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Section 2. How super works.

The information in this document forms part of the Hostplus Superannuation Fund and Hostplus Personal Super Plan Product Disclosure Statement 27 September 2016.

Superannuation may seem complex but it’s just money put aside for your retirement. Your employer contributes 9.5% of your ordinary time earnings (which is primarily your salary) to a superannuation fund, where that money is invested for you. These contributions are called the Superannuation Guarantee (SG).

The Government has now fixed the SG percentage rate at its current rate of 9.5% until 1 July 2021 when it will gradually increase by 0.5% each year until it reaches 12% for the year starting on or after 1 July 2025.
The new schedule for increasing the SG rate percentage will be as follows:

Year

SG rate percentage

Year starting on 1 July 2014

9.5%

Year starting on 1 July 2015

9.5%

Year starting on 1 July 2016

9.5%

Year starting on 1 July 2017

9.5%

Year starting on 1 July 2018

9.5%

Year starting on 1 July 2019

9.5%

Year starting on 1 July 2020

9.5%

Year starting on 1 July 2021

10%

Year starting on 1 July 2022

10.5%

Year starting on 1 July 2023

11%

Year starting on 1 July 2024

11.5%

Year starting on 1 July 2025

12%

Please select a section

2.1 Who’s eligible for SG contributions?

Most employees are eligible. Generally, employees aged over 18, who are paid $450 (before-tax) or more in a calendar month are covered by the SG legislation, whether they work full-time, part-time or on a casual basis.


2.2 Who isn’t eligible for SG contributions?

Here are some of the employee categories which may be excluded from SG contribution requirements:

  • employees paid less than $450 in a calendar month,
  • employees under age 18 who work 30 hours or less a week,
  • employees paid to do work of a domestic or private nature for 30 hours or less a week, and
  • employees employed under a Green Army Program.
 

2.3 How your super account works

Your Hostplus super account is where your employer contributions and your personal contributions are made. Contributions and positive investment returns are added to the balance. Fees, Government taxes, expenses and negative investment returns are deducted from the balance.

Compulsory contributions
(9.5 % Superannuation Guarantee)
+ Personal contributions

Salary sacrifice contributions

Transfers from other super funds

Government co-contributions and the Low Income Superannuation Contribution (LISC) (if applicable)

Positive net investment
returns
- Fees

Insurance premiums

Taxes

Negative net investment
returns

Transfers to other super funds
= Your super account balance

Note Proposed Change: At the May 2016 Budget Announcements, the Federal Government flagged introduction of the Low Income Superannuation Tax Offset to replace the Low Income Superannuation Contribution when it expires on 30 June 2017. This will allow individuals with an adjusted taxable income of $37,000 or less to receive an effective refund of the tax paid on their concessional contributions, up to a cap of $500. This change has been proposed but is not yet law.


2.4 If you’re a temporary resident

Employers are required to make SG payments on behalf of temporary residents in the same way as any other employee unless exempted by law from doing so.

While temporary residents remain in Australia their superannuation will remain in the fund until they become entitled to payment of a benefit. The superannuation benefits of temporary residents can only be withdrawn under one of the following conditions of release:

  • after leaving Australia and their visas have ceased,
  • permanent incapacity,
  • terminal medical condition, or
  • death.

If you're an eligible temporary resident (not an Australian or New Zealand* citizen or permanent resident) and you depart Australia permanently, you can access your super benefits from the fund if six months have not passed since you departed Australia and your visa expired. Otherwise your account balance will be paid to the Australian Taxation Office (ATO) ato.gov.au as unclaimed superannuation.

Departed temporary residents will then have to claim back their superannuation from the ATO which may be done at any time.

Hostplus relies on relief from ASIC under Class Order CO 09/437 and doesn't provide departed temporary resident members whose benefits are paid to the ATO with notices or statements at the time of or after the benefits have been paid to the ATO. However if you have any queries, you can contact us and we'll provide relevant information about your benefit.

*KiwiSaver rules apply to New Zealand citizens: see 2.12.4 UK Pension Transfers and  KiwiSaver Transfers

Claiming your super benefit

If you wish to claim a Departing Australia Superannuation Payment (DASP) visit hostplus.com.au/super/get-your-super-sorted/temporary-residents

Temporary resident tax on benefits

Any super benefits paid out to eligible temporary residents may be subject to the Departing Australia Superannuation Payment (DASP) withholding tax:

  • 0% for the tax-free component,
  • 38% for a taxed element of a taxable component1, and
  • 47% for an untaxed element of a taxable component2.

