Raiz Invest Super
Product Disclosure Statement
01 June 2021
RSE Registration No R1070743
ABN 46 074 281 314.
TRUSTEE CONTACT DETAILS:
Diversa Trustees Limited
(ABN 49 006 421 638) (AFSL 235153)
(RSE Licence No L0000635)
GPO BOX 3001
Melbourne VIC 3001
TELEPHONE: (03) 9616 8600
SUB-PROMOTER CONTACT DETAILS:
Raiz Invest Australia Limited
(ABN 26 604 402 815) (AFSL 434776 Corporate Representative)
Level 11, 2 Bulletin Place
Sydney NSW 2000
Telephone: 1300 754 748
About Raiz invest super
How SUPER works
Benefits of Investing with Raiz Invest Super
Risks of super
How we invest your money
Fees and costs
How super is taxed
INSURANCE IN YOUR SUPER
HOW TO OPEN AN ACCOUNT
About Raiz Invest Super
Raiz Invest Super is a Division of the DIY Master Plan ('Plan'). The Plan was established by a trust deed dated 30 April 2007 (as amended from time to time) and provides superannuation products (including accumulation and pension products) to enable you to build your superannuation savings in a transparent and tax effective way.
Key service providers to Raiz Invest Super include:
DIY Master Pty Ltd (ABN 41 123 035 245 AFSL 312431) is the Promoter and Administrator;
Raiz Invest Australia Limited (ABN 26 604 402 815) is the Sub-Promoter of the Division
Note: The Plan is not a MySuper registered product.
Raiz Invest Super is issued by Diversa Trustees Limited (‘Diversa') (ABN 49 006 421 638, AFSL No. 235153, RSEL L0000635), an approved Trustee regulated by the Australian Prudential Regulation Authority (APRA). Raiz Invest Super is administered in accordance with the Trust Deed and rules of the DIY Master Plan. The Trustee is required to disclose certain trustee information and documentation on a website. Accordingly, the Trustee's website (www.diversa.com.au/trustee) contains the required information and documentation.
How super works
Superannuation is a long-term investment and tax-effective means of saving for retirement which is, in part, compulsory. Most Australian employers are required by Government legislation to contribute 9.5% of an employee's ordinary time earnings to a superannuation fund. These compulsory contributions are referred to as Superannuation Guarantee (SG) contributions. The SG contribution rate is planned to increase gradually to 12% by 1 July 2025. You can also make personal contributions towards superannuation.
There are different types of contributions that may be made by or on behalf of a person in addition to any SG contributions including additional employer contributions (for example, salary sacrifice contributions), voluntary member contributions and government co-contributions.
There are limitations on the contributions to, and withdrawals from, superannuation. These limitations apply to all superannuation funds.
Superannuation receives concessional tax treatment, that is, tax savings are provided by the Government. Refer to Section 7 of this PDS for more information.
As most people have a right to choose into which superannuation fund their employer should direct their SG contributions (called “Choice of fund”), it's important you take an interest in your super and help it grow into a healthy retirement nest egg. Contact your employer to check whether you can make a Choice of fund, by nominating Raiz Invest Super as your chosen fund. Further information about Choice of fund is available from www.ato.gov.au.
Note: Your employer cannot nominate Raiz Invest Super as its default fund for employee's who do not make a Choice of fund, as the Plan does not offer a 'MySuper' product.
You can access your superannuation savings once you retire on or after reaching your preservation age or in other circumstances permitted by law (for example, death, permanent incapacity and financial hardship), called “conditions of release”. The conditions of release for temporary residents vary from those applicable to Australian citizens, New Zealand citizens or permanent residents of Australia. You can choose to take your superannuation benefit as a lump sum or as a pension.
There are certain circumstances in which superannuation benefits must be transferred by the Trustee to the Australian Taxation Office (for example, small or unidentifiable lost accounts, unclaimed benefits on or after age 65 and unclaimed benefits of former temporary residents).
You should read the important information about How Super Works before making a decision. Go to Section 1 of the Member Guide available on our website, www.raizinvest.com.au and refer to ASIC's MoneySmart website at www.moneysmart.gov.au. The information relating to how super works may change between the time when you read this PDS and the day when you acquire this product.
Benefits of investing with Raiz Invest Super
Members of Raiz Invest Super have an accumulation account, which means any contributions made to the account accumulate over time with any investment earnings (which may be positive or negative) after taking into account any fees, costs or other charges (e.g. insurance premiums or taxes).
Raiz Invest Super provides for Online consolidation of your superannuation funds (subject to your consent). Before deciding to consolidate your Super, please ensure you have considered any potential loss of existing insurance or other benefits you may have with your existing fund.
You should read the important information about the features and the benefits of investing with Raiz Invest Super before making a decision. Refer to the Member Guide, available from www.raizinvest.com.au.
Raiz Invest Super offers members who have an accumulation account access to insurance cover established under an approved group insurance policy (Refer to Section 8 of this PDS for more information).
When a member retires or meets some other legislative condition for payment of their superannuation their account is payable as one or more lump sums.
You can choose to invest one of the investment options for any account you have in Raiz Invest Super.
Other significant features and benefits of Raiz Invest Super are:
Information about your account can be accessed online through the Raiz App, 24/7.
There are no switching or trading fees.
Six investment options are available to suit your personal circumstances and risk profile.
You should read the important information about the benefits and features of the Plan including investing in a pension account before making a decision. Go to Sections 2 of the Member Guide which is available by going to https://www.raizinvest.com.au or on request by phoning 1800 455 666. The information relating to the benefits and features of the Plan may change between the time when you read this PDS and the day when you acquire this product.
Risks of super
Things you should know:
All investments carry risk.
Different strategies may carry different levels of risk depending on the assets that make up the strategy.
Generally, assets with the highest long-term returns (such as shares and property) also carry the highest level of short-term risk.
The value of your investment will vary.
The level of returns will vary, and future returns may differ from past returns.
Returns are not guaranteed, and you may lose some of your money.
Superannuation laws may change in the future.
The amount of your superannuation savings (including contributions and returns) may not be enough to provide adequately for your retirement.
The level of risk you face will vary depending on a range of factors, including your age, investment timeframes, your risk tolerance, and where other parts of your wealth are invested.
The significant risks associated with Raiz Invest Super are economic, market, currency, industry, emerging market, credit, liquidity, regulatory and derivative risks.
• Data security and electronic delivery risk.
The level of risk that is acceptable to you will vary depending on a range of factors including your age, investment timeframe, where other parts of your wealth are invested, your risk tolerance and what other investments you hold.
You should read the important information about risks including the risk profile of investments available from the Plan before making a decision. Refer to Section 3 of the Member Guide, available at www.raizinvest.com.au. The information relating to risks of investing with Raiz Invest Super may change between the time when you read this PDS and the day when you acquire this product.
How we invest your money
Warning: When deciding how to invest your superannuation you should consider the likely investment return, the risk and your investment timeframe. The Trustee recommends that you consult a financial adviser to assist your investment choice.
The Division allows members access to a range of investment options via its investment in the Raiz Invest Australia Fund ARSN 607 533 002 (the Scheme) a registered managed investment scheme.
The Scheme offers members a choice in investment options. You benefit by receiving a transparent investment experience where you see the specific underlying securities in which your super is invested.
Your investment in the Scheme is held by the Trustee.
Your investment in the Scheme is covered by the Scheme PDS which is available from www.raizinvest.com.au.
When choosing the investment options in which to invest or switch some, or all of your super, you should consider the level of risk, likely investment return and your investment timeframe.
The Trustee may at its discretion vary the investment options available within Raiz Invest Super from time to time. Notice will be provided to members affected by those changes.
You can change your investment options at any time via your phone app with Raiz Invest Australia Limited.
Available Investment Options
The Scheme presently offers 6 separate investment options to meet the risk profiles of members. The options range from low risk Conservative Investment option to a higher risk Aggressive Investment option. A detailed profile of each investment option is available in Section 5 of the Member Guide. The Moderately Aggressive Portfolio option is summarised below:
You should read the important information about investments, how to switch investments and the extent to which labour standards or environmental, social or ethical considerations are taken into account before making a decision. Refer to Section 4 of the Member Guide available at www.raizinvest.com.au. The information relating to investments may change between the time when you read this PDS and the day when you acquire this product.
Fees and costs
DID YOU KNOW?
Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns.
For example, total annual fees and costs of 2% of your account balance rather than 1% could reduce your final return by up to 20% over a 30-year period (for example, reduce it from $100,000 to $80,000).
You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs.
You or your employer, as applicable, may be able to negotiate to pay lower fees. Ask the fund or your financial adviser. *
TO FIND OUT MORE
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 calculator to help you check out different fee options.
* This above Consumer Advisory Warning is prescribed by law. Administration fees are not negotiable.
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 may also be charged, but these will depend on the nature of the activity chosen by you.
Entry and exit fees cannot be charged.
Taxes and other costs 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 in Section 5 of the Member Guide.
Unless otherwise stated, all fees and costs shown are inclusive of GST.
The Moderately Aggressive Portfolio option
* Important: other fees and costs may apply depending on how you invest, including the costs of any underlying investments (indirect costs) that are included in the Investment Option in which you invest, buy-sell spreads for underlying managed funds and activity fees. For information about other fees and costs refer to ‘Additional Explanation of Fees and Costs' in Section 5 of the Member Guide.
If your account balance for a product offered by the superannuation entity is less than $6,000 at the end of the entity's income year, the total combined amount of Administration Fees, Investment Fees and Indirect Costs charged to you is capped at 3% of the account balance. Any amount in excess of that cap must be refunded.
For definitions of the fees and costs in the table above please refer to http://www.diymaster.com.au for details.
The Indirect cost ratio (ICR) shown above is indicative only. The actual amount you will be charged in subsequent financial years is not currently known and could be different. See the section 6 of the Member Guide for a detailed explanation.
Example of annual fees and costs for the moderately aggressive portfolio option
This table gives an example of how the fees and costs of your superannuation product can affect your superannuation investment over a 12 month period if you were wholly invested in the Moderately Aggressive Portfolio option. This table can be used to compare this superannuation product with other superannuation products. These fees and costs may be deducted directly from your account balance or from the returns on your investment.
Note * Additional fees may apply, and if you leave the superannuation entity you may be charged a buy/sell spread (which also applies whenever you make a contribution, exit, rollover or investment switch). The buy/sell spread for exiting is 0% (this will equal to $0 for every $50,000 you withdraw).
For definitions of fees, please refer to the Member Guide. The definitions are also available from email@example.com and at: www.diymaster.com.au
Things you should know:
The Trustee can change the amount of fees without your consent.
Dollar based fees are subject to indexation in line with movements in the Average Weekly Ordinary Time Earnings (AWOTE)
Increases in fees will generally be notified at least 30 days in advance. Estimated fees may vary from year to year depending on the value of your account balance and your investment option.
If you would like to calculate the effect of fees and costs on your account balance, the Australian Securities & Investment Commission's website www.moneysmart.gov.au has a superannuation fee calculator.
You should read the important information about the fees and costs including fees and costs applicable to investments before making a decision. Refer to Section 5 of the Member Guide available at www.raizinvest.com.au. The information relating to fees and costs may change between the time when you read this PDS and the day when you acquire this product.
