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Important information - August 2016

A summary of significant product or regulatory changes that may impact your ANZ Smart Choice Super account.

Your annual report - available online in December

In line with ANZ’s ongoing commitment to reducing our impact on the environment, your annual report will be available online in December 2016 at https://super-investments.anz.com/resources > Financial Reports and Tax Guides. Just click on your relevant superannuation or retirement solution, then scroll down and click downloads.

If you would like to receive a hard copy (free of charge), please contact customer services.

Terminal medical condition

The following investment and regulatory information is relevant for members with a super account or a pension account with preserved or restricted non-preserved benefits.

Early access to superannuation for people with terminal medical condition from 1 July 2015.

The government has amended the provision for accessing superannuation for people suffering a terminal medical condition. This amendment extends the life expectancy period from 12 months to 24 months.

Possible Implications to consider

  • If you have failed to obtain the required medical certification to meet the terminal illness definition due to the restrictions of the 12-month rule, consider obtaining new medical certification. While the change allows earlier access to your super it may not provide earlier access to any terminal illness insurance benefits as part of your super.
  • If you have insurance within your super it is important to understand the terms and conditions. Consider maintaining some money in your super account to keep the account open and to pay insurance premiums. Withdrawing your full balance could result in the loss of valuable insurance cover.

Are you still covered?

This applies to members insured by OnePath Life Limited.

Have your personal circumstances changed? If so, have you told us? Because it may mean that you are no longer insured.

Did you know that even though you have continued to pay your insurance fees, a change in your personal circumstances may mean that you are no longer covered? It is important that you continue to advise us of any changes in your personal or working circumstances.

For instance, does one of the following apply to you? If so, you may no longer be covered.

  • Have you permanently retired from the workforce?
  • Have you commenced active service in the defence forces of any country?
  • Were you a visa holder, and has your visa expired?
  • Have you transferred to the pension or transfer-to-retirement (TTR) division of another super fund?
  • Have you been working overseas for more than two years?
  • Have you been on employer-approved leave for a period of two years or more?
  • Have you been travelling overseas for more than two years?
  • Were you not at work on the day that your cover commenced?
  • Have you permanently departed Australia?

Please make sure that you contact customer services to advise us of changes in your circumstances.

APRA levy and Stronger Super levy

All Australian Prudential Regulation Authority (APRA) regulated superannuation funds are charged an APRA levy. The amount of the APRA levy for the 2015-16 financial year recovered the general operational costs of APRA, as well as some of the costs associated with implementing the government’s ‘SuperStream’ reforms. The SuperStream reforms are designed to support the superannuation system to operate more efficiently for the benefit of members.

The APRA Levy is applied as an asset-based levy of 0.01 per cent against the investments of the OnePath MasterFund in the 2015-16 financial year.

To cover some of the costs incurred to comply with the government’s ‘Stronger Super’ reforms and consistent with the approach taken by many superannuation funds across the industry, the Trustee also approved a Stronger Super levy which is an asset-based levy of 0.03 per cent applied against the investments of the OnePath MasterFund in the 2015-16 financial year.

For members invested in OnePath MasterFund products, the Trustee recovered the APRA and Stronger Super levies in June 2016 by deducting them from the unit price of each investment option(s) (excluding cash, term deposits and guaranteed products which do not have a unit price).

The total impact of both levies on members is 0.04 per cent of the value of the unitised investment options. For example, a member with a balance of $50,000 will pay less than $20.00. These levies are not shown in your statement as they are charged as a deduction from the unit price of each of your investment option(s) and not directly from your account balance.

Are your contact details up to date?

It is important that you stay in touch with us and keep your account active, so you do not become ‘lost’.

You may be classified as a ‘lost member’ if

  • we have made one or more attempts to send written communications to you at your last known address, and
  • we believe on reasonable grounds that you can no longer be contacted at any address known to the fund, and
  • you have not contacted us (by written communication or otherwise) within the last 12 months of your membership of the fund, and
  • you have not accessed details about your account online within the last 12 months of your membership of the fund, and
  • we have not received a contribution or rollover from you, or on your behalf, in the last 12 months of your membership of the fund.

We are required to report ‘lost members’ to the Australian Taxation Office. Additionally, we are required to transfer a lost member’s account to the ATO if:

  • the account balance is less than $4000 ($6000 from 31 December 2016)
  • we have insufficient records to pay an amount to the member.

If your account becomes ‘lost’ and paid to the ATO you will lose any insurance associated with the account, and will need to contact the ATO about payment options.

