Introduction
4
Income stream options
6
Investments
10
Fees and other costs
20
Tax
24
Getting started
26
Forms
31
3183 11/15
Super Income Stream
Product Disclosure Statement: 1 November 2015
1
2
3
4
5
6
7
Super Income Stream PDS | 1
Important information
The information in this Super Income
Stream Product Disclosure Statement (PDS)
is current at the time of printing but may be
subject to change due to amendments to
legislation, fund rules or other causes.
You can access the most up-to-date
information at www.cbussuper.com.au or by
calling the Service Centre on 1300 361 784.
A copy of this information will be provided
to you on request. You will be advised of any
change to the information that is materially
adverse through our member magazine
Cbus News or via a new PDS.
This PDS sets out the main features and
benefits of the Cbus Super Income Stream.
Please read it thoroughly.
General advice warning
Cbus is licensed to provide general financial
product advice only. The advice contained
in this PDS is of a general nature and
has been prepared without taking your
particular financial needs, circumstances
or financial objectives into account. You
should assess your own financial situation
before making an investment decision
based on this advice and you may want
to consult a financial planner.
If you require a referral to an accredited
financial planner, please call 1300 361 784.
All figures quoted are current at publication
unless otherwise stated and are subject
to change.
Investment returns can go up and down.
Past performance is not a reliable indicator
of future performance.
This PDS has been prepared by
Cbus’ Trustee: United Super Pty Ltd
ABN 46 006 261 623 AFSL 233792
Cbus ABN 75 493 363 262.
This document replaces the previous
publication dated 1 June 2015.
Privacy
Your information is private. Cbus takes the
utmost care with your personal information.
Cbus only collects information that is
necessary for your membership.
Please refer to the Cbus Privacy Policy and
Personal Information Collection Statement at
www.cbussuper.com.au/privacy for details
about how Cbus collects and discloses
personal information or contact the Service
Centre on 1300 361 784 for a copy.
2 | Super Income Stream PDS
Talk to us – financial advice
It’s important to get advice before you make any changes to how your
retirement savings are invested. The decisions you make now can
have an impact on how much money you will have when you retire
and how long it will last.
Speak to a qualified adviser over the phone
If you’re a Cbus member, you have access to qualified financial
advisers as part of your membership. You can contact the
Cbus Advice Team on 1300 361 784 between 8am and 8pm Monday
to Friday AEST/AEDT or request a call back online at
www.cbussuper.com.au/getadvice
They can help you with financial advice on:
setting up an income stream
estate planning
Centrelink
beneficiaries
drawdown amounts
transition to retirement
general information about super and tax.
Meet with a Certified Financial Planner
If you would like to arrange a meeting with a financial planner for more
comprehensive personal financial advice, the Cbus Advice Team can
refer you to an accredited Certified Financial Planner (CFP®) who
meets strict professional qualification and service criteria set by
Cbus and the Financial Planning Association (FPA) of Australia. The
financial planner can offer you advice on a fee-for-service basis. Your
first meeting is at no cost and any fees for advice will be agreed with
you in advance.
You may be eligible to have the financial planner payment fees
deducted directly from your Cbus account. See page 21 of this PDS
for more information regarding Financial Planner Payments.
Contact the Cbus Advice Team to get started:
1300 361 784 (Press 4)
between 8am and 8pm Monday to Friday AEST/AEDT
www.cbussuper.com.au/getadvice
Welcome to the
Cbus Super Income Stream
Whether you’re an existing
Cbus member or new to the
Fund, you can join the Cbus Super
Income Stream. You’ll benefit
from low fees, strong long-term
investment performance, access
to retirement planning services
and a flexible regular income.
Is this the right product for you?
The Cbus Super Income Stream is for people
who have either:
■■
■■
r eached their preservation age and intend to keep working
and contributing to their super while they receive an income
stream (this is known as ‘Transition to Retirement’), or
retired and would like to access their super as an
income stream.
