Standard Risk Measure
We have adopted the Standard Risk Measure which is based on 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 any 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
Please refer to the relevant Additional Information Guide (AIG) for more information.
Updated standard risk measures
* This investment option’s probability of negative annual returns exceeds 2 years in a 20 year period and is labelled a ‘Conservative fund’. This breaches the ASFA/FSC guidelines on options with a ‘Conservative’ label. As such, we recommend that clients and their advisers take this into account when making investment decisions to ensure the investment is suitable for the investor’s risk profile.
^ This option is for members of ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees.
Annual Australian Prudential Regulation Authority (APRA) levy and Regulatory Change levy
All Australian Prudential Regulation Authority (APRA) regulated superannuation funds are charged an APRA levy. The amount of the APRA Levy for the 2016/17 financial year recovered the general operational costs of APRA, as well as other specific costs incurred by certain other Commonwealth agencies and departments (ASIC, DHS, SCT and the ATO), as well as some of the costs 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 was applied as an asset-based levy of 0.01% against the investments of the OnePath MasterFund in the 2016/17 financial year.
Regulatory Change levy
This levy is to cover some of the costs incurred to comply with the Government’s superannuation regulatory changes and is consistent with the approach taken by many superannuation funds across the industry. The regulatory change levy was applied as an asset-based levy of 0.02% against the investments of the OnePath MasterFund in the 2016/17 financial year.
For members invested in OnePath MasterFund products, the Trustee recovered the APRA and Regulatory Change levies in June 2017 by deducting them from the unit price of each investment option (excluding cash, term deposits and guaranteed products, which do not have a unit price).
The total impact of both levies on members was 0.03% of the value of their unitised investment options. For example, a member with a balance of $50,000 paid $15.00.
These levies are not shown as a transaction 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.
Annual statements for super – additional explanatory notes
The following explanatory notes are to be read together with your 2017 Annual Statement for your super account. If you have any further questions about your Annual Statement, please speak to your financial planner (also called financial adviser) or call Customer Services.
Contributions tax of 15% 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 the benefit of tax deductions on transactions such as the payment of insurance fees.
If you are claiming a tax deduction for personal contributions that you made in the Annual Statement period, the related contributions tax on these contributions will only appear in the Annual Statement if we received your ‘Notice of intent to claim a tax deduction form’ by the relevant date and the notice has been acknowledged by the Trustee.
Tax at a rate of 15% also applies to the untaxed element of a roll-over 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% tax may apply to certain concessional contributions if your adjusted taxable income exceeds $250,000 from 1 July 2017 onwards. For further information please visit ato.gov.au or speak to your ANZ Financial Planner.
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-TFN contributions tax is payable, the total of the preservation components will differ from the withdrawal amount as any no-TFN contributions tax is deducted from the withdrawal amount and not from the preservation components.
Super Guarantee Allocation
The Super Guarantee Allocation is the amount of employee entitlement paid by the Australian Taxation Office (ATO) representing a superannuation guarantee shortfall and any interest for the shortfall. This amount includes the 9.5% (for 2017/18) 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 contributions can include the Government co-contribution and the 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 $51,813 for 2017/18, and you make personal contributions to super, you may be eligible for a Government co-contribution. The maximum co-contribution is $500 and reduces once your income exceeds $36,813 for 2017/18. 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 the 15% contributions 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).
The co-contribution 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.
Upcoming changes to fees and costs disclosures
The following information is relevant for individuals with an ANZ Smart Choice Super account.
What is changing?
The Australian Securities & Investment Commission (ASIC) has recently issued Regulatory Guide 97 which implements new rules around how Trustees and Responsible Entities disclose the fees and costs of your investment product to you. Over the coming months, this will result in changes to the way in which fees and costs are disclosed in your statements (such as your Annual Statement) and other product documentation such as product disclosure statements (PDSs).
What does this mean for you?
The changes will not have any impact on the total rate (percent or dollar) of fees and costs incurred by you, nor will they have any impact on your investment returns.
However, as these changes require fees and costs to be disclosed differently in the future, it may appear that some new fees are being charged, or that other fees are no longer being applied. Also, it may appear that the rate of some existing fees or costs have increased or decreased. For example, investment performance related fees were previously disclosed in superannuation PDSs as part of the Investment Fee. However, moving forward, these will now be disclosed as part of the Indirect Cost Ratio.
We will provide further information on the specific changes to your statements as they occur.
What do you need to do?
You do not need to do anything, as the obligation for compliance is with us as the issuer of ANZ Smart Choice Super.
Nominating a beneficiary
Once you have opened your ANZ Smart Choice Super account, you should decide who should receive your money (including any Death insurance benefit, if payable) in the event of your death. With ANZ Smart Choice Super, you have the option to give us a non-lapsing beneficiary nomination.