If you have not provided your phone number or email address, you can do so via ANZ Internet Banking, or by calling or emailing us.

Annual Statements - additional information 

Your annual statement is now available for you via ANZ internet banking. The following explanatory notes are to be read together with your 2016 Annual Statement. If you have any further questions, please call customer service.

Contribution Tax

Contributions tax of 15 per cent will apply to any contributions that you claim as a personal tax deduction (subject to a valid ‘Notice of intent to claim a tax deduction’ form) or contributions made by your employer (including salary sacrifice contributions).

In calculating the amount of tax payable we may make allowance for deductions available to the fund on transactions such as the payment of insurance premiums. If you are claiming a tax deduction for personal contributions that you made in the Annual Statement period, the related contributions tax will only appear in the Annual Statement if we received your ‘Notice of intent to claim a tax deduction’ form by the date requested and the notice has been acknowledged by the Trustee. Tax at a rate of 15 per cent also applies to the untaxed element of a rollover superannuation benefit and certain foreign super fund transfers. The tax payable is shown on your Annual Statement.

Additional Tax for High-income Earners (Division 293 Tax)

An additional 15 per cent tax may apply to certain concessional contributions if your adjusted taxable income exceeds $300,000. For further information please visit www.ato.gov.au or speak to your financial planner.

Preservation Status

Unrestricted Non-Preserved Benefit is the amount of the withdrawal benefit at the close of the reporting period that you can access at any time.

Restricted Non-Preserved Benefit is the amount of the withdrawal benefit at the close of the reporting period that you can access, if you leave an employer who has contributed to this fund on your behalf, or when preserved benefits are payable.

Preserved Benefit is the amount of withdrawal benefit at the close of the reporting period required to be preserved by the Trust Deed and super legislation governing your benefits. Generally, you cannot access this amount until age 65, or once you have reached your preservation age (between age 55 and 60, depending on your date of birth) and you have retired.

The total of the preservation components is net of withdrawal fees and contributions tax payable on contributions that were made up to the end of the reporting period. Please note: where no-tax file number contributions tax is payable, the total of the preservation components will differ to the withdrawal amount as no-TFN contributions tax payable is deducted from the withdrawal amount and not from the preservation components.

Super Guarantee (SG) Allocation

The Super Guarantee Allocation is the amount of employee entitlement paid by the ATO representing a superannuation guarantee shortfall and any interest for the shortfall. This amount includes the 9.5 per cent (for 2015-16) obligation and any interest earned. The Super Guarantee Allocation may appear on your Annual Statement as either an addition or deduction. An addition represents a payment from the ATO into your account and a deduction may be the correction of a payment received to your account or the recovery of an overpaid Super Guarantee Allocation by the ATO. This Super Guarantee Allocation amount is determined by the ATO, so you should speak to your financial planner or contact the ATO in relation to the amount paid.

Government Contribution

Government contributions can include government co‑contribution and low income super contribution (LISC). The government co-contribution is an incentive from the Australian government designed to assist eligible individuals to save for their retirement. If you are working, your income is less than $51,021 p.a. for 2016-17, and you make personal contributions to super, you may be eligible for a government co-contribution. Generally, the maximum co-contribution is $500 and reduces once your income exceeds $36,021 for 2016-17. The ATO will pay 50 cents for every dollar of personal non-concessional contributions up to your maximum entitlement. Additional criteria must be satisfied to be eligible for the government co-contribution.

The LISC effectively returns any tax paid (up to $500) on concessional contributions made in a financial year for a low-income earner (an individual with an adjusted taxable income of $37,000 or less in an income year). Both co-contribution and LISC amounts may appear on your statement as either an addition or deduction. An addition represents a payment from the ATO into your account and a deduction may be the correction of a payment received to your account or the recovery of an overpaid co-contribution by the ATO. Conditions apply, so you should speak to your financial planner or contact the ATO in relation to the amount paid.

Standard Risk Measure

We have adopted the Standard Risk Measure which is based on the industry guidelines to allow investors to compare investment funds 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 an investor may require to meet their objectives.

Further, it does not take into account the impact of ongoing fees and tax on the likelihood of a negative return. Investors should still ensure they are comfortable with the risks and potential losses associated with their chosen investment fund(s).

How to read an investment profile

Risk band Risk label Estimated number of negative annual
returns over any 20-year period 
1 Very low Less than 0.5
2 Low 0.5 to less than 1
3 Low to medium 1 to less than 2
4 Medium 2 to less than 3
5 Medium to high 3 to less than 4
6 High 4 to less than 6
7 Very high 6 or greater


Please refer to the relevant Additional Information Guide (AIG) for more information.


