0.31
Estimated
total fee (%)
Total fee on
account balance
of $50,000
0.51
$255
Balanced
0.20
0.40
0.15
0.55
0.75
$375
Socially Responsible3
0.20
0.69
0.00
0.69
0.89
$445
Aggressive
0.20
0.41
0.16
0.57
0.77
$385
Cash
0.20
0.06
0.00
0.06
0.26
$130
Diversified Bonds
0.20
0.15
0.11
0.26
0.46
$230
International Shares
0.20
0.07
0.00
0.07
0.27
$135
Australian Shares
0.20
0.07
0.00
0.07
0.27
$135
1 QSuper won’t be able to contribute towards the cost of advice when: (i) you have more than two advice appointments in a financial year; (ii) the advice doesn’t relate to your QSuper benefit; (iii)
you need help implementing your advice or require periodic reviews; or (iv) if you have recurring advice needs. 2 The investment fee and administration fee are deducted daily from the unit price relevant
to your investment option or options before the unit price is declared. The investment fee is estimated on the 2016/2017 financial year management costs as at the issue date of this document, which may differ
from the future fee. Self Invest fees are calculated differently. Please see the table under the heading ‘Fees for Self Invest’ on page 21 for more information. 3 Performance fees for this option are paid by AMP
Capital Investors Limited to their multi-managers as part of their investment fee. More information is available in the AMP Responsible Investment Leaders Fund product disclosure statement, which is available
from ampcapital.com.au.
21
Self Invest fees and costs
Because Self Invest is a direct investment option which lets you
choose how your super is invested (from term deposits, exchange
traded funds and shares), fees are deducted differently to our other
investment options.
Administration fee
Cash management fee – this is for the management of cash
deposits held in your Self Invest transaction account and is deducted
from your transaction account before interest is credited to it.
Activity fee
Brokerage fee
This fee is the same for Self Invest as it is for our other investment
options except that the fee is calculated daily and deducted from
your transaction account monthly.
The fee that is deducted from your transaction account every time
you buy or sell shares and exchange traded funds (ETFs). No matter
if you’re buying or selling, every trade incurs a separate fee and if
you’re performing multiple trades, each trade incurs a fee.
Investment fee
Indirect cost
The investment fee has two components:
ETF management fee
Access fee – this gives you access to Self Invest’s online facilities
so that you can trade and manage your investments, and access
reports and market research. The access fee is deducted from your
transaction account once a month.
We don’t charge any fees direct to your account. Instead any
investment fees and other expenses are included in the ETF
management fees and are deducted from the returns of the ETF
investment by the ETF managers. The prices quoted on the ASX are
after fees and expenses have been deducted by the ETF managers.
Fees for Self Invest
Type of fee
Amount
How and when paid
Investment fee
Access fee
$204 a year pro rata.
Cash management fee
0.40% of daily cash balance.
This is calculated daily and deducted monthly from your Self Invest
transaction account.
This is deducted before any interest is paid on your transaction account.
Administration fee
0.20% p.a.
Fees are calculated daily and deducted from your Self Invest transaction
account monthly. If you pay more than $1,000 in a financial year (totalled
across all your Accumulation and Income accounts), we’ll refund you any
amount over the cap in July of the following financial year.
Other fees and costs
Activity fee
Brokerage fee1
Order value
Fee per trade
up to $10,000
$19.50
This is deducted from your Self Invest transaction account once your
orders are successfully completed.
$10,001 - $27,500 $29.50
$27,501+
$29.50 plus
0.11% on
amounts over
$27,500
Indirect costs
ETF management fee
For details of the applicable
ETF management fees
please refer to the Self Invest
investment menu available at
qsuper.qld.gov.au/
selfinvest-etfs
This is deducted from the ETF by the ETF manager before the return
is declared.
Indirect cost ratio
Nil.
Not applicable.
1 These rates don’t include GST. GST is applied to the brokerage fee and you’ll be entitled to a credit of 75% of any of the GST you pay.
22
Defined fees
Activity fee
Exit fee
An activity fee is a fee that relates to costs incurred by the trustee
of a superannuation fund that are directly related to an activity of
the trustee 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
those costs are not otherwise charged as an administration fee, an
investment fee, an advice fee or an insurance fee.
QSuper currently does not charge exit fees. An exit fee is a fee to
recover the costs of disposing of all or part of members’ interests in
a superannuation fund.
Administration fee
An administration fee is a fee that relates to the administration
or operation of the QSuper Fund and includes costs incurred by
QSuper that relate to the administration or operation of the QSuper
Fund, and are not otherwise charged as an investment fee, an
advice fee, an activity fee or an insurance fee.
Advice fee
An advice fee is a fee that relates directly to costs incurred by
QSuper because of the provision of financial product advice to a
member by QInvest, and those costs are not otherwise charged
as an administration fee, an investment fee, an activity fee or an
insurance fee.