What is a non-lapsing beneficiary nomination?
This is the nomination of a beneficiary(ies) that, if it satisfies all legal requirements, will not expire over time, and the Trustee is required to pay your money to your nominated beneficiary(ies) in the proportions you have specified. This is subject to the nominated beneficiary(ies) being either a dependant at the time of your death or your estate, or a combination of both that adds up to 100% in proportion and your non-lapsing direction being current at the time of your death.
However, it will become invalid if you marry, enter into a de facto or like relationship with a person of either gender or become separated on a permanent basis from your spouse or partner since the nomination was made.
Who can be nominated as a beneficiary?
You can nominate one or more beneficiary(ies) to receive your Death Benefit in the event of your death. All beneficiaries must be either a dependant (for superannuation purposes) or your estate. We note that the Trustee cannot give effect to a nomination if it does not fall in to one of these categories. Death Benefits paid to dependants will be paid as a lump sum or as an income stream subject to eligibility to commence a death benefit pension. ANZ Internet Banking and your annual statement provide details of your nominated beneficiaries.
Who can be a dependant?
A dependant as defined by superannuation law includes:
- your ‘spouse’ includes any person (whether of the same sex or different sex) with whom you are in a registered civil union or domestic relationship or who, whether or not legally married to you, lives with you on a genuine domestic basis in a marriage-like relationship
- your children (including an adopted child, a step-child or an ex-nuptial child, a child of your spouse, or someone who is considered your child under family law)
- any other person who is financially dependent on you at the time of your death
- any other person with whom you have an ‘interdependency’ relationship (see following). Two people (whether or not related by family) have an ‘interdependency’ relationship if:
- they have a close personal relationship; and
- they live together; and
- one or each of them provides the other with financial support; and
- one or each of them provides the other with domestic support and personal care.
An ‘interdependency relationship’ can also exist where two people have a close personal relationship but do not meet the other criteria above because either or both of them suffer from a physical, intellectual or psychiatric disability or are temporarily living apart*.
* The Trustee will rely on Superannuation laws to determine the circumstances that two persons have an interdependency relationship.
Your nomination may become partially or fully defective if a nominated beneficiary dies or ceases to be a dependant while you are a member of the Fund. You should consider amending your nomination as and when your personal circumstances change.
No nomination, defective nomination or cancelled nomination
If you choose not to make a nomination, do not make a valid nomination, cancel your existing nomination or to the extent your nomination is defective, the Trustee will pay your Death Benefit to your Legal Personal Representative* if your estate is solvent. If there is no Legal Personal Representative, or your estate is insolvent, the Trustee will pay your Death Benefit to your spouse (if more than one spouse, in equal shares). If you do not have a spouse, the Trustee will pay your Death Benefit to one or more of your dependants (as determined by the Trustee) and if no dependants, the Trustee will pay your Death Benefit in accordance with the relevant law.
How do I nominate a beneficiary?
You can manage your beneficiaries via ANZ Internet Banking or by calling Customer Services on 13 12 87.
* Legal Personal Representative means an executor of the will or administrator of the estate of a deceased person, the Trustee of a deceased person, the Trustee of the estate of a person under a legal disability or a person who holds an enduring power of attorney granted by a person however:
a. subject to paragraph (b) below, a person does not have a Legal Personal Representative unless:
i. a grant of probate has been made;
ii. letters of administration have been issued; or
iii. such equivalent authority as the trustee determines for jurisdictions outside Australia has been conferred on a person; and
b. if the Trustee is reasonably satisfied that the value of your estate is less than the amount which the Trustee from time to time specifies as the ‘probate limit’, then the Trustee may treat a person who does not meet the criteria in (a) but who the Trustee is reasonably satisfied will, in practice, be informally performing the role of executor or administrator of your estate as if they were your Legal Personal Representative.
Terminal medical condition
The following investment and regulatory information is relevant for members with a super or a pension account which has preserved or restricted non-preserved benefits.
Early access to superannuation for people with terminal medical condition
From 1 July 2015, the government amended the provision for accessing superannuation for people suffering a terminal medical condition. Previously, terminally ill members were only considered to have met a condition of release (and hence able to access their superannuation balances) in the event that their life expectancy was limited to 12 months. This amendment extends the life expectancy period from 12 months to 24 months, meaning that members can potentially access their superannuation balances sooner. However, if you hold Death Cover (which includes Terminal Illness Cover through your super account), you may still not be able to claim a Terminal Illness benefit unless your life expectancy is limited to 12 months.