Updated Standard Risk Measure

The following information is only applicable for members in ANZ Smart Choice Super and Pension.

Fund Risk band Risk label
ANZ Smart Choice Conservative 3 Low to medium
ANZ Smart Choice Global Fixed Interest 4 Medium
ANZ Smart Choice Moderate 6 High
ANZ Smart Choice 1950s 5 Medium to high

Updated Standard Risk Measure

The following information is only applicable to members in ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees.

Fund Name Risk Band Risk Label
ANZ Capital Guaranteed 2 Low
ANZ Smart Choice Conservative 3 Low to medium
ANZ Smart Choice Global Fixed Interest 4 Medium
ANZ Smart Choice Global Smaller Companies 7 Very high
ANZ Smart Choice Moderate 6 High
ANZ Smart Choice 1950s 5 Medium to high
Bentham Global Income 5 Medium to high
CBRE Clarion Global Property Securities 7 Very high
OnePath Alternatives Growth 6 High
OnePath Capital Stable 4 Medium
OptiMix Balanced 6 High
OptiMix Conservative^ 4 Medium
Platinum Asia 7 Very high
Platinum International 7 Very high
Rare Infrastructure Value 7 Very high
Schroder Real Return 4 Medium
UBS Defensive 5 Medium to high


^ Irrespective of the fund name being `Conservative’, the Standard Risk Measure of the fund is 4. This means it has been estimated that the fund may have 2 to less than 3 negative annual returns over any 20-year period.

The following information is only applicable to members in ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees.

Employer contribution obligations for SuperStream compliance

SuperStream is a government reform aimed at improving the efficiency of the superannuation system. As part of the SuperStream reforms, employers must make super contributions on behalf of their employees by submitting data and payments electronically in a consistent and simplified manner prescribed by the ATO.

When does your employer have to start using Superstream?

All large to medium-sized employers (with 20 or more employees) were required to meet their SuperStream obligations from 31 October 2015. Small employers (fewer than 20 members) are required to comply from 28 October 2016.

What does this mean for you?

SuperStream is a significant benefit for employers and their employees as it simplifies the employer super contribution experience by streamlining how payments can be made.

Your employer should liaise directly with the ATO in relation to the specific requirements.

What you need to do?

You do not need to do anything, the obligation for compliance is with your employer, however payments received by employers that do not comply with SuperStream obligations may be rejected.

Reminder for members of non-OnePath Life Insured Plans

The Trustee takes this opportunity to remind members that where their insurance cover is provided with a non-OnePath Life insurer, that, upon leaving their employer, their cover will not automatically continue and accordingly, they must effect a Continuation Option with the non-OnePath Life insurer within the time specified by the insurer (normally within 60 days of ceasing employment). Alternatively, members are able to apply for new cover with OnePath Life Limited.

For more information, please refer to the Product Disclosure Statement (PDS) you received when you joined your employer’s super plan or call Customer Services.

Check your insurance details

Check your insurance cover to ensure your employer has set up your insurance cover correctly, including: occupation, age, salary (if applicable), gender, types of insurance and sum insured.

What happens if your employer terminates their ANZ Smart Choice Super Plan?

This is relevant if your employer has negotiated a tailored insurance arrangement with OnePath Life Limited (OPL).

In the event that your employer establishes a new default employer plan with another super fund, your ANZ Smart Choice Super insurance will be converted to a fixed amount of Choose Your Own cover, and you will be charged at the Choose Your Own cover rates contained in the ANZ Smart Choice Super Insurance Guide for Standard Employers.

If however, you are provided with insurance cover through the new default employer plan, you will not be entitled to retain your insurance cover through ANZ Smart Choice Super, and you will need to contact the Trustee to cancel your insurance cover.

Cancellation will be effective the date that your account was delinked from the employer plan, and any insurance fees subsequent to the delink date will be refunded to your ANZ Smart Choice Super account.

Any claim that you make through your ANZ Smart Choice Super insurance cover for an event which occurs after the effective date that your account is delinked will be declined by the insurer. Once the Trustee receives an official written request from your employer to terminate the employer plan in ANZ Smart Choice Super, you will receive a letter from the Trustee advising you of this and the implications upon your insurance cover; importantly, that your tailored cover has been converted to Choose Your Own cover. It will also inform you that you are not entitled to retain this cover if you hold insurance through the employer’s new default superannuation plan, and the requirement for you to cancel your ANZ Smart Choice Super cover as soon as possible.

