Product Disclosure Statement
Member Booklet
Income Stream
15 August 2016
Incorporating the First State Super retirement income stream and
transition to retirement income stream
Prepared and issued by FSS Trustee Corporation ABN 11 118 202 672, AFSL 293340
Level 21, 83 Clarence Street, Sydney NSW 2000
as trustee of the First State Superannuation Scheme ABN 53 226 460 365
Unique Superannuation Identifier (USI) 53 226 460 365 002
Please read this booklet carefully.
It outlines the features, benefits,
costs and risks of investing in a
First State Super income stream
and it will help you compare our
product with other products.
Contents
Key features of a First State Super income stream
1
Understand the risks
5
Tailor your income stream to suit your needs
6
Choose your investment options
13
Tax and your income stream
27
Fees and other costs
31
Other things to know
36
The application process
38
Service and advice
Back cover
Forms
Income stream member application
Transfer to income stream
Request to transfer benefits to First State Super
About this booklet
The Member Booklet Income Stream (also called a product disclosure
statement) has been prepared by FSS Trustee Corporation (referred
to in this booklet as the ‘trustee’, ‘we’, ‘us’, ‘our’) the trustee of the
First State Superannuation Scheme (referred to in this booklet as
‘First State Super’ or ‘the fund’). It sets out information about
First State Super’s income stream products.
This booklet contains general information only. It does not
take into account your specific objectives, financial situation
or needs. You should consider the information having regard
to your personal circumstances. It is recommended that you
consult a financial adviser if you require financial advice
that takes into account your personal circumstances. You
can check on a business or adviser by visiting the Australian
Securities and Investments Commission’s website at
moneysmart.gov.au.
The information contained in this booklet was accurate
at the time of its preparation. However, some of the
information can change from time to time and the trustee
can change matters which are the subject of representations
made in the booklet. If the change is not materially adverse,
the updated information will be available on our website
at firststatesuper.com.au/pdsupdates. A paper copy of this
booklet and any update will be available free of charge by
contacting us on 1300 650 873.
We may change any matter about First State Super without
member consent, but in the case of an increase in fees and
charges we will notify members at least 30 days before the
change occurs. This offer is only made to persons receiving
this booklet (electronically or otherwise) in Australia.
We may add, close, or remove investment options, add or
remove investment managers, or alter the objectives, ranges
or benchmarks of an investment option or the Life Cycle
strategy at any time. You will be notified about any material
changes (although notice may be given after the change
has occurred). If you have money in an investment option
that is removed, we will normally switch your money to an
investment option with a similar risk/return profile.
Member Booklet Income Stream
Key features of a First State Super income stream
A First State Super income stream allows you to draw money from your
superannuation account:
5
as you approach retirement by using a transition to retirement income
stream, or
5
when you permanently retire by using a retirement income stream.
Both income streams allow you to keep your money in the superannuation
system, which means you continue to receive the tax advantages of
superannuation.
1
55
tax-free investment earnings1
55
tax-free withdrawals from age 60
55
variable payment amounts and payment frequency (subject to government limits)
55
low fees
55
access to your super while you’re still working
55
continuation of your membership when you retire
55
a choice of investment options
55
access to seminars, an experienced customer service team and financial advice
55
online information and updates
The government has announced that from 1 July 2017 it will remove the tax exemption for the investment earnings derived on assets
supporting a transition to retirement income stream (TRIS). Investment earnings will be taxed concessionally at 15%. At the time this
document was prepared, this proposal was not yet law. For details of the proposed changes, please refer to treasury.gov.au.
firststatesuper.com.au | Call 1300 650 873 | Email [email protected]
1
At a glance
Minimum investment
$20,000
Eligibility/suitability
Retirement income stream
55
55
55
55
Permanently retired
Stopped work due to permanent incapacity
Reached preservation age and met a condition of release
Want an income stream in retirement
Transition to retirement income stream
55 Still employed and reached preservation age
55 Want an income stream to supplement employment income
Income payments
Minimum annual payments
55 Between 4% and 14% of account balance based on age at 1 July each year for both types
of income stream
Maximum annual payments
55 No limit for retirement income streams
55 10% of your account balance at 1 July each year for transition to retirement income streams
Lump sum withdrawals
(commutation)
Retirement income stream
Yes, as long as you receive your minimum payment for that financial year
Transition to retirement income stream
No, unless you meet a condition of release (with no cashing restriction), you have an unrestricted
non-preserved component or it is for a purpose permitted by law
Payment frequency
Choice of fortnightly, monthly, quarterly, half-yearly or yearly
Top-ups
No, however you can maintain an accumulation account where further contributions may be made
Tax treatment
60 or over: no tax is payable on income stream or lump sum payments
Under 60 (regular income payments): taxable component taxed at your marginal tax rate
(plus Medicare and applicable levies where relevant)
Under 60 (lump sum withdrawals): taxed at lump sum rates
Investment choice/switches Yes, you can choose/switch between 12 investment options
Payment drawdown options If you invest in more than one option, you can ask us to draw your payments from your investment
(if you have more than one
options in one of three ways:
investment option)
1)Pro-rata – your money is drawn from all your investment options in the same proportion to how
your money is invested at the date of deduction; or
2)Priority – you can nominate which investments your money is paid from first, second, third etc; or
3)Percentage (only available online once you’ve applied and registered for online access) – you
can nominate the percentage to be deducted from each of your investment options.
If you don’t choose, the pro-rata method will apply.
Estate planning/death
benefit options
Three options available:
55 reversionary beneficiary
55 non-lapsing or lapsing binding death benefit nomination
55 non-binding death benefit nomination.
Both types of income
streams allow you to
keep your money in
the superannuation
system, which means
you continue to receive
the tax advantages
of superannuation
2
Member Booklet Income Stream
Retirement income streams in brief
How your income stream account works
Once you retire or turn 65 (or have unrestricted access to
at least $20,000 of your super) you can access your super
through a retirement income stream (RIS). A First State Super
RIS offers a number of benefits:
55 Tax-effective income in retirement. Your income stream
payments are tax free from age 60.
55 Your RIS account stays in the super system. You benefit
from the tax advantages that apply to income streams,
such as tax-free investment earnings.
55 You have access to all your super. You can vary the amount
of income you receive each year (subject to the minimum
annual payment requirement) and you can withdraw
lump sums.
Transition to retirement income streams in brief
A First State Super transition to retirement income stream
(TRIS) provides you with income once you reach preservation
age while you are still working. A TRIS offers a number of
benefits:
55 Tax-effective income. Your income stream payments
are tax free from age 60. You also benefit from the tax
advantages that apply to income streams, such as tax-free
investment earnings1 .
55 Supplement your income. You can make a gradual
adjustment to retirement by reducing your working hours
and supplementing your lower salary with regular income
stream payments.
55 Reduce your tax. You may be able to pay less tax by salary
sacrificing into super and topping up your income with
regular income stream payments.
55 Increase your super savings. You can continue working
full time, make extra contributions to your super by salary
sacrificing and supplement your lower salary with regular
income stream payments.
55 Your TRIS can convert to a RIS once you have met a
condition of release with a nil cashing restriction.
1
T he government has announced that from 1 July 2017 it will remove the
tax exemption for the investment earnings derived on assets supporting
a TRIS. Investment earnings will be taxed concessionally at 15%. At the
time this document was prepared, this proposal was not yet law. For
details of the proposed changes, please refer to treasury.gov.au.
If you have reached your preservation age and are
thinking about setting up a TRIS, you can use the
Transition to retirement strategy calculator on our
website to work out different contribution scenarios.
The calculator shows four scenarios using employment
income, TRIS income, salary sacrifice, superannuation
guarantee contributions, income tax, tax on super
and their impact on annual take-home pay and super
balances.
How earnings are applied to your account
Your income stream account is unit-based, which means that
your initial investment “buys” units in an investment option
in First State Super and every amount deducted from your
account “sells” units in an investment option.
When you invest in a First State Super income stream, you
buy a number of units in the investment option you are
invested in. The number of units you receive depends on the
value of the units (the unit price) at the date they are bought.
Amounts deducted from your account
Transactions that decrease the number of units you hold in
your investment option(s) include:
55 the deduction of administration fees
55 any investment switching fee, if you change your
investment option more than once in a financial year
55 the payment of any other service fees, including adviser
service fees
55 any income stream payments, or lump sum payments
made or transferred out of First State Super, and any exit
fees or tax payable in respect of these payments
55 any benefit payments subject to a family law
arrangement.
If your income stream account is invested in a number of
options, deductions are made on a pro-rata basis from each
option unless you choose otherwise. You can choose the
investment option from which you would like your income
stream payments or any lump sum withdrawal deducted.
The unit price applied to transactions is generally the unit
price applicable for the day the transaction is processed.
The unit price for an investment option is calculated by
dividing the net assets of the investment option by the total
number of units issued in that option. If the investment
option earns positive returns, the unit price will rise
and consequently the value of your investment will rise.
Conversely, if the investment option earns negative returns,
the unit price and the value of your investment will fall.
Example
If you have $200,000 to invest in the Balanced
Growth investment option on 1 July when units in that
option are valued at $1, you will start your income
stream with:
Initial investment
Value of units at 1 July
Number of units bought
$200,000
$1
200,000
If, on 1 August, the unit price increases
to $1.05 then you will have:
Number of units
Value of units at 1 August
Value of your investment
200,000
$1.05
$210,000
Note: The example is illustrative only and is based on the factors
stated. The example should not be taken to contain or provide an
estimate of the earnings you will receive.
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3
Calculation of unit prices
Valuing the assets
Each First State Super investment option represents a
portfolio of assets. The mix of assets depends on the
investment objective of the investment option (see
pages 16 to 21).
The fund’s custodian reports the valuation of the assets.
Some assets are valued daily, others less frequently. Daily
valuations apply to all listed securities and they are based on
the close-of-day price from the relevant market or exchange.
The unit price of each investment option is based on the
net value of the assets in that option.
55 Australian equities are valued at the last trade quotes at
The net value is equal to the market value of the individual
assets including any franking credits less investment
expenses, fees charged by external investment managers,
amounts payable to the custodian and internal investment
management costs.
Generally speaking, the unit price for each investment
option is calculated each business day. However, in certain
circumstances, such as a closure of investment markets,
the delay in an underlying manager issuing unit prices, or
if the underlying manager delays or suspends transactions,
the trustee may suspend unit pricing because it may not
be possible to calculate a fair unit price. The suspension
of unit pricing could be for some time. We are not
responsible for any losses caused by these delays.
Also, unit pricing is usually suspended for up to
five working days at the start of each financial year.
Transactions received during a period of suspension will
be processed following the resumption of unit pricing at
the unit price applicable on the date of processing the
transaction.
4
close-of-day as listed on the Australian Securities
Exchange (ASX).
55 International equities are valued at the last trade quotes at
close-of-day as listed on the relevant exchanges. Exchange
rates are the last trade quotes at 4:00 pm London time.
55 Australian fixed income securities are valued at market
average prices from independent sources.
55 International fixed income securities are valued at the
market average prices from independent sources in
relevant markets.
55 Cash securities are valued at yield average prices from
independent sources.
55 Where investments are held in unlisted unit trusts, the
value of the investment will be based on the unit price
provided by the issuer.
Assets valued less frequently than daily include unlisted
investments such as unlisted property trusts, private equity,
infrastructure or hedge funds. The timing of the valuations
for these assets will vary but will typically be monthly or
quarterly. All properties held in unlisted property trusts, for
example, will be valued (at least) annually, and some will be
on a rolling quarterly valuation cycle. Valuations of these
assets are carried out by registered valuers or under pre-set
valuation methods.
Member Booklet Income Stream
Understand the risks
Income streams can offer some great tax benefits and can be a very
effective way to manage your income in retirement. However, like all
investments, superannuation income streams have certain risks that can
adversely affect your account balance or your ability to access your money.
Whether you are considering setting up an income
stream or deciding how much to draw down from your
account, make the most of your investment by being
informed and balancing the benefits with potential risks.
Investment risk
55 Fees and charges may increase, affecting your account
balance. You will be given at least 30 days’ written notice
before any increase takes effect. This excludes any estimated
fees such as investment fees and indirect cost ratios. The
actual fees charged may be more or less than estimated.
55 Investment earnings (which may be positive or negative)
The value of your super may rise or fall. Your super is
invested in the financial markets, so the movement of
these markets will affect the value of your super. While
you can choose between First State Super investment
options ranging from very low to very high risk, all types
of investment are subject to the risk of loss and their
value can change quickly. Investment risks are described
in Choose your investment options section starting on
page 13.
Other risks
55 Changes to laws and regulations may affect the
value of your super (for example changes to taxation
rules) or when and how you can access your super.
Changes to rules about when and how much you can
contribute to super, or how we are required to manage
your super, may also adversely affect you. We will
communicate information about material changes that
affect your superannuation.
will also affect the balance of your income stream account.
For more information see pages 23 and 24.
55 Your money can run out depending on how much you
initially invest, the frequency and amount of your income
stream payments, and how often you make lump sum
withdrawals (with respect to a retirement income stream).
55 During your membership, we may discontinue the
investment option you are invested in, or make substantial
changes to your chosen investment option. However, if
this were to occur, you would receive notification and have
an opportunity to switch to any of our other investment
options available at that time.
Neither the trustee nor any other entity named in this Member Booklet guarantees the return of capital invested
or the investment performance of First State Super. If you
leave, you may get back less than the amount of rollovers
or contributions paid in because of taxes, fees or poor
investment returns.
firststatesuper.com.au | Call 1300 650 873 | Email [email protected]
5
Tailor your income stream to suit your needs
Do you meet the age requirement?
To start an income stream, your superannuation benefit must
be unrestricted non-preserved or you need to have reached
your preservation age.
Note: Generally, temporary residents are not eligible to start a First
State Super income stream.
If your date of birth falls
Your preservation
age is
If you subsequently wish to add superannuation money
to your income stream account, you can move the current
balance of your existing income stream account back to a
superannuation account, transfer the additional funds into
this account, then set up a new income stream.
There is no age limit to transfer back into a superannuation
account, but age limits apply to certain contribution types into
super. Please see the Member Booklet Supplement: How Super
Works for more information.
Before 1 July 1960
55
Between 1 July 1960 and 30 June 1961
56
Between 1 July 1961 and 30 June 1962
57
Between 1 July 1962 and 30 June 1963
58
If you are still working when you set up your income stream
account, you will need two super accounts:
Between 1 July 1963 and 30 June 1964
59
55 your income stream account from which your regular
After 30 June 1964
60
Consolidate your super before you start
You can set up your First State Super income stream account
using money from a number of different sources, including
super sources (e.g. money from other super funds and other
income streams) and non-super sources (e.g. the proceeds
from the sale of shares and property).
Any non-superannuation money you wish to use to set
up your income stream must first be deposited into a
superannuation account, and contributions tax may be
payable on entry to the super fund.
Amounts held in other super funds and other income streams
are already in the superannuation system but you may
need to consolidate these different amounts into a single
superannuation account before setting up your income
stream. This is important because once you set up your
income stream, the government rules relating to pensions
do not allow you to make further contributions or transfers
into this account. Once all the amounts are consolidated into
a single superannuation account, the money can be moved
6
into your income stream account and your payments can
begin.
income stream payments are deducted
55 your accumulation account (also called a superannuation
account in this Member Booklet) into which any super
contributions made by you or your employer are paid.
You can consolidate your two accounts at any time by
transferring your income stream account balance back to
your super account, then transferring some or all of it to a
new income stream account. There may be social security
implications and you should consider seeking advice from a
financial adviser before consolidating your accounts.
If you are not already a member of First State Super, you will
first need to join as a personal member. Once your account
is set up, you can use it to consolidate all amounts you wish
to use to set up your income stream. Contact us for a copy of
the Member Booklet which contains the accumulation account
application form.
Before taking any super money out of your other super
fund(s) or financial institution(s), you should check to see if
there are any exit fees or penalties. You should also consider
the effect of any transfer of super monies on your insurance
arrangements, because no insurance cover is available
through your First State Super income stream.
Member Booklet Income Stream
This may also be a good time to check for any lost super.
You can use our online Search & Combine tool to search for
your lost super. You can also add in any other accounts you’d
like to transfer, and combine them all into your First State
Super account. To search for your super, visit our website at
firststatesuper.com.au/combine.
You will not be charged an exit fee to transfer your super
from your First State Super accumulation account to a
First State Super income stream account. Further, if you
transfer the balance of your income stream account back
to an accumulation account (e.g. to consolidate your super
accounts) you will not be charged an exit fee.
Note: If you apply for a partial transfer from your First State
Super accumulation account to a First State Super income
stream account, the amount will be deducted ‘pro-rata’ from
your existing investment options in your First State Super
accumulation account. If the amount requested as a partial
transfer does not allow $1,500 to remain in your account,
then the amount released will be your account balance
less $1,500.
Consolidation checklist
Make sure all the amounts you wish to use to set up your
income stream are consolidated in a single accumulation
account before you set up an income stream. These amounts
may include:
account balance and what your new income stream payment
will be for that financial year. You can then nominate how
much (within the applicable government limits) you wish to
receive in income stream payments for that year.
You may change the amount of your income stream payments
at any time provided you stay within the allowable limits for
your income stream. Please allow 15 working days for us to
process your request to change your income stream payments.
Note: The Retirement income calculator on our website can
show you the annual maximum and minimum (if applicable)
income amounts you may be paid from your income stream
account. It is designed to help you decide the amount
of income stream payments you would like to receive
each year. Visit our website at firststatesuper.com.au/
retirementincomecalculator.
Minimum payment limits apply to both types of income streams
– RIS and TRIS
The government has set annual minimum limits on the amount
you must withdraw in any one financial year from either type
of income stream account. The minimum limit is a percentage
of your account balance, which varies depending on your age:
Age at start of income stream
(and 1 July each year)
Minimum limit
(percentage)
Under 65
4.0%
55 part or all of your First State Super superannuation account
65–74
5.0%
55 amounts held in other superannuation funds
75–79
6.0%
55 an existing income stream account with another financial
80–84
7.0%
institution
85–89
9.0%
55 any lost super located through the ATO
90–94
11.0%
55 money from other investments e.g. the proceeds from the
95+
14.0%
sale of a property or shares that you want to invest in your
First State Super income stream.
You must meet eligibility rules for certain contributions
to super and should also consider the impact of the nonconcessional contribution cap1 (for 2016-17 financial year the
cap is $180,000 per year or $540,000 over 3 years for those
aged less than 65).
1
T he government has announced that from 7.30pm (AEST) on 3 May
2016, a new lifetime non-concessional cap of $500,000 will apply to
non-concessional contributions made from 1 July 2007 to members up
to age 75. This will replace the current annual non-concessional cap of
$180,000 and the bring forward provision available to members under
age 65. This is subject to legislation being passed.
Decide your annual income stream amount
There are a number of things you need to consider when
working out how much you want to receive as regular income
stream payments. These include:
55 how long you want your income stream to last
55 what you need to live on and your expenses
55 any other income you are receiving
A pro-rata minimum applies to members who start their income
stream part-way through the year.
Except as discussed below, the account balance used to
calculate your minimum amount is your account balance
at each 1 July (the beginning of the financial year). We will
automatically adjust your payments to meet the minimum
limit if the amount you have requested falls below the
minimum annual limit.
Note: The minimum limit (per annum) will always be rounded
to the nearest $10.