Super Income Stream PDS | 3
1
Introduction
Cbus is one of Australia’s
largest industry super funds
with over $31 billion in funds
and more than 726,000
members.
Created in 1984 for members in the
building, construction and allied industries,
Cbus is completely focused on maximising our
members’ retirement benefits.
4 | Super Income Stream PDS
Why start a Cbus
Super Income Stream?
Income streams are among the most popular methods of
providing income for retirees and those close to retirement.
Read this PDS to learn about the Cbus Super Income Stream and
seek financial advice to ensure that this product is right for you.
Our income stream is designed to offer high-quality, low-cost,
member-focused features such as:
■■
no entry fees
■■
low ongoing fees and no commissions
■■
■■
■■
default investment option, Conservative Growth, designed
to meet the needs of income stream members
view your current investment details
a flexible and easy to understand range of investment options
request to switch your investment options
ability to choose your own investments from standard Cbus
options, term deposits, Exchange Traded Funds, Australian
shares, property and infrastructure via Cbus Self Managed
■■
■■
internet account access
■■
personalised customer service, and
referral to other Cbus products and services such as
financial advice, retirement seminars and ME Bank products.
If you’re already a Cbus member, it couldn’t be
easier. Your existing Cbus account can be transferred
(rolled over) to the Cbus Super Income Stream.
We’ll even help you with the paperwork.
How income streams work
When you start an income stream you’ll need to decide how much
you want to receive as a regular payment and the frequency of
those payments.
Your regular payments and any lump sum withdrawals (sometimes
referred to as a commutation) you make will be deposited directly
into your nominated bank, building society or credit union account.
You can change the amount or frequency of your regular income
payments at any time if your needs change, as long as your new
payment amount falls within government limits.
Your account works on the following basis:
■■
You can:
■■
a ccess detailed transaction records including income
payments, earnings, fees and your account balance
■■
flexible drawdown payment options
■■
Cbus makes it easy for you to manage and keep track of your
income stream by giving you access to your account online at
www.cbussuper.com.au/login
■■
■■
■■
Online access
investment earnings (which can be positive or negative) are
applied to your account
fees, regular income payments, lump sum withdrawals
and tax (if applicable) are deducted from your account.
You’ll continue to receive payments until the money in your account
runs out. In the event of your death, the balance of your account will
be transferred to your beneficiaries.
Income streams can offer many benefits, including a regular,
predictable income, favourable treatment from Centrelink and
Veterans’ Affairs, and tax advantages such as tax-free investment
earnings and tax-free payments from age 60.
■■
■■
■■
pdate your personal details
u
ake a partial withdrawal from your account (if you are eligible)
m
register for Cbus Self Managed investment option (eligibility
criteria apply)
change the amount or frequency of your income payments.
After we have set up your Cbus Super Income Stream account, we
will send you a letter explaining how you can register. If you have any
questions about the online facility, call the Service Centre.
Other Cbus benefits
Low-cost banking products
Cbus is a part-owner of ME Bank. As a Cbus member, you get access
to low-cost banking products through ME.
For more information call 13 15 63 or visit www.mebank.com.au
Cbus’ Trustee, United Super Pty Ltd, is a shareholder in Members Equity
Bank Pty Ltd ABN 56 070 887 679 Australian Credit Licence: 229500.
Joining checklist
1. Read this Product Disclosure Statement
2.Complete the Membership application form
3.Complete the Request to transfer form
(if applicable)
4.Provide certified documents as proof of your
identity or complete the authority for Cbus to
verify your identification electronically using
other sources
5.Complete the Tax file number (TFN)
declaration form (if applicable)
6.Complete the Binding death benefit nomination
form (if applicable)
Super Income Stream PDS | 5
2
Income stream options
The Cbus Super Income Stream offers options designed with you in
mind, giving you maximum freedom and flexibility.