Possible implications to consider
If you have insurance within your super, it is important to understand the terms and conditions as you may not be able to claim a Terminal Illness benefit until your life expectancy is limited to 12 months. If you withdraw your super balance when your life expectancy is 24 months, you may wish to consider maintaining some money in your super account to keep the account open and to ensure a sufficient balance to pay any insurance fees. Withdrawing your full balance could result in the loss of valuable insurance cover.
It is important you take time to review the changes and understand what they may mean for you. If you are considering accessing your super balance due to a terminal illness, we recommend that you seek professional financial advice. Refer to your PDS, insurance guide and other associated documentation for further information about terminal illness and whether it is available to your insurance arrangement. Where it is available it is generally provided as part of your Death benefit.
Update and reissue of ANZ Smart Choice Super product disclosure statements
The Product Disclosure Statements (PDSs) for our award-winning† ANZ Smart Choice Super suite of products* have been updated and reissued dated 18 February 2017, and incorporate a number of enhancements. The PDSs are now available to download from anz.com/smartchoice
The following ANZ Smart Choice Super suite of disclosure documents have been updated and reissued:
Insurance guides for specific employer plans are available online and can be accessed at the link provided in your Welcome Letter.
† ANZ Smart Choice Super was awarded the 5-star ‘Outstanding Value’ CANSTAR award in the Superannuation category in 2016. Visit www.canstar.com.au to view full report. ANZ Smart Choice Super received a Gold rating in SuperRating’s 2017 product rating. ANZ Smart Choice Super for employers and their employees received a Gold rating in SuperRating’s 2017 MySuper product rating. SuperRatings does not issue, sell, guarantee or underwrite this product. Go to www.superratings.com.au for details of its ratings criteria. ANZ Smart Choice Super & Pension and ANZ Smart Choice Super for employers and their employees was awarded 5 Heron Quality Stars in their 2017/18 assessment. Visit www.heronpartners.com.au for more information.
* 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 18 February 2017. 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 18 February 2017. This publication relates to members in the retail product as well as members in a MySuper division of each MySuper compliant product.
Enhancements to ANZ Smart Choice Super
To ensure that the ANZ Smart Choice Super suite of products continues to be competitive and meet the needs of our clients, we are pleased to advise the updated PDSs incorporate the following changes:
- new investment options;
- enhanced strategic asset allocation (SAA); and
- the introduction of contribution splitting.
New investment options
The following investment options are now available:
We have updated the SAA for the ANZ Smart Choice Lifestage and static diversified funds, including the addition of Infrastructure as an asset class. This will provide superior management of longevity and retirement risks and enhance the ability to preserve capital during times of stress events. Please refer to the relevant Additional Information Guide (AIG) for more information.
The ANZ Smart Choice Super suite of products now offers contribution splitting for the benefit and convenience of members.
Superannuation law permits members to split their eligible contributions with their spouse* in certain situations. If you intend to split eligible contributions made to the Fund, you should seek advice on the legislative requirements before making an application. You should obtain and read a copy of the Trustee’s Contributions Splitting Policy, which is available by contacting Customer Services on 13 12 87.
* Your ‘spouse’ includes any person (whether of the same sex or different sex) with whom you are in a registered civil union or domestic relationship or who, whether or not legally married to you, lives with you on a genuine domestic basis in a relationship as a couple.
To ensure that the tools available to you are up to date, we have made enhancements to our retirement calculator within ANZ Internet Banking.
Reminder for members of non-OnePath Life Limited insured plans
The following information is only applicable to members in ANZ Smart Choice Super for employers and their employees.
We would like to remind you that where your insurance cover is provided with a non-OnePath Life Limited (OPL) insurer, that, upon leaving your employer, your cover will not automatically continue.
Accordingly, if you wish for your cover to continue, you may need to apply for the Continuation Option, if available, and it may not apply to all types of cover provided through the employer plan, within the time specified by the life insurer. Alternatively, you can 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 on 13 12 87.
What happens if your employer terminates their ANZ Smart Choice Super plan?
This is relevant if your employer has a Tailored insurance arrangement with OnePath Life Limited. If you are part of a Tailored insurance arrangement, you will have received an Insurance Guide for Tailored employer plans upon joining. If you are unsure as to whether your employer’s plan is a Tailored insurance arrangement, contact Customer Services on 13 12 87.
At a future date, the employer plan in ANZ Smart Choice Super may be terminated. This may occur for various reasons including, but not limited to, a decision by the employer to establish a new or replacement default superannuation plan, or the cessation of the employer’s business. The reason for the termination of the employer plan will determine what happens to any insurance that you hold through your ANZ Smart Choice Super account after the employer plan is terminated.