Buy-sell spread
QSuper currently does not charge 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 superannuation fund.
Indirect cost ratio
The indirect cost ratio, 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. A dollar-based fee
deducted directly from a member’s account is not included in the
indirect costs ratio.
Investment fee
An investment fee is a fee that relates to the investment of the
assets of the QSuper Fund and includes fees in payment for the
exercise of care and expertise in the investment of those assets
(including performance fees), and costs incurred by QSuper that
relate to the investment of assets of the QSuper Fund, and are
not otherwise charged as an administration fee, an activity fee, an
advice fee or an insurance fee.
Switching fee
QSuper currently does not charge switching fees. A switching fee
is a fee to recover the costs of switching all or part of a member’s
interest in a superannuation fund from one class of beneficial
interest in the fund to another.
23
How super is taxed
Even though super is designed to be a tax-effective way to save for your retirement, it isn’t tax free and different tax
rules apply. So here’s a quick overview of what you need to know when it comes to tax and your super.
Tax is usually payable:
15%
15%
22%
On before-tax contributions
you make to your super.1
On investment earnings
on your super.
On withdrawals you make from
your super before you turn 60.
Withdrawals you make from your super have two components.
Tax free
Taxable
You don’t pay tax.
You can withdraw some of your super tax
free if you’re between your preservation
age and 60. It’s all tax free after 60.
There are two contribution caps:
Concessional contribution cap ($30,000)2
(Before tax)
Non-concessional contribution cap ($180,000)
(After tax)
Subject to legislation being passed, from 1 July 2017 the before-tax (concessional) contribution cap will be
reduced to $25,000 regardless of age. If your balance is less than $500,000 you’ll have the option to catch
up on unused cap amounts over a rolling five year period, up to age 75.
The after-tax (non-concessional) contribution cap will also be limited to a lifetime cap of $500,000
subject to legislation being passed. This change will be effective from 3 May 2016 and includes after-tax
contributions made since 1 July 2007. If you’ve already exceeded this cap you won’t be penalised, however
if you make further after-tax contributions, you’ll be liable to pay a penalty tax.
Additionally all Australians up to age 75 will be able to claim a tax deduction for personal contributions
made, regardless of their work circumstances, up to the concessional contribution cap, from 1 July 2017.
You’ll pay additional tax on any contributions you make over these caps (remember this is avoidable
if you stay within the limits). The following pages provide more detail about the tax rules that apply
to your super.
1 If your adjusted earnings (this is your income for surcharge purposes plus your concessional contributions, less reportable super contributions and excess concessional contributions) is more
than $300,000 a year – see the Personal Contributions Guide for more information. Subject to legislation being passed, from 1 July 2017 the adjusted earnings threshold will reduce from $300,000 to
$250,000. 2 If you’re 49 or over on or before 30 June 2016, your concessional contribution cap is $35,000.
24
Do we have your tax file
number (TFN)?
It’s important we have your TFN and you
should know that we’re authorised to collect
it from you and only ever use it for lawful
purposes. We may give your TFN to another
super fund if we’re transferring your super
unless you tell us in writing that you don’t
want us to do this. Of course you don’t have
to give us your TFN, but if we have it:
•
we can accept all types of contributions
to your super
•
the tax on your contributions may not
increase
•
no additional tax (apart from the
usual) will be deducted when you start
withdrawing from your super
•
it’ll be easier to trace your other super
accounts.
If we don’t have your TFN, we’ll have to start
deducting a higher tax on your concessional
contributions. Any new employer you have
should also give us your TFN within 14
days of when you give it to them, or from
when you give them a new Tax File Number
Notification form.
Contributions tax
As a recap, there are two types of
contributions you can make to your super:
Before-tax (concessional) – these are
taxed at 15%1 and include your employer
contributions. You may pay higher tax if you
exceed the cap or haven’t given us your TFN.
After-tax (non-concessional) – these aren’t
taxed unless you exceed the cap.
If you exceed either cap you may be liable
to pay extra tax. You have the option to
withdraw any excess contributions you make
over the concessional contributions cap.
Read the Tax Explanation factsheet for more
information about this.
How super is taxed
Tax on benefit payments
Any tax you’re charged on withdrawals from your super usually takes into account your age,
and the tax-free and taxable components of your super.
The tax-free component of
your super is:
The taxable component of
your super is:
•
usually the total of any personal
after-tax contributions you make2
•
employer contributions
•
salary sacrificed contributions
•
any super co-contribution
payments you received from the
Australian Government.
•
contributions from self-employed
people where a tax deduction was
claimed.
The table below shows what tax you’ll pay on the tax-free and taxable components of your
super when you withdraw a lump sum.
Component Below preservation
age
Reached preservation Age 60 or over
age but under age 60
Tax-free
Taxable
You don’t pay any tax.
