Section 2. How super works.

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.

---

2.4 If you’re a temporary resident

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. Any super benefits paid to eligible temporary residents is subject to the Departing Australia Superannuation Payment (DASP) withholding tax upon leaving Australia permanently: see Temporary residents departing Australia

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. Once the account is transferred to ATO, you’ll need to contact the ATO to claim your benefit. To claim your Departing Australia Superannuation Payment (DASP) go to the Australian Tax Office's (ATO) website and complete the (DASP) online application.

---

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.

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 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 Australian Taxation Office (ATO),
• 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,
• To pay the ATO an amount in respect to a First Home Saver Super Scheme (FHSSS) release authority, 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 may 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 duplicate 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 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 beneficiaries, such as dependants or legal personal representative (the executor or administrator of your estate). If the trustee has not found a dependant or a legal personal representative, the death benefit payment may be made to another person, subject to Superannuation Law requirements.

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 representatives 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 member and unclaimed money register, containing details of the superannuation accounts for members that funds cannot locate and certain members for whom contributions have ceased. All superannuation funds 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:

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.

---

2.11 Our Eligible Rollover Fund (ERF)

If your account balance is less than $6,000 and we have not received contributions for you for more than 18 months, 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. 

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
Locked Bag 5132
Parramatta
NSW 2124, 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 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 – for more information click here.
• 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 tax offset (LISTO), 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).

We can accept personal contributions from you by cheque regular direct debit deductions and electronic transfer, subject to you providing us with your valid TFN.  Go to Member Online for payment options.

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

2.12.2 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 an extra $25 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.

^{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.}

2.12.3 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.

You can search to see if you have other super accounts and roll them over to Hostplus. Click here for more information

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.

2.12.4 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.

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 and excluding TTR accounts) 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.

2.12.5 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. 

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

---

2.13 Contributions from your after-tax salary (non-concessional contributions)

Non-concessional contributions are generally contributions made by or for a member that are not taxed in the fund. For example, they are made from an individual’s after-tax income. There is a limit to how much of your after-tax salary you can contribute in a financial year to your super. See Section 7. How super is taxed

Non-concessional contributions in a financial year include:

• personal contributions for which you do not claim an income tax deduction,
• contributions your spouse makes to your super fund account,
• contributions in excess of your small business capital gains tax (CGT) exemption cap amount,
• amounts transferred from foreign super funds (except for amounts included in the fund’s assessable income), and
• contributions made for a member who is under 18 years of age that are not employer contributions.

---

2.14 Contributions from your before-tax salary

A concessional contribution is a contribution that is made by or for you to a complying super fund and is assessable income of the fund (which means the fund will pay tax on your behalf). Concessional contributions include SG contributions paid by your employer, additional contributions made by your employer, salary sacrificed contributions deducted from your before tax-salary and personal contributions for which you have claimed a tax deduction. There is a limit to how much of your before-tax salary you can contribute in a financial year to your super.. See Section 7. How super is taxed

2.14.1 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 Section 7. How super is taxed. 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).

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/forms-and-brochures. 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 must be careful not exceed the concessional contribution caps.

2.14.2 Claiming a tax deduction for personal contributions

If you are self-employed or your employer does not offer salary sacrifice arrangements you can still contribute extra to super and enjoy concessional tax benefits by making a personal contribution from your after-tax salary and claiming a tax deduction. You can reduce your taxable income and the amount of income tax you pay by converting non-concessional personal contributions into concessional contributions. However you will have to be mindful not to exceed your contribution limits because you may pay extra tax. For information about contribution limits and contribution tax. See Section 7. How super is taxed

From 1 July 2017, you can contribute to super regardless of the amount of salary or wages that you earn by claiming a full deduction for personal contributions made until age 75.You can only claim a deduction for contributions made before the 28th day of the month following the month in which you turned 75. If you’re aged 65 to 75, you will need to meet the work test in order to claim a tax deduction.

If you’re under the age of 18, you can only claim a tax deduction for super contributions if your income comes from operating a business or gainful employment.

To claim a tax deduction for personal contributions made:

• you must give Hostplus a notice of intent to claim at the earliest of either the date you lodge your income tax return for the financial year in which you made a personal contribution,
• or at the end of the financial year following the year in which you made the personal contribution.

You must complete and send to Hostplus the ATO form Notice of intent to claim or vary a deduction for personal super contributions (NAT 71121) available from the ATO website. Hostplus is required to acknowledge your request before you are able to claim a tax deduction. Please note Hostplus should receive the notice prior to making any benefit payment or rollover(full/ partial) from your account.