1 Including a Temporary Budget Repair Levy of 3%. 
2 Including a Temporary Budget Repair Levy of 2%.


2.5 Choosing your super fund

Super Choice gives eligible workers the ability to choose the fund into which their super contributions are paid. Choosing the right fund now can make a lifetime of difference. So it’s very important to know if you are eligible and what to do if you are.

For information on Super Choice, including eligibility, talk to your employer, or call 1300 467 875, 8am – 8pm (AEST), Monday to Friday or go to hostplus.com.au


2.6 Accessing your super

The Federal Government has placed restrictions on when you can access your super. Generally, your super benefits are preserved in a super or rollover fund until you retire from the workforce on/or after reaching your preservation age. Your preservation age will vary between 55 and 60 years of age, depending on your birth date. If you are born after 30 June 1964 your preservation age will be 60.

Date of birth

Preservation age

From 1 July 1964

60

1 July 1963 – 30 June 1964

59

1 July 1962 – 30 June 1963

58

1 July 1961 – 30 June 1962

57

1 July 1960 – 30 June 1961

56

Before July 1960

55

All contributions made into super are preserved until you reach your preservation age or meet a condition of release. Any amounts that were non-preserved benefits as at 1 July 1999 will remain non-preserved and will not increase unless you transfer or roll over other non-preserved benefits into Hostplus.

After reaching your preservation age you do not have to cash in your superannuation benefits.You can stay in the fund as a Hostplus member or otherwise join the Hostplus Pension and continue to enjoy the benefits of being a Hostplus member in retirement. And in the event of your death, the remaining balance of your account can be paid to your spouse, dependants, estate or beneficiaries.


2.7 Early release of your super

Subject to the Hostplus governing rules, early release of preserved benefits can only be paid to you if you satisfy one of the following conditions of release:

  • termination of employment after turning age 60 without necessarily retiring permanently,
  • in the event of your death,
  • permanent incapacity,
  • a terminal medical condition exists,
  • on the grounds of severe financial hardship subject to certain conditions and trustee approval,
  • on compassionate grounds as approved by the Department of Human Services (DHS),
  • on termination of your employment with an employer sponsor where your preserved benefit is less than $200,
  • on your permanent departure from Australia if you are an eligible temporary resident, or
  • on complying with any other condition of release specified under superannuation law.

2.8 Intra-fund consolidation

Under certain circumstances, a Hostplus member may have more than one membership account with the fund or have a membership in another division of Hostplus. The fund will automatically merge any duplicate accounts or memberships you have in other divisions of Hostplus. The fund may use your TFN as the primary identifier in this process.

When your accounts are merged, you will be notified of your membership number and the division of Hostplus you are in. You will have 28 days to advise Hostplus of your membership preference if you are not happy with the division you have been merged into.

You are only eligible to retain insurance in one account. You will retain the highest level of insurance cover you hold and this will be transferred into your merged account unless you tell us otherwise.


2.9 Death benefit nominations

How does Hostplus determine to whom your death benefit is payable?

In the event of your death, the trustee may pay a benefit to your dependants or legal personal representative (the executor or administrator of your estate). A dependant for superannuation purposes (as opposed to tax purposes), includes a spouse (including de facto, same sex or a spouse from a relationship registered on the Register of Births and Marriages under State or Territory law), your children (including step, adopted, ex-nuptial or eligible children of same sex couples) and any other person who is wholly or partially financially dependent on you, or in an interdependent relationship with you at the time of your death.

You can nominate your dependants or legal personal representative as the persons or person to whom you’d like your super benefits to be paid in the event of your death at any time through your Member Online account at hostplus.com.au.

See 3.7 Member Online – your online super account at Hostplus

You can also nominate your preferred beneficiaries when you make an online application to join.

In the event of your death, the recipient(s) of your death benefit will be determined according to whether you have nominated your beneficiaries as binding or non-binding.

Binding death benefit nominations

A binding death benefit nomination provides you with greater certainty about who will receive your benefit in the event of your death. In general, a binding nomination legally binds (instructs) the trustee to pay your death benefit to the person(s) nominated as your beneficiary(ies).

Binding death benefit beneficiary nominations can only apply to:

  • your spouse (including de facto, same sex or a spouse from a relationship registered on the Register of Births and Marriages under State or Territory law),
  • your children (including an adopted child, step child, ex-nuptial child or eligible child of same sex couples),
  • your legal personal representative (the executor or the administrator of your estate),
  • any person who is financially dependent on you, and
  • any person with whom you have an interdependent relationship.*

A person must be a dependant on the date of your death to be considered a beneficiary.

You can nominate beneficiaries by completing the Binding death benefit nomination form available at hostplus.com.au/super/super-forms.