You won’t pay any tax
up to the low rate cap
of $195,000. Any
amounts over the low
rate cap are taxed at
a maximum of 15%,
with an additional
2% Medicare levy.3
You’ll pay 20%
with an additional
2% Medicare levy.3
Any rollovers you make out of QSuper will have the same taxable/tax-free split as your
account balance.
Tax on total and permanent disability, and terminal medical
conditions
The tax treatment for any benefits you receive due to total and permanent disability or
a terminal medical condition is different – see the Tax Explanation factsheet for more
information.
1 If your adjusted earnings (this is your income for surcharge purposes plus your concessional contributions, less reportable super contributions and excess concessional contributions) is more
than $300,000 a year – see the Personal Contributions Guide for more information. Subject to legislation being passed, from 1 July 2017 the adjusted earnings threshold will reduce from $300,000 to
$250,000.2 Some components of your benefit that you accumulated before 1 July 2007 may also be included – see the Tax Explanation factsheet for more details. 3 Depending on your personal
circumstances, you may be charged the Budget Repair levy of 2% to the part of your taxable income above $180,000.
25
Tax on death benefits
In this scenario your beneficiaries could be:
When it comes to the tax paid on your death benefit, some
different rules apply. These different scenarios are explained for
you below.
•
your spouse or defacto spouse (former or current)
•
your child (biological, adopted, a stepchild or ex-nuptial child,
your spouse’s child, or your child within the meaning of the
Family Law Act 1975).
Death benefit paid to a dependant
When we pay your death benefit directly to your dependant,
it’s generally tax-free.
Police officers
If you’re a police officer and die in the line of duty, your
lump sum death benefit is completely tax free even if it’s
paid to non-dependants.
A dependant is:
•
your current or former spouse
•
your child under age 18 (biological, adopted, a stepchild or
ex-nuptial child, your spouse’s child, or your child within the
meaning of the Family Law Act 1975)
•
someone interdependent1 on you just before your death
•
anyone else financially dependent on you just before your
death.
Death benefit paid to a non-dependant
If we pay your death benefit to a non-dependant, the taxable
component is taxed at a maximum of 17% (includes the 2%
Medicare levy).
Death benefit paid to a legal personal representative
We don’t deduct any tax when we pay your death benefit to your
legal personal representative, but they must deduct tax from any
amount they pay to a non-dependant beneficiary.
Anti-detriment benefit
If your death benefit is paid as a lump sum, your beneficiary may
receive an anti-detriment benefit. It represents a refund of the
contributions tax you paid on your super entitlements.
Tax on payments to departing residents
If you had a temporary resident visa to live in Australia and have
left permanently, you can withdraw your super benefit as cash,
although a higher tax rate will apply. Read the Departing Temporary
Resident Claim factsheet for more details on the tax you have to pay.
Surcharge
On 20 August 1996 the Australian Government imposed a tax on
certain contributions made to your super if your income reached
a certain threshold. Although the surcharge was reduced to zero
from 1 July 2005, if you have a debt, you still need to pay it.
As a member of QSuper you have certain options if you have a
surcharge debt. You can either:
•
decide to pay the debt at any time
•
let the debt increase with interest and pay it when making
a withdrawal.
Want to know more? Read the Superannuation Surcharge Guide
on our website.
2017, anti-detriment payments will be abolished.
1 Someone is an interdependent if (a) they have a close
personal relationship with you, (b) you live together, (c) you
provide each other financial support and (d) one/each of
you provide the other with domestic support and personal
care. Someone is also an interdependent if you have a
close personal relationship but none of the other criteria
apply because either or both of you suffer from a physical,
intellectual or psychiatric disability.
26
Lost members
Auto-consolidation
You’re a lost member if we can’t contact you or if you meet the
definition of an inactive member. If we think you’re a lost member
we treat the security of your account very seriously to make sure
no personal information about you is sent to the wrong address
(including email address). If you want to know more about this
(including small or insoluble lost member accounts) read the Lost
Members factsheet.
Sometimes more than one QSuper account is opened in your
name. This usually happens when you change employers and your
new employer doesn’t give us exactly the same account details
for you that we already have on file. We check all our accounts
annually to make sure this hasn’t happened and if we find it has,
we’ll automatically consolidate your super under one client number
for you.
Unclaimed super
Under legislation, we must report and pay any unclaimed super to
the ATO. Your super account is generally considered unclaimed if
you turn 65 and no contributions have been made to your account
for at least two years, and it’s been five years since we last had any
contact with you.
Your super is also considered unclaimed when an amount is
payable to your former spouse where:
•
your super needs to be split for family law purposes
•
your former spouse (or legal personal representative, if your
spouse has passed away) is entitled to be paid the amount, and
•
we’re unable to ensure your former spouse or their legal
personal representative has received it.