How super is taxed
This section provides a summary of the significant tax information relating to superannuation. It is based on the laws that apply at the date this PDS is issued. You should read the important information about how Super is taxed before making a decision. Go to the Raiz Invest Super available at www.raizinvest.com.au. The material relating to how super is taxed may change between the time when you read this PDS and the day when you acquire the product.
The information provided is general in nature and we recommend that you seek advice from a registered tax agent to determine your personal obligations before making a decision.
Tax may apply to contributions, any investment earnings and withdrawals from your account, however, generally any taxes applicable to superannuation are at a concessional (lower) rate. Warning: Concessional tax rates do not apply on contributions which exceed Government contribution limits.
Concessional contributions (for example, employer contributions and deductible member contributions) are ordinarily subject to a contributions tax rate of 15% provided we hold your Tax File Number (TFN). The Plan calculates the contributions tax payable and accrues it as a liability on your member account until payable to the ATO. Non-concessional contributions (for example, non-deductible member contributions) are usually not subject to tax. If your concessional contributions and/or non-concessional contributions in a financial year exceed Government contribution limits, additional (excess) taxes will ordinarily apply. Excess taxes for contributions are a personal tax liability which must be released from your fund in the case of excess non-concessional contributions. You may choose to release up to 85% of your excess concessional contributions which would be paid by us to the ATO after receiving a release authority. Taxes may apply to transfers of superannuation into the Plan from an untaxed source (for example, certain public-sector schemes).
Net earnings relating to accumulation accounts are subject to a tax rate of up to 15%, however the rate may be less due to tax credits or other rebates.
If you're 60 years of age or over, any Super Benefits you receive, such as lump sums and pensions, are tax-free if you receive them from a taxed source. This means when you receive a lump sum from Super, or payments from a Super Income Stream, they are tax-free in your hands.
If you're under age 60 when you receive your Super Benefits, the taxable component is assessable income. If you are under preservation age, it will be taxed at 20% plus any applicable levies. If you have reached your preservation age but are aged less than 60, the first $215,000 for the 2020/21 financial year is tax free, with the remainder taxed at 15% plus any applicable levies.
PAYMENT OF TAX
The Plan makes quarterly payments of tax to the ATO and a final payment for the balance of any liability in each year. Your net tax liability will be deducted from your account proportionally as payments are due to the ATO.
Warning: When you join Raiz Invest Super you should provide us with your TFN. If you choose not to provide your TFN, we cannot accept after-tax contributions from you, the tax paid on superannuation benefits may be higher and it may be more difficult to locate or consolidate any lost super benefits in the future or to receive benefits. Further information about tax is available from www.ato.gov.au.
Further information on the taxation of superannuation benefit can be obtained by calling the Australian Taxation Office on 131020 or by visiting their website at www.ato.gov.au/super. You should read the important information about taxation matters relevant to superannuation before making a decision. Refer to Section 6 of the Member Guide available at www.raizinvest.com.au. The information relating to tax may change between the time when you read this PDS and the day when you acquire this product.
Insurance in your super
This section provides a brief summary of the insurance options available in Raiz Invest Super.
The Division provides the following insurance benefits:
Automatic insurance cover
We will give you pre-approved Death (including Terminal Illness) and Total & Permanent Disablement (TPD) Insurance cover if you meet eligibility criteria, haven't opted out and are an Australian resident (or hold an Australian Visa entitling you to residency or employment) aged between 15 and 64.
Cover generally takes eﬀect from the date we receive your first super contribution or rollover.
Your amount of cover is based on your current age and subject to a 'Pre-existing Medical Condition' exclusion. Other exclusions may apply including a self-inflicted injury exclusion.
You can opt-out of your Automatic Insurance cover or cancel insurance anytime by logging into your online account or by contacting our Customer Care Team.
Unless you decline to acquire default insurance cover or cancel it, the cost of the cover will be deducted from your account on a monthly basis.
You may not be eligible to receive an insurance benefit under Automatic Insurance cover as it is subject to a 'Pre-existing Medical Condition' exclusion. See the Member Guide for more information on Pre-existing Medical Condition.
Included in the insurance premiums is a 15% p.a. administration fee payable to the Member Administrator. We deduct any insurance costs from your account monthly in arrears.
We cannot continue to provide insurance cover to members whose accounts have not received a contribution or rollover for 16 or more months. If you wish to maintain insurance benefits regardless if a contribution has not been received within a 16 month period, please contact us to find out how to make an election to maintain coverage.
You should read the important information about insurance matters relevant to your cover before making a decision. Refer to Section 7 of the Member Guide available at www.raizinvest.com.au. The information relating to insurance may change between the time when you read this PDS and the day when you acquire this product.
How to open an account
You must open the account online through the Raiz App, available from the app store relevant to your device. As the Plan does not offer a MySuper product, an employer cannot open an account in the Plan for you. It is a condition of membership that you provide your TFN. You cannot be compelled to provide your TFN, but if you don't your application will not be accepted. When you submit the electronic superannuation application form you will also open an investment account in the Scheme.
If you change your mind after you apply to open an account and you have not exercised any right or power in relation to this product, you can cancel your account within 14 days from the end of the 5th day after the account is opened or you receive confirmation of the account's establishment (whichever is earlier). This is called your "cooling off" right. Upon exercising this right your investment amount will be refunded after making allowance for any investment fluctuations, fees, costs, taxes and insurance premiums, as permitted by law. In some cases, (such as cancellation of a pension account) the investment amount can only be refunded by being retained within an accumulation account in the Plan or by transfer to another superannuation fund (that is, by "cooling off" you will not necessarily be able to receive the investment amount in cash because the law sometimes requires that the investment amount is retained in the superannuation system until you satisfy a condition of release). You may not be able to exercise your "cooling off" rights if you have taken a payment (such as a pension payment) or exercised certain other rights in relation to your account.
We request personal information from you when you apply to become a member of Raiz Invest Super and from time to time in order to provide superannuation to you. If the requested information is not provided, we may not be able to process your application or provide Raiz Invest Super to you.
If you have a complaint relating to this product, contact the Complaints Officer at DIY Master Pty Ltd:
Phone: 1300 754 748
Address: PO Box 7540 GCMC QLD 9726
We will acknowledge your complaint within 14 days and we will endeavour to provide a response within 90 days, but generally we will provide a response a lot quicker. If we don't respond within 90 days or an issue has not been resolved to your satisfaction, you can lodge a complaint with the Australian Financial Complaints Authority (AFCA). Further details about how we manage complaints are contained in the Member Guide.
You should read the important information about cooling off (including restrictions applicable to refunds) and complaints handling before making a decision. Refer to Section 8 of the Member Guide available at www.raizinvest.com.au. or on request by phoning 1800 455 666. The information relating to cooling off and complaints handling may change between the time when you read this PDS and the day when acquire this product.
Raiz Invest Superannuation
01 June 2021
This Member Guide is issued by Diversa Trustees Limited as the Trustee of Raiz Invest Superannuation.
RSE Registration No R1070743
ABN 46 074 281 314
This Member Guide relates to accumulation available from the Raiz Invest Superannuation based on the terms and features described in the PDS and this Guide. The terms and features described in this Guide apply to each account you hold in the Raiz Invest Superannuation, unless specified otherwise.
The information in this Guide forms part of the information referenced in the PDS dated 1 June 2021 for Raiz Invest Superannuation. The PDS and Member Guide can be found on our website at www.raizinvest.com.au. You should read this Guide and the PDS before making a decision to acquire this product.
The information contained in this document is general information and does not take into account your particular objectives, your financial situation or needs. You should consider obtaining professional financial advice tailored to your personal circumstances before making an investment decision about Raiz Invest Superannuation.
The information in this Member Guide is up to date at the time of preparation, however, it is subject to change from time to time. The Trustee reserves the right to update information that is not materially adverse at any time. Updated information can be obtained by going to our website at www.raizinvest.com.au.
All parties named in the PDS and this Guide have consented to being named in the form and context in which they have been named and have not withdrawn their consent. Any statements in the PDS or this Guide that are attributable to or based on statements made by another person have been included with the consent of that person, which consent has not been withdrawn.
Raiz Invest Australia Limited will provide an online link to a digital copy of this PDS upon request and free of charge by emailing firstname.lastname@example.org. Raiz Invest Superannuation is a fully digital products, and by making an Application, members agree to receive communications and disclosures in relation to their account in digital form only.
Our contact details are:
Diversa Trustees Limited
(ABN 49 006 421 638) (AFSL 235153)
(RSE Licence No L0000635)
GPO BOX 3001
Melbourne VIC 3001
TELEPHONE: (03) 9097 2800
DIY MASTER PTY LTD
(ABN 41 123 035 245) (AFSL 312431)
PO BOX 7540
GOLD COAST MAIL CENTRE QLD 9726
Telephone: 1800 455 666
Raiz Invest Australia Limited
(ABN 26 604 402 815) (AFSL 434776 Corporate Representative)
Level 11, 2 Bulletin Place
Sydney NSW 2000
Telephone: 1300 754 748
how super works
Benefits of Investing with the Raiz Invest Superannuation
risks of super
how we invest your super
fees and costs
how super is taxed
insurance in your super
opening an account
How super works
Contribution rules in superannuation can be complex. The following section provides a brief overview of the contribution rules applicable to accumulation accounts in superannuation funds. Please refer to the ATO website at https://www.ato.gov.au/Individuals/Super/Growing-your-super/Adding-to-your-super for further information. When contributing to a superannuation fund, you should also consider any taxation implications.
The Raiz Invest Superannuation is not a MySuper registered product. As such it cannot be named as an employer default fund nor accept members nominated by an employer. The Raiz Invest Superannuation does not have any default investment options and members must make an investment choice (for more information about investment choice, see Section 4 of this Guide for details) as a condition of being accepted as a member of the Raiz Invest Superannuation.
who can contribute?
If you are accepted as a member of Raiz Invest Super, contributions can be made by or for you to an accumulation account either regularly or by occasional lump sums. Amounts can also be transferred from other regulated superannuation or rollover funds. Contributions may be made in specie at the discretion of the Trustee, that is, by way of a transfer of an asset or investment to your Account. In specie contributions are subject to the same contribution rules and tax rates applicable to any other contributions.
In addition, contributions may be made by you on behalf of your spouse to qualify for the spouse rebate. If you wish to make contributions for your spouse, your spouse must complete a separate membership application to open an accumulation account in the Raiz Invest Super. Your spouse may include your husband or wife or a person recognised as a spouse under relevant government legislation. It may include a de-facto spouse of the same or opposite sex.
Superannuation legislation prescribes the contributions that can be accepted by the Trustee, depending on your age and (in some circumstances) your work status.
We can accept a wide range of contributions, including the following:
If you are under the age of 67, we may accept member contributions from you. If you are aged between 67 to 75, we may accept member contributions subject to eligibility criteria as outlined in the table overleaf.
Note: We cannot accept member contributions if we do not hold your Tax File Number (TFN).
Employer contributions are generally paid as required by your employer's obligations under an industrial instrument or the Superannuation Guarantee (SG) legislation. You may agree with your employer that they contribute sums in excess of these obligations including via a salary sacrifice arrangement (if the industrial instrument or your employer allows) which involves contributions being made from your before-tax salary. You should consider the taxation and other implications prior to making a decision, and may wish to speak to a tax practitioner or financial adviser.