2.14.3 Increase your super with Government co-contributions

If you’re a low or middle income earner and you make voluntary contributions to your super from your after-tax pay, the Government may also contribute to your super. This Government payment is called a co-contribution (conditions apply).

To ensure that Hostplus is able to process your Government co-contribution, your name, date of birth, address and TFN held with Hostplus must match the records held with the ATO.

If there are any inconsistencies Hostplus will be unable to accept your co-contribution. Please ensure that your details are kept up to date. For further information, contact the ATO on 13 10 20 or call Hostplus 1300 467 875.

Are you eligible?

To qualify for the co-contribution you'll need to:

• make an after tax personal contribution to your super up to the non-concessional contribution cap for the relevant financial year (if you claim a tax deduction for your personal contribution you may not be entitled to a Government co-contribution),
• have a Total Superannuation Balance^ that is less than the transfer balance cap in the relevant financial year ($1.6 million for the 2018-19 financial year),
• be in full-time, part-time or casual employment, or be self-employed,
• have at least 10% of your total income (assessable income and reportable fringe benefits) attributable to eligible employment, running a business, or a combination of both,
• be under 71 years of age,
  be a permanent resident of Australia,
• have lodged a tax return,
• have provided your TFN to Hostplus

At the end of the financial year in which you have made after-tax contributions, all you need to do is submit your usual income tax return. The ATO will work out any co-contribution amount you would receive and forward it to your Hostplus account.

Your maximum super co-contribution depends on your income. If your income is equal to or less than the lower income threshold ($37,697 for the 2018 -19 income year) you can get a co-contribution of up to the full 'maximum entitlement'. For every dollar that you earn above the lower income threshold, your maximum entitlement is reduced by 3.333 cents. You cannot get a super co-contribution if your income is at or above the higher income threshold ($52,697 for the 2018 - 19 income year).

The amount of your super co-contribution depends on the amount of non-concessional (after-tax) contributions you put into super and the 'matching rate' for the financial year you made the contribution.

For the 2018 -19 financial year the approximate Government matching contribution rate paid into your super is as per the table below, You can also find out how much you may be eligible for with the Super co-contribution calculator at moneysmart.gov.au

^{^Your total superannuation balance is the total value of your accumulation and retirement phase interests (including rollover amounts not yet included in those interests) across all of your superannuation accounts, reduced by the sum of any structured settlement contributions.}

If you have more than one superannuation account

To ensure your Government co-contribution is invested in your Hostplus account, you must complete a Superannuation fund nomination form and return it to the ATO Nomination forms are available from the ATO by calling 13 10 20 or visit ato.gov.au.

2.14.4 Low Income Superannuation Tax Offset (LISTO)

The LISTO provides 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 LISTO that can be paid is $500 and the minimum $10 (not indexed). Eligibility is determined by the ATO who will make the payment directly to a member’s super account.

A person is entitled to the low income superannuation tax offset 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.

2.14.5 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 (based on a $3,000 contribution) if the receiving spouse’s total assessable income (plus reportable fringe benefits amounts and reportable employee super contributions, if any) is less than $40,000 for an income year.

Tax offsets will not be available if the receiving spouse has exceeded their non-concessional contributions cap in the relevant financial year or they have a total superannuation balance^ equal to or exceeding the transfer balance cap as at 30 June before the start of the financial year in which the contribution was made.

To calculate the amount of tax offset you can receive for contributing to an eligible spouse, multiply 18% to the amount lesser of:

1. $3,000 less the amount by which total spouse income exceeds $37,000; or, 
2. the sum of the spouse contributions made in a given financial year.

 

*Your total superannuation balance is the total value of your accumulation and retirement phase interests (including rollover amounts not yet included in those interests) across all of your superannuation accounts, reduced by the sum of any structured settlement contributions.

2.14.6 What contributions can be made and when

^{* 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 75 but less than 28 days after the month in which members turn 75.}

2.14.7 Super splitting

While super funds aren’t required to offer super splitting, Hostplus offers the benefits of super splitting to members to help boost your spouse's super savings. 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 de facto’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) 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 2018, Adam’s superannuation account had $50,000. During the period 1 January – 30 June 2018, Adam received $5,000 in employer contributions.

He also made a personal contribution of $2,000 in March 2018, 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 2018 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. 

2.14.8 First Home Super Saver Scheme (FHSSS)

The Australian Government’s FHSSS is designed to help more first home buyers get into the property market.