Your minimum limit in the first year
If you start your
income stream
Your minimum limit in the
first year is
On 1 July of any year
The applicable percentage of your
opening account balance.
Between 2 July and
31 May in a financial
year
The applicable percentage of your
opening account balance, calculated
‘pro-rata’ based on the portion of the
year remaining. For example, if you
start your income stream with only
three quarters of the year remaining,
your minimum limit will be three
quarters of the usual minimum limit.
In June of
any year
N/A – no minimum limit applies for
that financial year.
55 how the payments may affect any Centrelink entitlements.
In deciding your income stream amount, you must also
consider the minimum payment limits (which apply to all
income streams) and the maximum payment limit (which only
applies to a TRIS).
When your income stream first starts, and at the start of each
financial year thereafter, we will send you a letter informing
you of the government’s minimum and maximum (where
applicable) income stream payment limits that apply to your
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7
What happens in subsequent years?
Minimum payment formula
At the beginning of each financial year, we will send you
a letter informing you of your minimum and maximum
(if applicable) limit for the new financial year. If you have
previously chosen the minimum amount or maximum (if
applicable) for your payments, we will automatically adjust
your income payments on 1 July each year to the minimum
limit or maximum (if applicable) and you won’t have to do
anything more. If you choose a specified amount you will
receive this amount each year provided it remains above
the minimum limit (and below the maximum limit in the case
of TRIS members) or unless you advise us otherwise.
Your account balance at 1 July multiplied by the
minimum withdrawal percentage for your age at
1 July (rounded to the nearest $10) equals the minimum
amount that you must withdraw from your income
stream account for that financial year.
Minimum quarterly payments will be this amount
divided by four. Minimum monthly payments will be
this amount divided by 12.
Examples
If you start on 1 July
If you were 60 years of age on 1 July 2016 and you opened your First State Super income stream with $200,000,
your minimum withdrawal limit is 4% and the minimum amount will be $8,000 for the full financial year. The amount
you take monthly, quarterly or half-yearly is simply this annual amount divided by the relevant proportion. So, if you
want monthly income payments you divide $8,000 by 12, which is $666.67. You can take more than the minimum
amount of $666.67 a month, but you cannot take less than the annual minimum amount of $8,000.
The table shows the minimum age-based payment per year for an account balance of $200,000.
Age
Minimum amount each year
Equivalent monthly payment
55–64
$8,000
$666.67
65–74
$10,000
$833.33
75–79
$12,000
$1,000.00
80–84
$14,000
$1,166.67
85–89
$18,000
$1,500.00
90–94
$22,000
$1,833.33
95 or over
$28,000
$2,333.33
If you start after 1 July
If you open your income stream account on 1 January 2017, there are only six months or 181 days left in that financial
year. Based on the above example, you will only have to take $3,970 (rounded to the nearer $10) for the remainder of
the year or $661.67 per month calculated as follows:
$8,000 x 181 days remaining = $3,967.12
365 days
Note: These examples are illustrative only and are based on the factors stated and should not be taken to contain or provide an estimate of the
minimum amount you will receive.
What happens when you make a withdrawal?
Maximum payment limits apply to TRIS only
If you would like to withdraw your full account balance as a
lump sum payment, we are legally required to ensure that you
have first been paid your minimum limit. A pro-rata minimum
applies in the year you withdraw your full account balance as a
lump sum. This means if you have not already received at least
the minimum pro-rata income limit in the financial year, then
part of your lump sum withdrawal payment must first be paid
as an income stream payment so that the minimum income
payment limit requirement is met.
There is a maximum limit on payments from a TRIS. The
maximum limit is 10% of your account balance at
commencement or 1 July in any financial year. This limit
will apply until you meet a condition of release with a
nil cashing restriction, at which time your TRIS account
can be converted into a RIS account.
If you would like to withdraw part of your account balance as
a lump sum payment, we are legally required to ensure that
you retain an account balance sufficient to meet the minimum
limit, taking into account income payments you have already
received, for the full financial year.
The maximum limit applies regardless of when you
commence or redeem your income stream. The
maximum limit is not ‘pro-rata’ or reduced in any way if
you commence or redeem your TRIS part way through a
financial year.
There is no maximum limit on payments from a RIS,
which can be cashed in at any time.
If you would like to withdraw benefits in the form of an
irregular income stream payment, the payment amount will
automatically count towards your minimum payment amount.
8
Member Booklet Income Stream
Example
Calculating the maximum limit (TRIS only)
Let’s say you start your TRIS with a balance of $200,000. Your maximum limit will be calculated like this:
Maximum limit: $200,000 x 10% = $20,000
Note: The example is illustrative only and is based on the factors stated. The example should not be taken to contain or provide an estimate
of the maximum amount you will receive.
How long will your income stream last?
It is important to remember that you may not be paid
an income stream for the rest of your life. Payments can
only be made while there is money in your account. How
long your income stream lasts depends on the amount of
your initial investment, your income payment amounts,
any lump sum withdrawals, fees and investment earnings
(or losses) on your balance. These and other factors that
impact on your income stream payment are explained in
the Understand the risks section on page 5.
When your account balance is fully paid out, your account
will close and, unless you have another income stream
account or superannuation account with First State Super,
your membership in First State Super will cease.
Payment frequency
Your income stream payments are made to your
nominated bank, building society or credit union account:
3) Percentage (only available online once you’ve
applied and registered for online access) – you can
nominate the percentage to be deducted from each
of your investment options.
If you don’t choose the priority or percentage method, the
pro-rata method will apply.
55 Your income stream cannot be transferred to another
person when you die, except to your reversionary
beneficiary if you have nominated one for your income
stream account (see page 10).
55 If you do not specify how you would like your
withdrawal to be treated, First State Super will treat it as
a lump sum withdrawal and it will be taxed accordingly.
See the Tax and your income stream section on page 27
for the taxation treatment of each payment type.
55 fortnightly on a Wednesday; or
55 monthly on the 12th day of the month; or
55 quarterly on the 12th day of September, December,
March and June; or
55 half-yearly on the 12th day of June and December.
Alternatively, you may nominate the two months you
prefer (six months apart) and payments will be made
on the 12th day of those two months; or
55 yearly on the 12th of June. Alternatively, you may
nominate the month you prefer and payment will be
made on the 12th day of that month.
If the payment day falls on a national or NSW public
holiday or weekend, payment will be made on the prior
business day.
Payment rules
55 Payments can only be paid into an account in your
name, or a joint account that includes your name.
55 Income stream payments must be made at least once
each financial year, unless you start your income
stream in June. (See Your minimum limit in the first
year on page 7).
55 If you invest in more than one option, you can ask us to
draw your payments from your investment options in
one of three ways:
1) P
ro-rata – your money is drawn from all your
investment options in the same proportion to how
your money is invested (eg if you have 30% in High
Growth and 70% in Growth, payments are made
30% from High Growth and 70% from Growth); or
2) P
riority – you can nominate which investments your
money is paid from first, second, third etc. When your
first choice has been fully drawn, we will draw your
income payments from your second choice and so
on; or
Lump sum withdrawals and one-off payments
There are several ways to withdraw additional or
irregular amounts from your income stream and your
payment is taxed differently, depending on which type of
payment you choose. Depending on your instruction, oneoff payments may be treated as:
55 an irregular income stream payment – in this case, if you
are aged less than 60 you may pay income tax on the
payment, but you may be eligible for a 15% tax offset1;
or
55 a lump sum withdrawal – this is treated as a
superannuation benefit payment and if you are aged
less than 60 may be subject to lump sum tax1; or
55 a combination of an irregular income stream payment
and a lump sum withdrawal.
1
If you are aged 60 or more any payments made to you are tax free.
Lump sum withdrawals are electronically transferred to
your nominated bank, building society or credit union
account, net of any tax required to be deducted. The tax
that applies to income stream payments is discussed in Tax
and your income stream beginning on page 27.
If you wish to make a withdrawal, please use the Withdraw
or transfer your income stream form which is available on
our website at firststatesuper.com.au/forms or by calling us
on 1300 650 873.
firststatesuper.com.au | Call 1300 650 873 | Email [email protected]
9
Rules for lump sum withdrawals
55 If you would like to withdraw the full balance of your
account, we are legally required to pay your minimum
income stream payment amount for the relevant portion
of that financial year. This means if you have not already
received at least the minimum income payment in the
financial year, then part of the full withdrawal payment
must be taken as an income stream payment so that
the minimum income payment requirement is met. The
remaining amount can then be taken as either an income
stream or lump sum payment.
55 If you request a partial lump sum withdrawal, we must
ensure that you retain sufficient balance in your account
to meet the minimum limit for the full financial year, taking
into account any income payments you have already
received in the financial year.
Unless you have made a valid reversionary beneficiary
nomination, your account balance will automatically be
transferred to the Cash investment option when the trustee
receives satisfactory proof of your death. Your account
balance will remain invested in the Cash investment option
until it is paid out in accordance with the fund’s rules.
You have three death benefit nomination options for your
income stream:
1. a reversionary beneficiary nomination
2.a binding nomination (lapsing or non-lapsing, see
explanation in next column)
3. a non-binding nomination.
1. A reversionary beneficiary nomination
55
You can nominate your spouse (including a de facto
spouse) to continue to receive your income stream
payment after your death.
55
You can do so when you commence an income
stream by completing the Reversionary beneficiary
nomination section of the member application form at
the end of the Member Booklet or at any time thereafter
by completing and returning an Income stream death
benefit nomination form.
55
Your reversionary beneficiary will receive an income
stream in the event of your death or they can choose
to withdraw all or part of the income stream as a
lump sum provided the reversionary beneficiary
nomination is valid and once the death claim has
been approved by the trustee.
55
If you make a reversionary beneficiary nomination, it
overrides any prior nomination that you have made
except for a binding nomination which you must
first cancel using the Income Stream death benefit
nomination cancellation form before replacing it with
another nomination.
55
Once made, your nomination remains in place
provided that the person nominated is still your
spouse, unless you cancel it, amend it or change it.
55
If your reversionary beneficiary dies before you do,
this will invalidate your nomination. You can cancel
your reversionary beneficiary nomination and make
another beneficiary nomination.
55
In the event of your death, if your reversionary
beneficiary nomination is not valid, the remainder of
your income stream will be paid as a lump sum to one
or more of your dependants or your legal personal
representative at the discretion of the trustee (guided
by superannuation law).
55
You cannot have a reversionary beneficiary
nomination in place at the same time as a nonbinding nomination or binding nomination.
55
A reversionary beneficiary nomination ceases to be
effective and valid if you separate on a permanent
basis from your spouse.
55
A reversionary beneficiary nomination does not need
to be renewed.
55
Once an income stream reverts to a spouse under
a reversionary beneficiary nomination they have
authority to manage the account in the same way as
the original member, except that they cannot make a
reversionary beneficiary nomination.
55 If you have more than one investment option and you
make an irregular payment or withdrawal, you may
nominate which investment option you would like the
money to be paid from. If you do not make a nomination,
the withdrawal will be deducted in proportion to your
investment mix at the time the withdrawal is paid.
TRIS members note
If you are a TRIS member, you cannot normally make
lump sum withdrawals from your TRIS account unless
you have unrestricted non-preserved monies. You can
take an irregular income stream payment, provided
you do not exceed the maximum amount (10% of
your account balance for the financial year).
Choose your beneficiaries
It’s important to consider who you would like to receive any
money left in your income stream account if you die.
Who gets your income stream if you die?
If you die while you have an income stream account with
First State Super, any remaining balance will be paid as a
death benefit to a beneficiary or beneficiaries. If you do not
have a reversionary beneficiary nomination or a valid binding
nomination in place the trustee has absolute discretion to
decide how to distribute your death benefit (we will take your
non-binding nomination into consideration and be guided by
superannuation law). Your death benefit will normally be paid
to one or more of your dependants or to your legal personal
representative (LPR). Your death benefit will be your account
balance at the time of payment less any applicable tax.
The treatment of death benefits can be complex. In particular,
a lump sum death benefit is taxed differently from an income
stream and a payment to a dependant is taxed differently from
a payment to a non-dependant for tax purposes (see page
30 for information on the tax treatment of death benefits).
In addition, there may be an impact on your Centrelink
entitlements, when you make or change a reversionary
beneficiary option. If you are unsure about how these rules
apply to you, we recommend you obtain advice on the most
effective way to plan your estate.
Anyone that you nominate should be a ‘dependant’ under
superannuation law (see page 12) or your legal personal
representative.
10
Member Booklet Income Stream
2. A binding nomination
3. A non-binding nomination
55
A binding nomination directs the trustee to pay your
remaining account balance to your chosen beneficiary
or beneficiaries.
55 A non-binding nomination is a discretionary nomination
55
It is binding on the trustee as long as it is valid (see
Making a valid binding nomination on page 11).
55 The trustee will take your non-binding nomination
55
The death benefit payment is generally made as one
or more lump sums.
55
To make a binding nomination you must complete and
return the Income stream death benefit nomination
form1, available on our website or by calling us.
55 It is not binding on the trustee.
You can amend a binding nomination at any time
by providing a new binding nomination, or you may
cancel the nomination at any time by completing and
returning the Income stream death benefit nomination
cancellation form1.
55 It does not expire and does not need to be renewed.
55
55
55
If you decide to change your binding nomination
(while it is still valid) to another type of death benefit
nomination, you must first cancel your current binding
nomination.
It is important to review your binding nomination as
your personal circumstances change to ensure that
you maintain a valid binding nomination that reflects
your wishes. You can choose to make your binding
nomination either lapsing or non-lapsing:
–
A lapsing binding nomination will remain in force
for three years from the day after it was first
signed or last confirmed or amended (see the
form for more details).
–
You may renew a lapsing binding nomination for
a further three years. To do so, you must advise
us in writing before the original lapsing binding
nomination expires. Your request must be signed
and dated, but does not need to be witnessed.
– A non-lapsing binding death benefit nomination
does not expire, so it does not need to be
confirmed every three years.
Only members of the fund can make a binding beneficiary
nomination and the trustee can only accept original or
certified copies of completed binding nomination or
cancellation forms.
1 that allows you to nominate your preferred beneficiary
or beneficiaries to receive your death benefit.
into consideration but retains absolute discretion in
determining how your super benefit is distributed on
your death (guided by superannuation law).
55 The death benefit payment is generally made as one
or more lump sums.
55 It can be changed or replaced with any other nomination.
55 You can make a nomination using the Income stream non-
binding death benefit nomination form or in the form of a
signed and dated letter to the trustee.
Making a valid binding nomination
55 You must ensure that the benefit split you stipulate
for your nominated beneficiaries totals 100% of your
account balance.
55 The Income stream death benefit nomination form must be
signed and witnessed according to the instructions on the
form and must be received and acknowledged by the trustee.
55 Your nominated beneficiary or beneficiaries must be
dependants as defined under superannuation law –
see Who can you nominate? for definitions.
55 Your binding nomination will become invalid if one or more
of your nominated beneficiaries dies or no longer meets the
definition of ‘dependant’ under superannuation law at the
time of your death – see Who can you nominate? for more
information.
55 A lapsing binding death benefit nomination must be current
at the date of death or still within the validity period (three
years from the day after it was first signed or last confirmed
or amended).
Note: You can amend or change your nomination type at any
time by completing and returning an Income stream death benefit
nomination form. If you have an existing binding nomination in
place, you must first cancel this using the Income stream death
benefit nomination cancellation form. These forms are available on
our website at firststatesuper.com.au/forms or by calling us.
You can set up your
First State Super income
stream account using
money from a number
of different sources
firststatesuper.com.au | Call 1300 650 873 | Email [email protected]
11
Who can you nominate?
Your legal personal representative:
You can only nominate your spouse as your reversionary
beneficiary. However, with both a binding and a non-binding
nomination, you can nominate more than one beneficiary
if you wish, and you can choose the percentage of your
remaining account balance that each beneficiary should
receive as a lump sum.
55 also known as an executor or administrator. Your legal
Each person you nominate must be your dependant (as defined
by superannuation law) or legal personal representative
both at the date of your nomination and at the date of your
death. So it is important to review your nomination when your
circumstances change. Events such as marriages, divorces,
births and deaths may change your preferences.
See page 30 for the different definitions of dependants for
tax purposes.
When you make a non-binding nomination your nomination
must be to your dependant (as defined by superannuation
law) or legal personal representative. If you don’t have a
dependant(s) or legal personal representative, you may
nominate another individual. The trustee retains absolute
discretion on how the benefit is distributed on your death
but will have regard to your nomination.
A dependant is Your spouse, Your children or Your other
dependants as described below.
Your spouse:
55 a person who is legally married to you; or
55 a person (whether of the same sex or a different sex)
with whom you are in a relationship that is registered
on a relationship register of a state or territory; or
55 a de facto spouse (whether of the same sex or a
different sex).
Your children:
55 your natural children; or
55 your spouse’s children (see meaning of spouse above); or
55 adopted, step and ex-nuptial children; or
55 your children within the Family Law Act 1975 (e.g. children
under surrogate arrangements).
Your other dependants:
55 a person whom the trustee considers was financially
dependent on you at the time of your death; or
55 a person with whom you have an interdependency
relationship, which is generally a person with whom you:
– live; and
– have a close personal relationship; and
–provide financial support (or they provide financial
support to you); and
–provide domestic support and personal care (or they
provide domestic support and personal care to you).
An interdependency relationship can also occur where two
people have a close personal relationship, but the other
requirements are not satisfied because either or both of them
suffer from a physical, intellectual, psychiatric or other disability.
In most cases, your parents and siblings are not considered to
be your dependants, unless they are financially dependent on
you or they are in an interdependency relationship with you.
12
personal representative (LPR) can be nominated in a
binding death benefit nomination to receive some or all
of your benefit in the event of your death. The LPR will
distribute your benefit according to your Will, even if the
beneficiaries under your Will are not dependants.
Ensure your nomination is up-to-date
If at the time of your death you have in place a valid
reversionary or binding beneficiary nomination, we will
pay the death benefit in accordance with your nomination.
However, circumstances may change which may cause your
reversionary or binding nomination to become invalid such
as in the case of divorce, death of a nominated dependant,
or a change in an interdependency relationship.
Where there is no valid reversionary or binding beneficiary
nomination, we must determine to whom and in what
proportions your death benefit is to be paid, guided by
the trust deed and superannuation law. We will aim to
ensure our decision is fair and reasonable. We will consider
relevant matters at the time of your death, including
identifying and considering your dependants and the
extent of their dependency.
To avoid any delay or confusion concerning the payment
of your death benefit, we encourage you to make a
reversionary or binding beneficiary nomination and to
update these as needed, in particular when relevant
circumstances in your life or in the lives of your dependants
change.
How many nominations can you make?
You can only have one valid nomination in place for each
income stream account. However, if you have started more
than one income stream account with First State Super, you
will need to treat each one individually when it comes to
nominating beneficiaries to receive your benefit if you die.
This means you will need to nominate beneficiaries for each
income stream account you hold.
Anti-detriment payment on death benefits
Where the trustee determines eligibility has been met,
an anti-detriment payment may be added to a lump sum
death benefit payment made to a member’s qualifying
dependants.
An anti-detriment payment is a refund of super
contributions tax paid by the member which is available in
certain circumstances depending upon the beneficiaries
receiving the benefit. The government has announced that
it proposes to cease anti-detriment payments from 1 July
2017. This is subject to legislation being passed.
Member Booklet Income Stream
Choose your investment options
Your personal objectives, financial situation and needs should determine your
choice of investment option.