If you are aged under 67, we may accept any employer contributions made for you. If you are aged 67 or more, we may accept all mandated employer contributions (that is, a contribution that is compulsory because it is required by law or an industrial instrument). If you are aged 67 to 75, we may accept additional employer contributions provided that you are gainfully employed on at least a part-time basis.
Note: Limits apply to the amount of taxable contributions (including employer contributions) you can make (or that can be made for you) without incurring additional tax (see Section 6 of this Guide for details).
Contributions can generally be accepted by the Trustee in the following circumstances:
Rollovers, Transfers or other payments into the Division
You can also transfer superannuation benefits from another superannuation fund into Raiz Invest Super. Other contributions may also be made, for example, downsizer contributions, disability settlement amounts, and the proceeds from the sale of a small business. We recommend you seek advice from a financial adviser regarding these contributions.
Before deciding to consolidate your Super, please ensure you have considered any potential loss of existing insurance or other benefits you may have with your existing fund.
- you must make an after-tax personal contribution up to the non-concessional contribution cap for the relevant financial year (if you claim a tax deduction for your personal contribution you may not be entitled to a Government Co-contribution),
- have a Total Superannuation Balance^ that is less than the transfer balance cap in the relevant financial year ($1.6 million for the 2020/21 financial year),
- be in full-time, part-time or casual employment, or be self-employed,
- have at least 10% of your total income (assessable income and reportable fringe benefits) attributable to eligible employment, running a business, or a combination of both,
- be under 71 years of age,
- be a permanent resident of Australia,
- have lodged a tax return,
- have provided your TFN to the Trustee
At the end of the financial year in which you have made after-tax contributions, all you need to do is submit your usual income tax return. The ATO will work out any Government Co-contribution amount you are eligible to receive and forward it to your member's account in the Plan.
The maximum Government Co-contribution depends on your income. If your income is equal to or less than the lower income threshold ($39,837 for the 2020/21 income year) you can receive a Government Co-contribution up to the 'maximum entitlement'.
For every dollar that you earn above the lower income threshold, your maximum entitlement is reduced by 3.333 cents cutting out altogether once your income is at or above the higher income threshold ($54,837 for the 2020/21 income year).
The amount of your Government Co-contribution depends on the amount of non-concessional (after-tax) contributions you put into super and the 'matching rate' for the financial year you made the contribution. You can also find out how much you may be eligible for with the Super co-contribution calculator at moneysmart.gov.au.
To ensure that the Trustee is able to process your Government Co-contribution, your name, date of birth, address and TFN held by the Trustee must match the records held with the ATO. If there are any inconsistencies, the Trustee will be unable to accept your Government Co-contribution. Please ensure that your details are kept up to date. For further information, contact the ATO on 13 10 20 or contact the Administrator.
If you have more than one superannuation account, to ensure your Government Co-contribution is invested in your Redgum account, you must complete a Superannuation fund nomination form and return it to the ATO. Nomination forms are available from the ATO by calling 13 10 20 or visit ato.gov.au.
^Your total superannuation balance is the total value of your accumulation and retirement phase interests (including rollover amounts not yet included in those interests) across all of your superannuation accounts, reduced by the sum of any structured settlement contributions.
From 1 July 2018, if you are 65 years old or older and meet the eligibility requirements, you may be able to make a downsizer contribution of up to $300,000 from the proceeds of selling your home. The downsizer contribution is neither a concessional nor non-concessional contribution and will not count towards your contributions caps. The downsizer contribution can still be made if you have a total super balance greater than $1.6 million, but it will count towards your transfer balance cap, once you move your superannuation savings into retirement phase.
You can only make downsizing contributions following the sale of one home; it cannot be accessed again after the sale of a second or subsequent home. Downsizer contributions are not tax deductible and will be taken into account in determining your eligibility for the age pension.
To be eligible to take advantage of the downsizer contribution:
- you must at least 65 years old at the time you make a downsizer contribution;
- the amount you are contributing is from the proceeds of selling your home where the contract of sale was exchanged on or after 1 July 2018;
- your home was owned by you or your spouse for 10 years or more prior to the sale;
- your home is in Australia and is not a caravan, houseboat or other mobile home;
- the proceeds (capital gain or loss) from the sale of the home are either exempt or partially exempt from capital gains tax (CGT) under the main residence exemption, or would be (where the home was acquired before 20 September 1985);
- you must provide the trustee with a downsizer contribution form either before or at the time of making your downsizer contribution;
- you must make your downsizer contribution within 90 days of receiving the proceeds of sale, which is usually the date of settlement;
- you must not have previously made a downsizer contribution to your super from the sale of another home.
Low Income Superannuation Tax Offset (LISTO)
The LISTO provides a super contribution payment between a minimum of $10 and maximum of $500 (not indexed) annually for low income earners. The payment amount will be equivalent to 15% of the total concessional contributions (including employer contributions) made by or for individuals with an adjusted taxable income that does not exceed $37,000.
For further information, including information about the eligibility criteria for the LISTO, refer to www.ato.gov.au.
RESTRICTIONS ON WHEN YOU CAN ACCESS YOUR BENEFITS
Superannuation is a long-term investment. The Government has placed restrictions on when you can access your superannuation. In general, Members cannot access their benefits until they have reached age 65 or have reached their Preservation Age and have permanently retired from the workforce.
Preservation is a legislative term that means that a superannuation trustee must keep your superannuation benefits in the superannuation or rollover fund until your permanent retirement from the workforce after attaining your Preservation Age or you satisfy some other condition of release (see below).
Preserved benefits cannot be paid to a Member (subject to some exceptions which are set out below), but benefits can be transferred to another fund (refer to the Portability of Benefits section below). The Preservation Age is being gradually extended to age 60 based on your date of birth, as set out in the following table:
Under current legislation, if you are an Australian citizen, New Zealand citizen or permanent resident of Australia, preserved benefits can be released if one of the following conditions is met:
you cease employment with an employer sponsor and your account balance is less than $200;
you leave employment after age 60;
you turn age 65;
you reach your Preservation Age and take your benefit as a non-commutable income stream (often referred to as a ‘transition to retirement' pension);
you permanently retire from the workforce after attaining your Preservation Age;
you become permanently incapacitated;
you experience severe financial hardship; or
on compassionate grounds acceptable to the Department of Human Services.
Temporary residents can only access preserved benefits in more limited circumstances (for example, death or permanent incapacity). Temporary residents may also have the option of taking their superannuation benefits with them when their visa has expired, and they have permanently departed Australia. In some circumstances, the superannuation of temporary residents may be treated as unclaimed money and must be transferred by the Trustee to the ATO.
RELEASE OF SUPERANNUATION DUE TO TERMINAL ILLNESS
You can access your super early if you are diagnosed with a terminal medical condition. You must provide two medical practitioner certificates (including a specialist in the particular field) that you are likely to die within 24 months from the date of the certification to gain unrestricted tax-free access to your superannuation balance. It should be noted that the terminal illness definitions in the insurance policy may not align with the definitions in the SIS regulations for a condition of release.
PORTABILITY OF BENEFITS
You can transfer your benefits to another regulated fund at any time (sometimes referred to as ‘portability').
Upon receipt of all necessary information, the transfer of benefits will be made as soon as practicable, and no later than the timeframe required by law.
Requests to rollover benefits to another superannuation fund must be in writing and proof of identity requirements may apply. Additional information may be required in the case of a request to transfer benefits to a self-managed superannuation fund.
Benefits of Investing with the Raiz Invest Superannuation
TYPE OF BENEFITS
Subject to Government payment restrictions, the following benefits are payable from an accumulation account in the Raiz Invest Superannuation:
a retirement benefit - on retiring permanently from the workforce on or after your Preservation Age while a Member of the Raiz Invest Superannuation (see Section 1 of this Guide for details on Preservation Age). The retirement benefit is the balance of your account at the time you retire;
a death benefit – on death while a Member of the Raiz Invest Superannuation. The death benefit is your account balance plus any insurance benefit payable and will be distributed among your dependents or estate as determined by the Trustee having regard to any nomination you have made (see below for information about nominating beneficiaries);
a permanent incapacity benefit - if you become permanently incapacitated as defined in superannuation legislation while a member of the Raiz Invest Superannuation. The permanent incapacity benefit is your account balance plus any insurance benefit payable.
Benefits may also be released, in cash, in other circumstances as permitted by superannuation legislation (example, financial hardship).
A Member's benefit is calculated as the accumulated value of the Member's account, plus any amount paid to the Trustee by the Insurer in respect of insurance benefits. The payment of all benefits is subject to the Trust Deed and, where relevant, the terms and conditions of the insurance policy. Benefits can only be paid to a Member where permitted under superannuation legislation. Acceptance of a claim by the Insurer does not automatically mean that the amount can be paid to the Member by the Trustee. Insurance benefits cease in certain circumstances including if there are insufficient monies in a Member's account to meet insurance premiums. See Section 7 of this Guide for more information about when insurance benefits are payable.
The value (or amount) of a Member's account balance (or benefit) is based on the following (where applicable):
insurance benefit premiums paid;
government charges or taxes paid or payable; and
fees or costs paid or payable.
The Trustee may adjust the benefits of a Member to the extent permitted by the relevant law and Trust Deed (for example, adjustments arising from the application of the taxation laws).
PAYMENT OF BENEFITS
Benefits may be paid as a lump sum or pension, by opening a pension account with another Superannuation Fund (see Section 2 of this Guide for more information about commencing a pension). The payment of benefits in the form of a pension is subject to rules in superannuation legislation, which are summarised below.
Any payment in relation to any superannuation interest you have in the Raiz Invest Superannuation must be made on a proportionate basis from your taxable and exempt (tax-free) components. If you have both an accumulation account and pension account, the pension account is treated as a separate interest for this purpose. For more information about the taxable and exempt components, see Section 6 of this Guide.
The Trustee is required to carry out proof of identity procedures before paying a lump sum benefit to a Member in cash or commencing to pay a pension. The requirements arise under the Government's Anti-Money Laundering and Counter-Terrorism Financing legislation. If any further information is required from you to enable a benefit to be made, you will be notified.
Lump sum benefits (including lump sum death benefits from a pension account) may be paid in specie at the discretion of the Trustee, that is, by way of a transfer of underlying assets to the relevant Member.
Lump sum death benefits (including lump sum death benefits from a pension account) may be paid to a Member's dependent(s) and/or the estate as determined by the Trustee:
having regard to the Member's wishes (if the Member has made a non-binding nomination of beneficiaries), or;
in accordance with the Member's wishes (if the Member has made a valid binding nomination).
DEATH BENEFIT NOMINATIONS
You can choose how the Trustee pays a lump sum death benefit in the event of your death while a Member. You may nominate a dependent, a legal representative or a combination of both. You can either make a binding nomination or a non-binding nomination for an account (accumulation or pension). Alternatively, Pension members can nominate a continuation of pension payments from their pension account to a reversionary beneficiary, instead of a lump sum death benefit.
If you do not make any nomination in respect of an account, the death benefit will be paid to your estate. You will be treated as not having made a binding nomination if you have made an invalid binding nomination. An invalid binding nomination will not be treated as a non-binding nomination.
If you wish to make a nomination and have more than one account in the Raiz Invest Superannuation that nomination will apply to all of the accounts unless you specifically advised the Administrator otherwise.