Changes to the GMO Alternatives Growth Fund

Due to GMO – the underlying fund manager – no longer accepting additional money, we are pleased to announce that we have added two new underlying fund managers to manage the assets of the GMO Alternatives Growth fund (‘the Fund’) through ANZ Smart Choice Super from 25 September 2015.

We have also changed the name of the Fund to the OnePath Alternatives Growth Fund.

Addition of new investments to complement the GMO strategy

ANZ’s internal investment research team regularly reviews and monitors the underlying investment managers of the investment funds offered through ANZ Smart Choice Super for employers and their employees. Regular reviews ensure the investment funds continue to meet the needs of our current and future members. This change follows a recent review.

Who are the new underlying fund managers?

The two funds noted below were added in order to complement the existing GMO Fund and create a multi‑manager alternatives fund:

  • AQR Wholesale Managed Futures Fund (‘AQR Fund’); and
  • Man AHL Alpha (AUD) Fund (‘Man AHL Fund’).

Both funds implement strategies which seek to identify and exploit upward or downward trends across a broad selection of global developed and emerging markets. The funds are well rated by external research houses and have solid long‑term performance track records.

What are the benefits of the change?

  • We can continue to receive new money into the Fund
  • Access to a more diversified portfolio of highly rated fund managers and strategies, reducing single investment manager risk
  • Investors will benefit from the diversification offered as a result of the Man AHL and AQR managed future strategies being added to the Fund to complement the strategy of the existing GMO Fund.
  • Broader exposure to the investment opportunities available in global developed and emerging markets, and sectors including equities, bonds, credit, currencies and commodities.

Fund assets will be diversified across the three underlying Funds according to what we believe is the appropriate blend.

Investors saw no change in the number of units they held, nor did they see a transaction appear in their accounts. The unit prices of the Fund continued post transition, i.e. unit prices were not restarted or reset.

Were there any costs associated with transitioning to the two new funds?

One of the new underlying funds has a sell spread which will be factored in to the unit price of the Fund at the time of the transition. The cost of this sell spread to the Fund is likely to represent less than 0.03% of the Fund’s assets under management.

Was there a change to the ongoing fee?

There was no change to the Ongoing Fee.

Were there any changes to performance-based fees?

The Fund does not pay performance fees directly. However, performance fees may be payable from the underlying investment funds to the underlying fund managers. The following table shows the performance fees of the underlying funds:

Underlying fund Performance fee
(applicable to the outperformance above the benchmark)
GMO Systematic Global Macro Fund 20.111%
AQR Wholesale Managed Futures Fund 20%
Man AHL Alpha Fund 25%

Where there any changes to the buy/sell spreads?

The buy/sell spread costs are updated to reflect the costs of the new underlying investments.

Fund Previous buy/sell spread New buy/sell spread after the transition
OnePath Alternatives Growth 0% / 0% 0% buy / 0.03% sell

OnePath Alternatives Growth Fund revised fund profile

Investment objective – unchanged

The Fund aims to produce a portfolio that seeks to outperform the Bloomberg AusBond Bank Bill Index.

Description – unchanged

The Fund is suitable for investors seeking high total return over a medium to long term period and who are prepared to accept higher variability of returns.

Investment strategy – new

The Fund is a multi-manager solution that seeks to provide returns with low correlation to equity markets by investing in a portfolio of alternative investment strategies. The underlying fund investments are managed by leading alternative investment managers that undertake Global Macro and Managed Futures strategies offering broadly diversified exposure to developed and emerging equity, bond, credit, currency and commodity markets.

The multi‑manager portfolio is designed to deliver more consistent returns with less risk than would be achieved if investing with a single manager.

The underlying funds are:

  • GMO Systematic Global Macro Trust (Global Macro)
  • AQR Wholesale Managed Futures Fund (Managed Futures)
  • Man AHL Alpha (AUD) Fund (Managed Futures).

Minimum time horizon – unchanged

5 years

Standard Risk Measure – changed

6 – High

Asset allocation – new

From the transition date, OnePath has allocated across the GMO Fund, AQR Fund, Man AHL Fund and Cash. Investors continue to hold the same asset class exposure (alternative investments) and OnePath continually reviews the composition of the portfolio to ensure that it remains robust and meets the investment objective.

Asset class Benchmark (%) Range (%)
Alternative assets^ 100 95-100
Cash 0 0-5


^ Underlying funds may hold cash inside their portfolios.