Choose how you use your income stream
There are two ways to use your income stream:
Transition to Retirement
Fully Retired
You can access a regular and tax-effective income from your super
benefits without having to permanently leave the workforce.
You can access a regular, flexible and tax-effective income
during retirement.
To choose a Transition to Retirement option you must currently:
To choose the fully retired option, you must currently:
■■
■■
■■
have reached preservation age (see the table on page 7), and
be under age 65, and
still be working.
See Option 1:
Transition to Retirement
■■
■■
■■
have reached preservation age (see the table on page 7), and
be permanently retired from the workforce, or
be over age 65 (but may still be working).
See Option 2:
Fully Retired
* Other conditions and eligibility requirements apply. Read more in the following sections for details.
Option 1: Transition
to Retirement
You can use your Cbus Super Income Stream to help you transition
to retirement. The Transition to Retirement (TTR) option allows you
to access some of your preserved super benefits without having to
leave the workforce permanently. This means more freedom and
flexibility in the way you plan for your retirement because you can:
■■
■■
■■
Supplement your income – reduce your working hours and ease
into retirement by supplementing your income with regular
payments from your income stream.
Increase your retirement savings by maximising your income
and saving tax – make extra contributions to your super via salary
sacrifice, potentially reducing the amount of tax you pay. Your
reduced take-home pay can be supplemented by your super
(income stream) payments.
Pay less tax – generally, no tax is payable on any investment
returns earned in an income stream account.
If you are:
–
Between preservation age and 60 years of age, your super
(income stream) payments will be subject to income tax.
However, some of your payments may be tax-free and you
will receive a 15 per cent tax offset on the taxable proportion.
–Aged 60 or over, your income stream payments will be
tax-free.
6 | Super Income Stream PDS
The ability to take advantage of the TTR rules varies according to
individual circumstances. Working out if a TTR option is right for you
can be complex.
We recommend you seek professional advice to
help you with this decision. Call the Service Centre
for assistance.
Before-tax (concessional) contribution amounts for
Transition to Retirement
A before-tax contribution cap applies to members using the TTR
option. This cap includes contributions made via your employer
such as the Superannuation Guarantee, salary sacrifice and personal
deductible contributions.
If you’re under age 50, the before-tax contributions cap is
$30,000 per financial year. If you’re age 50 or over, the before-tax
contributions cap is $35,000 per financial year.
You should seek financial advice about any salary
sacrifice arrangements.
Calculating your minimum and maximum payment amounts
Peter is 57 years old at 1/7/15 and has invested $150,000 in a
TTR facility.
The minimum annual amount he can receive in 2015/16 is:
$150,000 x 4% = $6,000.
The maximum annual amount he can receive in 2015/16 is:
$150,000 x 10% = $15,000.
Who is eligible?
To be able to use your Cbus Super Income Stream as you transition to
retirement, you must:
■■
have rolled over money from a complying super fund, and
■■
have reached your preservation age as shown in the table below:
If you were born:
Your preservation age is:
Before 1 July 1960
55
1 July 1960 to 30 June 1961
56
1 July 1961 to 30 June 1962
57
1 July 1962 to 30 June 1963
58
1 July 1963 to 30 June 1964
59
1 July 1964 or after
60
The minimum amount required is $10,000.
Can I make a lump sum withdrawal?
If you are invested in Cbus Self Managed, you will need to sell down
assets and transfer the money into your standard Cbus investment
option/s before you can withdraw those funds.
How often can I get paid?
You can choose how often you want to receive your TTR payments
– fortnightly, monthly, quarterly, half-yearly or yearly.
You can also change your payment amount and/or frequency at any
time if your needs change, as long as your new payment amount falls
within government limits. If you do not choose a payment option,
you will automatically default to monthly payments.
How much can I get?
The maximum amount you can withdraw in one financial year is
10 per cent of your account balance – calculated on your balance at
the beginning of the financial year (or the start-up value if part way
through the year). This limit is set by the government and applies
until you meet a condition of release. These include permanently
retiring from the workforce after you reach your preservation age or
reaching age 65.