If you make a binding nomination, you instruct the Trustee as to whom you want your benefit to be paid in the event of your death. Provided your nomination is valid, it cannot be overridden by the Trustee. The nomination is valid for three years from the date on which it is signed. You must renew or confirm your nomination within this three-year period for it to remain valid. If any beneficiary nominated is no longer your dependent (see below) or legal personal representative at the date of death, they will not be entitled to receive a share of your benefit and their share may be paid to the remaining nominees based on their proportional entitlement to your benefit.
If the binding nomination is or becomes invalid, it will have no effect (it will not be treated as a non-binding nomination).
If you make a non-binding nomination, the Trustee has the final say as to who should receive the death benefit. The Trustee may consider your nomination but is not bound to follow it. The Trustee has the discretion to pay to any of your dependents or to your legal personal representative(s) or a combination of both.
It is important to note that:
a non-binding nomination will not override a current, valid binding nomination, and
if you have a current binding nomination you must revoke it before a non-binding nomination can be considered.
To nominate a beneficiary on a binding or non-binding basis, please complete the Nomination of Beneficiaries Form available from www.raizinvest.com.au or Raiz Invest at the contact details on the front cover of this Guide.
Meaning of ‘dependent'
For superannuation purposes, a dependant includes a spouse, child (of any age) including child of a spouse, any person financially dependent on you at the time of your death and any person with whom you had an interdependency relationship as defined by the Trust Deed and superannuation legislation.
In determining whether two people had an interdependency relationship, the Trustee must consider factors stipulated in the Trust Deed and superannuation legislation. If you would like further information about this, contact Raiz Invest.
Your nomination may have implications for the taxation of death benefits (see the Section 6 of this Guide for details), and it's important to note that dependents are defined differently for taxation purposes. For more information, refer to the ATO at ato.gov.au/Individuals/Super/In-detail/Withdrawing-and-using-your-super/Withdrawing-your-super-and-paying-tax/.
PAYMENT OF UNCLAIMED MONIES TO THE ATO
The ATO has established a lost member and unclaimed money register, containing details of the superannuation accounts for members that funds cannot locate and certain members for whom contributions have ceased. All superannuation funds must provide details of lost members and transfer their accounts to the ATO twice a year.
In certain circumstances prescribed under superannuation legislation, superannuation benefits must be treated as unclaimed money and reported and paid to the ATO.
These circumstances include:
An account balance under $6,000 held by an inactive member. You are ‘inactive' if you have not, in the past 16 months, made, or had a contribution made on your behalf, to your Future Super account, or switched investment options, or updated your non-lapsing binding death benefit nomination, or made a change to your insurance cover, or have otherwise not opted out of the transfer.
An account balance under $6,000 held by an uncontactable member. You are ‘uncontactable' if we can't contact you by mail or email at the address(es) we hold for you AND either you haven't been in contact with us or we have not received any contributions from you or on your behalf in the last 12 months.
A former temporary resident's superannuation benefit must also be paid to the ATO as unclaimed money where it has been at least six months since they have departed Australia and their visa has lapsed AND the ATO issues a notice to the Fund requesting the benefit be paid to the ATO .
If this happens, you have a right, under the Government's legislation, to claim your super money directly from the ATO (subject to the applicable tax rates).
Note: If you are a former temporary resident whose superannuation benefits is transferred to the ATO as unclaimed money, you will not be notified of this or receive an exit statement after the transfers occurs. We will rely on relief provided by the Australian Securities & Investments Commission (ASIC) Class Order [CO 09/437] which says, in effect, that superannuation trustees are not obliged to meet certain disclosure requirements in relation to non-residents that have ceased to hold an interest in the fund as a result of the payment of unclaimed superannuation to the Commissioner of Taxation. If you require any further information, contact us on 1300 658 422.
Further information about unclaimed money can be obtained from the ATO website (www.ato.gov.au).
Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019The Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019 (“the Act”) comes into effect from 1 July 2019 and includes the following key changes to the superannuation industry:
MANAGING YOUR ACCOUNT
Raiz Invest Superannuation is a fully digital product, and by making an Application, members agree to receive communications and disclosures in relation to their account in digital form only. Any instructions for an account in the Raiz Invest Superannuation must come through the Raiz Invest App; email or in writing.
There are a number of forms to enable you to provide us with various instructions relating to your investments and membership in the Raiz Invest Superannuation in the Raiz Invest App. In some cases, instructions must be provided using a designated form or in some other written form. Some instructions may also be accepted over the telephone. The following terms and conditions apply to the receipt of instructions.
Use of telephone, or other electronic communication
The Trustee and relevant service providers have procedures in place to reduce the risk of fraud but cannot guarantee that someone trying to impersonate you will not contact us about your account in the Raiz Invest Superannuation and change your personal details or make a withdrawal. The Trustee may dispute liability for any losses which happen because it has acted on phone, electronic communication or other written instructions (including instructions through the App or email) that you have not authorised, but which appear to have been authorised by you. In sending any electronic instruction, you release the Trustee and the Raiz Invest Superannuation's service providers from, and indemnify them against, all losses and liabilities arising as a result of processing an instruction that includes your Member Account number.
Information received by electronic means
If the details that the Trustee or its service providers receives by electronic means (including via the App) do not match the details that it has previously received, then it may not proceed with the request.
The Trustee or service provider will not process a request if the instructions it receives are incomplete or appear to contain errors. This is to ensure that the transaction it performs is exactly what you were requesting.
Apart from these terms and conditions, the Trustee and service providers may have other requirements for receiving information from you from time to time. You will be notified if this affects you or your request.
In this section, ‘we' means Diversa Trustees Limited ABN 49 006 421 638 (‘the Trustee') and DIY Master Pty Ltd ABN 41 123 035 245 and Raiz Invest Australia Limited ABN 26 604 402 815 (‘the Scheme Administrator').
Why do we collect your personal information?
We collect your personal information for the following reasons, to:
Administer products and services and manage our relationship with you, including to establish and maintain member records, and provide regular statements, reports and communications;
Provide products and services to you;
Process transactions, applications, claims, requests and queries in relation to our products and services;
Identify you in accordance with the Anti-Money Laundering & Counter Terrorism Financing Act and to protect against fraud;
Let you know about other products or services that we may offer or that the Raiz Invest Superannuation's promoter may offer; and
Comply with applicable laws and regulations.
If we do not collect your personal information, we may not be able to process your applications, provide you with services relating to the Raiz Invest Superannuation or administer your interest in the Raiz Invest Superannuation.
Who do we disclose your personal information to?
We may disclose your personal information to third parties including:
Outsourced service providers including an administrator or promoter of the Raiz Invest Superannuation;
Mail houses and printing companies;
Specialist service providers, such as actuaries, auditors and lawyers;
Custodians and brokers;
Your financial adviser, your attorney appointed under a power of attorney, or your appointed representative;
Other consultants; and
Government authorities as required or desirable in administering and conducting the business of the Raiz Invest Superannuation, including in complying with relevant regulatory or legal requirements. It is possible that this may also include a Government authority that is overseas.
If you have any queries or complaints about your privacy, please contact:
Diversa Trustees Limited
Level 7, 287 Collins Street
Melbourne VIC 3001
Raiz Invest Australia Limited
PO Box R380
Royal Exchange NSW 1225
Risks of super
Note: refer to Section 4 for definitions which may be relevant to the descriptions of risks below.
There are many risk factors (outlined below) that can impact the performance of an investment. All investments carry risk. Different strategies may carry different levels of risk depending on the assets that make up the strategy. Generally, assets with the highest long-term returns (such as shares and property) also carry the highest level of short-term risk. The major risks that you should be aware of when investing through the Raiz Invest Superannuation include but are not limited to the risks outlined below. The relevance of these risks will depend on the investments selected (for example, currency risk will be a greater consideration for an investment in international shares) and your personal circumstances. You should consult your Adviser for information about risks that has regard to your objectives, financial situation and needs. For example, your attitude to risk may be different depending on whether you are nearing or in retirement and have a pension account.
Also consider the product disclosure statement or other disclosure document for any investment you may be considering including product disclosures for approved Managed Funds, available from your Financial Adviser or www.diymaster.com.au. Before investing you should consider the level of risk involved with a particular investment and whether the potential returns justify that risk.
A portfolio may hold investments the price of which is significantly determined by the price of commodities. Commodity prices can fluctuate significantly over short periods of time. Falls in commodity prices may lead to loss in value of the investment.
The fewer the number of holdings in a portfolio the higher the concentration risk. With a more concentrated portfolio there is a greater risk that poor performance by one or a group of investments can significantly affect the performance of the whole portfolio.
Hybrid or other convertible securities that convert into ordinary shares may not be readily converted into an equivalent value of cash.
Certain investments rely on counterparties such as brokers, lenders, issuers and clearing exchanges and these parties may be unable to meet their obligations.
Credit risk is the risk that the issuer of a debt security is unable to satisfy its obligation under the terms attaching to the security. These obligations include payment of interest or a dividend or payment or the repayment on maturity. A decline in credit quality of the issuer of a security could result in a capital loss being incurred on those securities.
Where a portfolio holds international investments priced in a foreign currency, movements in the Australian dollar against that foreign currency may negatively impact on its value. Currency risk may be managed through use of hedging techniques. You should refer to the relevant product disclosure statement applicable to an investment to determine whether this risk is managed through use of hedging techniques.
Where a specific investment derives its value from another security through the use of futures, options, swaps and other derivatives, there is a risk that the value of the derivative fails to move in line with the underlying asset and the potential illiquidity of the derivative.
A downturn in the general economic conditions in Australia or globally may adversely affect the performance of an investment portfolio.
Emerging Market Risk
Emerging markets are financial markets in countries with developing economies. The financial markets in these countries are immature compared to those of the world's major financial centres. These markets may provide potentially high returns but are subject to high risk including market, regulatory, liquidity and credit risk.
An investment in an Exchange Traded Fund (ETF) may carry a default risk, also known as a credit or counterparty risk, which may emanate from a default or inability of another party to meet financial commitments e.g. if an investor buys a corporate bond ETF and a fund component files for bankruptcy the investor may incur losses because the ETF may lose value or become worthless.
Industry risk is the risk that a particular industry may perform poorly. This can mean that the assets held in those industries may fall in value.
The increasing price of goods and services may exceed the rate at which your investment Invests, thereby reducing the value of your investment in real terms.
Interest Rate Risk
Changes in interest rates will affect the value of interest bearing securities and shares in some companies. Rises in interest rates may lead to loss in capital value and falls in interest rates may lead to rises in value.
Liquidity risk arises when investments are made in securities which are traded on an infrequent basis. If an investment is exposed to less liquid securities, it may be difficult to dispose of the security at a fair price, at particular times. Other types of investments (for example, managed funds) may also become illiquid. If an investment becomes illiquid or subject to restrictions for any reason, the Trustee reserves the right to take whatever steps it considers necessary in relation to that investment including delaying the payment of benefits.
Underlying investment managers may not anticipate market movements or execute investment strategies effectively. Changes in staff may also have an impact on the performance of an investment such as a Managed Fund.
Market risk is the risk associated with being exposed to a particular investment market, such as the Australian share market or income securities market. Current and anticipated economic conditions, political events, general movements in the Australian and international stock markets, investor sentiment, interest rates and exchange rates are all factors that may influence (positively or negatively) the value of securities and their investment returns.