Binding nominations expire every three years. However, Hostplus will contact you prior to their expiry so you can update/cancel or change your nomination(s). Your current beneficiaries will also be shown on your member half-yearly benefit statements.

We highly recommend you review your nomination(s) if your circumstances change, such as if you divorce, separate, re-marry, have children or experience the death of a beneficiary.

Non-binding death benefit nominations

If you elect to have non-binding nominations, the trustee will take into consideration your nomination but will not be bound to follow it.

You can nominate or change your non-binding beneficiaries at any time through your Member Online account at hostplus.com.au.

The trustee is required to take reasonable steps to identify and pay the benefits to your potential beneficiaries, after taking relevant factors into account. These may include the nature of your relationship(s) with your beneficiary(ies) and their financial dependence, or otherwise, at the time of your death.

 

The trustee would normally pay the death benefit to:

  • one or more of your dependants – spouse (including de facto, same sex or a spouse from a relationship registered on the Register of Births and Marriages under State or Territory law), children (adopted children, step-children, ex-nuptial children or eligible children of same sex couples), whether financially dependent or not, or any other person the trustee considers was wholly or partially financially dependent on you, at the time of your death, and/or
  • any person with whom you have an interdependent relationship*, and/or
  • your legal personal representative (the executor or administrator of your estate).

Before paying out a death benefit, the trustee will consider any beneficiaries you have nominated, the information provided by any dependants, your legal personal representative(s) and your will (if you have one).

Please note: A valid binding death benefit nomination overrides any preferred beneficiary nomination(s) you have made previously.

* Two people are in an interdependent relationship if:

  • they have a close personal relationship,
  • they live together,
  • 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 interdependent relationship also exists if two people have a close personal relationship but the other requirements are not satisfied because of a physical, intellectual or psychiatric disability.

No nomination

If you do not make a nomination or make an invalid nomination, the trustee will pay the benefit to your dependants and/or legal personal representative, as determined by the trustee, at the time of your death.


2.10 Lost members and unclaimed money

The ATO has established a lost memberand 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 provide details of lost members and transfer their accounts to the ATO on a twice yearly basis.

The following type of accounts will be deemed lost or unclaimed and transferred to the ATO:

What’s a ‘lost super’ account?

What’s an ‘unclaimed super’ account?

A super account which hasn’t had any contributions or rolled over amounts added to it in the past 12 months

A super account owned by a member aged over 65, who has not made contact with the fund for more than five years and to which no contributions were made in the last two years

AND
The super fund has never had an address (postal or email) for the member who owns the account, or, the trustee has made one or more attempts to send written communications to the member at the member’s last known address (or addresses), and the trustee believes, on reasonable grounds, that the member can no longer be contacted at any address known to the fund.

AND
the member has not contacted the fund (whether by written communication, through the online portal or otherwise) within the last 12 months of the member's membership of the fund.

OR
An account owned by a member who has died and the fund’s trustee cannot find anyone to pay their benefit to

OR
An account whose owner was a former temporary Australian resident and did not claim their benefit within six months of departure or visa expiry

OR
An account whose owner received a family law split and the trustee has been unable to contact them

OR
An account with a balance of up to $4,000 that belongs to a member who is ‘lost’*

If you think you may fall within these categories, you may want to check with the ATO to see if you are registered as a lost or unclaimed super member. If you have inactive accounts in any other fund or eligible rollover fund (ERF), you can consolidate them into your Hostplus account.

In addition, you can make enquiries at the ATO if you have lost contact with a fund and think you may be entitled to a benefit. Just call 13 10 20 or visit ato.gov.au/super and use SuperSeeker, the ATO's online tool to search for lost super.

*Due to recent changes in legislation, the account balance threshold below which small lost member accounts will be required to be transferred to the Commissioner increased from $2,000 to $4,000 from 31 December 2015, and will increase from $4,000 to $6,000 from 31 December 2016.




2.11 Our Eligible Rollover Fund (ERF)

If your account balance is less than $200 (subject to change) and we have not received contributions for you for more than five years, we may transfer your account balance to our ERF. Our nominated ERF is AUSfund.

However, if we have a current address we will write to you and give you the option to reactivate your account before transferring your Hostplus account to AUSfund. 

If your superannuation benefits are transferred to AUSfund, your personal information will be passed on to AUSfund so they can establish and manage your account, process your contributions, pay benefits, provide you with membership benefits and services, and correspond with you.

Being transferred to AUSfund may affect your benefits because of the following circumstances: 

  • you will cease to be a member of Hostplus.
  • any insurance cover with Hostplus will cease.
  • you will become a member of AUSfund and be subject to its governing rules. If Hostplus can provide AUSfund with current contact details, AUSfund will send you their current Product Disclosure Statement (PDS). You can also ask them for a copy. AUSfund has a different investment strategy from Hostplus. For more details, see the AUSfund PDS.
  • AUSfund does not offer insured benefits in the event of death or disability. 