First State Super gives you a choice of 12 investment options,
each with a specified investment objective. You can invest
in more than one option, and you can choose the proportion
allocated to each.
You can also switch your investments at any time. Use the
Change income stream investment details form available on our
website and by contacting us.
Single asset class options
The single asset class options are invested in one type of
asset only. These options allow you to take a greater degree
of control over your account by choosing your allocation to
one or more asset classes. The features of the single asset
class options (such as their risk rating and potential return)
reflect the particular asset type in which they are invested.
Note: Any investment option choice you make on your
Superannuation income stream member application form at
the back of this booklet will only apply to your income stream
account, not your superannuation accumulation account
(if you have one).
The single asset class options are:
Choose from 12 investment options
55 Australian Fixed Interest
Our investment options include five pre-mixed options and
seven single asset class options. Two of these options are
socially responsible investment options.
The pre-mixed investment options provide you with the
benefit of diversification by accessing different asset classes,
investment styles and managers. Each pre-mixed option is a
mixture of different asset types and the percentage allocated
to each asset type varies with each pre-mixed option. As a
result of this variation, each pre-mixed option has a different
overall risk rating, and a different potential return. The
pre-mixed options are:
55 High Growth
55 Growth
55 Diversified Socially Responsible Investment (SRI)
55 Conservative Growth.
55 Australian Equities Socially Responsible Investment (SRI)
55 International Equities
55 Property
55 International Fixed Interest
55 Cash.
Socially responsible investment options
Pre-mixed options
55 Balanced Growth
55 Australian Equities
First State Super members have access to a Diversified
Socially Responsible Investment (SRI) option and an
Australian Equities Socially Responsible Investment
option. While both options use positive and negative
‘screens’ to select the Australian and International Equities
in which they invest, the Diversified SRI option holds a
mix of asset classes (Australian and international shares,
alternatives, fixed income and cash) while the Australian
Socially Responsible Equities option holds only Australian
shares. The consideration of socially responsible values
are currently only taken into account in the Australian and
International equities sections of the SRI options, but may
be applied to other asset classes over time. See page 25 for
more information on the approach followed by First State
Super in relation to socially responsible investment.
firststatesuper.com.au | Call 1300 650 873 | Email [email protected]
13
Life Cycle strategy
If you do not choose an investment option(s) in your
application, your account balance will be invested in the Life
Cycle strategy. This is:
55 for members aged 59 and under – the Growth option
55 for members aged 60 and over – the Balanced Growth
option.
The Life Cycle options are pre-mixed investment options,
so they are invested across a range of assets. The trustee
selects a mixture of assets for each Life Cycle option so
that the overall risk profile and the target level of return are
appropriate, based on the age of members being placed in the
Life Cycle strategy.
If you start an income stream account before age 60 and you
do not exercise any investment choice, your account balance
will initially be invested in the Growth option and will be
switched to the Balanced Growth option when you turn 60. If
you make an investment choice at any time you will need to
review your choices from time to time because your account
balance will not be automatically switched when you turn 60.
Note that any time you make an investment choice you
become an “elected” member and the automatic Life Cycle
strategy arrangement no longer apply. You will remain in your
chosen investment option(s) until you choose otherwise.
Choice strategy
If you want more control over your super, or you wish to
choose a different investment strategy to take into account
investments you may have outside of super, you can choose
your own investment option. Make sure you read all the
information in this chapter before making a decision. You
should choose investment options to suit your personal
objectives, financial situation and needs and you should
consider seeking advice from a financial adviser before you
choose or change your investment option(s).
Important: The trustee is not responsible for your investment
choice and does not review your investment choice. Please read
the section on The importance of diversification to manage
investment risk on page 23 and you may wish to consult a
financial adviser before making any investment decisions.
Switching investments
You can switch the investment option for your current account
balance at any time. You can switch online (if you have
registered for our online services) or by completing a Change
of income stream investment details form. This form is available
from our website or by contacting us.
The first investment switch for a financial year is free but you
will be charged $25 for any subsequent switch during that
financial year.
If we receive a valid paper or online request from you to
switch the investment option(s) for your current account
balance before 5pm (AEST) on a business day, we will process
it using the unit price(s) that apply for that business day when
it becomes available. You can cancel a switch request online
before 5pm (AEST) on the day the switch request is made.
14
Make sure that you read all of the information in this
Member Booklet (Product Disclosure Statement) before making
a switching decision. You should choose investment options
to suit your personal objectives, financial situation and needs
and you should consider seeking advice from a financial
adviser before you choose or change your investment
option(s).
About the investment options
Every option has an investment objective
Each investment option has a stated objective which is the
desired investment outcome for the option. Investment
objectives vary with the level of risk associated with the
asset(s) that make up the option. Keep in mind when reviewing
the options’ objectives that they are simply tools to monitor
performance and not a forecast of future returns or a
prediction of the earnings on your investment.
For each pre-mixed option, the investment objective is to
achieve investment growth above inflation (as measured by
the Consumer Price Index) over rolling time periods.
For each single asset class option, the investment objective
includes a benchmark to measure the performance of each
option. Usually, the benchmark applied is a common market
indicator so, for example, the benchmark for shares would
usually be a stock exchange index for the performance of the
broader market.
The Trustee will review and may change the investment
objective of an investment option from time to time without
notice.
Each pre-mixed option is invested in a range of assets
To achieve the investment objective of each pre-mixed
investment option, we select a long-term target proportion of
growth assets to income assets that is most likely to meet the
option’s investment objective.
55 Growth assets have the potential to achieve capital growth
over the medium to long term. They include Australian
equities, international equities and alternative assets
(such as listed property, unlisted property, private equity,
infrastructure, real assets, hedge funds and real return
strategies). Historically, it has been found that while in
the long term these types of assets have the potential to
produce greater benefits, they can be more volatile (or
risky) in the short term when compared with income assets
and they have a greater potential to produce negative
returns in the short to medium term.
55 Income assets (also known as defensive assets) generally
provide an income stream and typically include bonds,
bank bills, debentures, cash and alternative assets (such
as credit securities). These investments are generally
considered to be less risky than growth assets, but at
times, they can produce a negative return.
Member Booklet Income Stream
Each pre-mixed option has an allocation to growth and income
assets. Within the growth and income allocations the trustee
invests in a number of different asset classes (e.g. shares, fixed
income etc.). Each asset class has a range as shown on pages
16 to 18.
The actual asset allocation will vary over time. Where
necessary, the trustee will take steps to maintain the actual
asset allocation within + or - 20% of the growth to income
allocation. The trustee may vary the asset allocation ranges
for an investment option from time to time without notice.
The actual asset allocation can be found in the investment
section on our website.
Each option has a level of risk
Each investment option has a risk profile, ranging from very
low to very high based on the Standard Risk Measure which
is the expected number of negative returns over a 20 year
period (refer to page 24 for further details). The risk level of an
investment option depends on the risk profile(s) of the assets
that make up the option.
Generally, assets with a higher risk profile are likely to
fluctuate more in value in the short term, so they have a
greater possibility of falling in value – and by larger amounts.
On the other hand, they have the potential to deliver higher
average returns over the long term.
Investment objectives are to be measured over time
Investment objectives also vary with an option’s investment
time horizon. The investment objective of each option takes
into account the volatility of the underlying assets (the
likelihood of large gains or falls) by specifying that the aims of
the option are to be achieved over a particular time period.
Standard Risk Measures
The investment option tables on the following pages
show a risk label and expected frequency of negative
returns for each investment option. These are Standard
Risk Measures that have been developed by the industry
so that members have a consistent methodology for
comparing investment options within funds and across
funds. The risk measures range from 1 (being the lowest
risk) to 7 (being the highest risk).
While it is recommended that the disclosure of these risk
measures is on a pre-tax basis (ignoring the impact of
franking credits), the trustee has chosen to use a net of
tax basis to provide for the impact of franking credits and
other taxes, where applicable. This approach means that
some investments with exposure to Australian equities
have a lower risk rating than if calculated on a pre-tax basis.
However, we consider that this provides a more realistic
comparison between investment options for members as
investment returns are credited to a member’s account net
of tax and investment management expenses. See page 24
for more information.
Our performance
We keep our website up to date with the latest investment
performance for each investment option, as well as daily
changes in unit prices. You will also be able to access
regular updates on the investment performance of each
of our investment options, or you can contact us for this
information at any time.
If you do not choose an
investment option your
account balance will be
invested in the Life Cycle
option for your age (either
the Growth or Balanced
Growth option)
firststatesuper.com.au | Call 1300 650 873 | Email [email protected]
15
Pre-mixed investment options
Investment objective1
Growth
(Life Cycle option – up to and including age 59)
Balanced Growth
(Life Cycle option – aged 60 and over)
CPI + 4.25% pa over rolling 10-year periods net
of tax and fees.
CPI + 3.25% pa over rolling 10-year periods net
of tax and fees.
Growth / income
allocation2
75% growth assets
25% income assets
1
55% growth assets
45% income assets
Asset allocation
ranges3
16% to 36% Australian equities
20% to 40% International equities
4% to 44% Alternatives
1% to 20% Fixed income
1% to 45%Cash
7% to 27%
Australian equities
11% to 31% International equities
7% to 47% Alternatives
5% to 35% Fixed income
1% to 60% Cash
Who might invest
in this option?
This option may suit investors who seek higher
growth over the medium to long term and are
willing to accept fluctuations in returns and the
possibility of negative returns over the short
term.
This option may suit investors who seek a
balance of growth and income investments that
are expected to deliver moderate returns over
the medium term.
Minimum suggested
timeframe
Medium to long term (5–10 years)
Medium term (3–5 years)
Risk label4
High (Band 6)
Medium-high (Band 5)
Expected frequency
of negative returns4
Approximately 4.4 times every 20 years
Approximately 3.7 times every 20 years
T he objectives do not constitute a forecast or guarantee of future performance or the future rates of return of the investment option.
Refer to page 14 for information on investment objectives. Investment returns are tax free and expected returns are calculated on this basis.
T he government has announced that from 1 July 2017 it will remove the tax exemption for the investment earnings derived on assets supporting a
TRIS. Investment earnings will be taxed concessionally at 15%. At the time this document was prepared, this proposal was not yet law. For details of
the proposed changes, please refer to treasury.gov.au.
2
The actual allocation will vary over time. Where necessary, the trustee will take steps to maintain the actual allocation within + or - 20%
of the growth to income allocation.
The trustee may vary the actual asset allocation for an investment option from time to time. Refer to our website for details of the current actual
asset allocations. Alternatives can include both income and growth assets. See page 14 for more information.
3
4
T he underlying modelling methodology used to estimate risk labels and the expected frequency of negative returns is available on our website
at firststatesuper.com.au/investmentandrisk. See page 24 for more information.
16
Member Booklet Income Stream
Investment objective1
High Growth
Diversified Socially
Responsible Investment (SRI)5
CPI + 4.5% pa over rolling 10-year periods net of
tax and fees.
CPI + 4.25% pa over rolling 10-year periods net
of tax and fees.
Growth / income
allocation2
95% growth assets
5% income assets
1
75% growth assets
25% income assets
Asset allocation
ranges3
23% to 43% Australian equities
28% to 48% International equities
14% to 34% Alternatives
Fixed income
0% to 10% 1% to 15% Cash
16% to 36% Australian equities
20% to 40% International equities
4% to 44% Alternatives
1% to 20% Fixed income
1% to 45%Cash
Who might invest
in this option?
This option may suit investors who seek higher
growth over the longer term and are willing to
accept significant fluctuations in returns and the
possibility of negative returns over the short
term.
This option may suit investors who seek higher
growth over the medium to long term from socially
responsible investments and are willing to
accept fluctuations in returns and the possibility
of negative returns over the short term.
Minimum suggested
timeframe
Long term (10+ years)
Medium to long term (5–10 years)
Risk label4
High (Band 6)
High (Band 6)
Expected frequency
of negative returns4
Approximately 4.9 times every 20 years
Approximately 4.4 times every 20 years
T he objectives do not constitute a forecast or guarantee of future performance or the future rates of return of the investment option.
Refer to page 14 for information on investment objectives. Investment returns are tax free and expected returns are calculated on this basis.
T he government has announced that from 1 July 2017 it will remove the tax exemption for the investment earnings derived on assets supporting a
TRIS. Investment earnings will be taxed concessionally at 15%. At the time this document was prepared, this proposal was not yet law. For details of
the proposed changes, please refer to treasury.gov.au.
2
The actual allocation will vary over time. Where necessary, the trustee will take steps to maintain the actual allocation within + or - 20%
of the growth to income allocation.
The trustee may vary the actual asset allocation for an investment option from time to time . Refer to our website for details of the current actual
asset allocations. Alternatives can include both income and growth assets. See page 14 for more information.
3
4
T he underlying modelling methodology used to estimate risk labels and the expected frequency of negative returns is available on our website
at firststatesuper.com.au/investmentandrisk. See page 24 for more information.
5
urrently, socially responsible investment screening applies to Australian and International equities only. The trustee may include screening on other C
asset classes. The benchmark asset allocations for each asset class within the Diversified SRI option are Australian equities 26%, International
equities 30%, Alternatives 24%, Fixed income 10% and Cash 10%. Refer to page 25 for further information on our SRI options.
firststatesuper.com.au | Call 1300 650 873 | Email [email protected]
17
Pre-mixed investment options (continued)
Conservative Growth
Investment objective
1
CPI + 1.5% pa over rolling 10-year periods net of tax and fees.
Growth / income allocation2
30% growth assets
70% income assets
1
Asset allocation ranges3
1% to 13% 2% to 12% 14% to 44% 5% to 35% 1% to 85%
Who might invest
in this option?
This option may suit investors who seek an investment with
a low to medium risk of capital loss over the short to medium
term, and modest capital growth over the longer term.
Australian equities
International equities
Alternatives
Fixed income
Cash
Minimum suggested
timeframe
Short to medium term (up to 3 years)
Risk label4
Low-medium (Band 3)
Expected frequency
of negative returns4
Approximately 1.9 times every 20 years
T he objectives do not constitute a forecast or guarantee of future performance or the future rates of return of the
investment option. Refer to page 14 for information on investment objectives. Investment returns are tax free and
expected returns are calculated on this basis.
T he government has announced that from 1 July 2017 it will remove the tax exemption for the investment
earnings derived on assets supporting a TRIS. Investment earnings will be taxed concessionally at 15%. At the
time this document was prepared, this proposal was not yet law. For details of the proposed changes, please refer
to treasury.gov.au.
2
T he actual allocation will vary over time. Where necessary, the trustee will take steps to maintain the actual
allocation within + or - 20% of the growth to income allocation.
3
T he trustee may vary the actual asset allocation for an investment option from time to time. Refer to our website
for details of the current actual asset allocations. Alternatives can include both income and growth assets. See
page 14 for more information.
4
T he underlying modelling methodology used to estimate risk labels and the expected frequency of negative
returns is available on our website at firststatesuper.com.au/investmentandrisk. See page 24 for more
information.
18
Member Booklet Income Stream
Single asset class options
Australian Equities Socially
Responsible Investment (SRI) 3
Australian Equities
International Equities
Investment
objective1
To track the S&P/ASX 300 Index
(dividends reinvested), after fees.
To outperform the S&P/ASX 200
Index (dividends reinvested) over
rolling 5 years, after fees.
To track the MSCI World Index
ex-Australia Net Dividends
Reinvested (unhedged in
Australian dollars), after fees.
Asset allocation
100% Australian equities.
100% Australian equities.
100% international equities.
4
1
Who might invest
in this option?
This option may suit investors
who seek growth above inflation
(being a combination of capital
and income) over the longer
term from Australian shares and
are willing to accept significant
fluctuations in returns and the
possibility of negative returns
over the short term.
This option may suit investors who
seek growth above inflation (being
a combination of capital and
income) over the longer term from
socially responsible Australian
shares and are willing to accept
significant fluctuations in returns
and the possibility of negative
returns over the short term.
This option may suit investors
who seek growth above inflation
(being a combination of capital
and income) over the longer term
from international shares and
are willing to accept significant
fluctuations in returns and the
possibility of negative returns
over the short term.
Minimum
suggested time
frame
Longer term (10+ years)
Longer term (10+ years)
Longer term (10+ years)
Risk label2
Very high (Band 7)
Very high (Band 7)
High (Band 6)
Expected
frequency of
negative returns2
Approximately 6.6 times every
20 years
Approximately 6.4 times every
20 years
Approximately 6.1 times every
20 years
T he objectives do not constitute a forecast or guarantee of future performance or the future rates of return of the investment option. Refer to page 14
for information on investment objectives and our website for current benchmarks. Investment returns are tax free and expected returns are calculated
on this basis.
T he government has announced that from 1 July 2017 it will remove the tax exemption for the investment earnings derived on assets supporting a
TRIS. Investment earnings will be taxed concessionally at 15%. At the time this document was prepared, this proposal was not yet law. For details of the
proposed changes, please refer to treasury.gov.au.
2
The underlying modelling methodology used to estimate risk labels and the expected frequency of negative returns is available on our website
at firststatesuper.com.au/investmentandrisk. See page 24 for more information.
3
Refer to page 25 for further information on our SRI options.
4
T he Certification Symbol signifies that a product or service offers an investment style that takes into account environmental, social, governance
or ethical considerations. The Symbol also signifies that First State 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 (RIA A). Detailed information about RIA A , the Symbol and First State Super’s methodology and
performance can be found at www.responsibleinvestment.org, together with details about other responsible investment products certified by RIA A .
The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends
to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior
to making an investment decision. RIAA does not hold an Australian Financial Services Licence.
firststatesuper.com.au | Call 1300 650 873 | Email [email protected]
19
Single asset class options (continued)
1
Property
Australian Fixed Interest
Investment
objective1
To outperform a combined index, namely the
FTSE EPRA/NAREIT Developed Rental Index
(hedged) and CPI + 5% over rolling 5 years,
after fees.
To track the Bloomberg AusBond Composite 0 + Yr
Index, after fees.
Asset allocation
100% property investments.
100% Australian fixed income securities.
Who might invest
in this option?
This option may suit investors who seek
moderate to high growth above inflation
over the medium to long term from property
investments and are willing to accept
fluctuations in returns and the possibility of
negative returns over the short term.
This option may suit investors who seek a moderate
risk investment with relatively stable returns above
inflation from Australian fixed income markets, over
the medium term.
Minimum suggested
time frame
Medium to long term (5–10 years)
Medium term (3–5 years)
Risk label2
High (Band 6)
High (Band 6)
Expected frequency
of negative returns2
Approximately 5.1 times every 20 years
Approximately 4.9 times every 20 years
T he objectives do not constitute a forecast or guarantee of future performance or the future rates of return of the investment option. Refer to page 14
for information on investment objectives and our website for current benchmarks. Investment returns are tax free and expected returns are calculated
on this basis.
T he government has announced that from 1 July 2017 it will remove the tax exemption for the investment earnings derived on assets supporting a
TRIS. Investment earnings will be taxed concessionally at 15%. At the time this document was prepared, this proposal was not yet law. For details of the
proposed changes, please refer to treasury.gov.au.
2
The underlying modelling methodology used to estimate risk labels and the expected frequency of negative returns is available on our website
at firststatesuper.com.au/investmentandrisk. See page 24 for more information.