You can make eligible voluntary contributions into your super up to a maximum of $15,000 a year with a $30,000 lifetime limit. This extra money can then be used to calculate any associated earnings by the ATO that you can withdraw and use towards the purchase of your first home.

Eligible voluntary contributions made from 1 July 2017 can be withdrawn from 1 July 2018 and will not impact your social security entitlements.

Participants in the FHSSS must:

• be aged 18 years or older,
• have never owned a property before and,
• have never previously requested a release authority in relation to a First Home Super Saver Scheme determination.

Please note: If you have previously owned a home and suffered a financial hardship, you may still be eligible to participate in the FHSS scheme subject to ATO’s approval.

When you are ready to withdraw the money from your super account under the FHSSS, you can apply to the ATO online using your MyGov account. The ATO will work with you and Hostplus to help you determine the amount that can be withdrawn from your super account to buy your first home.

At the time of your application, the ATO will calculate and apply any earnings that can be released. You can only apply to release the money under this scheme once.

Salary sacrifice contributions and personal contributions claimed as a tax deduction, together with associated earnings are taxed at 15%. When withdrawn as part of the FHSSS the total amount will be taxed at the marginal tax rates less a 30% tax offset.

For more information about the FHSSS please visit ato.gov.au/Individuals/Super/Super-housing-measures/First-Home-Super-Saver-Scheme

2.14.9 Downsizer superannuation contributions

From 1 July 2018, eligible Australians aged 65 or older can make a ‘downsizer contribution’ of up to $300,000 each into their superannuation where the proceeds come from selling their home.

This measure applies to the sale of your home, which must be your main residence, where the exchange of contracts for the sale occurs on or after 1 July 2018.

Existing contribution caps and restrictions do not apply to the Downsizer contribution, which is a great way to make the most of your super.

Am I eligible?

To qualify for the downsizer contribution, you must meet all of the following criteria:

• You are at least 65 years old when you make the downsizer contribution (there is no maximum age limit);
• You are contributing to super from the sale of your home where the contract of sale was exchanged on or after 1 July 2018;
• You or your spouse owned your home (which was not a caravan, houseboat or other mobile home) in Australia for 10 or more years before the sale;
• Your home is in Australia and is not a caravan, houseboat or other mobile home;
• Any gain or loss on the sale of the home has qualified (or would have qualified if the home was a pre-CGT asset) for the main residence CGT exemption in whole or part;
• You chose to treat the contribution as a downsizer by completing and sending a Downsizer Contribution form to Hostplus;
• You make the contribution within 90 days of selling your home (generally date of settlement), or such longer time as allowed by the ATO; and
• You have not previously made a downsizer contribution.

Existing restrictions do not apply

If you are aged 65 or over and qualify you won’t be restricted from making a downsizer contribution if you:

• are not working;
• are aged 75 or over;
• have a total super balance of $1.6 million; and,
• have maxed out the non-concessional contribution cap.

Things to note

• Buying and selling a home attracts costs and stamp duties. Your Age Pension entitlements may be reduced or lost.
• If your downsizer contribution to Hostplus is ineligible, it may be returned to you or be treated as an excess non-concessional contribution subject to additional tax.
• You cannot claim a tax deduction for a downsizer contribution.
• You can only make one downsizer contribution in your lifetime.

Existing contribution caps and restrictions will not apply to downsizer contributions; however, it will count towards your transfer balance cap, currently set at $1.6 million if you move your super to a retirement phase.

Also, if you exceed your total super balance cap (which is also $1.6 million) due to making the downsizer contribution, you will not be able to make additional future contributions into super.

For more information about downsizer super contributions please visit ato.gov.au/Individuals/Super/Super-housing-measures/Downsizing-contributions-into-superannuation

2.14.10 Contribution limits

^Your total superannuation balance is the total value of your accumulation and retirement phase interests (including rollover amounts not yet included in those interests) across all of your superannuation accounts, reduced by the sum of any structured settlement contributions.
1. This amount is indexed to Average Weekly Ordinary Time Earnings, but only increases in increments of $2,500.
*From 1 July 2018, if you don’t reach your annual concessional contributions cap of $25,000, you may carry forward the unused portion of your cap for up to 5 years, provided your total superannuation balance is less than $500,000.
2. The non-concessional cap is indexed as concessional contributions cap in line with Average Weekly Ordinary Earnings (AWOTE).
3. Transitional arrangements apply to members who brought forward their non-concessional contributions cap in the 2016-17 or 2017-18 financial years but have not used their full bring-forward space before 1 July 2018.
4. The ‘at work test’ means you must be in gainful employment for at least 40 hours within a 30 consecutive day period in the financial year in which you contribute.