AUSfund engages specialist agents such as its administrator, Superpartners Pty Ltd (ABN 57 078 907 883) to provide services and other benefits to its members, under the strictest confidence. AUSfund will not use or disclose your information for any other purpose without your consent, except where required or authorised by law.

Should your benefits be transferred into AUSfund, you may request access to, or correction of, any personal information held by AUSfund by writing to AUSfund's Privacy Officer. AUSfund can be contacted at:

AUSfund Administration
PO Box 543
Carlton South
VIC 3053 Australia
Email: admin@ausfund.net.au
Web: unclaimedsuper.com.au

Phone: 1300 361 798 between 8.30am – 5pm Monday to Friday
If calling from outside Australia: + 61 3 9814 6400

Fax: 1300 366 233
If faxing from outside Australia: + 61 8 8205 4990


2.12 Understanding contributions

2.12.1 Salary sacrifice

Some employers allow you to make contributions to super from your before-tax salary. These contributions are known as salary sacrifice and are subject to contribution caps (see 2.13.5 Contribution Caps). Making extra super contributions by salary sacrificing can reward you with tax benefits – 15% tax is deducted from your super money, which is lower than most people’s personal tax rate which can be as high as 45% (plus Medicare levy and the temporary 2% Budget Repair levy applicable to members whose annual taxable income is over $180,000).

It is important to note that some employers may:

  • base their SG contributions on the reduced salary,
  • not offer salary sacrifice.

Before entering into a salary sacrifice arrangement you should seek professional advice and obtain a copy of our Salary sacrifice brochure available at hostplus.com.au/super/super-forms. Generally, if the average tax rate payable on your income is greater than 15%, you will benefit from salary sacrificing in that, the amounts that you sacrifice will be taxed at 15%. But you may not benefit if you exceed the contribution caps.

2.12.2 Low Income Superannuation Contribution (LISC)

From 1 July 2012, the Government has been providing a contribution equal to 15% of total concessional contributions made for low income earners with an adjusted taxable income of up to $37,000. The maximum contribution paid will be $500 and the minimum $10 (not indexed).

A person is entitled to the low income superannuation contribution if they satisfy the following requirements:

  • the individual has concessional contributions for the year made to a complying super fund.
  • the individual’s adjusted taxable income does not exceed $37,000.
  • the individual is not a holder of a temporary resident visa (New Zealand citizens in Australia do not hold a temporary resident visa and are as such, eligible for the payment).
  • the individual satisfies an income test in which 10% or more of their total income is derived from business or employment.

For latest information visit the ATO at ato.gov.au

Eligibility for the LISC will be removed from 1 July 2017.

2.12.3 Boosting your super

For many people, SG contributions alone may not be enough to cover the cost of retirement. That’s why the Government encourages you to maximise your retirement savings by providing generous tax advantages for extra super contributions you make.

What’s more, if you organise your super early, adding just a little to your account could reap big rewards in the long term. In addition to your employer contributions you can add to your super in a variety of ways:

  • rolling over super from other accounts into Hostplus – get started with our Online Rollover Tool.
  • contributions from your after-tax salary (known as non-concessional contributions*). We will need your Tax File Number to accept personal contributions.
  • contributions from your before-tax salary. These (concessional**) contributions include salary sacrifice. Speak with your employer to check if you can make before-tax contributions as they will need to arrange this for you.
  • Government co-contributions, if you are eligible.
  • the low income superannuation contribution*** (LISC), if you are eligible.
  • your spouse could split their before-tax contributions with you.
  • spouse contributions if you are a low income earner (see Spouse contributions).

You could also add to your spouse’s super by:

  • making spouse contributions and receiving a Government rebate if your spouse is a low income earner.
  • splitting up to 85% of your concessional contributions (including salary sacrifice) with your spouse.
 

Note Proposed Change:
* At the May 2016 Budget Announcements, the Federal Government flagged that it would introduce a $500,000 lifetime cap for non-concessional contributions. The proposed changes will apply retrospectively from May 2007. This change has been proposed but is not yet law.

** At the May 2016 Budget Announcements, the Federal Government flagged that it would require those with combined incomes and superannuation contributions greater than $250,000 to pay 30% tax on their concessional contributions, up from 15%. This extends the current treatment of people with combined incomes and superannuation contributions over $300,000. It also flagged that it would lower the superannuation concessional contributions cap to $25,000 per annum. The Government will introduce catch-up concessional superannuation contributions by allowing unused concessional contributions caps to be carried forward on a rolling basis for up to five years for those with account balances of $500,000 or less. These changes have been proposed but are not yet law.