Where the employer terminates the employer plan because another insurer is to provide insurance cover to the Employer, any insurance cover that you hold ceases in its entirety from the Delink Date, which is the date we are notified that the employer terminates the employer plan.
You will not be covered under the ANZ Smart Choice Super insurance policies for this employer plan for any event which occurs after the date that your insurance cover has ceased. This will be the case, even if Insurance fees continue to be deducted from your ANZ Smart Choice Super account. We will refund any Insurance fees deducted from the date that your ANZ Smart Choice Super insurance cover ceased.
Where the employer terminates the employer plan other than because another insurer is to provide insurance cover to the employer, any insurance cover that you hold will convert to Choose Your Own cover from the Delink Date. The amount of Choose Your Own cover will be equal to the amount of any Voluntary cover plus any Default cover applicable to you based on the type of cover you held immediately prior to the Delink Date.
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 for your insurance cover; importantly, whether your Tailored cover has been converted to Choose Your Own cover or whether your insurance cover has ceased and from which date.
What happens if you no longer meet the eligibility requirements of your Membership Category?
If you no longer meet the eligibility requirements of your Membership Category, any insurance cover that you hold will convert to Choose Your Own cover from the Delink Date, which is the date that we are notified that you no longer meet the eligibility requirements. The amount of Choose Your Own cover will be equal to the amount of any Voluntary cover plus any Default cover applicable to you based on the type of cover you held immediately prior to the Delink Date.
What happens if the employer plan ceases to satisfy the conditions for the provision of Tailored cover?
The provision of Tailored cover is subject to the following conditions:
- the Fund must be the default fund under Choice of Fund legislation for the employer;
- the Insurer is the only insurer under the employer plan;
- the membership categories within the employer plan must be clearly defined;
- the Insurance Formula applicable to each membership category must be clearly defined; and
- there must be at least 50 insured members covered in the employer plan at any time, unless the Insurer agrees otherwise in writing.
Any insurance cover that you hold in the employer plan may be terminated by the Insurer if the conditions above are not satisfied at all times. If this occurs, your insurance cover in the employer plan terminates and converts to Choose Your Own cover on and from the Delink Date, which is the date the employer plan ceases to satisfy the conditions above. The amount of Choose Your Own Cover will be equal to the amount of cover immediately prior to the Delink Date.
What is the effect of conversion to Choose Your Own cover?
Your Insurance fees will be based on the standard Choose Your Own cover insurance rates. The rates applicable to Choose Your Own cover are generally higher than the rates that apply to Tailored employer plans. These rates are included in the ANZ Smart Choice Super for employers and their employees Insurance Guide for Standard employer plans, which you can find on our website at anz.com/smartchoicesuper or by calling Customer Services.
Where your cover is converted to a fixed amount of Choose Your Own cover, you will be classified as a smoker, and as being in a light blue collar occupation. Where your occupational category is known prior to your insurance cover conversion, this will be retained. This will determine the loadings that are applied to your Insurance fees. You can contact us at any time to advise us of the occupation category that is applicable to you, or to make a non-smoker declaration. Any change to your Insurance fee loadings will be applied from the next business day after the acceptance date.
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 on 13 12 87.
Changes to cover for members residing overseas – OnePath Life insured members only
The following information is only applicable to members in ANZ Smart Choice Super and Pension and ANZ Smart Choice Super for employers and their employees.
For Insured members of ANZ Smart Choice Super and Pension and ANZ Smart Choice Super for employers and their employees who are Australian residents and have not permanently departed Australia to reside overseas temporarily, OnePath Life Limited (the Insurer) has removed a restriction relating to cover whilst overseas. Presently, a maximum time-period restriction applies depending upon the nature of a member’s absence to reside overseas and if this time-period is exceeded, the member’s cover will cease, subject to seeking and receiving the Insurer’s acceptance to an extension of cover. Such absences are where a member has been residing overseas in excess of two years or in excess of five years in the case of overseas employer secondments (with the participating employer).
What has changed?
Under the change, a member’s cover will now continue and members are no longer required to seek an extension to their cover if they have exceeded the maximum time-period restriction. Essentially, this maximum-time period restriction no longer applies.
Cover will continue whilst members are travelling or residing overseas provided the fees are paid up to date and you otherwise maintain eligibility, including but not limited to, retaining your Australian residency status.
What has not changed?
The current policy terms and conditions covering the maximum two year time-period for members on paid or unpaid leave remains unchanged. Similarly, for Visa holders who are residing overseas temporarily, cover will still continue for a period of up to three consecutive months from the day the member first departed Australia, providing the member continues to hold a Visa and has not permanently departed Australia during the period that the member is temporarily residing overseas. Please refer to the section ‘Are you still covered?’ for additional information.