20
Member Booklet Income Stream
International Fixed Interest
1
Cash
Investment
objective1
To track the Barclays Global Aggregate Float
To track the Bloomberg AusBond Bank Bill Index,
Adjusted Index fully hedged to Australian dollars, after fees.
after fees.
Asset allocation
100% international fixed income securities.
A combination of bank deposits and/or short-term
income-producing securities. Up to 10% of such
assets may have a term to maturity of up to three
years. All other deposits and securities will have a
term of up to one year.
Who might invest
in this option?
This option may suit investors who seek a low
risk investment with relatively stable returns
above inflation from international fixed income
markets, over the medium term.
This option may suit investors who seek a very low
risk short term investment with very stable but low
expected returns.
Minimum suggested
time frame
Medium term (3–5 years)
Short term (up to 2 years)
Risk label2
Medium-high (Band 5)
Very low (Band 1)
Expected frequency
of negative returns2
Approximately 3.2 times every 20 years
The expected risk of a negative return is negligible
T he objectives do not constitute a forecast or guarantee of future performance or the future rates of return of the investment option. Refer to page 14
for information on investment objectives and our website for current benchmarks. Investment returns are tax free and expected returns are calculated
on this basis.
T he government has announced that from 1 July 2017 it will remove the tax exemption for the investment earnings derived on assets supporting a
TRIS. Investment earnings will be taxed concessionally at 15%. At the time this document was prepared, this proposal was not yet law. For details of the
proposed changes, please refer to treasury.gov.au.
2
The underlying modelling methodology used to estimate risk labels and the expected frequency of negative returns is available on our website
at firststatesuper.com.au/investmentandrisk. See page 24 for more information.
firststatesuper.com.au | Call 1300 650 873 | Email [email protected]
21
Asset class descriptions
Equities
Equities (also known as shares) are a portion or share of
a company that can generate capital gains – and losses
– as well as dividend income. The investment return will
depend on how the company performs over time and on
economic factors.
Over the long term, returns from equities tend to be higher
than those achieved by property, fixed income and cash.
However, in the short term, performance tends to have more
ups and downs, and in some years, the returns may be negative.
Equity investments can be very volatile in price and therefore
are subject to a higher degree of risk than more defensive
investments like fixed income.
We can invest in both Australian and international equities.
Investments in international equities (for the pre-mixed
options) may be hedged against movements in the value of
foreign currencies. For the single sector options the trustee
retains the right to implement a foreign currency hedging
strategy however these options will typically be unhedged.
Alternatives
Alternative assets include a wide range of investments such
as:
55 private equity (e.g. investing in the equity of unlisted
operating companies and assets)
55 infrastructure and real assets (e.g. investing in assets
such as gas pipelines, utilities, airports, agriculture and
roads or tollways)
55 hedge funds, where investment managers typically use
non-traditional strategies in bonds, equities, currencies
and commodity markets to seek to deliver improved
risk-return outcomes compared to traditional investment
strategies
55 property (see “Property” section below)
55 real return strategies (CPI-linked)
55 credit securities.
The range of investments includes listed and unlisted
securities and may include extensive use of derivatives.
Property
The fund may invest directly or indirectly in office buildings,
shopping centres, industrial estates or similar quality property
investments. The fund may also hold units in listed property
trusts, which are listed on stock exchanges globally.
Like shares, a property investment is generally suitable for
long-term investment as there is an expectation of some
volatility in the short term. Property investments are subject
to a moderate to higher degree of risk and tend to produce
investment returns which generally reflect both rental income
and capital growth.
Fixed income
Fixed income investments are typically issued to investors
by Australian and overseas governments, semi-government
authorities and companies in return for cash. Interest is paid
to investors over the life of the investment, usually at a fixed
rate. Many fixed income securities pay a fixed coupon on a
fixed principal amount, plus repayment of the principal at
maturity; these are sometimes referred to as ‘nominal bonds’.
22
Another type of fixed income security is an ‘inflation linked
bond’, where the interest payments and/or principal are
adjusted for the rate of price inflation. These investments can
generally be sold before they mature, potentially resulting in
capital gains or losses, depending on whether interest rates
have changed since they were purchased.
International fixed income investments are typically hedged to
largely reduce the impact of any changes in foreign currency.
The returns from fixed income investments are generally less
volatile (the likelihood of ups and downs in value) than shares
and property but these investments have a lower expected
return over the long term. Although fixed income securities
typically deliver a steady stream of investment returns, over
short time periods fixed income portfolios can deliver low or
even negative investment returns.
Cash
The fund’s cash asset class includes short to medium term
interest-bearing investments. Generally, the likelihood of losing
the initial investment in the cash asset class is the lowest of
any asset class. However, the value of short to medium term
interest-bearing investments will move up and down with rises
or falls in interest rates, and short-term falls in value can occur.
While the likelihood of fluctuating returns within the cash asset
class is low, over the long term the returns are likely to be lower
than those for fixed income, property and equities.
Professional investment managers invest
your money
We use professional investment managers to manage the
fund’s investments. The investment managers for the single
sector options may be different to the investment managers
selected to manage the pre-mixed options. The current panel
of managers is shown on our website at firststatesuper.com.au/
whomanagesyoursuper.
Understand the risks
There are risks associated with superannuation that can
adversely affect your account balance or your ability to access
your money.
Investment risk
All investments carry some risk. Your super may be invested in
different asset classes (such as shares, property, fixed income
and cash) and each of these can rise or fall in value. Each asset
class has a different risk profile, ranging from very low to very
high. Generally, assets with the highest long-term returns may
also carry the highest level of short-term risk.
The risk profile of each investment option depends on the asset
classes in which the option invests. Each pre-mixed investment
option is made up of a mix of asset classes, so the overall
risk of these options depends on the proportion allocated to
each asset class. The risk profile for each single asset class
investment option reflects the risk profile of that particular
asset class. See the tables on page 16 to 21 to see the risk
profile of each of the investment options.
The trustee selects the mix of assets for each of the Life Cycle
options so that the investment risk is broadly appropriate for
the age of members in that Life Cycle option.
Member Booklet Income Stream
Types of investment risk
55 Short-position risk – a short position is where an
The types of investment risks which may have an impact on
your investment in First State Super, regardless of the option
in which you are invested, include:
55 Individual asset risk – the risk attributable to individual
assets within a particular asset class.
55 Market risk – the risk of adverse movements within an
investment market due to factors such as economic
conditions, government policies, changes in the level of
interest rates and inflation, technological developments
and demographic changes which, in turn, can adversely
affect the value of your investments. A component of
market risk is credit risk, which is the risk that a company
will not pay its debts as and when they fall due.
55 Political risk – domestic and international political
instability can impact your investment.
55 Inflation risk – the risk that while your investment may
produce a positive return, when compared to the increased
cost of living, it may have reduced purchasing power.
55 Timing risk – the risk that, at the date of investment, your
money is invested at higher market prices than those
available shortly afterwards. Alternatively, it can also mean
the risk that, at the date of redemption, your investments
are redeemed at lower market prices than those that
were recently available or that would have been available
shortly afterwards.
55 Investment manager risk – the risk that a particular
investment manager will underperform compared to
other managers of the same type. This could be, for
example, because their view on markets is inaccurate or
because of their investment style or because they lose key
investment personnel.
55 Liquidity risk – the risk that investments may not be able
to be converted to cash within the necessary timeframe.
In normal conditions, it is feasible to estimate how quickly
an asset could be sold and the proceeds received. Ongoing
professional portfolio management is designed not only
to assess liquidity risk, but also the circumstances under
which some assets may be temporarily illiquid. Portfolios
need to be monitored for a range of market conditions.
55 Currency risk – the risk that, where we invest overseas, and
the currency of the countries in which we invest decreases
in value relative to the Australian dollar, the value of the
investments will decrease.
55 Counterparty risk – the risk that a counterparty to a
contract or obligation will be unable to meet its obligations
as they fall due.
55 Derivatives risk – the risk that the value of the derivative will
fail to move in line with the value of the underlying asset.
55 Gearing risk – gearing (either by borrowing money to
increase the investment amount or by using derivatives
for leverage) may amplify investment losses and increases
the investments’ volatility. The geared investment returns
depend on the type of investment assets, the level of
gearing and the costs of borrowing, such as interest rates.
A geared investment will underperform a comparable
ungeared investment when the cost of borrowing is more
than the return on the ungeared investment. The gearing
level can change daily. This can be due to factors such as
market movements, changes in the number of investors,
withdrawals and changes to the gearing level.
investment manager borrows a security and then sells
it before buying it back, and then returning it to the
securities lender. The risk of making losses in a short
position is greater. This is because there is no limit to the
potential increase in value of the borrowed security after
it is sold, before it is repurchased or another lender, willing
to lend the security, is found. This is different to investing
directly in a security without borrowing where potential
losses are generally limited to the value of the investment
in the security.
The importance of diversification to manage investment risk
Generally speaking, you can reduce the risk of your
investment by spreading your money across a range of asset
classes. This is called diversification. Diversification can
reduce investment risk because asset classes tend to perform
differently at different times in the economic cycle. By
spreading your money across a range of asset classes, you also
spread the risk of loss should a particular asset class perform
poorly. You can diversify your investment by either investing
in the pre-mixed options, which have a mixed portfolio of
assets, or by investing in a variety of single asset class options.
The single asset class options can give you more control over
the amount allocated to each asset class, but your investment
may not be adequately diversified.
Your risk profile (risk and return)
When deciding how to invest your super, you should consider
whether you wish to accept the possibility of negative
movements in your account balance over the short term in
exchange for the likelihood of higher average returns over the
long term.
If you don’t want negative movements in your account
balance over short time periods, then you are considered to
be risk averse. In this case, the more stable but generally lower
returns from fixed income and cash investments are likely to
be more in line with your expectations.
However, if you are willing to tolerate short-term negative
movements in your account balance in return for the
possibility of higher average returns over the longer term,
then the potentially higher but more volatile returns available
from growth investments like shares and property may be
more suitable.
This tradeoff between sensitivity to short-term negative
returns and the desire to earn higher average returns over
time is called your risk/return profile.
It is difficult to forecast investment returns. While shares will
typically deliver higher average returns than fixed income and
cash in the longer term (10+ years), it is also quite possible for
shares to deliver back-to-back years of negative returns, and
in some cases, large negative returns. If you are investing only
for a few years, investments with a lower risk/return profile
may be more appropriate. If, however, you have a number
of years to invest, you may be able to tolerate a higher risk/
return profile.
Before you decide the proportion you wish to allocate to the
single asset class options, you should assess your risk/return
profile and the level of diversification you require. If you are
unsure about the level of risk appropriate to your needs and
circumstances, you can seek advice from a financial adviser.
firststatesuper.com.au | Call 1300 650 873 | Email [email protected]
23
Standard Risk Measure
The Standard Risk Measure shows an investment option’s
risk band and risk label. The Standard Risk Measure (SRM) is
based on industry standards 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 SRM also denotes an option’s corresponding risk band
from one of seven bands, ranging from very low to very high.
The SRM is detailed in the table below.
The following table shows the Standard Risk Measure
categories under which an option may be rated. The
pre-mixed and single asset class investment options are
shown with their respective standard risk measure (i.e. their
risk band and risk label).
Investment option
Standard risk measure
Risk
band
Risk label
Estimated number of years
of negative annual returns
over any 20 year period
1
Very low
Less than 0.5
2
Low
0.5 to less than 1
3
Low to medium
1 to less than 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
Risk band
Risk label
Life Cycle strategy
Growth1 (up to and including
age 59)
6
High
Balanced Growth1 (age 60
and over)
5
Medium-high
High Growth
6
High
Growth
6
High
Diversified Socially
Responsible Investment
6
High
Balanced Growth
5
Medium-high
Conservative Growth
3
Low-medium
Australian Equities
7
Very high
Australian Equities Socially
Responsible Investment
7
Very high
Choice strategy
Pre-mixed options
The SRM is not a complete assessment of all forms of
investment risk; for instance it does not detail what the size
of a negative return could be or the potential for a positive
return to be less than a member may require to meet their
objectives. Also, it does not take into account the impact of
administration fees on the likelihood of a negative return.
Single asset class options
International Equities
6
High
While it is recommended that disclosure of the SRM is on a
pre-tax basis, the trustee has chosen to calculate the SRM
on a net of tax basis because this provides a more realistic
comparison between investment options for members as
after-tax investment returns are credited to a member’s
account. Members should still ensure they are comfortable
with the risks and potential losses associated with their
chosen investment option(s).
Property
6
High
Australian Fixed Interest
6
High
International Fixed Interest
5
Medium-high
Cash
1
Very low
1
lso available as options under the Choice strategy without an
A
automatic switch at age 60.
First State Super offers
two socially responsible
investment options that
allow you to invest all or part
of your superannuation in a
way that takes these values
into consideration
24
Member Booklet Income Stream
Use of derivatives
Derivatives, such as futures or options, are investment products
whose value is ‘derived’ from the underlying investment. For
example, the value of a share option is linked to the value of
the underlying share. Gains and losses from holding positions
in derivatives can occur due to market movements.
The trustee and professional investment managers typically
use derivatives:
55 to manage risk (e.g. foreign currency hedging)
Exclusions
First State Super excludes direct investment in
companies involved in the manufacture of tobacco
and cigarettes. The fund may have some immaterial,
indirect exposure to tobacco companies. However, we
regularly monitor this exposure to ensure that it remains
immaterial and does not exceed the limit agreed by the
trustee.
Socially responsible investment options
55 for asset allocation purposes
55 as a way to implement investment positions efficiently.
Derivative contracts must not be held unless, at all times,
there are sufficient assets to support the liability under each
contract (i.e. derivatives cannot be used to leverage the fund
directly). The trustee however may invest in unlisted trusts,
which may employ leverage and derivatives for enhancing
returns (e.g. hedge funds).
Responsible investment
First State Super recognises that we must be mindful of the
‘footprint’ our investments make in markets, in communities
and on the environment and so uphold holistically the goals
of sustainable growth and well functioning investment
markets. Indeed, sustainability is central to our role as
long-term investors, for actions we take today should not
compromise the outcomes received by investors tomorrow.
We must remain attuned to preserving intergenerational
equity with all our investment decisions. We continue to adapt
our actions to try and directly enhance the value of the fund
and indirectly help the whole economy to a more prosperous
and sustainable future by reducing value-destroying practices
across markets. We recognise that poor management of long
term environmental, social and governance (ESG) related
risks by a company not only impact our investments but can
potentially harm the broader community and environment
as well. ESG considerations are therefore integrated into the
fund’s investment activities (as they relate to the pre-mixed
and single asset class investment options), from investment
selection and due diligence to ownership activities such as
monitoring our external investment managers, exercising our
voting rights and engaging with companies to improve their
ESG policies and practices.
We are a signatory to the United Nations Principles of
Responsible Investing (UNPRI). The principles promote
sustainable investment and provide an important framework
for institutional investors to consider the impact of these
issues in their investment decisions. Our Responsible
Investment Policy can be found on our website at
firststatesuper.com.au/responsiblesuper.
Many people like to know that their super is invested
according to socially responsible values. First State Super
offers two socially responsible investment options that
allow you to invest all or part of your superannuation
in a way that takes these values into consideration. The
options are the Australian Equities Socially Responsible
Investment (SRI) option and the Diversified Socially
Responsible Investment (SRI) option. Currently, socially
responsible investment screening applies to Australian
and international equities asset classes only. The trustee
may include screening on other asset classes in the SRI
options.
Who manages our socially responsible investment
options?
We use professional investment managers to manage
the socially responsible investment options. The
professional investment managers used have been
selected because they use positive and negative
screening processes to select assets that are consistent
with our investment objectives and strategies.
The investment managers select investments in
companies based on various labour standards or
environmental, social or ethical considerations
determined by or approved by the trustee from time
to time. These considerations are taken into account in
the selection, retention and realisation of Australian
and international shares. We have absolute discretion
to change the underlying investment managers and
the SRI considerations that are taken into account in
the investment process. We also allow the underlying
investment managers some flexibility to determine the
manner in which SRI considerations are implemented or
achieved and has no pre-determined views about what
it regards to be a labour standard or an environmental,
social or ethical consideration.
Each external investment manager has its own ‘socially
responsible investment guidelines’ outlining what
constitutes labour standards and environmental, social
and ethical considerations, and the methodology for
taking these standards and considerations into account
when selecting, retaining and realizing investments in the
socially responsible options.
firststatesuper.com.au | Call 1300 650 873 | Email [email protected]
25
However, we may change the external investment managers
for these options at any time without prior notice, a change
in investment manager may result in a change to the socially
responsible investment guidelines that apply to these options.
You should refer to our website at firststatesuper.com.au/
whomanagesyoursuper for a list of the investment managers
we use to manage our socially responsible investment options.
Risk of socially responsible investment
Risk may be higher because the portfolio is not as well
diversified as a mainstream portfolio and has fewer
underlying investment managers than our standard options.
Socially responsible investment guidelines
This section provides a summary of the socially responsible
investment guidelines that currently apply to the Australian
Equities SRI and Diversified SRI options.
Socially responsible investment guidelines are regularly
reviewed by the external managers, however, there is no set
timeframe for each review. If the review process identifies that
an investment ceases to comply with the manager’s socially
responsible investment guidelines, the manager will usually sell
the investment within the next six months. An investment may
also be sold for other reasons, for example, financial reasons.
Australian and International shares – negative screening
The managers we have selected for the Australian and
International shares components of our SRI options excludes
companies operating within sectors with recognised high
negative social impact, including companies with ‘material
exposure’ to the production or manufacture of:
55 tobacco
55 nuclear power (including uranium)
55 armaments
55 gambling
55 alcohol
55 inhumane animal testing
55 logging (of old growth forests)
55 pornography.
‘Material exposure’ constitutes more than 10% of total
revenue.
With the combustion of fossil fuels being the main source
of global greenhouse gas emissions, the SRI options seek to
limit exposure to companies which have a material exposure
to the most carbon-intensive fossil fuels by excluding any
company that has more than a 20% exposure (as measured
by percentage of market capitalisation, or other appropriate
financial metric) to one, or a combination of, the following:
Additionally, to complement the above, we apply the
following exclusion criteria:
55 Companies that source more than 20% of their
operating revenues from the production and sale of
fossil fuels, including thermal and coking coal, oil and
natural gas.
55 Companies that source more than 20% of their
operating revenues from the transmission/transport of
fossil fuels for the purpose of exporting and or nonhousehold use (e.g. power generation).
55 Companies that source more than 20% of their
operating revenues from the production and sale of
fossil fuels and who own or have the intention/purpose
of exploration and/or development of proved or
probable fossil fuel reserves.
55 Companies substantively involved in unconventional
coal seam gas extraction (fracking).
55 Companies found to have been complicit in excessive
or unauthorised emissions of carbon dioxide (CO2) and
other greenhouse gases.
Australian and International shares – positive screening
Positive screening means actively identifying companies
that meet the investment manager’s criteria in ‘sustainable’
products and services or, for companies with a less
sustainable approach, that have strong environmental, social
and governance performance. This includes companies that
rate well based on the manager’s valuation-driven process
but also offer products or services that meet one or more of
the following:
55 Ethical considerations – including upholding
fundamental human rights, and articulating and
implementing a Code of Conduct.
55 Labour standards – including Occupational Health and
Safety, International Labour Organisation standards,
working conditions and the exclusion of child labour.