***At the May 2016 Budget Announcements, the Federal Government flagged introduction of the Low Income Superannuation Tax Offset to replace the Low Income Superannuation Contribution when it expires on 30 June 2017. This will allow individuals with an adjusted taxable income of $37,000 or less to receive an effective refund of the tax paid on their concessional contributions, up to a cap of $500. This change has been proposed but is not yet law.

2.12.4 The power of compounding

Compound interest is where you reinvest the interest you earn into your investment, so you can then earn interest on both the original funds as well as past interest payments. 

For example, if you earn 10% p.a. on a $1,000 investment and reinvest that money, the next year you earn 10% on the original $1,000 plus the $100 you have reinvested. Over time, the rewards of compounding can be great.

The trick is to start early to enjoy the benefits of compound interest. Because a little now can mean a lot later. For example, if Kate starts contributing an extra $25 a week at age 20 she may end up with an extra $521,911 when she retires at 65. Meanwhile Brendan starts contributing at age 40 and may only receive an extra $98,717 when he retires.

The table below shows the difference you may make to your super benefit by starting early.

If you start adding $25 a week to your super at Age 20 Age 30 Age 40
Total amount added $58,500 $45,500 $32,500
Extra benefit at retirement $521,911 $232,685 $98,717

Source: JANA Investment Advisers Pty Ltd. Earnings are calculated at a compound interest rate of 8% p.a. with amounts being fully invested until age 65. These assumptions are for illustrative purposes only and don’t account for fees and tax. Investment returns are not guaranteed. Returns can be higher or lower than set out in this example. This is not a prediction or estimate of actual retirement savings.

 

2.12.5 Super rollover

If you have multiple super accounts, you’re probably paying multiple fees. By rolling all your accounts into Hostplus, you’ll pay just one set of fees. It could save you thousands of dollars over the long term and mean more money for you at retirement.

Hostplus doesn’t charge you to roll existing accounts into Hostplus. But before you cancel existing arrangements with another fund, check to see if they charge any exit fees/penalties and whether the cancellation will affect any related insurance cover.

To rollover your other super accounts to Hostplus visit hostplus.com.au/rollover, or get started with our Online Rollover Tool.

Please note: Hostplus must complete a standard rollover (to a fund other than a Self-Managed Superannuation Fund) as soon as practicable but no later than 3 business days after receiving the request containing all mandated information. The three day rollover clock starts when Hostplus has received a rollover notification that is complete. During blackout periods (each January and July) the fund may be unable to process rollovers within the mandated three day period and will instead process rollovers within 3 business days after the blackout periods ends. These are indicative timeframes only which may be subject to change in the future. Additional time may also be allowed for rollovers where a member’s funds are invested in ChoicePlus.

2.12.6 What if I want to transfer some of my super from my Hostplus account to another fund?

You may rollover part of your account balance from Hostplus to another complying super fund if:

  • the amount you transfer does not reduce your Hostplus account balance to less than $5,000, and
  • you have not made a request to transfer funds in the last 12 months.

Rolling over your benefit may have an impact on your insurance cover, as continuation is subject to maintaining sufficient funds to meet insurance premiums. If your cover lapses, you will need to reapply for insurance cover and may be subject to underwriting.

Members are free to make multiple transfers provided a minimum $5,000 account balance is maintained after any transfer. If a transfer results in the account balance dropping below $5,000 the Trustee has discretion whether the transfer occurs. Consideration will be given on application.

Existing Choiceplus superannuation members may (as a once off when commencing a new Hostplus Pension) transfer their Choiceplus held shares, exchange traded funds (ETFs) and listed investment companies (LICs) via an asset transfer, without the need to sell down. For more information on asset transfers please see 5.33 A closer look at our Choiceplus option.

2.12.7 UK Pension Transfers and KiwiSaver Transfers

UK Pension Transfers

As a result of recent UK legislative reforms, which took effect from 6 April 2015, we are currently unable to accept transfers of funds from United Kingdom Pension Schemes.  

As a result of these changes, superannuation savings held by existing Qualified Registered Overseas Pension Scheme (QROPS) members may not be released before preservation age, unless as a result of ill-health. 

Rollovers between Australian Superannuation Funds that contain UK benefits may also be unable to be processed unless made to a QROPS complying fund.

 For more information on the implications of the UK reforms we recommend you seek advice from an authorised UK and Australian taxation adviser. For general information please contact us on 1300 467 875 8am -8pm weekdays AEST. 