The amount of your account balance that you must withdraw each
financial year is:
Under 65 years
We recommend you seek professional financial advice
to help you decide how much to receive in payments
each year.
Generally, you are not allowed to make lump sum withdrawals
(commutations) from your TTR income stream option (above 10%)
unless the money is used to:
■■
pay out an unrestricted non-preserved benefit, or
■■
pay a superannuation contributions surcharge, or
■■
pay an excess contributions tax assessment, or
■■
effect a payment split under Family Law, or
■■
purchase another non-commutable income stream, or
■■
pay a benefit upon the death of the account holder, or
■■
rollover directly to a previous or new super fund.
How much do I need to invest?
Age
Peter must withdraw an amount between $6,000 and $15,000
from his account in the 2015/16 financial year. Annual payments
will always be rounded to the nearest $10.
Minimum payment
Maximum payment
4%
10%
If you choose the minimum payment amount, we will automatically
adjust your income stream payments on 1 July each year to the
minimum amount.
When you choose a specific amount, you will receive this amount
each year unless you change it. If your payment falls below the
minimum limit, we will adjust it accordingly.
You can make partial withdrawals from your Cbus Super Income
Stream, either online or by completing a Withdrawal form at
www.cbussuper.com.au/withdraw or by calling the Service Centre.
The minimum lump sum withdrawal you can make from your account
is $1,000 unless you are withdrawing your entire account balance. Fees
apply when making a withdrawal and these are listed in section 4.
Please note:
■■
We cannot accept faxed or emailed withdrawal requests.
■■
Withdrawal requests must be authorised by the account owner or
authorised holder of power of attorney.
■■
We cannot process unauthorised withdrawal requests.
■■
Once we have received your withdrawal request, we cannot
cancel it without your written consent.
Withdrawal requests will normally be paid within seven working days
of the processing (valuation) date, but, occasionally payment may
take longer.
We will complete your transfer according to your instructions to
your nominated rollover institution or bank, building society or
credit union account. Withdrawing money may have tax and/or
Centrelink implications. Please check with your financial planner
for more information.
What happens when I permanently retire?
Once you fully retire from the workforce or turn 65 your TTR income
stream will convert to the Fully Retired option (see the next page
for details).
Super Income Stream PDS | 7
2 Income stream options (continued)
Option 2:
Fully Retired
If you choose the minimum amount, we will automatically adjust
your income stream payments on 1 July each year.
We recommend you seek professional financial advice
to help you decide how much to withdraw each year.
A Cbus Super Income Stream can give you a regular, flexible and
tax-effective source of income during retirement.
Calculating your minimum payment amount
Who is eligible?
John is 62 years old and has fully retired at 1/7/15. He has invested
$250,000 in a Cbus Super Income Stream.
To invest in the Cbus Super Income Stream, you must:
have reached preservation age and be fully retired from the
workforce, or
■■
be over 60 years of age and have terminated your employment on
or after reaching age 60, or
■■
be aged 65 years or over, or
■■
be totally and permanently disabled.
■■
How much do I need to invest?
The minimum amount required to start a Cbus Super Income
Stream is $10,000.
How often can I get paid?
You can choose how often you want to receive your Cbus Super
Income Stream payments – fortnightly, monthly, quarterly, halfyearly or yearly. If you do not choose a payment option, you will
automatically receive monthly payments.
You can change your payment amount and/or frequency at any
time provided your new payment amount is above the minimum
government limit.
How much can I get?
There is no limit on how much you can withdraw from your Cbus Super
Income Stream each year. However, the government requires you to
withdraw a minimum amount every year.
The minimum amount of your account balance you must withdraw
each financial year is determined by your age.
Age
Minimum annual payment
The minimum payment he can receive is: $250,000 x 4% = $10,000
John must withdraw a minimum of $10,000 from his account for the
financial year.