This is the risk that a government or regulator may introduce regulatory or tax changes that affect the value of securities in which the Raiz Invest Superannuation invests. The Raiz Invest Superannuation may be affected by changes in legislation or government policy in Australia or in other countries.
Specific Security Risk
An individual company's shares and interest-bearing securities may change as a result of factors such as changes in management, market sentiment or company/industry specific events.
Trades and transactions may not always occur exactly as Raiz Invest Superannuation because of external factors, e.g. as a result of markets being closed, illiquidity, a trade or transaction being subsequently cancelled or disputed or failures in external transaction systems or processes.
Third Party Risk
The Raiz Invest Superannuation uses information and services provided by third party service providers. Procedures are in place to address risks associated with outsourcing, such as having comprehensive service agreements with the service providers. If a service provider advises of an error, it is corrected and if material, it will generally be communicated to you.
Systems and Technology Risk
The Raiz Invest Superannuation relies on the integrity and reliability of the portfolio trading and administration systems used to manage your account. To minimise potential risks, established systems operated by experienced system providers are used. The system providers must have back-up arrangements and Business Continuity Raiz Invest Superannuation.
In the event that the systems fail, there may be delays in processing transactions or in accessing your investment capital and investment returns may differ from those that would have been achieved.
Because your Raiz Invest Superannuation is an online financial product, which relies on computers, information technology (IT) networks and the internet, it is subject to inherent IT risks including (but not limited to) software bugs, computer viruses and malware, unauthorised interference with data, loss of data, unavailability or unreliability of the internet, computer malfunction, and cyber hacking resulting in the theft of data. The Raiz App may be unavailable from time to time. Your data is stored on secured servers in Australia. You will need to consider the potential for disruption or other difficulties when planning to use your Raiz Invest Superannuation account.
WHAT IS YOUR INVESTMENT RISK PROFILE?
The key to managing risk is to be comfortable with the highs and lows your investments may experience over a defined period of time.
Generally, you trade off higher returns for investment security. The higher the potential return, the greater the risk of loss over the short term. Historically, Investing in assets such as shares and property have generated higher returns than investments in cash or bonds over the longer term. However, these assets are also more volatile, and as a result, carry more risk.
Risk means different things to different people. Even the simplest investment has inherent risk. Finding the balance between the amount of risk you are prepared to take with the return you want (your ‘risk profile') is the challenge all investors face.
Each of the investment options available in the Scheme on the Approved List carry different investment risks depending on the nature of the underlying investments (including asset classes invested in and underlying fund managers or investments used).
A ‘risk profile' or ‘risk level' (including the Risk Band, Risk label and the likelihood of a negative return over a specified period) is shown for the Raiz Invest Superannuation's investment options in section 5 of this Guide based on the Standard Risk Measure. The higher the Risk Band number, the higher the risk. The Risk label summarises the level of risk (e.g. Low, medium or high).
When determining the risk level of each of the investment options, the Trustee has adopted the Standard Risk Measure approach.
The Standard Risk Measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period.
The Standard Risk Measure is not a complete assessment of all forms of investment risk, for 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. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. You should ensure you are comfortable with the risks and potential losses associated with your chosen investment options.
Members should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option/s.
The Standard Risk Measure is grouped into the following bands:
When making any decision about investing in the Raiz Invest Superannuation, including selecting or changing your investments, you should consult an appropriately qualified financial adviser for advice about how these risks may affect you having regard to your personal circumstances. You should also consider the information about risks in the product disclosure statement (or other disclosure document) for any investment or financial product you may be considering.
Your investment is not guaranteed and the value of your investment can rise or fall. The PDS sets out other general risks when investing.
How we invest your money
The Raiz Invest Superannuation allows members access to a range of investment options via its investment in the Raiz Invest Australia Fund ARSN 607 533 002 (the Scheme) a registered managed investment scheme.
The Raiz Investment Account is invested into a mix of ETFs quoted on the ASX in accordance with one of six different Portfolios. Raiz interacts with its users via software application developed by Raiz Invest Inc and modified for use in Australia by Raiz Australia. The Raiz software is a full solution system, performing the register, administration, operation, AML verification, investor communication and fund management functions. In addition, the software communicates to the App to allow the investment performance to be displayed to the member.
The Investment Committee constructs the Portfolios using strategies based on modern portfolio theory developed by Dr Harry Markowitz, the Nobel Prize winning economist and founder of modern portfolio theory. Raiz specifies target allocations to each of the ETFs to give each Portfolio the required exposure to equity and fixed-income assets (Target Allocations).
Your investment in the Scheme is held by the Trustee.
Your investment in the Scheme is covered by the Scheme PDS which is available from https://raizinvest.com.au. You should read this carefully before deciding to become a member of Raiz Invest Superannuation.
SWITCHING INVESTMENT OPTIONS
You can switch investment options at any time.
There will be no switching fee for switching investments. However, transactional or operational costs may apply, associated with the purchase and/or disposal of investments or assets. For more information about fees and costs, see Section 5.
Investment instructions received after 9:00am will be actioned the following business day.
You select the investment options that make up your Portfolio for any account you hold in the Raiz Invest Superannuation.
THE SCHEME INVESTMENT OPTIONS
The Raiz Invest Superannuation includes a number of Investment Options for you to select from. These are summarised below:
INVESTMENT OPTIONS & OBJECTIVES
Further information about each of the investment options is detailed in the tables below:
Valuing your investment portfolio
Your investment portfolio (which forms the basis for determining your account balance) is calculated as the sum of the value of your investments. The value of your investments is based on information from third parties including prices provided by the ASX and ASX-Listed Securities held (as applicable to your account). Prices are generally updated daily (however there may be times when updated prices cannot be provided) and you can check the value of your investment portfolio online at any time.
Calculating investment returns
The annual return for each Member is equal to the gross income generated by the underlying assets or investments of your account less any relevant fees, costs and taxes during each financial year. For more information about the fees and costs, see Section 4 of this Guide.
Dividends, distributions and interest earnings are reinvested in the investment option on the day that they are received.
Any income, relevant fees, costs and taxes are used to update account balances for Members who leave the Raiz Invest Superannuation or close an account during the financial year.
The tax benefit for any un-recouped CGT losses will not be paid to Members who leave the Raiz Invest Superannuation or close an account. Any subsequent recovery of these CGT losses will be applied to the Raiz Invest Superannuation expenses in the year of the recoupment.
The investment returns can be positive or negative.
Allocation and redemption of investments
The allocation (acquisition) and redemption of investments may depend on unit pricing or other processing arrangements applicable to underlying investments.
Switches or withdrawal transactions will be processed after the redemption of the underlying investments and based on the realised earnings (less relevant fees, costs and taxes) as soon as possible after the date the Member Administrator receives the instructions.
The Trustee reserves the right to delay the payment of benefits (in respect of switches or withdrawal payments) until sufficient redemption monies are available. The Trustee will make reasonable endeavours to process payment requests within any timeframes stipulated under the law.
Labour standards or environmental, social or ethical considerations
The Trustee does not have regard to labour standards or environmental, social or ethical considerations when investing in, retaining or realising investments.
Use of financial derivatives
Derivatives are financial contracts such as futures, swaps and options. The Trustee does not enter into any derivative contracts on its own account. However, external managers may use derivative instruments and hedging procedures to protect the investment from adverse movements in the investment markets, but not for “gearing” the investment (“gearing” is a measure of borrowing against assets or borrowing to fund investments).
Neither the Trustee, its service providers and/or any underlying investment managers or product issuers or any other company associated with the management or promotion of the Raiz Invest Superannuation guarantees the capital or performance of any investments accessible from the Raiz Invest Superannuation or your Portfolio.
Also, please note that:
An account in the Raiz Invest Superannuation is subject to investment and other risks. This could involve delays in repayment, loss of income or capital invested, and
the Trustee may amend the terms and conditions of the Raiz Invest Superannuation subject to its ability to do so under the governing rules and superannuation law.
Fees and costs
This Guide shows fees and other costs that you may be charged in relation to an account in the Raiz Invest Superannuation. These fees and costs may be deducted from your account balance, from the returns on your investment or from the assets as a whole. The fees deducted from an accumulation account may be less because of the impact of any tax deductions that are passed on to relevant members.
The Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019 (“the Act”) came into effect from 1 July 2019 and limits total administration and investment fees and indirect costs to be capped at 3% of fund balance (as calculated at the end of the fund year) for accounts with a balance below $6,000.
For more information about Taxation, see Section 6 of this Guide and for insurance costs see Section 7 of this Guide.
You should read all the information about fees and costs because it is important to understand their impact on your investment.
Fees and costs for investments are explained below in this Guide, and in the Approved List.
Important: other fees and costs may apply depending on how you invest, including the costs of any underlying investments (indirect costs) that are included in the Investment Option in which you invest, buy-sell spreads for underlying managed funds, activity fees, advice fees relating to adviser services provided to you and insurance fees.
INVESTMENT OPTION INDIRECT COST RATIOS
For information about other fees and costs refer to ‘Additional Explanation of Fees and Costs' in Section 5 of the Member Guide.
All fees quoted are inclusive of GST. Reduced Input Tax Credits (RITC) are not refunded but will be applied to the Operational Risk Reserve (ORR) for the Raiz Invest Superannuation of the DIY Master Plan.
ADDITIONAL EXPLANATION RAIZ INVEST SUPERANNUATION OF FEES AND COSTS
A fee is an activity fee if:
the fee relates to costs incurred by the Trustee of the superannuation entity that are directly related to an activity of the Trustees;
that is engaged in at the request, or with the consent, of a member; or
that relates to a member and is required by law; and
those costs are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee, an exit fee, an advice fee or an insurance fee.
An administration fee is a fee that relates to the administration or operation of the superannuation entity and includes costs that relate to that administration or operation, other than:
borrowing costs; and
indirect costs that are not paid out of the superannuation entity that the Trustee has elected in writing will be treated as indirect costs and not fees, incurred by the Trustee of the entity or in an interposed vehicle or derivative financial product; and
costs that are not otherwise charged as an investment fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.
A fee is an advice fee if:
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;
a trustee of the entity; or
another person acting as an employee of, or under an arrangement with, the trustee of the entity; and
those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an activity fee or an insurance fee.
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.
Indirect cost ratio
The indirect cost ratio (ICR), for an option offered by a superannuation entity, is the ratio of the total of the indirect costs for the MySuper product or investment option, to the total average net assets of the superannuation entity attributed to the investment option.
Note: A fee deducted from a member's account or paid out of the superannuation entity is not an indirect cost.
An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes:
fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and
costs that relate to the investment of assets of the entity, other than:
borrowing costs; and
indirect costs that are not paid out of the superannuation entity that the trustee has elected in writing will be treated as indirect costs and not fees, incurred by the trustee of the entity or in an interposed vehicle or derivative financial product; and
costs that are otherwise charged as an administration fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.
A switching fee for a superannuation product other than a MySuper product, is a fee to recover the costs of switching all or part of a member's interest in the superannuation entity from one investment option or product in the entity to another.
The Scheme Fee (in total) will appear on your Scheme cash transaction report as a Scheme.
The Scheme Fee is calculated on the daily average investment portfolio balance invested in each Investment Option and deducted from your account monthly in arrears.
The administration fee (in total) will appear on your Scheme cash transaction report as an Administration Fee.
The Administration Fee is calculated on the daily average account balance and deducted from your account monthly in arrears.