KiwiSaver Transfers

Under the ‘Tasman retirement savings portability scheme’ if you are living in New Zealand on a permanent basis, you might be considering transferring your Australian superannuation benefit to your KiwiSaver account. Our ‘How to transfer your Super to a KiwiSaver scheme’ guide lists step by step instructions when you are requesting a transfer out of your Hostplus account to a KiwiSaver scheme. You can download the guide from our website at hostplus.com.au

2.12.8 Spouse contributions*

Contributing to your spouse’s super could have big benefits. For instance, if your spouse is a low income earner or doesn’t work, you can earn a tax rebate of up to $540 a year for contributions you’ve made on their behalf. It doesn’t matter how much you earn. Of course, there’s the long term benefit of building a valuable retirement nest egg, too.

Are you eligible?

You can make contributions for your spouse as long as you are living together and you are both Australian residents. A spouse is:

  • a person who is legally married to you,
  • a person who lives with you on a genuine domestic basis in a relationship as a couple, or
  • a person (whether the same sex or different sex)

with whom you are in a relationship that is registered under law of a State or Territory.

Government regulations don’t allow spouse contributions if you are your spouse’s employer or a couple living apart. If you stop living with your spouse, you’re not eligible to continue making spouse contributions.

The receiving spouse must be under 70 years of age and work at least 40 hours in 30 consecutive days during the financial year in which the spouse contribution is made.  If under 65, they do not need to work.  Each time you make a spouse contribution, you must confirm that you and your partner are still living together and you still meet eligibility criteria.

Adding up your rebate

For every dollar of spouse contributions, you can claim 18% of the contribution as a tax rebate – up to a maximum rebate of $540 a year if the receiving spouse’s assessable income (plus reportable fringe benefits total and total reportable employee super contributions, if any) is $10,800 a year or less (based on a $3,000 contribution). After that, every dollar of the receiving spouse’s income over $10,800 per year reduces the rebate amount. You’re not eligible for the rebate if the receiving spouse’s assessable income (plus reportable fringe benefits total and total reportable employee super contributions, if any) is more than $13,800 a year.

Our Spouse Contributions Brochure is available at hostplus.com.au/super/super-forms.

Note Proposed Change:
* At the May 2016 Budget Announcements, the Federal Government flagged that it would improve the superannuation balances of low income spouses by lifting the current income threshold for the receiving spouse from $10,800 to $37,000. This change has been proposed but is not yet law.

2.12.9 What contributions can be made and when

Member age     

Under 65

Over 65 under 70

Over 70 under 75**

75 and over

Personal Contributions***

Any person, irrespective of their work status, may make personal contributions.

A member may make personal contributions if they have been gainfully employed for at least 40 hours in 30 consecutive days during the current financial year

Not allowed.

Spouse* Contributions

Can be made at any time, irrespective of the age and employment status of the receiving spouse.

Can be made if the receiving member has been gainfully employed at least 40 hours in 30 consecutive days during the financial year    

Not allowed.

Not allowed.

Employer Contributions

An employer can make:

• mandated employer contributions (including SG and award contributions),

and

• additional employer contributions (over and above the mandated contributions such as salary sacrifice).

An employer can make:

• mandated employer contributions (including SG and award

contributions), and

• (provided the member is aged under 75) additional employer contributions such as salary sacrifice if the member has been gainfully employed for at least 40 hours in 30 consecutive days during the current financial year


The self-employed can make before-tax and after-tax contributions to age 75 (provided the member is aged between 65 and 75 and has been gainfully employed for at least 40 hours in 30 consecutive days during the current financial year).

* In order to make spouse contributions, the person contributing and the person receiving the contribution must satisfy the definition of a spouse. A spouse includes: a person (whether of same or opposite sex) with whom the person is in a relationship that is registered under the Register of Births and marriages under State or Territory law, or a person, who although not legally married to the person, lives with the other person on a genuine domestic basis in a relationship as a couple.

** Over 70 but less than 28 days after the month in which members turn 75.

† Once you turn age 65, we’ll write to you each year to confirm your continuing eligibility to make contributions to super.

*** Note Proposed Change:
At the May 2016 Budget the Federal Government proposed that it would life current restrictions and allow individuals under the age of 75 to claim tax deductions for personal superannuation contributions to eligible superannuation funds. The Government has also flagged that it proposes to remove all work tests, age based restrictions, restrictions on bring-forward of non-concessional contributions and instead apply the same contribution acceptance rules for all individuals aged upto 75, from 1 July 2017. These changes have been proposed but are not yet law.