Annual payments will always be rounded to the nearest $10. There is
no maximum limit on the amount that he can withdraw.
Can I make a lump sum withdrawal?
Yes, you can make lump sum withdrawals (also known as commutations)
from your account at any time by completing a Lump sum withdrawal
or rollover form at www.cbussuper.com.au/withdraw or by calling the
Service Centre. You can also make partial withdrawals by logging onto
your account online. Remember that taking a lump sum will reduce your
account balance which may shorten the life of your income stream.
If you are invested in Cbus Self Managed, you will need to sell down
assets and transfer the money into your standard Cbus investment
option/s before you can withdraw those funds.
The minimum lump sum withdrawal is $1,000 unless you are
withdrawing your entire account balance. If your account balance falls
below $2,000 you must close your account. Fees apply when making a
withdrawal and these are listed in section 4.
Please note:
We cannot accept faxed or emailed withdrawal requests.
■■
Withdrawal requests must be authorised by the account owner or
authorised holder of power of attorney.
■■
We cannot process unsigned or unauthorised withdrawal requests.
■■
Once your withdrawal request is received, we cannot cancel it
without your written consent.
■■
Under 65 years
4%
65-74 years
5%
75-79 years
6%
80-84 years
7%
Withdrawal requests will normally be paid within seven working days
of the processing (valuation) date; however, occasionally it may take
longer. We will transfer your withdrawal proceeds to your nominated
rollover institution or bank, building society or credit union account
on your behalf.
85-89 years
9%
Withdrawing money may have tax and/or Centrelink implications.
90-94 years
11%
95+ years
14%
We recommend you speak to your financial planner
for more information.
For options 1 and 2
Adding funds to your Cbus Super Income Stream
While you cannot add funds to your existing Cbus Super Income Stream, you can combine other funds with your account balance by
starting a new Super Income Stream account. To start a new account, you will need to complete a new application form. Your existing
Cbus Super Income Stream account will be closed, and your funds will be combined to start your new account. When setting up your
new account you can choose your Cbus Super Income Stream payment amount and frequency. If you would like to access your account
online, you will also need to re-register under your new account details. Refer to the next page for Centrelink information.
8 | Super Income Stream PDS
For options 1 and 2 continued
Centrelink
Income test
Your income stream is assessed under the Age Pension
deeming rules which have a fixed percentage of assumed
income depending on your account balance.
Under Australia’s social security system, you may be entitled
to government benefits in addition to your Cbus Super Income
Stream. The rules governing Centrelink and its interaction with
the super system are complex and the following information is of a
general nature only.
Singles
Under current rates if you are single and getting either a
pension or allowance
■■ the first $48,600 of your financial investments is deemed
to earn income at 1.75% per annum, and
■■ any amount over that is deemed to earn income at 3.25%
per annum.
We recommend you discuss your own circumstances
with your financial planner or Centrelink before
deciding to invest in a Cbus Super Income Stream.
Test for Centrelink or Department of Veterans’
Affairs (DVA) entitlements
Couples
If you are a couple and at least one of you is getting a pension
■■ the first $80,600 of your and your partner’s financial
investments is deemed to earn income at 1.75% per
annum, and
■■ any amount over that is deemed to earn income at 3.25%
per annum.
The amount you receive from Centrelink or the DVA depends on
your income and assets. The income and assets tests are applied
each year, and your benefits (if any) are calculated based on the
information you provide. Your entitlements will be based on
whichever test provides the lower amount of benefits: the income
test or the assets test.
If you are a couple and neither of you is getting a pension
■■ the first $40,300 for each of your and your share of jointly
owned financial investments is deemed to earn income at
1.75% per annum, and
■■ any amount over that is deemed to earn income at 3.25%
per annum.
Assets test
The total value of your Cbus Super Income Stream account is
counted as an asset under the assets test. Other assets you
have may also be counted. Check with your financial planner or
Centrelink for more information.