55 Social considerations – including promoting indigenous
relations and community involvement.
55 Environmental considerations – including efficient
energy and resource use and product stewardship
(for example, where a company takes into account the
lifecycle of the product, from manufacture to the extent
to which the product can be recycled).
55 Governance considerations – including meeting
corporate governance guidelines on board structures
and remuneration. Additionally, investment managers
and funds will also be well regarded if they actively
participate in corporate engagement and governance
initiatives.
55 mining thermal coal
55 exploration and development of oil sands
55 brown coal (or lignite) coal-fired power generation
55 transportation of oil from oil sand
55 conversion of coal to liquid fuels/feedstock.
26
Member Booklet Income Stream
Tax and your income stream
The tax treatment of superannuation and income streams can be complex.
We recommend that you obtain taxation advice from your tax adviser or
accountant in regard to your personal circumstances. This section provides only
a general description of the tax treatment relating to your income stream and
was current at the date of preparation.
Tax when setting up your income stream
Tax position if you’re over 60
Generally, there is no tax payable when setting up your income
stream if you transfer money from one Australian superannuation
fund or account to another.
If you are aged 60 or over, no tax is payable on your
income stream payments or lump sum withdrawals –
irrespective of whether or not you have provided your tax
file number (TFN) (however, the payments are reportable for
Centrelink purposes).
However, if the amount transferred to your accumulation account
comes from a superannuation fund which has not been subject
to tax (usually government retirement schemes) then the untaxed
element of the taxable component up to $1.415 million1 of that
amount will be taxed at up to 15% on entry to the fund. For
amounts over $1.415 million1 the paying fund will deduct PAYG
tax at the highest marginal rate (plus Medicare and applicable
levies where relevant) before sending the money.
1
This
amount is current as at 1 July 2016 and is subject to indexation in
increments of $5,000 each 1 July when the accumulated indexation
reaches this amount.
Tax position if you’re under 60
If you are under age 60, your income stream payments
may have a tax-free component and a taxable component.
Tax is payable on the taxable component only. The tax
treatment of the benefit depends on whether it is paid as
an income stream/irregular income stream or lump sum.
See Tax file number declaration and What is the tax-free
portion? on pages 27 and 28 for more information.
Tax on investment returns2
Tax file number declaration
Any earnings on your income stream account are tax free while
they remain in your account, regardless of your age. This is one of
the main advantages that income streams have over non-pension
superannuation accounts and investments outside super.
If you are under age 60, you may wish to complete a Tax
file number declaration form and return it with your Income
stream member application form. This form allows us to
determine the amount of PAYG tax that is to be deducted
from your income stream payments.
2
T he government has announced that from 1 July 2017 it will remove the tax
exemption for the investment earnings derived on assets supporting a TRIS.
Investment earnings will be taxed concessionally at 15%. At the time this
document was prepared, this proposal was not yet law. For details of the
proposed changes, please refer to treasury.gov.au.
It is not compulsory to complete the declaration form or
supply your tax file number, but if you don’t and you’re
under age 60, PAYG tax will generally be deducted from
your payments at the top marginal tax rate (plus Medicare
and applicable levies where relevant).
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27
The Tax file number declaration form is produced by the
Australian Taxation Office (form ATO NAT 3092). You may
request the form by contacting us and it is also available from
post offices and some newsagents.
What is the tax-free portion?
The importance of providing your
tax file number
The tax-free portion is calculated when your income stream
account is initially set up. The tax-free portion is the tax-free
amount used to start your income stream as a percentage
of the total amount used to start your income stream. For
example, if your initial tax-free amount was $50,000 and your
total amount was $200,000, then the tax-free percentage
of every payment would be 25% (i.e. $50,000/$200,000
as a percentage).
Under the Superannuation Industry (Supervision) Act 1993,
the trustee is authorised to collect your TFN, which we will
only use for lawful purposes in the administration of your
superannuation benefit. These purposes may change in the
future as a result of legislative change.
Once your tax-free portion is determined, this percentage
will apply to every payment from your account (whether an
income stream payment or a lump sum payment) so that
the tax-free portion is a fixed percentage for the life of
the account.
The completed form should be returned to First State Super,
PO Box 1229, Wollongong NSW 2500.
We may disclose your TFN to another superannuation
provider, when your benefits are being transferred, unless
you ask us in writing not to disclose your TFN to any other
superannuation provider. We may also disclose your TFN to
our administrator and the Commissioner of Taxation in order
to provide all of the services required in the administration of
your account.
We may also use your TFN to identify multiple accounts within
the fund and consolidate them when permitted under law. It is
not an offence to not advise us of your TFN, however, there are
advantages in doing so which may not otherwise apply:
55 The fund will be able to accept all types of contributions
to your account (including superannuation guarantee
contributions, and any pre-tax and post-tax contributions)1.
55 The tax on contributions to your account will not be
increased as a consequence of not providing your TFN1.
55 No additional tax (that is, beyond that which ordinarily may
apply) will be deducted when you start drawing down on
your superannuation benefits. However, if you are under
60 and wish to avoid additional tax on your income stream
payments, you should advise your TFN on a Tax file number
declaration form.
55 It will make it easier to trace different superannuation
accounts in your name and match your accounts in the
fund so you receive all of your superannuation benefits
when you retire.
1
Calculating the tax-free amount
The tax-free component is made up of a ‘contributions’
segment and a ‘crystallised’ segment.
Contributions Generally, the ‘contributions’ segment is
segment
made up of contributions made from
1 July 2007 which have not been subject
to tax in a superannuation fund. Typically,
this would comprise your non-concessional
(e.g. after-tax) contributions and any
government co-contribution.
Crystallised
segment
The ‘crystallised segment’ is made up of
concessionally-taxed components that
existed before the taxation reforms of
1 July 2007. Generally, this amount will
include any of the following that were
applicable to you as at 30 June 2007:
55pre-July 1983 component
55concessional component
55post-June 1994 invalidity component
55capital gains tax exempt component
55undeducted contributions since
1 July 1983.
nce you have set up your income stream account, you cannot make
O
further contributions to that account. However, you may be able to
make contributions to an accumulation account – see page 6 for details.
An income stream allows
you to keep your money in
the superannuation system,
which means you continue to
receive the tax advantages of
superannuation.
28
Member Booklet Income Stream
What is the tax payable on income stream
payments?
What is the tax payable on lump sum
withdrawals?
No tax is payable on the tax-free portion of your income
stream payment.
No tax is payable on the tax-free portion of your lump
sum withdrawal.
If you are under age 60 the taxable component of your income
stream payment will be taxed at your personal marginal tax
rate (plus Medicare and applicable levies where relevant),
although a 15% tax offset may apply.
Tax is payable on the taxable portion of your lump sum
payment, at the following rates:
You will be eligible for the 15% tax offset if you:
55 are at or over your preservation age but under age 60; or
55 have suffered physical or mental ill-health and two legally
qualified medical practitioners certify that you are unlikely
to be gainfully employed again in a position for which you
are reasonably qualified due to your education, experience
or training.
55 If you are at or over your preservation age but under
age 60:
–no tax is payable up to $195,0001 (this amount
includes all taxable lump sum payments received)
–amounts over $195,0001 are taxed at a flat rate of up
to 15% plus Medicare levy.
55 If you are under your preservation age, tax is payable at
a flat rate of up to 20% plus Medicare levy.
The 15% tax offset is only paid on the taxed element of the
taxable component.
A higher rate applies to untaxed elements of the taxable
portion of a lump sum payment.
PAYG withholding tax will be deducted from your income
stream payments and paid by the fund to the Australian
Taxation Office (ATO). If you are under age 60 and we do
not have your TFN, tax will be withheld from the taxable
component of your income stream payments at the highest
marginal rate (plus Medicare and applicable levies where
relevant).
The tax-free threshold is a lifetime limit and is reduced by
the value of the tax-free threshold applied to any previous
lump sum withdrawals.
PAYG withholding tax will be deducted from your lump
sum withdrawals and paid by the fund to the ATO. If we do
not have your TFN, tax will be withheld from the taxable
component of your lump sum withdrawals at the highest
marginal rate (plus Medicare and applicable levies where
relevant).
1
Example
T his amount is current as at 1 July 2016 and is subject to indexation
in line with AWOTE in increments of $5,000 each 1 July when the
accumulated indexation reaches this amount.
Kathy is aged 58 years and has $400,000 in her
superannuation account. This amount includes a:
55 tax-free component of $100,000; and
55 taxable component of $300,000.
Kathy uses all of her superannuation to start her income
stream on 1 January 2016.
The tax-free percentage of Kathy’s superannuation when
she starts her income stream would be:
Tax-free component = $100,000 = 25%
Total amount rolled in $400,000
The taxable percentage of Kathy’s income would
therefore be 75%.
Kathy receives her first income stream payment of
$3,000 on 1 February 2016. The tax-free component of
this payment would be:
Example
Using the example on the left, if Kathy decides to take
a lump sum payment of $300,000 during the 2016-17
financial year, she will pay tax as follows (she is over her
preservation age):
$3,000 x 25% = $750
Tax-free portion
25% x $300,000 = $75,000
The taxable component of Kathy’s income stream
payment would therefore be the remaining amount:
Taxable portion (the remaining amount)
$300,000 – $75,000 = $225,000
$3,000 – $750 = $2,250
Kathy can receive up to $195,000 of the taxable portion
tax-free, but tax is payable on the remaining amount:
The taxable component will be taxed at Kathy’s marginal
tax rate (plus Medicare and applicable levies where
relevant), however, it will also attract a 15% tax offset
which will reduce the tax she has to pay.
Note: The example is illustrative only and is based on the factors
stated. The example should not be taken to contain or provide an
estimate of the tax you will pay. This example assumes that the
account is comprised solely of taxed elements.
Taxable amount $225,000 – $195,000 = $30,000
Kathy will pay tax of 15% plus Medicare levy on
the $30,000.
Note: The example is illustrative only and is based on the factors
stated. The example should not be taken to contain or provide an
estimate of the tax you will pay.
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29
Tax on death benefits
Lump sum benefits
If the person receiving your death benefit is a death
benefit dependant under taxation law (see Death benefit
dependant for tax purposes), the lump sum will be tax
free. If the person is not a death benefit dependant, tax
at a maximum rate of 15% plus Medicare levy on taxed
elements and 30% plus Medicare levy on untaxed
elements will be payable on the taxable component of
the lump sum.
Reversionary income stream
If your death benefit is paid as a reversionary income stream,
the income stream will be tax free if either:
55 the deceased member was aged 60 or older at the time
when he or she died; or
55 the reversionary beneficiary is aged 60 or older (at the
time the income stream payments are made).
Otherwise, the reversionary beneficiary will generally pay
tax as follows until he or she reaches age 60 (after which the
payments will be tax free):
Where the trustee makes a payment to the member’s
estate/legal personal representative it will be paid as a
pre-tax lump sum and the estate will be responsible for
the tax treatment of the death benefit depending on the
end-beneficiaries and their dependent status in relation
to the deceased member.
55 no tax will be payable on the tax-free component
In certain circumstances the trustee may increase a lump
sum death benefit payment by an amount calculated
under the Australian Taxation Office’s (ATO) anti-detriment
rules. Anti-detriment payments are not applicable in
every case. Where anti-detriment is applicable to a lump
sum death benefit payment the trustee will increase the
lump sum death benefit payment by the calculated antidetriment amount.
A death benefit dependant of a person who has died, is:
55 the taxable component will be included in the reversionary
beneficiary’s assessable income, but he or she will be
entitled to a 15% tax offset.
Death benefit dependant for tax purposes
55 the deceased’s spouse or de facto or former spouse
55 the deceased’s child under age 18
55 any person with whom the deceased had an
interdependency relationship
55 any other person who was financially dependent on
the deceased just before he or she died.
Summary of tax treatment
The information in this summary table assumes benefits are comprised solely of taxed elements (i.e. superannuation that has
already had tax paid on it within the fund).
Item
Rate of tax
The amount you roll in
(transfer) to set up your
income stream account
Nil (unless the rollover contains an untaxed element of the taxable component).
Investment returns
No tax while the benefit stays in your income stream account1 .
Death benefits
No tax is paid on lump sum death benefits paid to a death benefit dependant as defined in the
tax legislation (see Death benefit dependant for tax purposes above). The taxable component
of a lump sum paid to a non-dependant is taxed at 15%2. The taxation of a reversionary pension
depends on the ages of both the member and reversionary beneficiary.
Payments
Income stream
Lump sum
Aged 60 or over
No tax (with or without your TFN).
No tax (with or without your TFN).
At or over your
preservation age
but under age 60
The taxable component is taxed at your personal
marginal tax rate2 (15% tax offset applies).
The taxable component is tax free up to
$195,0003 and 15%2 on the remainder.
Under preservation age
However, if we do not have your TFN, tax is withheld If we do not have your TFN, tax is withheld
on the taxable component at the highest marginal
on the taxable component at the highest
tax rate2.
marginal tax rate2.
The taxable component is taxed at your personal
marginal tax rate2 (no tax offset applies unless the
payment is a disability superannuation benefit).
If we do not have your TFN, tax is withheld on the
taxable component at the highest marginal tax rate2.
The taxable component is taxed at 20%2.
If we do not have your TFN, tax is withheld
on the taxable component at the highest
marginal tax rate2.
1
T he government has announced that from 1 July 2017 it will remove the tax exemption for the investment earnings derived on assets supporting a
TRIS. Investment earnings will be taxed concessionally at 15%. At the time this document was prepared, this proposal was not yet law. For details of the
proposed changes, please refer to treasury.gov.au.
2
Plus Medicare (currently 2%) and applicable levies where relevant.
3
T his amount is current as at 1 July 2016 and is subject to indexation in line with AWOTE in increments of $5,000 each 1 July when the accumulated
indexation reaches this amount.
30
Member Booklet Income Stream
Fees and other costs
Did you know?
To find out more
Small differences in both investment performance and
fees and costs can have a substantial impact on your long
term returns.
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.
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.
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 and 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. The fees and other costs for each investment option offered by the entity, are set out on page 34.
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31
First State Super Retirement Income Stream and Transition to Retirement Income Stream
Type of fee or cost
Amount
How and when paid
Investment fee1
A percentage currently ranging,
depending on the investment option
selected, from 0.07% to 0.76% per
year ($35 to $380 per $50,000).
The investment fee is deducted from the assets of the
option or the assets of underlying vehicles before the unit
price for an investment option is determined.
Administration fee
$52 per year ($4.33 per month) plus
an asset-based administration fee of
0.40% per year ($200 per $50,000).
Deducted from your account at the end of each month.
Fees for part of a month are calculated daily.
Buy-sell spread
Nil
The fund does not charge a buy-sell spread.
Switching fee
Current account balance: No charge for
the first switch in a financial year then
$25 per subsequent switch.
Deducted from your account at the time of the switch.
Exit fee
Income stream payments and partial
withdrawals/rollovers: Nil
Deducted from your account when a full withdrawal or
rollover is made.
Full withdrawal/rollover: $36
Advice fee
relating to all
members investing
in a particular
investment option(s)
Nil
Other fees and costs2
Family law application fee of $110
Payable to the trustee by the person making the request for
information at the time a request is made.
Family law splitting fee of $88
Shared equally between both parties and deducted from
each party’s benefit at the time the benefit is split unless all
of the benefit is going to the non-member spouse (in which
case the non-member spouse pays the full fee).
No-TFN tax recovery fee of $100
Deducted at the time of the refund being applied to your
account.
Indirect cost ratio1
No advice fee is charged for providing general and simple
advice limited to your First State Super account.
Additional fees may be paid to a financial adviser if a
financial adviser is consulted.
If you obtain more comprehensive financial advice from us
you will be informed of the cost before you proceed. If you
are issued with a Statement of Advice, it will contain details
of the fees, which may be deducted from your account
when the advice is received (or you may need to pay the
fee directly). For more information see page 36.
Indirect costs are deducted from the assets of the option
A percentage currently estimated to
or the assets of underlying vehicles before the unit price for
range, depending on the investment
option selected, from 0% to 0.27% per an investment option is determined.
year ($0 to $135 per $50,000).
1
Investment fees include performance-related fees payable by the fund. The indirect cost ratio includes performance-related fees in underlying
investments.
2
Advice fees for personal advice may also apply. See the section Additional explanation of fees and costs below.
32
Member Booklet Income Stream
Additional explanation of fees and costs
Buy-sell spreads
Defined Fees
A buy-sell spread is a fee to recover transaction costs incurred
by the trustee of the superannuation entity in relation to the
sale and purchase of assets of the entity.
Below is a definition of the fees and costs that you may be
charged:
Exit fees
Activity fees
A fee is an activity fee if:
An exit fee is a fee to recover the costs of disposing of all or
part of members‘ interests in the superannuation entity.
a) the fee relates to costs incurred by the trustee of the
superannuation entity that are directly related to an
activity of the trustee:
Indirect cost ratio
(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.
The indirect cost ratio (ICR), for an investment option offered
by a superannuation entity, is the ratio of the total of the
indirect costs for the investment option, to the total average
net assets of the superannuation entity attributed to the
investment option.
Note: A dollar-based fee deducted directly from a member‘s account is
not included in the indirect cost ratio.
Investment fees
Administration fees
An investment fee is a fee that relates to the investment of the
assets of a superannuation entity and includes:
An administration fee is a fee that relates to the
administration or operation of the superannuation entity
and includes costs incurred by the trustee of the entity that:
a) fees in payment for the exercise of care and expertise in
the investment of those assets (including performance
fees); and
(a)relate to the administration or operation of the entity;
and
b) costs incurred by the trustee of the entity that:
(b)are not otherwise charged as an investment fee, a buysell spread, a switching fee, an exit fee, an activity fee,
an advice fee or an insurance fee.
Advice fees
(i) relate to the investment of assets of the entity; and
(ii) are not otherwise charged as an administration fee, a buy/sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.
Switching fees
A fee is an advice fee if:
(a) the fee relates directly to costs incurred by the trustee
of the superannuation entity because of the provision of
financial product advice to a member by:
(i) a trustee of the entity; or
(ii) another person acting as an employee of, or under an arrangement with, the trustee of the entity; and
A switching fee is a fee to recover the costs of switching all or
part of a member’s interest in the superannuation entity from
one investment option or product in the entity to another.
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.
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33
Estimated investment fees, performance-related fees and indirect costs
The amount of investment fees, performance-related fees and indirect costs you pay for a specific investment option reflects the
actual investment management expenses incurred and cannot be precisely calculated in advance. These expenses are taken into
account when the value of the investment option is reviewed and the unit price determined.
The investment fees for each of the pre-mixed investment options (i.e. the High Growth, Growth, Diversified SRI, Balanced Growth
and Conservative Growth investment options) includes the trustee’s charge of 0.04% per year and transaction costs. Investment
fees are an additional cost to you.
The amount of investment fees, performance-related fees and indirect cost ratios will change from year to year. As a guide, the
table below shows estimates of these fees and costs (and total estimated corresponding dollar amounts).