2.12.10 Super splitting

While super funds aren’t required to offer super splitting, Hostplus offers the benefits of super splitting to members. Under Hostplus super splitting rules, eligible funds can be split between spouses and de facto couples after the end of each financial year.Split contributions will be transferred from the member’s Hostplus account to their spouse’s or defacto’s Hostplus account where they will be fully preserved. Split funds will be allocated in arrears once a year.

Only concessional contributions (employer SG, salary sacrifice, additional employer contributions and deductible contributions made by the self-employed) are eligible for super splitting with a spouse. You can split up to 85% of these concessional contributions.

You cannot split:

  • personal after-tax contributions,
  • amounts rolled over or transferred from another fund, and
  • amounts subject to a family law payment split.

Example

On 1 July 2016, Adam’s superannuation account had $50,000. During the period 1 January – 30 June 2016, Adam received $5,000 in employer contributions.

He also made a personal contribution of $2,000 in March 2016, as well as rolling over $10,000 from a previous complying superannuation fund.

The amount that Adam can split with his wife, Sarah, is:

85% of $5,000  = $4,250 (employer contributions)

Total = $4,250

The $2,000 personal contribution made in March 2016 and the $10,000 rollover are not eligible for splitting.

A $60 contribution splitting fee will be payable by the splitting member for each transaction which will be deducted from the member’s account. The fund needs to receive contribution splitting advices by 31 May of the current year for the previous financial year’s contributions.

To find out more about super splitting, call Hostplus 1300 467 875. The split amount must be more than $1,000. A member’s account balance cannot be less than $1,000 after the split. You may also consider seeking advice from a licensed financial adviser. 


2.13 Making extra contributions

If you'd like to add to your super, check with your employer to see if you can make additional contributions through salary sacrifice. If they do, your employer may make personal before-tax and after-tax contributions on your behalf directly to Hostplusby payroll deduction.

We can accept personal contributions from you by cheque or regular direct debit deductions, subject to you providing us with your TFN. 

You can also make a contribution by BPAY® via Member Online at hostplus.com.au or complete the Direct Debit authority form available at hostplus.com.au


2.14 Proof of identity

2.14.1 What are the proof of identity requirements when I rollover or withdraw my benefits

Under the Anti-Money Laundering and Counter Terrorism Financing Act (AML/CTF Act) superannuation funds are required to identify, monitor and mitigate the risk that the fund may be used for the laundering of money or the financing of terrorism. Because of this you may be required to provide certified proof of identity before you withdraw, rollover your benefit from the fund or commence an income stream^. You will need to provide identity documents when you are rolling to a SMSF. At a minimum, you may be required to provide the fund with evidence that verifies your full name, your date of birth, and your residential address.

In the event of a death claim, we would also require documentation to verify dependants and/or legal personal representatives’ identities. These may include, but are not limited to, certified copies of marriage certificates, wills, birth certificates and letters of administration.

The trustee also reserves the right to request additional information. If you do not provide this information your payment may be delayed or refused.

^ Generally, identity documents are not required if you are rolling over between APRA regulated funds

2.14.2 Providing proof of identity

When submitting forms to Hostplus you may be required to provide documentation so we can prove you are the person to whom the superannuation belongs to. You are required by law to provide certified copies of proof of identity documents in certain circumstances. (For example: when withdrawing your benefit).

Please ensure the person certifying your proof of identity has no connection to any organisation you are using to assist you in obtaining access to your super e.g. your financial adviser or accountant, is someone other than yourself and is not anyone who will benefit from your application for withdrawal of your benefit.

From 1 July 2013 we are required to utilise the SuperTICK service provided by the ATO to validate member information when processing rollover requests. As a result we will only contact you if we have been unable to validate your information or if you have requested a rollover to a Self-Managed Superannuation Fund (SMSF). In these circumstances you may be required to provide evidence that verifies your full name, date of birth and residential address before we process your request. To help you provide the right documentation, please take a moment to carefully read the information provided below:

  • Part A - What supporting documentation is required?
  • Part B - How to certify document

Part A – What supporting documentation is required?

For all cash withdrawals or rollovers to Self-Managed Super Funds (SMSFs) please submit documents from the list below:

Option A

Certified copy of any ONE of the following documents:

  • Current drivers licence issued by a State or Territory of Australia with your photograph.
  • Current Australian passport that has not expired within the past two years.
  • Card issued under a state or territory for the purpose of providing a person’s age containing a photograph of the person.
  • Foreign passport or similar travel document containing a photograph and the signature of the person that has not expired within the past 2 years (document not written in English must be accompanied by an English translation prepared by and accredited translator).

Option B 

Certified copy of any ONE of the following documents:

  • Birth certificate or birth extract issued by a State or Territory of Australia.
  • Australian citizenship certificate.
  • A current pension card.