Changes to how insurance fees are deducted

Prior to 1 March 2016, and for those members with insurance within ANZ Smart Choice Super, insurance fees were deducted monthly in advance from their ANZ Smart Choice Super account, proportionately across their investment option(s) in line with their future investment strategy.

How does this impact existing members?

From March 2016 onwards, insurance fees continue to be deducted monthly in advance, but now in proportion to the balance across all of your investment option(s). In the event that fees cannot be deducted from a specific investment option(s), the fees are deducted proportionately across all of your remaining investment option(s).

Members who do not currently have insurance cover with ANZ Smart Choice Super are not impacted.

 

* ANZ Smart Choice Super is a suite of products consisting of ANZ Smart Choice Super and Pension, ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees (together “ANZ Smart Choice Super”). ANZ Smart Choice Super and Pension is a retail product issued pursuant to the PDS dated 11 November 2013. ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees are both MySuper compliant employer products issued pursuant to separate PDSs dated 25 May 2015. This publication relates to members in the retail product as well as members in a MySuper division of each MySuper compliant product.

Talk to us about superannuation

13 12 87

Mon-Fri 8am to 7pm (AEST) 

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ANZ Smart Choice Super is a suite of products consisting of ANZ Smart Choice Super and Pension, ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees (together ‘ANZ Smart Choice Super’). ANZ Smart Choice Super and Pension is a retail product issued pursuant to a Product Disclosure Statement (PDS). ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees are both MySuper compliant employer products issued pursuant to a separate PDS for employer plans and PDS for QBE.

ANZ Smart Choice Super is issued by OnePath Custodians Pty Limited (OnePath Custodians) (ABN 12 008 508 496, AFSL 238346, RSE L0000673), and the ANZ Smart Choice Super and Pension product is distributed by Australia and New Zealand Banking Group Limited (ANZ) (ABN 11 005 357 522). ANZ is an authorised deposit taking institution (Bank) under the Banking Act 1959 (Cth). OnePath Custodians is the issuer of ANZ Smart Choice Super but is not a Bank. Except as set out in the relevant Product Disclosure Statement (PDS), this product is not a deposit or other liability of ANZ or its related group companies. None of them stands behind or guarantees the issuer or the capital or performance of any investment. Such investment is subject to investment risk, including possible repayment delays and loss of income and principal invested. Returns can go up and down. Past performance is not indicative of future performance.

ANZ Smart Choice Super and Pension received a Gold rating in SuperRatings’ 2019 product rating in both the Super and Pension categories. ANZ Smart Choice Super for employers and their employees received a Gold rating in SuperRatings’ 2019 MySuper product rating. SuperRatings does not issue, sell, guarantee or underwrite these products. Go to www.superratings.com.au for details of its ratings criteria.

This information is of a general nature and has been prepared without taking account of your objectives, financial situation or needs. Before acting on this information you should consider whether the information is appropriate for you having regard to your objectives, financial circumstances or objectives. ANZ recommends that you read the ANZ Financial Services Guide, the relevant Product Disclosure Statement, product and other updates which are available by calling Customer Services on 13 12 87, or visiting our website here or here (for employer members), and consider whether the product is right for you before making a decision to acquire or to continue to hold the product. 

Taxation law is complex and this information has been prepared as a guide only and does not represent taxation advice. Please see your tax adviser for independent taxation advice. The information on insurance cover is a summary only of the terms and conditions applying to the insurance cover. To the extent there is any inconsistency with the terms of the insurance cover provided by the insurer, the terms of the insurance policy will prevail. 

Before re-directing your super or moving your money into ANZ Smart Choice Super, you will need to consider whether there are any adverse consequences for you, including exit fees, other loss of benefits (e.g. insurance cover), investment options and performance, functionality, increase in investment risks and where your future employer contributions will be paid.

ANZ does not represent or guarantee that access to ANZ Internet Banking or the ANZ App will be uninterrupted. Temporary service disruptions may occur. ANZ recommends that you read the ANZ App Terms and Conditions available at anz.com and consider if this service is appropriate to you prior to making a decision to acquire or use the ANZ App. The ANZ App is provided by Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. Super, Shares and Insurance (if available) are not provided by ANZ but entities which are not banks. ANZ does not guarantee them.

In addition to their salary, ANZ staff members may receive monetary or non-monetary benefits depending on the product they are selling or providing advice on. You may request further information from ANZ. Other key features including insurance, available investment options and performance, exit fees and functionality are relevant when choosing a super fund. 

This information may be subject to change. Updated information will be available free of charge by calling Customer Services on 13 12 87.