All rates as at 1 July 2015 are subject to change.
When your Cbus Super Income Stream starts, we will send you a schedule for Centrelink, detailing your
retirement income information.
Check with your financial planner or Centrelink for more information.
Family Law and super
Regular updates
The Family Law Act 1975 allows couples to divide their super interests
if their relationship breaks down. The interests may be divided
by formal agreement or by a Family Court order. Interests can be
divided in the payment phase (when the member in receiving income
payments) as a percentage of the regular income payments.
You will receive a number of regular updates as part of your income
stream membership including:
If a member’s retirement benefit interests are split, a new
Cbus Super Income Stream account can be created for the
non-member spouse, or their interest may be transferred or
rolled over to another regulated super fund. As the laws are
complex, we recommend you seek professional advice from your
legal adviser or the Family Court about the consequences of a
relationship breakdown for your super interests.
■■
an annual statement showing all transactions made
■■
Cbus News, our newsletter
■■
■■
a Centrelink schedule when you join or upon request. We
also report directly to Centrelink twice yearly on behalf of our
members, and
a PAYG Payment Summary which details the income paid and
tax deducted (if applicable) each year.
Super Income Stream PDS | 9
3
Investments
Standard investment options
Cbus offers a range of investment
options, so you can choose where
your money is invested and ensure
your choice is right for you.
If you do not make an investment choice when you join the Cbus
Super Income Stream, your account balance will be placed into the
Conservative Growth (default) investment option.
You can select from our five pre-mixed options:
■■
Cash Savings
■■
Conservative
■■
Conservative Growth (default)
■■
Growth
■■
High Growth
Each option has different risk and return characteristics and
objectives.
Cbus Self Managed
The Conservative Growth option has been designed to meet the
needs of Cbus Super Income Stream members. This investment
option aims to balance the need for consistent returns to provide
adequate income with a focus on reducing short-term market
volatility.
The Cbus Self Managed investment option allows eligible members
to invest their retirement savings directly in a range of assets,
including Australian shares, Exchange Traded Funds (ETFs), term
deposits and Managed investments including property and
infrastructure assets.
If you prefer to choose how your money is invested
Cbus Self Managed gives you the flexibility to create your desired
investment portfolio by combining it with your standard investment
options. You can choose to build a whole portfolio of investments
or invest only a small amount in Cbus Self Managed, or anything in
between.
If you would prefer to make an investment choice, you should
consider the following:
■■
will my investment option provide a high enough investment return?
■■
what sort of return above the cost of living (inflation) do I need?
■■
what level of risk am I comfortable with?
■■
what are my plans for the future?
■■
what other investments do I have?
■■
should I diversify my investments?
Terms, conditions and costs apply for investing in the Cbus Self
Managed investment option. For more information, refer to
page 18 of this PDS and read the Cbus Self Managed Investment
Guide available at www.cbussuper.com.au/cbusselfmanaged
Financial advice
Speak to a qualified adviser over the phone
The Cbus Advice Team can give you advice on a number of super
related topics, over the phone Monday to Friday, 8am to 8pm (AEST/
AEDT). For further information call Cbus on 1300 361 784.
This service is a part of your membership.
Meet with a Certified Financial Planner
If you would like to arrange a meeting with a financial planner for more
comprehensive personal financial advice, the Cbus Advice Team can
refer you to an accredited Certified Financial Planner (CFP®) who
meets strict professional qualification and service criteria set by
Cbus and the Financial Planning Association (FPA) of Australia. The
financial planner can offer you advice on a fee-for-service basis. Your
first meeting is at no cost and any fees for advice will be agreed with
you in advance.
You may be eligible to have financial advice fees deducted directly
from your Cbus account. See page 21 for more information regarding
Financial Planner Payments.
Call the Cbus Advice Team on 1300 361 784 for assistance.