AND, a certified copy of ONE of the following:

  • Notice of Assessment from the ATO (less than 12 months old) containing your name and residential address (e.g. your tax return).
  • Letter from Centrelink regarding a government assistance payment.
  • Rates notice from local council (less than 12 months old) containing your name and residential address.
  • Notice issued by federal, state or territory government or local council (within the past 12 months) containing your name and residential address.

If you are not able to obtain or provide some or all of the above documentation, please contact us to discuss possible alternative documentation that may be acceptable.

What if I recently changed my name or I’m signing on behalf of a member?

Your name must be the same as shown on your proof of identity. If you have changed your name you will need to provide a certified copy of what is called a ‘linking document’. A linking document is a document that proves a relationship exists between two (or more) names.

If you are signing on behalf of another Hostplus member, you will also need to provide a linking document. The linking document you provide must be certified or it can’t be accepted. 

Examples of linking documents are:

Purpose

Suitable linking documents

Change of name

Marriage certificate

Deed poll or change of name certificate from the

Registry of Births, Deaths and Marriages

Signing on behalf of a member

Power of Attorney

Guardianship papers

Please note: A commercial organisation may be used to independently verify your identification details. All documents provided to us will be stored securely and will only be used for the purpose of proving your identity in relation to this claim.

Part B – How to certify a document

What is a certified copy?

A certified copy is a copy of an original document, which has been certified and signed by a person who is authorised to certify that it is a true and correct copy of the original.

How do I obtain a certified copy of a document?

You will need to take your original document(s) and a clear and legible photocopy of both sides of the original document to a person who is authorised to certify proof of identity documents.

What do the certifiers need to do?

The certifier will need to compare your copy with the original, then stamp or write ‘This is a true and correct copy of the original’.

On every page of your proof of identity the certifier must include all of the following:

  • signature
  • name
  • address
  • occupation
  • phone number
  • date of authorisation
  • authorised person’s stamp and registration number (if applicable).

What does a certified identity document look like?

This is what a certified proof of identity document should look like:

Certified document 

Find someone to certify your documents

Only certain people are authorised to certify identification documents. Many of the more common occupations are listed below:

  • Police officer
  • Agent of the Australian Postal Corporation who is in charge of, or a permanent employee with two or more years of continuous service with, an office supplying postal services to the public
  • Pharmacist
  • Chiropractor
  • Dentist
  • Legal practitioner
  • Medical practitioner
  • Nurse
  • Optometrist
  • Physiotherapist
  • Teacher employed on a full-time basis at a school or tertiary education institution
  • Veterinary surgeon
  • Bank, building society, credit union or finance company officer with two or more years of continuous service
  • Justice of the Peace
  • Notary public.

For a complete list of people permitted to certify documents go to hostplus.com.au/id.

Member residing overseas

For members residing overseas, the persons who are authorised to certify identification documents are:

  • An Australian Consular Officer or Australian Diplomatic Officer (within the meaning of the Consular Fees Act 1955).
  • An employee of the Commonwealth or the Australian Trade Commission who is authorised and exercises his or her function in that place.
  • A person authorised as a notary public in a foreign country.
  • Any person who is in a country or place outside Australia and is currently licensed or registered in Australia (under a State or Territory law) to practice in an occupation listed in Step 5 above.

Members residing overseas must have their identification documents certified by a person who has an Australian connection (as set out above). Any documents certified by a person who is licensed or registered to practice in an occupation listed above in a foreign country (and not in Australia), or who holds a position in a foreign country, will not be accepted by Hostplus (except for a foreign notary public).

Important note

  • All pages of your proof of identity documents must be certified.
  • The certification must be on the copy of the document, not on the back of the page or a separate page attached to the document.
  • The certified copies of your proof of identity documents must contain an original signature. Faxed or emailed copies will not be accepted.
  • If any documents are written in a language other than English, they must be accompanied by an English translation prepared by an accredited translator.
  • Documents certified more than 12 months ago will not be accepted.
  • The person certifying your documents can not be the benefactor or be connected to any organisation you are using to assist you in obtaining access to your super, even if they are authorised to certify documents.

If these conditions are not met, Hostplus will be unable to process your request.

This document does not and is not intended to contain any recommendations, statements of opinion or advice. The information is factual and / or general in nature and does not consider any of your objectives, financial situation or needs. You should consider obtaining advice from a licensed financial and taxation adviser and consider the appropriateness of this information, having regard to your particular investment needs, objectives and financial situation.

Host-Plus Pty Limited ABN 79 008 634 704, AFSL No. 244392, RSEL No. L0000093, MySuper No. 68657495890198, Hostplus Superannuation Fund ABN 68 657 495 890, RSE No. R1000054.


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