Estimated
performance-related
fees % per year2
Estimated indirect
cost ratio % per year3
(excluding performancerelated fees)
Estimated total
investment
fees and indirect cost
ratio expressed as
$ per $50,0004
0.46%
0.03%
0.10%
$295
Growth
0.42%
0.03%
0.09%
$270
Diversified Socially
Responsible Investment
0.51%
0.04%
0.12%
$335
Balanced Growth
0.39%
0.03%
0.08%
$250
Conservative Growth
0.27%
0.02%
0.04%
$165
Australian Equities
0.08%
0.00%
0.00%
$40
Australian Equities Socially
Responsible Investment
0.57%
0.00%
0.00%
$285
International Equities
0.09%
0.00%
0.00%
$45
Property
0.76%
0.09%
0.18%
$515
Australian Fixed Interest
0.07%
0.00%
0.00%
$35
International Fixed Interest
0.10%
0.00%
0.00%
$50
Cash
0.07%
0.00%
0.00%
$35
Investment fees
% per year1
(excluding performancerelated fees)
High Growth
Investment option
1
Investment fees are estimated for the 12 months to 30 June 2017.
2
erformance-related fees are the sum of performance-related fees of the fund estimated for the 12 months to 30 June 2017 and the performance-related
P
fees of underlying investments calculated for the 12 months to 30 June 2016.
3
The indirect cost ratio is calculated for the 12 months to 30 June 2016.
4
This is the combined total of the investment fee, performance-related fees and other indirect costs expressed as dollars for each investment option.
The amount of investment fees,
performance-related fees, other
indirect costs and indirect cost ratios
will change from year to year.
34
Member Booklet Income Stream
Service fees
The only service fees that the fund currently charges (apart from an investment switching fee) are set out in the table below:
Type of fee or cost
Amount
How and when paid
Family law fees
Application for information fee: In the
format specified under the Family Law Act.
$110
Payable to the trustee by the person making the request for
information at the time a request is made.
Splitting an account: This fee is for
processing the splitting of accounts.
$88
The fee is shared equally between both parties and deducted
from each party’s benefit at the time the benefit is split
unless all of the benefit is going to the non-member spouse
(in which case the non-member spouse pays the full fee).
Flagging a benefit fee.
Nil
Not applicable.
No-TFN tax recovery fee.
$100
A service fee of $100 will be charged to cover the
administrative costs of dealing with the ATO if you provide
your TFN and a refund is required. This will be charged at the
time the refund is received.
Additions or alterations to fees and charges
Performance-related fees
All fees and costs may be revised by the trustee from time to
time without member consent. For example, fees and charges
may increase when there are changes in superannuation law,
or there are increases in fees charged by First State Super’s
service providers. The trustee may also introduce new fees
and charges. The trustee will give you at least 30 days prior
notice if there is an increase in fees and charges or if a new
fee or charge is introduced that affects your income stream
account. This excludes fees which are estimates as the actual
fees charged may be more or less than estimated.
The trustee has negotiated performance fee arrangements
with several of its investment managers. An underlying
investment may also have performance-related fees. The
total performance-related fees per option are shown on
page 34.
Reserves
The trustee maintains an administration reserve to manage the
costs associated with the management of the fund. Interest
earned on contributions received by the trustee, but not
yet allocated to members’ accounts and administration fees
deducted from members’ accounts, are credited to the fund’s
administration reserve account. The trustee uses this account
to pay the administrator’s fees and any other administration
and operating expenses of the trustee or fund. Any excess
retained in the account is ultimately applied for the benefit
of the membership as a whole.
The trustee is required to maintain an Operational Risk
Financial Requirement (ORFR) reserve. The ORFR reserve is held
separately from members’ accounts and the administration
reserve maintained by the trustee. The ORFR reserve is only
used to cover losses arising from operational risks.
Tax
For more information on the amount of tax payable, see
Tax and your income stream from page 27.
A performance-related fee may be payable once
performance above an agreed level has been reached
and is typically capped at an upper percentage limit.
If performance-related fees are payable by the fund
then they will increase the investment fees payable for
that investment option or, if charged to an underlying
investment, the indirect costs of the option. These
arrangements are subject to change.
The method of calculation may vary between agreements
but generally these fees are calculated as a percentage
of the investment returns that exceed the agreed level of
return. Investment managers with performance-related fee
arrangements may also be entitled to a base percentage fee
which is usually below market rates.
It is important to remember that the amount of performancerelated fees, if applied in any year, cannot be accurately
predicted because they depend on the allocation of our
assets to these investment managers and underlying
investments and the actual investment performance in any
financial year.
Rebates and tax credits
First State Super income streams are not subject to tax in the
fund. No tax rebates or credits are received in respect of fees
and costs paid by income stream members.
firststatesuper.com.au | Call 1300 650 873 | Email [email protected]
35
Financial Planning
First State Super members have access to financial advice1 . If the advice is about your First State Super account, the fee for
this advice may be deducted from your First State Super account when the advice is received or you may need to pay for the
advice directly. The Statement of Advice (SOA) issued to you whenever you are provided with personal advice will detail the
fees applicable. First State Super does not pay any commission to advisers. The table below describes the services and the fees
charged for these services. First State Super Financial Services Pty Ltd has consented to the inclusion of statements which relate
to its services.
1
Service
Details
Fee
Personal advice limited to
your interest in your First
State Super income stream
account
No charge.
Single issue advice about investment choice,
voluntary contributions, retirement funding
projections and estate planning considerations.
This advice can be accessed whenever
required.
Comprehensive advice
Advice that is more comprehensive and
needs to factor in more than one element of
advice is able to be prepared for you. This will
be provided to you in a detailed Statement
of Advice (SOA). If you wish, the SOA can
include advice about your broader financial
circumstances outside superannuation.
An advice fee is payable on a fee-for-service
arrangement payable by the individual
member. The fee varies depending on the
complexity of your financial affairs.
Ongoing review service
The advice that is initially provided in the
SOA may need to be monitored and adjusted
over time as your personal circumstances
change. The ongoing review service includes a
structured ongoing review program, proactive
contact with you by your dedicated financial
planner, access to your dedicated financial
planner for additional advice and regular
newsletters.
A fee is payable on a fee-for-service
arrangement payable by the individual
member.
inancial planning services are provided by First State Super Financial Services Pty Ltd (ABN 37 096 452 318, AFSL 240019). First State Super
F
Financial Services is wholly owned by the FSS Trustee Corporation and is responsible for the advice that they provide. The trustee pays First State
Super Financial Services a fixed fee to provide a limited advice service (both face-to-face and over the telephone) to all members. The cost of providing
this service is deducted by the trustee from the administration fee it charges its members. The trustee is not a representative of First State Super
Financial Services and receives no commission when making referrals to this service.
A range of services
to help you build
& manage your
income stream
36
Member Booklet Income Stream
Example of annual fees and costs
The law requires all superannuation fund trustees to set out in a PDS an example of annual fees and costs that apply to a
‘balanced investment option’, which typically has a ratio of investment in growth assets to investment in defensive assets
as close as practicable to 70:30. The example below allows you to compare ‘balanced investment options’ in different
superannuation funds, regardless of what they are called.
First State Super’s investment option which meets the definition of a ‘balanced investment option’ is the Growth
investment option and an example of annual fees and costs for that option is set out below.
Example
Annual fees and costs for a balanced investment option
This table gives an example of how the fees and costs in the balanced investment option for this superannuation
product can affect your superannuation investment over a one-year period. You should use this table to compare this
superannuation product with other superannuation products.
EXAMPLE – the balanced investment option
(the Growth investment option)
BALANCE of $50,000
Investment fees
0.42%
For every $50,000 you have in the superannuation product
you will be charged $210 each year.
PLUS
Administration fees
$52 ($4.33 per
month) + 0.40%
And, you will be charged $252 in administration fees.
PLUS Indirect costs1 for
the superannuation product
0.12%
And, indirect costs of $60 each year will be deducted from
your investment.
EQUALS Cost of
superannuation product 2
If your balance was $50,000, then for that year you will be
charged fees of $522 for the investment option.
1
Investment fees include performance-related fees of the fund. Indirect costs include performance-related fees of underlying investments.
2
Additional fees may apply. And, if you leave the superannuation entity, you will also be charged exit fees of $36.
firststatesuper.com.au | Call 1300 650 873 | Email [email protected]
37
Other things to know
Social Security and your income stream
When you purchase an income stream it may have an impact
on social security benefits. You may wish to seek independent
advice from a financial adviser in relation to how this may
apply in your personal circumstances.
Qualifying for an age pension
In addition to an age requirement, two tests are applied to
determine your eligibility for a pension – the income test
and the assets test. Your age pension entitlement will be
determined using the test that delivers the lowest amount
of age pension.
How to find out more
To find out more about Centrelink’s income and assets
tests, go to Department of Human Service's website,
humanservices.gov.au or call Centrelink’s Financial
Information Service on 132 300.
Cooling-off period
You have a 14-day cooling-off period to decide whether the
First State Super income streams are right for you.
The cooling-off period starts on the date you receive your
welcome letter, or five working days after we open your
income stream account, whichever happens first. During this
period, you can cancel your account without incurring an exit
fee and, if you have a retirement income stream, withdraw or
roll over your account balance by notifying us in writing.
If you have a transition to retirement income stream, you will
need to tell us where to transfer any preserved or restricted
non-preserved superannuation (which can only be transferred
to another complying superannuation fund). You must provide
details of the new fund within one month of the date you
advise us that you wish to close your income stream account.
However, you cannot cancel your income stream account
with First State Super without incurring an exit fee if you
have exercised any rights or powers (e.g. withdrawing a lump
sum). The amount returned to you or transferred to another
38
fund may vary from the amount you invested because there
may be changes in the value of the investment option in which
your income stream account is invested (which could be either
positive or negative). We will also deduct any tax that may be
payable on the amount you have invested.
You may wish to obtain financial advice before exercising your
cooling-off right as it may have tax implications.
Privacy
We are subject to the Australian Privacy Principles of the Privacy Act
1988 (Cth). We, and our administrator, collect and hold personal
information relating to members. The member information we
hold is used for administration purposes, the provision of financial
planning advice and for promotional activities.
You can contact us if you want to access or make corrections to
your personal information held by us. If we do not have all your
necessary personal information, we may not be able to process
an application from you or you may not receive certain benefits
that you are entitled to as a member.
Your information is only accessible by fund personnel and
authorised service providers of the trustee, including the
administrator and insurer. Where we have received your email
and mobile number, we may use this to communicate with
you regarding your membership or fund disclosure and for
promotional purposes unless you have opted out. Access to
your details is protected, however your spouse/de facto may
be entitled to obtain information about your super in certain
circumstances (i.e. family law matters).
Our privacy policy contains information about how you may
access and seek correction of your personal information, how
you may complain about a breach of your privacy and other
important information about how your personal information is
collected, used and disclosed.
For further information about how your personal information
is handled, please phone us on 1300 650 873 or visit
firststatesuper.com.au/privacy to view our privacy policy.
A paper copy of the policy can be provided free of charge on
request.
Member Booklet Income Stream
Anti-money laundering and
counter-terrorism financing
Keeping you informed
Under the anti-money laundering and counter-terrorism
financing (AML/CTF) legislation, we are required to obtain
proof of identification before undertaking some transactions
in relation to your account. This means we need to identify
you, your estate and/or beneficiaries, or anyone acting on your
behalf (such as under a power of attorney). Accordingly, we
may be required to delay or refuse any request or transaction
in relation to your account.
First State Super will send you:
Family law
55 two statements each year that show your income stream
Updates from First State Super
Federal legislation allows legally recognised couples to
divide their superannuation upon the breakdown of their
relationship. This means that:
55 your spouse (or de facto partner ) can obtain information
1
about your super (though we cannot provide your address
or other details)
55 a benefit payment flag can be placed on your account,
which stops us from paying your super to you while the
flag is in place
55 your super may be split with your spouse (or de facto
partner1) either by agreement or by a Court Order.
1
This does not apply to de facto partners in Western Australia.
Enquiries and complaints
55 a PAYG summary by 14 July each year (if you are under
60 at any time during the year)
55 an annual review letter advising you of the new minimum
and maximum (for transition to retirement income stream)
amounts for your income stream income payments
55 details of your income stream for Centrelink purposes in
July each year
account balance and your transactions during the year
together with a member newsletter.
You will also receive notification of any material changes or
significant events.
Information available on request
As well as sending you regular information and answering
your questions, the trustee can provide you with further
information including the fund’s:
55 Trust Deed and Rules
55 latest audited accounts
55 most recent annual report
55 privacy policy
55 rules for the appointment and removal of member
representative directors and the independent director
You can make a complaint in the following ways:
55 enquiries and complaints procedure.
55 call us on 1300 650 873
If you would like copies of any of these documents, please
contact us. There is no charge for this information.
55 send an email to:
[email protected]
Important information about the fund and the trustee,
including trustee and executive remuneration, are available
on our website at firststatesuper.com.au/policies.
55 send a fax to 1300 722 072
55 write to the Complaints Officer
First State Super
PO Box 1229
Wollongong NSW 2500
Changing your details
At any time after joining First State Super, you can change your:
55 go online to firststatesuper.com.au/complaints.
By law, we are required to attempt to resolve your complaint
within 90 days.
If you are not satisfied with our response to a complaint, you
can ask the trustee to review a decision by writing to:
The Disputes Manager
FSS Trustee Corporation
PO Box R1827
Royal Exchange NSW 1225.
55 investment choice (there is no fee for the first switch in a
financial year but a $25 fee applies for each subsequent
switch)
55 income stream payment amount and timing of payment
(subject to government limits – see page 8)
55 bank account for receiving your income stream payments
55 contact details and address (you can change your address
using our website)
55 name (you will need to provide supporting documents
If you are not satisfied with the Disputes Manager’s response,
or you do not receive a response within 90 days of your initial
complaint, you may be able to lodge a complaint with the
Superannuation Complaints Tribunal. You can contact the
tribunal by phone on 1300 884 114, online at sct.gov.au, or
by mail at Superannuation Complaints Tribunal, Locked Bag
3060, Melbourne VIC 3001.
Time limits may apply to certain complaints. The SCT can only
become involved after the trustee’s efforts at resolving your
complaint have failed.
certified by a solicitor or Justice of the Peace or other
eligible signatory)
55 beneficiaries.
Learning more about your superannuation
If you want to learn more about your income stream or
superannuation, you can:
55 arrange a personal interview by calling 1300 650 873
55 attend a member seminar – visit our website for
information about our seminar program.
firststatesuper.com.au | Call 1300 650 873 | Email [email protected]
39
The application process
It’s easy to start your First State Super income stream
Step 1: Make sure you're informed
55 Read this Member Booklet.
55 Check out the calculators on our website
firststatesuper.com.au/calculators.
55 Get financial advice if you need assistance.
Step 2: Organise your money
55 If you're using your current First State Super account only
to start your income stream, simply fill in the application
form in this Member Booklet. You'll also need to provide
proof of identity and bank account details (unless you've
already provided this information and it hasn't changed).
55 If you have money in another super fund (or funds) that
you want to use to set up your income stream, you should
transfer it into your existing First State Super account
before you get started. Remember, once you have
opened your income stream account, you cannot make
contributions or transfer money into it.
55 You can transfer in monies from your other funds by using
our Search & Combine tool found at firststatesuper.com.
au/combine. Alternatively, you'll need to complete a
Request to transfer benefits to First State Super form for each
external fund balance you want to transfer in.
55 Once you've consolidated your accounts (if you need to)
then fill in the application form in this Member Booklet.
55 You should also deposit into your existing super account
55 If you don't have an existing First State Super account,
you'll have to join the fund as a personal member so you
have an account to deposit or roll money into that will
be used to set up your income stream. You can join as a
personal member on our website or fill in the application
form at the back of the Member Booklet for personal
members.
55 If you currently have an income stream that you want to
combine with other super or non-super money and then
start a new income stream, you can transfer (commute)
your income stream balance to your accumulation account,
add the additional funds, and use the account balance to
start a new income stream.
Step 3: Make your choices
55 Decide how much income you need, and how often you
want your income payments.
55 Consider choosing an investment option to suit your
needs.
55 Consider making a binding death benefit nomination or a
reversionary beneficiary nomination so you know who will
get your account balance if you die.
55 If you are under age 60, you should provide your tax file
number and complete Section 2 Your tax file number
details on the application form.
Send your completed forms and supporting documents to
First State Super, PO Box 1229, Wollongong NSW 2500.
any other money (personal contributions or non-super
money) you want to use to set up your income stream
account.
40
Member Booklet Income Stream
Income stream member application
IMPORTANT: Please read The application process on page 40 before completing this form. It has important
information about things you should do before starting your income stream.
Use this form to open a
First State Super income
stream account.
If you currently have a
super (accumulation)
account with us please
include your accumulation
member number and
account number. If you
are not a First State Super
member, please leave
these details blank.
Please use a dark pen and
CAPITAL letters, or type
directly into this form
online, print and sign it
and send it to us. Use (✗)
to mark boxes. All forms
are on our website at
firststatesuper.com.au/
forms.
1. Your personal details
Member number (if relevant)
Account number (if relevant)
Title
F
S
Date of birth
S U
Last name
Given name(s)
Residential address
Suburb State Postcode
If you have any
questions, please call
us on 1300 650 873.
IMPORTANT: To ensure
the security of your
income stream account,
you must provide
satisfactory proof of
identity with your income
stream application. See
Notes Section 11 Proof
of identity.
Postal address (if different from residential)
Suburb State Postcode
Daytime contact number
Mobile number
M
F
Email (for security reasons, please ensure that your nominated email address is your personal email address and not a
role-based email address such as [email protected])
2. Your tax file number details
Tax file number (please read ‘The importance of providing your tax file number’ on page 28 of this Member Booklet
before providing your TFN)
If you are under age
60 please complete
the TFN questions.
We will register your
TFN information
electronically with
the ATO. If you do
not provide your TFN
your income stream
may be taxed at
the highest rate.
If you are under age 60 please complete the questions below about your TFN
If you have reached age 60 you don’t need to complete this section as you will receive your payments tax free.
For more information please read Notes Section 2.
If you don’t have a tax file number:
•
•
have you made a separate application/enquiry to the ATO for a new or existing TFN?
Yes
No
are you claiming an exemption because you are in receipt of a pension, benefit
or allowance?
Yes
No
Yes
No
On what basis are you paid? (select only one if relevant)
Full-time employment Labour hire
Part-time employment Casual employment
Superannuation or annuity income stream
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2. Your tax file number details (cont.)
Do you want to claim the tax-free threshold from this payer? Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
You can only claim the tax-free threshold from one payer at a time, unless your total income
fom all sources for the financial year will be less than the tax-free threshold.
Do you want to claim the Seniors and Pensioners Tax Offset by reducing the amount
withheld from payments made to you?
If yes, you also need to complete a Withholding declaration (NAT3093) form, available at ato.gov.au.
Do you want to claim a zone, overseas forces or invalid and invalid carer tax offset by
reducing the amount withheld from payments made to you?
If yes, you also need to complete a Withholding declaration (NAT3093) form available at ato.gov.au.
Do you have a Higher Education Loan Program (HELP) or Trade Support Loan (TSL) debt?
If yes, we may need to withhold part of your payments to cover any compulsory
repayment that may be raised on your notice of assessment.
Do you have a Financial Supplement debt?
If yes, we may need to withhold part of your payments to cover any compulsory
repayment that may be raised on your notice of assessment.
There are certain
conditions you
must meet before
you can set up an
income stream
and additional
requirements if
you are accessing
your super on the
basis of permanent
incapacity. See
Notes Section 3.