The Administration Fees also include an estimated amount of 0.01% in respect of cost recovery for certain expenses. Government Charges and Statutory Levies, including the APRA annual levy, raised by any government or authority on the assets of the Raiz Invest Superannuation, will be included in the expense recovery. If the fees and costs shown in this Guide are insufficient to meet the actual expenses in relation to the Raiz Invest Superannuation, any shortfall may be included in the expense recovery pursuant to the Trustee's right to be indemnified from Raiz Invest Superannuation assets for expenses or liabilities.
A fee is an insurance fee if:
the fee relates directly to either or both of the following:
insurance premiums paid by the trustee, or the trustees, of a superannuation entity in relation to a member or members of the entity;
costs incurred by the trustee, or the trustees, of a superannuation entity in relation to the provision of insurance for a member or members of the entity; and
the fee does not relate to any part of a premium paid or cost incurred in relation to a life policy or a contract of insurance that relates to a benefit to the member that is based on the performance of an investment rather than the realisation of a risk; and
the premiums and costs to which the fee relates are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an advice fee.
A buy-sell spread may apply and taken into account in the unit price of the underlying managed fund at the time of the buy or sell.
The following transaction fees/changes may apply in the management of your investment portfolio.
CHANGES TO fees OR costs
The Trustee may, without prior written notice to Members, increase any dollar-based fees (family law related fees and transaction costs) in line with movements in the Average Weekly Ordinary Time Earnings (AWOTE). If the movement in AWOTE is negative, the charge from the previous year shall remain unchanged.
Notification of any material increases in fees or costs shown in this Guide (other than government charges) will generally be provided to you at least 30 days in advance (where required under the law).
Any estimated fees may vary from time to time (depending on actual expenses incurred).
Please note that the Trustee reserves the right to change the amount of fees without Member consent.
The above fees and costs are inclusive of GST.
Any tax deductions available to the Raiz Invest Superannuation in respect of insurance premiums, fees and costs deducted directly from accounts are credited to accumulation accounts, where relevant. The benefit of any tax deductions relating to indirect fees and costs are credited to the provision held for expense recoveries and are used to offset expenses. The above fees and costs do not include the impact of tax deductions on accumulation accounts.
For more information about other taxes applicable to superannuation, see Section 6 of this Guide.
OPERATIONAL RISK FINANCIAL RESERVE (ORFR)
As part of the Stronger Super reforms, all superannuation funds are now required to establish and maintain an Operational Risk Financial Reserve (ORFR) to specifically cover potential losses arising from operational risks that may affect the Funds' business operations. An operational risk is the risk of a loss resulting from inadequate or failed internal processes, people and systems, or from external events. The ORR may be drawn upon to assist in compensating members or the Fund in the event of an operational risk occurring.
The ORFR will be maintained in line with the Raiz Invest Superannuation's ORR, however if there are insufficient funds to maintain the ORFR, additional funds may be allocated from the expense reserve or from additional one-off fee deductions from member's accounts or via trustee capital.
How super is taxed
Taxation of superannuation and the below section provides only a brief summary, current as of the date of issue, of the general tax rules that apply to this product.
This taxation summary does not have regard to your personal circumstances.
We recommend you seek appropriately qualified advice about how these rules impact you.
Further information, including information about Government changes that may occur from time to time, is available from www.ato.gov.au.
TAX UPON ROLLOVERS/TRANSFERS INTO THE RAIZ INVEST SUPERANNUATION
Generally, amounts transferred from within the superannuation system are not subject to tax unless the amount contains an untaxed element. For example, amounts transferred from certain public-sector schemes may contain an untaxed element. The income tax liability on any untaxed element will be recognised on joining the Raiz Invest Superannuation and deducted from your account when payable to the Australian Taxation Office.
For the tax treatment of other amounts transferred into the Raiz Invest Superannuation (e.g. proceeds from the sale of a small business, permanent disability settlement amounts), we recommend you consult a Financial Adviser.
TAX ON INVESTMENT INCOME
The investment income of complying superannuation funds is taxed at a maximum rate of 15% p.a., which is lower than the marginal tax rate of most individuals. This rate can be reduced by a fund through available tax deductions, capital gains tax related offsets and other tax offsets such as franked dividends.
TAX ON CONTRIBUTIONS
Contributions are classified as follows:
Non-concessional contributions. This includes personal after-tax contributions and are not taxed in your super fund; and
Concessional contributions. This includes employer contributions, including salary sacrifice contributions, and any personal contributions for which a tax deduction is claimed. These contributions are subject to 15% contribution tax.
There are limits that apply to non-concessional and concessional contributions. Concessional contributions are generally taxed at a maximum rate of 15%. A higher rate of tax may apply if contributions in excess of the concessional contribution limits are made, the Trustee does not hold your TFN or the concessional contributions are made in respect of an individual whose ‘income' for this purpose exceeds $250,000. Income for this purpose includes taxable income, total reportable fringe benefits, after tax amounts for financial investment and rental property losses, family trust distributions and concessional superannuation contributions up to the concessional contributions limit. If your income is above $250,000, additional tax of 15% (in addition to the rate of 15% that ordinarily applies to a fund) will be levied on you personally by the ATO although the liability may be paid from funds sourced from a superannuation fund (i.e. similarly to tax on excess concessional contributions).
Subject to any rebate of contributions tax for low income earners and higher contributions tax for high income earners, the concessional tax rate of 15% ordinarily applies to concessional contributions (for example, employer contributions, deductible Member contributions) up to the concessional contributions limit applicable to a person for a financial year.
The concessional contributions limit for the 2020/2021 income year is $25,000 (increases to $27,500 from 1 July 2021). The concessional contributions limit is subject to indexation in line with Average Weekly Ordinary Time Earnings.
Individuals with superannuation balances of less than $500,000 will be able to access their unused concessional contribution limit space to make additional concessional (before-tax) contributions. Individuals will be able to access their unused concessional contribution cap space on a rolling basis for the preceding period of 5 years. Amounts carried forward that have not been used after 5 years will expire. Only unused amounts accrued from 1 July 2018 can be carried forward. Individuals will be able to use their accrued unused concessional contribution limit to make catch-up concessional contributions from 1 July 2019.
Contributions in excess of the applicable limit will ordinarily incur additional tax at the member's marginal tax rate (less a 15% tax offset) plus a charge payable personally by the individual Member. The Member may choose to release up to 85% of their excess concessional contributions which would be paid by us to the ATO after receiving a release authority from the ATO. The excess concessional contributions (if retained in the fund) will also count towards your non-concessional contributions limit which in some circumstances may cause you to exceed that limit as well resulting in significant penalty tax becoming payable. Refer to the ATO's website or speak to your Adviser or your taxation adviser if you have excess concessional contributions, to determine what options are available to you.
The concessional contribution limits apply across all superannuation funds to which concessional contributions are made for an individual.
The annual non-concessional (post-tax) contributions cap is $100,000 (increases to $110,000 on 1 July 2021) and individuals with a balance of more than $1.6 million are no longer eligible to make non-concessional contributions. Individuals under age 65 will be eligible to bring forward 3 years of non-concessional contributions
This limit will be indexed so it is always four times the concessional contributions limit.
Contributions in excess of these limits will incur tax at the rate of 47% payable directly by the individual (this amount must be released from a superannuation fund upon presentation of a release authority issued by the ATO).
Government Co-contributions, personal contributions made from certain proceeds from the disposal of qualifying small business CGT assets (subject to a lifetime limit), downsizer contributions, and personal contributions from proceeds from certain payments for personal injury resulting in permanent disablement (made within 90 days of receiving the payment) are not counted towards the non-concessional contributions limit. Spouse contributions count towards the receiving spouse's non-concessional contributions limit.
CONTRIBUTIONS – TAX DEDUCTIONS AND OFFSETS
In certain circumstances, you or your employer may be able to claim a tax deduction or offset on contributions that are made. The following is an outline of these circumstances:
Most members under age 75 can claim a tax deduction for personal contributions (including those aged 65 to 74 who meet the work test).
Employer contributions (including salary sacrifice contributions) for a Member are generally tax deductible provided criteria in tax legislation are met, however the limit on concessional contributions will affect the amount of tax payable on such contributions. For more information, go to www.ato.gov.au.
If you contribute on behalf of a low income or non-working spouse, you may be able to claim an 18% tax rebate for contributions up to $3,000. The $3,000 contribution limit reduces by $1 for each $1 that your spouse's assessable annual income (plus reportable fringe benefits and reportable employer superannuation contributions) exceeds $37,000. There is no offset available where your spouse's assessable income (plus reportable fringe benefits and reportable employer superannuation contributions) exceeds $40,000. For more information go to www.ato.gov.au.
TAX ON LUMP SUM PAYMENTs TO A MEMBER
Lump sum benefits paid from superannuation funds to a member (referred to as ordinary lump sum superannuation benefit) are taxed at concessional rates. Different tax treatment applies to lump sum death benefits. How the tax is calculated depends on the components of the benefit and your age.
There will be no tax payable on most superannuation benefits if paid from a taxed source to a Member aged 60 or more (whether paid as a lump sum or pension). Different rules apply to untaxed sources (for example, certain untaxed sources commonly paid by public sector funds for the Commonwealth, State and Territory Departments and insured benefits, where the premium has been claimed as a tax deduction, would not be paid from a taxed source and may incur a higher rate of tax).
Tax is payable on superannuation benefits paid to Members aged under 60, based on working out the following components under the proportioning rule:
This is generally made up of non-concessional contributions made from 1 July 2007 and other amounts transferred into the Plan which contain a tax-free component (such as eligible termination payments prior to 1 July 2007). No tax is payable on the tax-free component.
This is made up of the total superannuation benefit, less any tax-free component. The taxable component will be taxed at 20% (plus applicable levies) if paid to a person under their Preservation Age or 15% (plus applicable levies) on any amount over a specified threshold which varies from year to year ($215,000 in the 2020/2021 financial year) if paid to a person from Preservation Age to age 59 (amounts under the threshold will be tax free). The threshold applicable from year to year can be found at www.ato.gov.au. Higher tax may apply if a Member's TFN is not held.
Special arrangements apply to certain classes of benefits, such as those paid in the event of a terminal illness condition or total and permanent disablement. These benefits are tax free provided criteria in tax legislation are met. Special arrangements also apply to lump sum death benefits (see below).
TAX ON DEATH BENEFITS
Death benefits are generally paid to the deceased Member's dependants or legal personal representative. For taxation purposes, a dependant is defined to include a person who:
Is the spouse of the deceased (including a qualifying de facto spouse of the same or opposite sex),
Is a child under the age of 18 years of the deceased or their spouse,
Had an ‘interdependency relationship' with the deceased, or
Is any other person who is financially dependent on the deceased at the date of death.
A lump sum benefit paid in the event of death to a tax dependant is tax-free. Lump sum payments to non-dependants will generally be taxed at up to 15% (plus applicable levies). However, payments made to non-dependants of Defence Force personnel, Australian Protective Service officers and federal or state or territory police killed in the line of duty will also be tax free.
Where a death benefit is received by the legal personal representative of a deceased Member, tax is determined according to who is intended to benefit from the estate.
If a dependant receives a death benefit as a pension, the tax paid depends upon the age of the deceased and the recipient as follows, where the deceased was:
- age 60 or over at the time of death, the pension payments will be received by the dependant tax free. The pension payments do not need to be included in the recipient's tax return.