Your super is also considered unclaimed:
•
if you pass away
•
your super is immediately payable under the rules of the Fund
•
we haven’t received any super into your account for at least
two years, and
•
we can’t ensure your super has been received by a person
entitled to it.
QSuper must provide a statement and pay unclaimed super to the
ATO twice a year. If you think you have unclaimed super you can
contact the ATO on 13 10 20 or visit their website at ato.gov.au
SuperMatch
We regularly use the ATO’s SuperMatch service to help
us put you back in touch with any super you’ve lost
track of. This includes lost super, other active accounts,
and any super-related monies the ATO holds. With your
permission, we’ll use the matching services provided by
the ATO to look for any of this super and we’ll contact
you if we find any. You can get in touch with the ATO on
13 10 20, or through their website at ato.gov.au
Your privacy
We take your privacy very seriously. You can find out how seriously
by reading our Your Privacy factsheet on our website, or call us and
we’ll send you a copy.
Chant West has given its consent to the inclusion in this Accumulation Account Guide of the
references to Chant West and the inclusion of the logos and ratings or awards provided by
Chant West in the form and context in which they are included. The Chant West ratings logo is
a trademark of Chant West Pty Limited and is used under licence. It is only current at the date
awarded by Chant West. The rating and associated material is only intended for use by Australian
residents within the jurisdiction of Australia, and isn’t permitted to be considered or used by a
party outside of Australia.
The scores used by Chant West to derive the ratings are subjective scores that have been awarded
based on data including historical financial performance information) supplied by third parties.
While such information is believed to be accurate, Chant West does not accept responsibility for
any data inaccuracies. Past performance is not a reliable indicator of future performance. The
Chant West rating does not constitute financial product advice. However, to the extent that the
information may be considered to be general financial product advice then Chant West warns
that: (a) Chant West has not considered any individual’s objectives, financial situation or particular
needs; and (b) individuals should consider whether the advice is appropriate in light of their goals,
objectives and current situation. For further information about the methodology used by Chant
West, see www.chantwest.com.au
SuperRatings does not issue, sell, guarantee or underwrite this product. Go to www.superratings.com.au
for details of its ratings criteria. Past performance is not a reliable indicator of future performance.
The Conexus Financial Superannuation Awards are determined using proprietary methodologies.
Awards were issued March 4, 2016 and are solely statements of opinion and do not represent
recommendations to purchase, hold, or sell any securities or make any other investment decisions.
Ratings are subject to change. Past performance is not a reliable indicator of future performance.
About this guide
We have to let you know that the information in this Accumulation Account Guide and the
product has been prepared and issued by the Board of Trustees of the State Public Sector
Superannuation Scheme (ABN 32 125 059 006) (QSuper Board) as trustee for the State Public
Sector Superannuation Scheme (ABN 60 905 115 063) (QSuper Fund).
When we say ‘QSuper’, we’re talking about the QSuper Board, the QSuper Fund, QSuper Limited
(ABN 50 125 248 286, AFSL 334546) or QInvest Limited (ABN 35 063 511 580 AFSL 238274), unless
the context we’re using it in suggests otherwise. And so you know, QSuper Limited and QInvest
Limited are ultimately owned by the QSuper Board as trustee for the QSuper Fund. There’s no
cooling-off period for this product.
We’ve put this information together as general information only so keep in mind that it doesn’t
take into account your personal objectives, financial situation, or needs, shouldn’t be relied on
as legal or taxation advice, and doesn’t take the place of this type of advice. For that reason you
should consider getting financial advice that considers your personal circumstances before
you take any actions. You should consider the information contained in the PDS, Investment
Choice Guide, and Accumulation Account Insurance Guide before making any decisions about the
Accumulation account.
The QSuper Board isn’t licensed to provide financial product advice but we know you may like
advice, in which case you can call us on 1300 360 750 and we’ll put you in touch with a licensed
advice provider.
What we say about law or proposals is based on our interpretation of the law or proposals at the
time we printed this document. The QSuper Board, QSuper Limited and QInvest Limited don’t
guarantee the investment performance of the QSuper Accumulation account or the repayment of
capital. If there’s any difference between what we say in this guide and QSuper’s Trust Deed, the
Trust Deed will prevail. You can access the Trust Deed, also known as the Superannuation (State
Public Sector) Deed 1990, at legislation.qld.gov.au or from qsuper.qld.gov.au
© QSuper Board of Trustees 2016 PDS1 9667 07/16
Member Centres
70 Eagle Street Brisbane
63 George Street Brisbane
Ph 1300 360 750
(+617 3239 1004 if overseas)
Fax 1300 241 602
(+617 3239 1111 if overseas)
Monday to Friday
8.30am to 5.00pm
QSuper
GPO Box 200
Brisbane Qld 4001
qsuper.qld.gov.au

Accumulation Account Guide

Transcription

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