3. Type of income stream
Please confirm the type of income stream you would like to set up and your eligibility by marking ✗ in the
appropriate boxes:
I would like to set up a transition to retirement income stream and I confirm that I have reached my
preservation age (see table); OR
I would like to set up a retirement income stream and:
I declare that I am aged 65 years or over
I declare that I am aged 60-64 years and have ceased a
paid employment arrangement since turning age 60*
I declare that I am aged between my preservation age
(see table) and age 64 years and have permanently retired
I have been declared permanently incapacitated
I have an existing unrestricted non-preserved benefit.
Preservation
age
Date of birth
Before 1 July 1960
55
1 July 1960 to 30 June 1961
56
1 July 1961 to 30 June 1962
57
1 July 1962 to 30 June 1963
58
1 July 1963 to 30 June 1964
59
After 30 June 1964
60
* Please provide details below if you have ceased a paid employment relationship:
Date ceased paid employment:
Employer name
4. Work test declaration1
Only complete this section if you have turned 65 and then made, or will make, voluntary contributions
(salary sacrifice, spouse or personal contributions) to your accumulation account and have not returned
a work test declaration that covers your most recent voluntary contributions before starting your income
stream. You must complete a work test to be eligible to contribute to the fund.
I have worked in paid employment for at least 40 hours within 30 consecutive days during the financial
year in which my most recent voluntary contributions were made before starting my income stream.
If you have not worked in paid employment for at least 40 hours within 30 consecutive days during the
financial year in which your most recent voluntary contributions were or are to be made, we must refund
those contributions.
1
T he government has announced that from 1 July 2017 the contributions acceptance rules will be amended to
remove the requirement for an individual aged 65 to 74 to meet the work test before being able to make voluntary
or after-tax contributions to superannuation. Contributions on behalf of a spouse aged under 75 will also be
allowed without the need for the spouse to meet the work test. At the time this document was prepared, this was
not yet law. For more details, please refer to treasury.gov.au.
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5. How will your income stream be set up?
You need a minimum
of $20,000 to set
up an income
stream. You should
consolidate amounts
from external funds
before setting up
your income stream.
See Notes Section 5.
Please complete 5.1 or 5.2 or 5.3 below. You should also read The application process on page 40 and the
Notes Section 5 for more information.
5.1 I have an existing First State Super accumulation account that I would like to use to start my
income stream
Please start my income stream using my:
Full balance; or
Balance less $1,500 (to keep my accumulation account open); or
$
,
,
.
Now go to Section 6.
5.2 I have an existing First State Super accumulation account that I would like to use to start my
income stream AFTER the following transactions have been processed:
CONSOLIDATION
I would like to transfer (consolidate) the following external super fund* balances into my existing First State
Super accumulation account before starting my income stream:
External fund
Approx. $ amount $
,
Expected date of rollover
,
.
External fund
Approx. $ amount $
,
Expected date of rollover
,
.
* if you have more than two external funds, please attach details for the other funds separately.
PERSONAL CONTRIBUTION
I would like to make the following personal contribution to my existing First State Super accumulation
account before starting my income stream:
Approx. $ amount $
,
Expected date of contribution
,
.
COMMUTATION
I have an existing income stream that I would like to commute and combine with my existing First State
Super accumulation account before starting my income stream:
Income stream account number
When any consolidations, personal contributions and/or commutations have been processed, please start
my income stream using my:
Full balance; or
Balance less $1,500 (to keep my accumulation account open); or
$
,
,
.
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5. How will your income stream be set up? (cont.)
5.3 I DO NOT have an existing First State Super accumulation account
If you don’t have an existing First State Super account, you will have to join the fund as a personal member
so you have an account to deposit or transfer money into that will be used to set up your income stream.
You can join as a personal member on our website or fill in the application form at the back of the Member
Booklet for personal members.
I will join online at firststatesuper.com.au/join
I will complete an application form in the back of the Member Booklet for personal members available
from our website under Forms & publications
You can transfer money from other super funds into your First State Super accumulation account online at
firststatesuper.com.au/member/super/combine. Alternatively, you can complete a Request to transfer
benefits to First State Super form (at the back of this booklet) for each external fund balance you wish to
transfer to your First State Super account.
When my application to join and any transfer request(s) have been processed, please start my income
stream using my:
Full balance; or
Balance less $1,500 (to keep my accumulation account open); or
$
If you choose to
invest in a single
asset class option
only, your overall
investment risk
may be increased
because your
investment may
not be adequately
diversified. See
Types of investment
risk on page 23.
,
,
.
6. Investment options and drawdown choices
6.1 Your investment options
If you choose the Life Cycle strategy, you will be invested in the Growth option until you turn age 60
when your balance will be automatically switched to the Balanced Growth option. If you do not choose
an investment option under the Choice strategy, your account balance will be invested in the Life Cycle
strategy. If you invest in more than one option under the Choice strategy, you can choose how your regular
payments are made. See Section 6.2.
L IFE CYCLE STRATEGY
If you choose LIFE CYCLE STRATEGY, please do not fill in any of the CHOICE STRATEGY boxes below.
OR
CHOICE STRATEGY
Please choose one or more of the investment options shown below by recording the percentage next to your
chosen option(s). You can only choose whole percentages and your total choices must add up to 100%.
PRE-MIXED
SINGLE ASSET CLASS*
High Growth
%
Australian Equities
%
Growth
%
Australian Equities SRI
%
Diversified SRI
%
International Equities
%
Balanced Growth
%
Property
%
Conservative Growth
%
Australian Fixed Interest
%
International Fixed Interest
%
Cash
%
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If you would like
your income stream
to continue to be
paid to your spouse
after your death,
you can nominate
your spouse as
your reversionary
beneficiary. See
Notes Section 7.
6. Investment options and drawdown choices (cont.)
6.2 Your income stream drawdown choices
If you invest in more than one option, you can request that your payments be made pro-rata, in an order
of priority, or as a percentage. Cross the appropriate box below to choose pro-rata or priority. Percentage
payments can only be requested online so you’ll have to register for online access once your account is set
up if you want to use this option.
If you don’t make a choice, the pro-rata method will apply. See Notes Section 6.
Pro-rata
Payments will be drawn from each investment option in proportion to the balance in each option.
Priority
Payments will be drawn from your investment options in the order you choose under Priority below.
Only the options in which you have invested should be numbered.
PRE-MIXED Priority (1,2,3...etc)
SINGLE ASSET CLASS
High Growth
Australian Equities
Growth
Australian Equities SRI
Priority (1,2,3...etc)
International Equities
Diversified SRI
Property
Balanced Growth
Australian Fixed Interest
Conservative Growth
International Fixed Interest
Cash
Percentage
This is only available online once your account is set up and you are registered for online access. Until
you are registered, you can choose one of the two options above. If you don’t make a choice, payments
will be made pro-rata.
7. Reversionary beneficiary nomination (spouse only)
Title
M
F
Date of birth (DD-MM-YYYY)
Spouse’s last name
Spouse’s given name(s)
8. Payment frequency and amount
Payment frequency
I would like to receive my income stream payments (mark ✗ to indicate choice):
Fortnightly (every second Wednesday)
Monthly (12th of the month)
Quarterly (12th of Sept, Dec, March, June)
IMPORTANT!
If your income stream
is established during
the month of June,
you can choose to
receive your first
payment in the
next financial year.
Half-yearly (12th of June and Dec OR nominate two months that are six months apart below)
and Yearly (12th of June OR nominate your preferred month below)
I would like to defer commencement of my income stream payments until the following month:
IMPORTANT!
See Notes Section
8 for information
about minimum
and maximum
annual payments.
Payment amount
Minimum annual amount
Maximum annual amount (transition to retirement income streams only)
Specific amount of
$
,
.
(gross amount per payment frequency)
FSS Trustee Corporation (Trustee) ABN 11 118 202 672 AFSL 293340 First State Superannuation Scheme (Fund) ABN 53 226 460 365
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IMPORTANT!
Unless provided to
us previously, to
ensure the security
of your benefits we
require a copy of
your bank statement
that contains your
full name and
account details (as
above) including BSB
and account number.
Transaction details
are not required.
9. Your bank account details
Please nominate a bank account for your income stream payments to be paid to. You can only nominate an
account that is held in your name or held in names that include your name.
Name(s) in which bank account is held
Name of bank or financial institution
Name of branch
Bank account number
BSB number
I have already provided you with a copy of a bank statement for this account OR
I have included a copy of a bank statement for this account with this application form.
10. How would you like to receive information from us?
Please check (✗) one of the boxes below to tell us how you would like to receive information from us:
Electronically, via email and online
Paper copies, via mail.
Where we can, we will always provide information to you as you have requested however, there may be
some instances where this is not possible. We may also contact you by phone from time to time.
Our annual report is available on our website for review. If you would like to arrange to be sent a paper copy
you can contact us on 1300 650 873.
11. Proof of identity
We require a certified copy of proof of identity (POI) document(s) before we can process your application.
If you have already provided a certified copy of your POI document(s), you do not have to provide it again,
as long as your name or residential address have not changed.
The primary documents we accept are listed below. The secondary documents we accept, and the people
who can certify ALL documents, are listed under Proof of identity in the Notes at the end of this form.
This section also explains the documents we require if you have already provided a certified copy of POI
document(s) but your name or residential address has subsequently changed.
We may request updated and/or additional certified copies of POI documents at any time if we consider this
is necessary for the security of our members’ benefits.
Primary identification documents
We require a certified copy of ONE of the following primary documents:
current Australian state/territory driver’s licence containing your photograph
Australian passport
current card issued under an Australian state or territory law to prove your age and containing your
photograph
current foreign passport or similar travel document containing your photograph and signature.*
Secondary identification documents
Alternatively, we require certified copies of TWO secondary documents. A list of secondary documents is
included in the Notes.
I have already provided you with POI documents OR
I have included POI documents with this application form.
* Documents written in a language other than English must be accompanied by an English translation prepared by
an accredited translator.
FSS Trustee Corporation (Trustee) ABN 11 118 202 672 AFSL 293340 First State Superannuation Scheme (Fund) ABN 53 226 460 365
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12. Privacy
The personal information you provide on this form is collected by and held for First State Super by the fund
administrator, Pillar Administration, in accordance with the Australian Privacy Principles of the Privacy Act
1988 (Cth), for the purpose of administering your account and providing you with services associated with
your fund membership.
Please read the
Declaration and
refer to the
Member Booklet
for income stream
members or call us
on 1300 650 873
if you have any
questions.
For further information about how your personal information is handled, please see the Member Booklet for
income stream members, call us on 1300 650 873 or visit our at firststatesuper.com.au/privacy. A hard copy
of the policy may also be provided on request. The policy contains information about how you may access
and seek correction of your personal information, how you may complain about a breach of your privacy and
other important information about how your personal information is collected, used and disclosed.
13. Declaration
•
I have read and understood the First State Super Member Booklet for income stream members that
contained this application form and I confirm that I have received and accept the offer to join in Australia.
•
I am not a temporary resident1 of Australia and if my membership application is accepted, I agree to be
bound by the Trust Deed and Rules of First State Super.
•
I understand that if I am under age 60 and do not supply my tax file number and do not answer the TFN
questions in Section 2 for people under 60, I may pay more tax than I have to.
•
I understand that an income stream account in First State Super can only be opened for me if a
completed application form and all of the monies referred to in the application have been received by
First State Super.
•
I accept responsibility for my choice of investment option and acknowledge that the trustee is not liable
for any loss from a choice I have made.
I understand that if I do not choose an investment option, my income stream account will automatically be
invested in the Life Cycle strategy as set out in the Choose your investment options section of the Member
Booklet Income Stream.
I confirm that all information supplied by me in my application is accurate and complete and I will notify
the trustee immediately if any of this information changes.
I have read, understand, and agree to the First State Super privacy policy.
I understand that the trustee recommends that I seek advice from a financial adviser before making any
decision about my super.
Where I have provided my email address I agree that the trustee can contact me by email.
•
•
•
•
•
1
Please sign and
date form here.
A temporary resident is a holder of a temporary visa under the Migration Act 1958, other than a retirement visa
holder (subclass 405 or 410), who is not an Australian citizen, a New Zealand citizen or a permanent resident.
Signature
Date signed (DD-MM-YYYY)
Send the form to
this address.
14. Where to send your completed form
Return the completed form to First State Super PO Box 1229 WOLLONGONG NSW 2500. If you have any
questions, please call us on 1300 650 873.
Save form
Print form
Clear form
FSS Trustee Corporation (Trustee) ABN 11 118 202 672 AFSL 293340 First State Superannuation Scheme (Fund) ABN 53 226 460 365
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Notes for completing the
income stream application form
Before you make a decision about investing in an income stream, you should read the current Member Booklet for income streams.
The Member Booklet is available on our website and it is also available free of charge by contacting us.
1. Your personal details
If you currently have a super account (accumulation) with us, please include your accumulation member and account numbers. If you
are not a First State Super member, please leave these details blank.
The email address you provide will replace any email address we currently hold for you. For security reasons, please ensure that your
nominated email address is your personal email address and not a role-based email address such as [email protected].
2. Your tax file number details
Please make sure you read the information about tax file number (TFN) disclosure on page 28 of this Member Booklet.
If you are 60 or over, you receive your benefits tax free. If you are under 60, you may pay tax on your income stream payments and lump
sum withdrawals so you should complete the TFN questions in Section 2 of this form. We will lodge your TFN information electronically
with the ATO.
If you have indicated to us that you are applying for a TFN or enquiring about a TFN from the ATO, you should provide your TFN within 28
days to the fund. Tax will be withheld at the standard PAYG rate until the TFN is received.
If you don’t provide your TFN, we must tax the taxable component of your payments at the highest marginal tax rate (plus levies). The
information you provide allows us to determine the amount of PAYG tax to deduct from payments made to you. It is not compulsory
to complete the form or supply your tax file number. If you need any help completing these questions give us a call or visit the ATO
website www.ato.gov.au/forms and search for 'tax file number'.
3. Type of income stream
Who can apply to set up an income stream?
We offer a retirement income stream and transition to retirement income stream. You must generally be a permanent resident to set up
either, and both require a minimum investment of $20,000.
To set up a transition to retirement income stream, you must have reached your preservation age (see table). You do not need to have
retired permanently.
To set up a retirement income stream, you must have unrestricted non-preserved funds. This requires that you have satisfied a condition
of release. The most common conditions are:
•
•
•
•
reaching age 65; or
Preservation
age
reaching preservation age and permanently retiring; or
Date of birth
ceasing a paid employment arrangement after reaching age 60; or
Before 1 July 1960
55
1 July 1960 to 30 June 1961
56
1 July 1961 to 30 June 1962
57
1 July 1962 to 30 June 1963
58
permanent incapacity.
If you are permanently incapacitated, you may need to complete additional forms and
provide medical evidence. Call customer service for more information.
This Member Booklet has more information about these two types of income streams and
conditions of release.
1 July 1963 to 30 June 1964
59
After 30 June 1964
60
4. Work test declaration
If you are 65 years of age or more and have made or will make voluntary contributions (personal, spouse or salary sacrifice) to your
First State Super account before starting your income stream, it is important that you confirm that you have met the work test for that
financial year. Otherwise, we may need to delay the commencement of your income stream until we receive your written instruction that
you have met the test, or refund the contributions in question. If you have already completed the work test for the financial year of your
most recent contributions, you do not need to complete the declaration again on this form.
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5. How will your income stream be set up?
Bring your money together (consolidate) before you start
You need a minimum of $20,000 to set up your First State Super income stream. If you’re using your current First State Super account
only to start your income stream, simply fill in the application form in this Member Booklet. You’ll also need to provide proof of identity
and bank account details (unless you’ve already provided this information and it hasn’t changed).
You can start an income stream using money from a number of different sources, including different super sources (e.g. money from
other super funds and other income streams) and non-super sources (e.g. term deposits or the proceeds from the sale of shares and
property).
If you have other super account balances or non-super money that you would like to use to set up your income stream, you should first
bring all these amounts together into your First State Super accumulation account. You can transfer money from other super funds into
your First State Super account online at firststatesuper.com.au/member/super/combine. Alternatively, you can complete a Request to
transfer benefits to First State Super form (at the back of this booklet) for each external fund balance you wish to transfer to your First
State Super account.
If you don’t have a First State Super accumulation account, you will need to join the fund as a personal member. This is important
because you can only start an income stream with funds from a single source, and you cannot add money to an income stream account
once it is set up, although you can set up a second income stream account.
Once all the amounts are brought together into a single super account, the money can be moved into your income stream account and
your payments can begin.
Steps to starting your income stream
Consolidate any external super accounts into your existing First State Super accumulation account
You can transfer money online via our website or you can complete a Request to transfer benefits to First State Super form for each
external fund account you wish to consolidate.
If you don’t have a First State Super accumulation account, you have to join the fund as a personal member
You can join online via our website or by completing the application form at the back of the Member Booklet for personal members,
which is available on our website and from customer service. You should read the Member Booklet before applying for membership.
Make any personal contributions
As well as consolidating external super fund balances, you might want to make a personal contribution to your accumulation account so
all the money you want to use to start your income stream is in a single account.
Once any consolidation, contribution or membership requirements are finalised, complete an income stream application form (this
form)
In Section 5 of this form, please indicate where your money is coming from so we know when we have received everything and can start
your income stream.
Provide your proof of identity (see Notes Section 11 for more information)
If you have already provided proof of ID and your personal and bank account details have not changed, then you do not need to provide
proof of ID again.
Provide details of the bank account where you would like us to make your payments
To ensure the security of your benefits, we require a copy of your bank statement that contains your full name, address and account
details including BSB and account number. Transaction details are not required. If you have already provided a copy of your bank
statement (for the same bank account) you do not need to provide it again.
CURRENT MEMBER
Using all or part of your
First State Super account
balance
NOT A CURRENT MEMBER
Using one or more
external super fund
account balances
Using one or more
external super fund
account balances
Income stream member application form
✔
✔
✔
Proof of ID
✔
✔
✔
Bank account details
✔
✔
✔
Personal member application form
✗
✗
✔
Request to transfer benefits to First State Super
form (unless you have transferred online)
✗
✔
✔
FSS Trustee Corporation (Trustee) ABN 11 118 202 672 AFSL 293340 First State Superannuation Scheme (Fund) ABN 53 226 460 365
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6. Investment options and drawdown choices
Investment options
See Choose your investment options on page 13 for information about the investment options available under the Life Cycle and
Choice strategies.
Drawdown choices
If you invest in more than one investment option, you can choose which options your payments will be drawn from first, second, third,
etc. When your first choice has been fully drawn, we will draw your income payments from your second choice and so on.
You can also draw payments from your investment options as a percentage. You can only set this up online so you'll have to register for
online access once your account has been set up then log in to your account to record your percentages.
If you don't choose either of these methods, the pro-rata method will be applied. This means payments will be drawn from your
investment options in the same proportion in which they are invested on the date the payment is made. For example, if you have 30%
in High Growth and 70% in Growth, then 30% of your income payment will be drawn from the High Growth option, and 70% from the
Growth option.
7. Reversionary beneficiary nomination (spouse only)
If you would like your income stream to continue to be paid to your spouse after your death, you can nominate your spouse as the
reversionary beneficiary. This means that if you die with money in your income stream account, it will continue and be paid to your
spouse (if still your spouse at the time of your death and not permanently separated from you). Your spouse will have the option of
commuting and cashing out your income stream account as a lump sum. If your spouse changes, you can nominate your new spouse
as your reversionary beneficiary by completing a new death benefit nomination form. If you don’t have a valid reversionary beneficiary
nomination, the trustee will determine the beneficiaries of any death benefit, unless you have made a binding death benefit nomination.