- under age 60 at the time of death, the pension payments will be taxed depending on the recipient's age. Once the recipient turns 60, the payments will become tax free. Under the age of 60, the pension payments will need to be included in the recipient's tax return and will be taxed at their marginal tax rate (less a 15% tax offset).
- 6 months of the death of a Member; or
- 3 months after the grant of probate of the deceased Member's estate;
Note: If a death benefit consists of an untaxed element, an additional amount of tax will apply.
DEPARTING AUSTRALIA SUPERANNUATION PAYMENTS
If you enter Australia on a temporary visa you are entitled to receive your superannuation benefit once you leave Australia permanently. This type of payment is known as a Departing Australia Superannuation Payment (DASP).
Full information regarding DASP procedures and current taxation rates can be found at www.ato.gov.au
Income protection insurance benefits are paid as taxable income and, like salary and wages, attract pay-as-you-go tax at your marginal tax rate. The tax is deducted and remitted to the ATO before the benefit is paid. Higher tax applies if the Plan does not hold your TFN.
Individuals can make voluntary contributions into superannuation of up to $15,000 per year with a cap of $30,000 for the purpose of saving for the purchase of a first home.
If concessional, the contributions will be taxed at 15%. The contributions together with deemed earnings can be withdrawn for use as a deposit.
Contributions under this scheme are subject to the concessional and non-concessional contribution caps.
The withdrawal of concessional contributions and associated deemed earnings will be taxed at marginal tax rates less a 30% tax offset. Non-concessional withdrawals will not be taxed.
Individuals aged 65 and older will be able to make a non-concessional contribution of up to $300,000 to superannuation after selling their principal place of residence providing it has been owned for more than 10 years. This is in addition to any other contributions they are eligible to make and regardless of their superannuation balance.
Both members of a couple will be eligible so that a couple will be able to contribute up to $600,000.
Under the Superannuation Industry (Supervision) Act 1993 (SIS), the Trustee 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 may disclose your TFN to another superannuation provider, when your benefits are being transferred, unless you request the Trustee in writing that your TFN not be disclosed to any other superannuation provider.
It is not an offence not to quote your TFN. However, giving your TFN to the Trustee will have the following advantages (which may not otherwise apply):
The Trustee will be able to accept all types of contributions to an accumulation account
The tax on contributions to your accumulation account will not increase
Other than the tax that may ordinarily apply, no additional tax will be deducted when you start drawing down your superannuation benefits, and
It will make it much easier to trace different superannuation accounts in your name so that you receive all your superannuation benefits when you retire.
Note: Under Government legislation the Trustee is not permitted to accept member voluntary contributions if it does not hold the Member's TFN. The Trustee can accept concessional contributions, but they may be subject to a higher rate of tax. The Trustee has decided that provision of your TFN is a condition of membership of this Raiz Invest Superannuation. We cannot compel you to provide your TFN, however without it you cannot join the Raiz Invest Superannuation.
Insurance in your super
As a member of Raiz Invest Superannuation you can apply for insurance cover through your Superannuation. Insurance through Superannuation can be tax effective and potentially cheaper than insurance funded through after-tax salary or savings. However, premiums deducted for unnecessary, unwanted, or unsuitable insurance cover can inappropriately reduce your balance and the savings available for you upon retirement.
We cannot continue to provide insurance cover to members whose accounts have not received a contribution or rollover for 16 or more months. If you wish to maintain insurance benefits regardless if a contribution has not been received within a 16 month period, please contact us to find out how to make an election to maintain coverage.
What does this mean for you?
If you're thinking about taking out insurance and are either under 25 years of age, or your account balance is below $6,000, you should carefully read the Member Guide and consider whether the insurance is right for you.
You should also consider any other insurance cover you might have, including with other super accounts. For information on how to keep track of your super, you can visit the ATO website at https://www.ato.gov.au/Individuals/Super/Growing-your-super/Keeping-track-of-your-super/.
To ensure the insurance cover will meet your needs, you may wish to speak to a licensed financial adviser, and/or other professional as appropriate.
You should take the time to review your insurance cover on a regular basis or if your circumstances change and can vary or cancel your cover at any time.
We're here to help
If you have any questions in relation to this update, the PDS, or any other documents in relation to Raiz Invest Super, please feel free to get in touch at email@example.com.
Being protected is important, that's why Raiz Invest Superannuation has arranged Automatic Insurance cover, where we provide you with pre-approved Death (including Terminal Illness) and Total & Permanent Disablement (TPD) insurance on an opt-out basis and where the amount of cover is based on your age next birthday (ANB).
Provided that you are aged between 20 and 64 and meet other eligibility criteria on the date your cover starts, you can take advantage of Raiz Invest Superannuation's insurance options.
Unless you tell us otherwise, if you are aged between 20 and 64, we will automatically set your account up to provide you with Automatic Death and TPD insurance cover, which will start at the time we receive your first Contribution or rollover after you open your account.
All insurance premiums include an insurance fee of 15% p.a. payable to the Member Administrator to cover the cost to Raiz Invest Superannuation of making insurance available to customers. The insurance fee will be deducted from the balance in your Raiz Invest Superannuation account monthly in arrears.
This Guide provides a summary of the types of insurance cover, how you get cover, how you can estimate how much cover will cost you, when cover starts and ends, benefits available and the key Policy definitions agreed between the Insurer and the Trustee. You should use this information to consider whether the Raiz Invest Superannuation's insurance options are suitable, given your needs, objectives and financial situation. An independent financial adviser may also help you do this.
Insurance cover is subject to the terms and conditions of the insurance policies issued by OnePath Life Limited (the Policy) ABN 33 009 657 176 AFSL 238341 (the Insurer) to the Trustee. Insurance cover is also subject to the Trust Deed, Superannuation Law and Tax Law. The Trustee may change insurers and/or terms (including premium rates) of the insurance cover at any time. The Insurer will always rely on the terms and conditions of the Policy issued to the Trustee in determining whether a benefit is payable under the Policy. If there is any inconsistency between the terms and conditions of the Policy and any disclosure issued by the Trustee including but not limited to the PDS and this Guide, the terms and conditions of the Policy prevail. The Insurer has consented to be named in this Guide and for the way it has been named.
IS INSURANCE COVER RIGHT FOR YOU?
Before deciding if the insurance cover is right for you, you should read this document and consider the terms and conditions that apply to the Raiz Invest Superannuation's Insurance options. If you have a financial adviser, it might be a good idea to talk to them to help you understand whether any of our Insurance options are right for you.
AUTOMATIC INSURANCE COVER
Being protected is important, that's why Raiz Invest Superannuation provides at least some level of automatic cover. Raiz Invest Superannuation provides automatic Death and TPD cover to all customers aged between 20 and 64, without the need to provide us with any information about your medical history or lifestyle. Provided you meet the eligibility conditions, we'll automatically add this cover to your Raiz Invest Superannuation account once you've become a customer and we have received the first super Contribution or rollover into your account.
ELIGIBILITY FOR AUTOMATIC INSURANCE COVER
Raiz Invest Superannuation's Automatic Insurance cover is available to you if you:
are a member of Raiz Invest Superannuation
are an Australian resident or a non-Australian Resident residing in Australia who hold a Visa
are aged between 20 and 64
are not entitled to claim, nor in the process of claiming a TPD or terminal illness benefit and
have never been paid a terminal illness or TPD benefit.
WHAT IS AUTOMATIC INSURANCE COVER?
Our Automatic Insurance cover provides:
Death cover (including Terminal Illness cover), where your dependants receive a lump sum payment upon your death or where you may receive a lump sum payment if you become Terminally Ill. For an explanation of Terminal Illness, please go to the Insurance Terms Explained section below.
TPD cover, where you will receive a lump sum payment if you suffer TPD. You cannot receive a TPD benefit and a Terminal Illness benefit for the same event. For an explanation of TPD, please go to TPD section below. Note that TPD cover is only available in conjunction with Death cover; you can't apply for TPD cover on its own.
Unless you tell us otherwise, you will be provided with Automatic Death and TPD insurance cover. This cover generally takes effect on the date we receive your first Contribution or rollover after you open your Raiz Invest Superannuation account and is subject to eligibility detailed below. You can opt out of automatic death and TPD cover by contacting our Raiz Customer Care Team on 1300 754 748.
PRE-EXISTING MEDICAL CONDITION EXCLUSION
Your automatic Death and TPD cover is subject to a “Pre-existing Medical Condition” exclusion. This means that you won't be covered for Death, Terminal Illness or TPD which arises directly or indirectly, wholly or partially, from a Pre-existing Medical Condition occurring before the Cover Commencement Date. A Pre-existing Medical Condition is any injury, illness, condition or related symptom that you or a reasonable person in your position:
was aware of or should have been aware of; or
would have had a Medical Consultation for; or
had or was intending to have a Medical Consultation for.
The Pre-existing Medical Condition will be removed on the date immediately after the expiry of twelve consecutive months from the date your cover commences, provided you are in Active Employment for a minimum period of thirty days immediately prior to the expiry of the twelve consecutive months from the date your cover commences.
See our ‘Insurance terms explained' for information regarding the definition of a Pre-existing Medical Condition and Active Employment.
DEATH AND TPD AUTOMATIC INSURANCE – PREMIUMS
AUTOMATIC INSURANCE COVER - OTHER INFORMATION
Insurance premiums are current as at the date of this PDS and are subject to change. We'll give you at least 30 days' notice of any change in insurance fees that impacts your account.
In addition to the information outlined above, customers may also be required to pay:
- any other government charges that may arise from time to time; and
- expenses incurred in administering any function required by a Federal, State or Territory government under any legislation in relation to the Policy.
WHAT ARE THE BENEFITS?
This section describes the benefits that you can receive if you take out insurance cover through Raiz Invest Superannuation and when benefits could be paid. Before you make a claim, make sure your cover includes the type of benefit you're claiming. Then you (or your nominated representative) must provide us with a completed claim form. Your benefit will then be paid if your insurance claim is accepted by the Insurer and the Trustee in accordance with the Fund's Trust Deed and Superannuation Law.
The benefit payable will depend on various factors, for example:
The type and level of cover you have applied for (including an increase in cover) and whether cover has been accepted or declined;
Whether the amount insured is reduced by any other amount paid. For example, a Death benefit may be reduced by any Terminal Illness benefit paid in respect of the you; and
Any maximum limits which may apply.
If you have death cover, the benefit payable if you pass away before your cover ends is equal to the full amount of your death cover as at the date of your death.
A Terminal Illness benefit is an early release of your Death Benefit, as described below.
TERMINAL ILLNESS BENEFIT
A customer with death cover benefits and who is Terminally Ill is able to claim a Terminal Illness benefit under the Raiz Invest Superannuation's insurance Policy. The Terminal Illness benefit is an early release of your death benefit. You are regarded as Terminally Ill when two Medical Practitioners (one of whom must be nominated by the Insurer and one must be a specialist physician in the relevant field) certify in writing (“Written Certification”) that you suffer from an illness that, despite reasonable medical treatment, is likely to result in your death within 24 months from the date of Written Certification (“Certification Period”). The Written Certification by both Medical Practitioners must occur before you cover ends.
A Terminal Illness benefit can only be paid by the Trustee if permitted under the Trust Deed and Superannuation Law.