2.14.11 Maximum superannuation contribution base

This is the maximum limit used to calculate the SG contributions on any employee’s earnings base for each quarter of the financial year. Generally, employers do not have to pay SG contributions for any earnings above this limit unless the terms of your employment provide otherwise (for example, under your contract of employment, any applicable award or other industrial agreement). For the 2018 – 19 income year the maximum contribution base per quarter is $54,030. 

2.14.12 Contribution payment options

Hostplus offers the following payment methods:

^{® Registered to BPAY Pty Ltd ABN 69 079 137 518}

2.14.13 Types of benefits

There are a number of benefits you may receive, subject to meeting the applicable criteria, including:

Retirement benefit
Your super balance may be payable to you when you retire permanently from the workforce, having reached your preservation age. Your balance may also be paid to you if you leave your employer after age 60 irrespective of whether you are retiring permanently from the workforce.

Once you attain age 65 you can access your super funds even if you have not yet retired from the workforce, as a lump sum. Or 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 dependants, estate if neither is available to other beneficiaries, subject to the law's requirements.

Unrestricted non-preserved benefit when you have not reached a condition of release 
You may withdraw the unrestricted unpreserved benefit at any time regardless if you have met a condition of release. You are not obliged to take this benefit as there may be tax implications and if you want you can simply retain your benefit in the fund.  Check your latest Hostplus superannuation statement to find out if you have an unrestricted unpreserved benefit component.

Termination of employment benefit
You may withdraw your super if you stop working for a standard employer-sponsor who contributes on your behalf to Hostplus, and you have a total preserved benefit of less than $200 at the time of the termination. 

Death, Total & Permanent Disability (TPD) and Terminal Illness benefit
In the event of your death, your account balance and any insured benefit (if applicable) will be paid to your dependents or legal personal representatives.
See section 2.9 Death benefit nominations.

If you become totally and permanently disabled or a terminal illness exists (and you provide the trustee with the required documentation) you may be eligible to receive your account balance and any insured benefits (if applicable) before your preservation age is attained.

Death, TPD and terminal illness benefits can be paid as a lump sum or a pension.

To find out more about insurance cover, go to the online Member Guide information - Section 8: Insurance in your super

Income protection benefit
If you have income protection and are temporarily totally or partially disabled, you may be eligible to receive income protection benefits. Income protection benefits are generally paid on a monthly basis.

To find out more about insurance cover, go to the online Member Guide information - Section 8: Insurance in your super

---

2.15 Proof of identity

2.15.1 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}

2.15.2 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:

Important Information for Indigenous Australians

If you are a member with Indigenous Australians and/or Torres Strait Islander heritage and unable to meet the supporting document requirements mentioned in option A and B, please refer to hostplus.com.au/super/about-us/rap for alternative identification requirements.

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:

Change of name
As part of the identification process you will need to verify your identity by providing either one document from OPTION A or two documents from OPTION B:
And
A certified copy of any one of the following documents:

• Marriage Certificate
• Divorce Certificate
• Deed poll or change of name certificate from the Registry of Births, Deaths and Marriages
• Notice of assessment from the Australian Taxation Office (less than 24 months old) – this). Document does not need to be certified if provided through the MyGov portal

Change of DOB
As part of the identification process all members will need to verify their identity by providing either one document from OPTION A or two documents from OPTION B:
And
A certified copy of any one of the following documents:

• Birth Certificate
• Drivers licence
• Passport

Note: Only the one verification document is required in this instance

Change of Gender
Please provide either of the following:

1. statement from a Registered Medical Practitioner or Registered Psychologist verifying your gender
2. valid Australian Government travel document, such as a valid passport specifying your preferred gender
3. State or Territory Birth Certificate which specifies your preferred gender or
4. State or Territory Gender Recognition Certificate or Recognised Details Certificate showing a State or Territory Registrar of Birth, Death and Marriages has accepted a change in sex.

We will not be able to update your gender details if you have not provided one of these documents.

Signing on behalf of a minor
As part of the identification process you will need to verify their identity of any minor you are signing on behalf of by providing either one document from OPTION A or two documents from OPTION B:

If the member is under the age of 18 the parent or legal guardian will need to sign the application on the member’s behalf and provide one of the following certified documents:

• Birth certificate
• Power of Attorney
• Guardianship papers

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:

 

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.}

---