You can nominate or change beneficiaries at any time by cancelling your original nomination and completing a new nomination form.
Please refer to the Member Booklet for information on nominating beneficiaries.
8. Payment instructions
Payment frequency
You can receive your payments fortnightly, monthly, quarterly, half yearly or yearly. If you start your income stream in the month of June,
you can elect to start the payments in the following financial year.
Payment amount
You can choose the amount of income stream payments you receive each financial year within certain minimum and maximum limits
set by the government. The amount you nominate is a gross amount, i.e. before any tax is deducted (if applicable). You must nominate
the amount you would like to receive each year. We will send you a letter in July each year that tells you the minimum amount you must
withdraw and the maximum amount you may withdraw (if applicable). After you receive this letter, if you want to change the amount,
you must tell us the amount you wish to receive for that financial year.
Minimum and maximum payment limits
The minimum payment limit is calculated as a percentage of your account balance
rounded to the nearest $10. The minimum payment limit, age and account balance are
calculated at the time the income stream starts, then on 1 July each subsequent year.
If you start your income stream part way through a financial year, the minimum
payment limit for the first year will be reduced on a pro-rata basis based on the number
of days between your income stream start date and the end of the financial year.
Age at commencement
date then each 1 July
Minimum %
Under 65
4%
65 –74
5%
75 – 79
6%
80 – 84
7%
There is no maximum payment limit on the amount that can be withdrawn from a
85 – 89
9%
retirement income stream each year. For transition to retirement income streams, the
90 – 94
11%
annual payment is limited to a maximum of 10% of the account balance at the start
95 or more
14%
of the year (or in the first year, the account balance at the start date for the income
stream). The maximum limit ceases to apply if you satisfy a condition of release with
no restrictions and commute your transition to retirement income stream to a retirement income stream. If you start your income stream
part way through a financial year, the 10% maximum for transition to retirement income stream payments is not pro-rated. This means
that the full annual maximum amount can be paid regardless of when during the year the income stream started.
9. Your bank account details
Under superannuation law, we must pay your income stream payments into an account in your name (or a joint account which includes
your name). We can’t make payments to a third party bank account. To verify that the account meets this condition, unless provided to
us previously, you must provide us with a copy of the part of your financial institution statement or passbook that contains your full
name, address and your financial account details, including account number and BSB number. The easiest way to do this it to photocopy
the account details section on your bank statement, or to provide us with a pre-printed deposit slip showing your account details. This
confirmation helps prevent payments being made to the wrong account.
10. How would you like to receive information from us?
You can change the way you receive information from us at any time by calling customer service. Alternatively, you can change your
preferences online if you are registered for online access.
FSS Trustee Corporation (Trustee) ABN 11 118 202 672 AFSL 293340 First State Superannuation Scheme (Fund) ABN 53 226 460 365
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11. Proof of identity (POI)
We require a certified copy of your proof of identity (POI) documents before we can start your income stream. If you have already
provided a certified copy of your POI document(s), you do not have to provide it again, as long as your name or residential address have
not changed.
If you have already provided certified copies of your POI documents but either your name or residential address has since changed, you
must provide evidence of the change(s) as follows:
Change of name
If you have changed your name, you must provide a certified copy of one of the following name change documents:
•
marriage certificate or certificate of registration (if you are on the relationship register) issued by the Births, Deaths and Marriages
Registration Office (ceremonial certificates cannot be accepted)
•
deed poll or change of name certificate from the Births, Deaths and Marriages Registration Office. If you have reverted to your maiden
name on divorce, we will require a divorce certificate and a linking document such as your marriage certificate showing your original
maiden name.
Change of residential address
If you have changed your residential address, you must provide a certified copy of a POI document showing your new residential
address. If it is more convenient, you can provide the original (rather than a certified copy) of a recent notice issued by your local council
or a recent utilities bill addressed to you at your current residential address.
Power of attorney
If you are starting an income stream on behalf of the member as the holder of their Power of Attorney, you must provide certified copies
of POI documents for yourself and the member.
We may request updated and/or additional certified POI documents at any time if we consider this is necessary for the security of our
members’ benefits.
Acceptable documents and certification
The primary and secondary documents we accept are shown below. The people who can certify these documents are also shown below.
Providing certified POI is a three-step process:
1 Collect your originals
Collect your proof of identity
document(s). We have listed the
documents you can use below.
2 Photocopy your originals
Photocopied originals must
be properly certified.
3 Have your photocopies certified
Take your photocopies and your original
documents to a person who can
certify documents. A list of authorised
certifiers and certification guidelines
is included under Certification of
personal documents on next page.
You can provide:
Either:
A certified copy of one of the
following documents:
Or:
One certified document
from this list:
•
current Australian state/territory
driver’s licence with your
photograph
•
an Australian birth
certificate or extract issued
by a state or territory
•
•
Australian passport
•
current card issued under an
Australian state or territory law for
the purpose of proving your age
and containing your photograph
a citizenship certificate
issued by the
Commonwealth
•
a current Centrelink
pension card that entitles
you to receive financial
benefits
•
current foreign passport or similar
travel document containing your
photograph and signature*.
AND
One certified document from this list:
•
•
•
a notice issued by the ATO within the last
12 months that shows your name and current
residential address and records an amount
payable to or by you e.g. your last tax return
a notice issued by a local council or utilities
provider in the last three months showing
the provision of services to you and your
current residential address e.g. rates notice,
electricity or water bill
a notice issued by the Commonwealth or a
state or territory government within the last
12 months showing your name and current
residential address and the provision of
financial benefits to you e.g. Centrelink letter.
* Documents not written in English must be accompanied by an English translation prepared by an accredited translator.
FSS Trustee Corporation (Trustee) ABN 11 118 202 672 AFSL 293340 First State Superannuation Scheme (Fund) ABN 53 226 460 365
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Certification of personal documents
All copied pages of original POI documents (including any change of name documents) need to be certified as true copies by an
authorised person with the appropriate Australian qualifications or registration (see below) who cannot be the owner or addressee of
the document. The authorised person must sight the original and the copy to ensure both documents are identical, then make sure all
pages have been certified by writing 'I certify that this document is a true copy of the original', followed by their signature, printed name,
qualification (e.g. justice of the peace, Australia Post employee, etc.), registration number (if applicable) and date. The following people
can certify copies of the originals:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
police officer
Australia Post employee in charge of an office
providing postal services (charges may apply)
Officer or an authorised representative of an
Australian Financial Services Licensee (AFSL)
with two or more years continuous service
Samantha Sample has provided
a copy of her identification
that includes her signature,
full name, date of birth and
current residential address.
Driver Licence
Samantha SAMPLE
PL
M
A
S
123 ANY ST
SUBURB NSW 2000
Licence No.
12345678
Licence Class
C
medical practitioner
Card Number
2 123 456 789
Donor
E
A
Conditions
S
Date of Birth
legal practitioner
01 JAN 1980
Expiry
01 JAN 2020
pharmacist
justice of the peace
magistrate
nurse
optometrist
The authorised person
has sighted the original
identification and confirmed
that the copy is a true copy.
"I certify that this document is a true
copy of the original."
dentist
chiropractor
physiotherapist
psychologist
veterinary surgeon
full-time teacher employed at a school or
tertiary institution.
Details for the authorised
person to include are full
name, qualification, registration
number (if applicable), date
and signature.
Name: Kate Anderson
Qualification: JP
Registration no: 123456
Date: 31 March 2016
Checklist
Before you send your documents, please make sure you
have:
Provided your bank account details and a copy of your bank
statement or deposit slip, if you have not already provided it.
Read and understood the Member Booklet.
Read, understood, signed and dated Section 13 Declaration.
Indicated whether you are starting a transition to
retirement or retirement income stream and confirmed
that you meet the eligibility requirements.
Attached copies of identification documents certified by
an authorised person (unless already provided and details
haven't changed).
Provided details of amounts you wish to consolidate and
indicated how much you want to transfer from your super
account.
Completed the tax file number questions in Section 2 if
you’re under age 60.
Transferred funds online or completed a Request to
transfer benefits to First State Super form for each fund if
you wish to use benefits in one or more external funds to
start your income stream.
Joined the fund as a personal member if you're not an
existing member.
Confirmed your investment and drawdown choice
(if applicable) in Section 6.
Made a reversionary, binding or non-binding death benefit
nomination.
If you are self-employed and made personal contributions
to First State Super this or last financial year, sent us your
Notice of intent to claim or vary a deduction for personal
super contributions form, if relevant. Once the contributions
are used to start an income stream, you will not be able to
advise us that you would like to claim a tax deduction for
the contributions.
Nominated your chosen payment amount and frequency.
FSS Trustee Corporation (Trustee) ABN 11 118 202 672 AFSL 293340 First State Superannuation Scheme (Fund) ABN 53 226 460 365
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Request to transfer benefits
to First State Super
You should use this form
if you would like First
State Super to contact
your other fund (the
FROM fund) to transfer
all or part of your
superannuation from the
other fund to First State
Super. See Who should
complete this form? in
the Notes.
Please use a dark pen
and CAPITAL letters, or
type directly into this form
online, print and sign it
and send it to us. Use (✗)
to mark boxes. All forms
are on our website at
firststatesuper.com.au/
forms.
CONSOLIDATE ONLINE
You can also consolidate
your super accounts
online without having to
complete any paperwork.
Go to our website at
firststatesuper.com.au/
combine.
If you have any questions,
please call us on
1300 650 873.
IMPORTANT!
It isn’t compulsory to
provide your TFN but
if you don’t, the fund
you are transferring
from may ask you to
personally identify
yourself before they
will transfer your
benefit.
1. Your personal details
Member number*
Account number
F
S
Date of birth
S U
* If you are not a member of First State Super, you will have to join the fund before we can accept your transfer
request. You can join online via our website or by completing the application form at the back of the Member
Booklet for personal members.
Title
Last name
Given name(s)
Residential address
Suburb
State
Daytime contact number
Mobile number
Postcode
M
F
Tax file number (please read the tax file number information in the Notes on page 4 before providing your TFN)
Email (for security reasons, please ensure that your nominated email address is your personal email address and not a
role-based email address such as [email protected])
2. Details of the fund you are transferring from
Please select ✗ one:
I would like First State Super to arrange the transfer of 100% of my benefit from the complying
superannuation fund shown in this section.
I would like First State Super to arrange the transfer of part of my benefit from the complying
superannuation fund shown in this section.
Amount to be transferred $
,
,
.
Name of the other fund (your FROM fund)
IMPORTANT!
Please ensure
that you include
your FROM fund's
name, ABN, Unique
Superannuation
Identifier and your
member number with
them or we may not
be able to process
your request.
Address of other fund
Suburb
State
Fund ABN
Unique Superannuation Identifier (USI)
Member number (in your FROM fund)
Contact number
FSS Trustee Corporation (Trustee) ABN 11 118 202 672 AFSL 293340 First State Superannuation Scheme (Fund) ABN 53 226 460 365
Postcode
page 1 of 4
FSS020 08/16
3. Details of the fund you are transferring to
Name of fund
F I R S T
S T A T E
Fund ABN
5 3
2 2 6
S U P E R
Unique Superannuation Identifier (USI)
4 6 0
3 6 5
5 3
2 2 6
4 6 0
3 6 5
0 0 1
4. Investment choice for your transferred funds
If you would like to invest your transferred funds in the same way as your current super contributions, you
should tick the CURRENT CONTRIBUTIONS STRATEGY box.
If you would like to invest your transferred funds in one or more of the CHOICE STRATEGY options, you
should tick the CHOICE STRATEGY box and choose your investment option(s).
PLEASE NOTE. If you are currently invested in the MySuper Life Cycle strategy and you invest your
transferred amount in one or more of the Choice strategy options, then you will lose the automatic switch
entitlement that applies to the MySuper Life Cycle strategy. This entitlement means that your account
balance and future contributions will be switched to the Balanced Growth option at age 60. However, you
can opt back into the MySuper Life Cycle strategy at any time before age 60 and reinstate this automatic
switch. See the Member Booklet Supplement: Investments for more information about the MySuper Life Cycle
strategy and our investment options.
CURRENT CONTRIBUTIONS STRATEGY (if you choose current contributions strategy, do not fill in any of
the CHOICE STRATEGY boxes below) OR
CHOICE STRATEGY (whole percentages only, your total choices must add up to 100%)
Pre-mixed options
Priority
Percentage
High Growth
%
Growth
%
Diversified SRI
%
Balanced Growth
%
Conservative Growth
%
Single asset class options
Australian Equities
%
Australian Equities SRI
%
International Equities
%
Property
%
Australian Fixed Interest
%
International Fixed Interest
%
Cash
%
Total must add up to
1 0 0 %
* If you invest in a single asset class option only, your investment may not be adequately diversified and your
overall investment risk may be increased. Transfers from another fund must be invested in the pre-mixed and/or
single asset class options.
FSS Trustee Corporation (Trustee) ABN 11 118 202 672 AFSL 293340 First State Superannuation Scheme (Fund) ABN 53 226 460 365
page 2 of 4
FSS020 08/16
5. Declaration
•
I understand that the Member Booklet and
Member Booklet Supplement: Investments contain
a description of First State Super’s investment
options.
•
I understand that if I choose to invest in a single
asset class option only that my overall investment
risk may be increased.
•
I understand that if I am currently in the
MySuper Life Cycle strategy, and I invest
my transferred amount in one of the Choice
strategy options, then my account balance and
future contributions will no longer be switched
automatically to the Balanced Growth option
when I turn 60.
•
I understand that if I invest my transferred
amount in one of the Choice strategy options,
then I can opt in to the MySuper Life Cycle
strategy at any time before age 60 and my
account balance will be switched automatically
to the Balanced Growth option when I turn 60.
•
I am aware I may ask my FROM fund for
information about any fees or charges that may
apply, or any other information about the effect
this transfer may have on my benefits, and have
obtained or do not require such information.
•
I discharge the superannuation provider of my
FROM fund of all further liability in respect of the
benefits paid and transferred to First State Super.
•
I request and consent to the transfer of
superannuation as described in this form and
authorise the FROM fund to give effect to this
transfer.
•
I authorise First State Super and its administrator
to make enquiries and request information from
the FROM fund.
•
I declare that I have fully read this form and the
details I have provided are true and correct.
•
I have read, understand and agree to the
First State Super privacy policy.
Signature
Date (DD-MM-YYYY)
Please sign and
date form here.
6. Privacy
The personal information you provide on this form is collected by and held for First State Super by the fund
administrator, Pillar Administration, in accordance with the Australian Privacy Principles of the Privacy Act
1988 (Cth), for the purpose of administering your account and providing you with services associated with
your fund membership.
For further information about how your personal information is handled, please phone customer service on
1300 650 873 or visit firststatesuper.com.au/privacy to view the privacy policy (a hard copy of the policy
may also be provided on request). The policy contains information about how you may access and seek
correction of your personal information, how you may complain about a breach of your privacy and other
important information about how your personal information is collected, used and disclosed.
Send the form to
this address.
7. Where to send your completed form
Return the completed form to First State Super PO Box 1229 WOLLONGONG NSW 2500. If you have any
questions, please call us on 1300 650 873.
Save form
Print form
Clear form
FSS Trustee Corporation (Trustee) ABN 11 118 202 672 AFSL 293340 First State Superannuation Scheme (Fund) ABN 53 226 460 365
page 3 of 4
FSS020 08/16
Notes for completing the request to transfer benefits form
Who should complete this form?
You should use this form if you would like First State Super to
contact your FROM fund and request a transfer of all or part of
your superannuation from the FROM fund to First State Super.
If you are currently in the MySuper Life Cycle strategy, and you
invest your transferred amount in one or more options under
the Choice strategy, then your account balance and future
contributions will no longer be switched automatically to the
Balanced Growth option when you turn 60. However, you can
opt back into the MySuper Life Cycle strategy before age 60 and
reinstate the automatic switch.
•
Fees. The fund you are transferring from must give you
information about any exit or withdrawal fees. If you are not
aware of the fees that may apply, you should contact the
FROM fund for further information before completing this
form. The fees could include administration fees as well as exit
or withdrawal fees. Differences in the fees funds charge can
have a significant effect on the amount you may accumulate at
retirement.
•
Death and disability benefits. The fund you are transferring
from may insure you against death, illness or an accident that
prevents you from working. If you choose to leave your FROM
fund, you may lose any insurance entitlements you have.
When considering a new fund, you should check the costs and
amount of any insurance cover offered.
•
Employer contributions. If your employer is not currently
paying your contributions to First State Super but you would
like them to, you should speak to your employer about their
choice of fund policy. If your employer offers choice of fund,
you can ask for a Standard choice form and use this form to
nominate First State Super. For more information, visit
www.superchoice.gov.au or call the ATO on 13 10 20.
You must complete a separate transfer request form for each
fund you wish to transfer money from.
Before you make a decision about transferring your benefits to
First State Super, you should read the current Member Booklet.
The booklet is available on our website and it is also available
free of charge by contacting us.
Things to consider when transferring your super
When you transfer your super, your entitlements as a member
of your FROM fund may cease. You should consider all relevant
information before you make a decision to transfer your super. If
you ask for information, your super provider must give it to you.
Some of the points to consider are:
•
Partial transfers. If you wish to transfer part of your benefit
from the FROM fund, the FROM fund will apply their own
preservation apportionment and asset drawdown rules to the
amount to be transferred. If you wish to nominate either the
investment option or the preservation component from which
a partial transfer amount is drawn, you should contact your
FROM fund.
•
ATO transfer form. You can also use the Australian Tax Office
(ATO) transfer form (available from the ATO website), but
only if you wish to roll over all your superannuation. The ATO
form can be sent to either the FROM or the TO fund. The ATO
form does not allow you to make an investment selection
for the amount to be transferred. If you use the ATO form,
transfers will be invested in the same way that your current
contributions are being invested.
Tax file number
Under the Superannuation Industry (Supervision) Act 1993, your
superannuation fund is authorised to collect your TFN, which will
only be used for lawful purposes. These purposes may change
in the future as a result of legislative change. The trustee of your
superannuation fund may disclose your TFN to the Commissioner
of Taxation or to another superannuation provider when your
benefits are being transferred, unless you write to your super fund
and ask the trustee not to disclose your TFN to any other trustee.
It is not compulsory to provide your TFN but if you don’t, you may
pay additional tax and your contributions may not be accepted.
If you do not provide your TFN and the fund you are transferring
from cannot verify your details with the ATO, then you may be
required to provide proof of identity (POI) to the fund you are
transferring from.
CONSOLIDATE ONLINE
You can also consolidate your super accounts online
without having to complete any paperwork. Go to our
website at firststatesuper.com.au/combine.
FSS Trustee Corporation (Trustee) ABN 11 118 202 672 AFSL 293340 First State Superannuation Scheme (Fund) ABN 53 226 460 365
page 4 of 4
FSS020 08/16
Visit our website firststatesuper.com.au
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Service and advice
Phone1300 650 873
Fax 1300 722 072
Email [email protected]
Web firststatesuper.com.au
Post PO Box 1229, Wollongong NSW 2500
Income stream PDS 15 August 2016
IS PDS 08/16