TOTAL & PERMANENT DISABLEMENT (TPD) BENEFIT
The TPD benefit will be paid if an insured customer with TPD cover becomes Totally & Permanently Disabled. The Date of Disablement must occur before your cover ends.
The TPD benefit payable as part of insurance cover is equal to the TPD sum insured. A TPD benefit will only be paid by the insurer to the Trustee if an insured Member meets the definition of TPD under the Policy. A TPD benefit can only be paid to you by the Trustee if permitted under the Trust Deed and superannuation law.
ELIGIBILITY FOR TPD BENEFIT
The insurer applies specific criteria to determine customer eligibility for a TPD benefit. Under the Policy between the Insurer and the Trustee, a customer who is accepted as an Insured Member is able to claim for a TPD benefit is the Insured Customer satisfies either TPD Definition 1 or Definition 2 as detailed in the Insurance Terms Explained section, provided their cover has not ended when the Insured Member suffers Total and Permanent Disablement.
In determining if the Insured Member satisfies TPD Definition 1 or 2, the Insurer may have regard to all relevant information available to them from the Event Date. This includes information relevant to the Insured Member's future capability to work.
HOW TO MAKE A CLAIM
If and when you need to make a claim, we'll do our best to make sure the process is as easy as possible for you.
There are 3 steps to the process for you (or your personal legal representative):
Notify us if your intent to claim as soon as possible from the date of death or disability.
Once we've received the notice of your potential claim, we'll send you a claim form within 7 days. You need to complete the claim form and return it to us as soon as possible.
Complete the claim form and provide evidence, as required by the Insurer to support your claim.
Depending on the type of claim and the amount you are claiming, you'll also need to co-operate if the Insurer requests that you undertake any additional medical assessments or vocational assessments.
Sending you claim forms does not constitute an admission of liability in respect of any claim lodged.
CONDITIONS FOR PAYMENT OF A CLAIM
All claims are subject to assessment by the Insurer, who will determine whether to accept the claim and the terms upon which the claim will be accepted.
The payment of a claim is conditional upon:
Provision of proof in a form that can be verified by the Insurer that your cover was validly in force at the time of the claim and that you are entitled to claim the applicable benefit.
The Insurer verifying that the Acceptable Identity Documents have been obtained to confirm that you are the Insured Member.
You may be required to provide us with proof of age.
The Insurer may require additional information or medical evidence from you to establish an entitlement to claim. You may be required to:
Provide an original or certified birth certificate (or other proof of birth to the Insurer's satisfaction), Visa (if applicable) and all other documentation the Insurer requires; and
Provide medical evidence from treating Medical Practitioners; and
When reasonably required by the Insurer (and at the Insurer's expense), being examined by one or more Medical Practitioners nominated by the Insurer; and
Provide pathology, blood tests, x-ray or other appropriate evidence.
When reasonably required by the Insurer (and at the Insurer's expense), in respect of a Disability, you may be required to:
undergo vocational assessment and/or rehabilitation; and
be examined by a Medical Practitioner; and
be interviewed; and
agree to an audit of your financial circumstances.
You will be required to provide Acceptable Identity Documents to confirm that you are the Insured Customer before any benefits from a claim can be paid. Payment of claims is also subject to any legislative requirement being met and the Fund's Trust Deed.
CLAIMING A BENEFIT FROM OVERSEAS
Note that we are able to accept claims from Insured Members who are overseas at the time that the claim is lodged, but depending on the circumstances, the Insurer may request that you return to Australia (at your own expense) if further medical or other investigations are required before the outcome of your claim can be determined. Where the Insured Member refuses to do so, the Insurer may refuse to pay the relevant benefit.
To find out more about making a claim, contact our Raiz Customer Care Team on 1300 754 748.
For an explanation of some of the terms used in this section, refer to the ‘Insurance terms explained' section below.
WHEN WILL YOUR COVER END?
Your insurance cover provided will automatically end, without notification, on the earliest of any of the following:
Applicable to all types of cover:
The date you cease to be a customer of Raiz Invest Superannuation;
The date you instruct us to cancel your cover;
If you are a non-Australian Resident who holds a Visa, 30 days after the date that you are no longer permanently residing in Australia or 30 days after you cease to hold a Visa;
The conclusion of the day you reach age 69 (which is the benefit expiry age under the Policies),
The date the Insurer cancels or voids the Policy or Insured Cover in respect of an Insured Member in accordance with its legal rights;
The date on which insurance premiums payable for your cover have remained unpaid for 30 days from the date premiums were last payable;
The date that you commence Active Service with the armed forces of any country (except where you are a member of the Defence Force Reserve, in which case, Insured Cover will cease only when you become the subject of a call out order under the Defence Act (Cth) 1903);
The date you die;
The date the Policy is terminated, in which case you will have received prior notification.
Applicable to all Death and TPD cover only:
The date you are paid a TPD benefit which is equal to the amount of death cover;
The date you are paid a Terminal Illness benefit which is equal to the amount of the death cover you hold.
WHEN BENEFITS WILL NOT BE PAID
Benefits will not be paid if:
The event giving rise to the Death and/or TPD claim is caused directly or indirectly, wholly or partially, from War involving Australia, New Zealand or your country of residence (War includes but is not limited to declared War, and armed aggression by one or more countries resisted by any country, combination of countries or international organisations). The Insurer may increase premium rates rather than apply this exclusion;
The claim is due to a condition which the Insurer has specifically excluded in relation to your cover;
Your cover is subject to a Pre-existing Medical Condition exclusion (as explained below) and your Death, Terminal Illness or TPD arises directly or indirectly, wholly or partially, from a Pre-existing Medical Condition occurring before the Cover Commencement Date.
Your death, Terminal Illness or TPD was caused directly or indirectly, wholly or partially, as a result of any intentional or deliberate self-inflicted act (whether sane or insane) which occurred 24 months of the date your cover commenced or recommenced under the Policy.
The Insurer may reduce or refuse to pay a benefit:
If the premium has not been paid;
If an Insured Member does not comply with the Insurer's claim requirements.
PRIVACY - ONEPATH LIFE LIMITED
In this section only “we”, “us” and “our” refers to OnePath Life Limited (“Insurer”) and other members of the ANZ Group. “You” and “Your” refers to policy owners and life insureds.
We collect your personal information from you in order to manage and administer our products and services. Without your personal information, we may not be able to process your application or provide you with the products or services you require.
In order to undertake the management and administration of our products and services, it may be necessary for us to disclose your personal information to certain third parties.
Unless you consent to such disclosure we will not be able to consider the information you have provided.
PROVIDING YOUR INFORMATION TO OTHERS
The parties to whom we may routinely disclose your personal information include:
an organisation that assists us and/or ANZ to detect and protect against consumer fraud;
organisations performing administration and/or compliance functions in relation to the products and services we provide;
organisations providing medical or other services for the purpose of the assessment of any insurance claim you make with us (such as reinsurers);
our solicitors or legal representatives;
organisations maintaining our information technology systems;
organisations providing mailing and printing services;
persons who act on your behalf (such as your agent or financial adviser);
the policy owner;
regulatory bodies, government agencies, law enforcement bodies and courts;
We will also disclose your personal information in circumstances where we are required by law to do so. Examples of such laws are:
The Family Law Act 1975 (Cth) enables certain persons to request information about your interest in a superannuation fund;
There are disclosure obligations to third parties under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
INFORMATION REQUIRED BY LAW
LIFE RISK - SENSITIVE INFORMATION
For life risk products, where applicable, we may collect health information with your consent.
Your health information will only be disclosed to service providers or organisations providing medical or other services for the purpose of underwriting, assessing the application or assessing any claim.
Where you wish to authorise any other parties to act on your behalf, to receive information and/or undertake transactions, please notify us in writing.
If you give us or ANZ personal information about someone else, please show them a copy of this document so that they may understand the manner in which their personal information may be used or disclosed by us or ANZ in connection with your dealings with us or ANZ.
when we or ANZ may collect information from a third party;
how you may access and seek correction of the personal information we hold about you; and
how you can raise concerns that we or ANZ has breached the Privacy Act or an applicable code and how we and/or ANZ will deal with those matters.
You can contact us about your information or any other privacy matters as follows:
IN WRITING: GPO Box 75, Sydney 2001
We may charge you a reasonable fee for this.
If any of your personal information is incorrect or has changed, please let us know by contacting Raiz Customer Services on 1300 754 748.
We or ANZ may disclose information to recipients (including service providers and related companies) which are (1) located outside Australia and/or (2) not established in or do not carry on business in Australia.
For more detailed information about insurance terms, refer to the Raiz Invest Superannuation's Insurance Policy. For an explanation of any other terms used in this Guide, contact our Raiz Customer Care Team.
PAYMENT OF BENEFITS BY THE TRUSTEE
In the event that a Death or TPD benefit becomes payable, the amount of your insured benefit is payable in addition to any other accrued entitlements you have in the Raiz Invest Superannuation. The Insurer pays the insured benefit to the Trustee. The insured benefit will be paid to you by the Trustee if you satisfy a condition of release (see Section 1 of this Guide for details).
When deciding on the payment of the Death benefits, the Trustee will or may take into consideration any nomination of beneficiaries made in writing by you. For more information about nominating a beneficiary and payment of benefits on death, see Section 2 of this Guide.
In relation to a TPD benefit, if the Trustee is of the opinion that you are incapable of managing your financial affairs, the benefit may be paid to your legal personal representative.
INSURANCE PREMIUM DETAILS
The Members Administrator deducts insurance premiums monthly in arrears from your account for payment to the Insurer.
The premium cost includes an administration fee of 15% of the premium payable to the Member Administrator.
IMPORTANT NOTES ABOUT INSURANCE
If a claim for benefits is admitted by the Trustee, the benefit payment will be made in accordance with the Trust Deed and relevant superannuation laws.
The Trustee, despite being the owner of the Policy, does not guarantee the payment of an insured benefit or the performance of the Insurer.
Opening an account
If you apply to open an account in the Raiz Invest Superannuation (accumulation or pension) by completing the relevant application form accompanying the PDS, you have 14 days (from the earlier of the date that we confirm the transaction by which you acquire an account, and 5 days after the account is issued to you) to ensure that the product meets your needs. This is known as the cooling off period. If a request is made to the Scheme Administrator within this time, you may cancel your account.
You cannot exercise your cooling off rights if you have exercised any other rights or powers you have in respect of your new account in the Raiz Invest Superannuation.
If you decide to cancel your account, any refunds are subject to preservation rules and payment standards (including commutation restrictions applicable to Term Allocated Pensions) in relevant legislation.
The amount transferred will be adjusted for any increases or decreases in the value of the investments you may have selected as well as any tax payable on any increase or any reasonable administration and taxation expenses. The transferred benefit will retain the same preservation status.
The Trustee has an established procedure for dealing with inquiries and complaints. Under these arrangements, you may enquire or complain about the operation or management of the Plan as it relates to you and have your enquiry or complaint dealt with within 90 days of receipt. Written complaints should be addressed to the Complaints Officer at PO Box 7540 GCMS QLD 9726 or emailed to firstname.lastname@example.org.
If an issue has not been resolved to your satisfaction, you can lodge a complaint to the Australian Financial Complaints Authority (AFCA). AFCA provides fair and independent financial service complaint resolution that is free to consumers. The contact details for the AFCA are:
Phone: 1800 931 678
Mail: GPO Box 3, Melbourne. VIC. 3001