10 | Super Income Stream PDS
Risk and return
People tend to think about risk as
the risk of their income stream
investment losing value when
investment markets, like the share
markets, fall in value.
This is one form of investment risk. Other risks include the variability
in returns (the level of fluctuations in value) or the risk of your
investment value not keeping pace with inflation.
Standard Cbus investment options, with the exception of Cash
Savings, invest in different asset classes – investment types such
as cash, fixed interest, property and shares. Each of these has
a different level of return and risk. Shares, property and some
alternative investments such as private equity, have the potential
for higher returns but have more risk of loss in the short term.
Cash and fixed interest investments generally have lower, but more
stable returns. These asset classes are the building blocks of our
investment options. The amounts allocated to each determine the
overall risk and return objective for each investment option.
When choosing your investment option(s) you need to be
comfortable with the level of investment risk you take. One way to
compare investment risk is to look at how often negative returns can
be expected. These are listed under the objectives section on pages
12 and 13.
A key consideration when choosing investment options is that you
will be drawing down your income from your investment. This may
influence how you allocate your money to investment options.
Another important type of risk to consider is the risk of your
income stream not lasting long enough in your retirement. As
a guide, those who retire at age 65 on average live for about 15
more years. However, many people live longer than this. The risk
is that you may not have retained enough to last your retirement
if you live longer than you expect.
The risk and return objectives also take into account the positive
impact of diversification. This can be likened to the adage, “Don’t put
all your eggs in the one basket”. By investing across a range of asset
types the overall risk of loss is reduced. This works because not all
asset types perform in the same way at the same time – when one
investment is performing poorly, another may be performing well.
To sustain your financial position, you may need to take some
investment risk to achieve an additional return over a period of
time. This will mean that returns may be more volatile (more ups
and downs). Low risk, lower volatility options usually have a lower
return over time.
Investment options
– risk and return
expectations over
the longer term
Return
High Growth
Growth
Conservative
Growth
(Default)
Our options have a
range of expected risks
and returns.
The higher risk/return options have
more shares, infrastructure and
property while the lower risk/return
options have more cash and fixedinterest investments.
Conservative
Cash Savings
Investment risk
Australian shares
International shares
Private Equity
Opportunistic Growth
Infrastructure
Property
Alternative Debt1
Fixed interest
Cash
For information on the risk and return expectations for the Cbus Self Managed investment option, refer to page 19.
1. Formerly Credit
Super Income Stream PDS | 11
LOW
LOW
HIGH
HIGH
LOW
Conservative Growth
LOW
High Growth
Growth
3 Investments (continued)
HIGH
LOW
HIGH
LOW
Investment options in detail
HIGH
HIGH
Conservative Growth
Growth
All returns shown in the table belowConservative
are net of investment fees, the Trustee
Operating Cost and funding of Reserves. These
do not take into
account the yearly Administration Fee of $104 per year plus 0.08% of the account balance (capped at $640 per year). See section 4. Fees and
other costs for more information.
LOW
HIGH
LOW
Cash Savings
LOW
Risk level /(band)1
Investment
objective2
LOW
Conservative
Conservative Growth
Conservative Growth
Conservative
Cash Saving
Risk/return
HIGH
Default option
HIGH
LOW
HIGH
HIGH
LOW
Very low (1)
Low to Medium (3)
Deliver a return of inflation plus:
1.25% a year over rolling 10-year periods
Deliver a return of inflation plus:
2.25% a year over rolling 10-year periods
Likelihood of
negative annual
returns
Medium (4)
Cash Saving
Negligible in 20 years
Conservative
Deliver a return of inflation plus:
3.0% a year over rolling 10-year periods
Once in 20 years
LOW
HIGH
2 in every 20 years
LOW
HIGH
Long Term
Strategic Asset
Allocation (LTSAA)3
and Range
HIGH
Cash Saving
From 1 November 2015
Average
Return since
inception (p.a)4
6.7
14/15
8.9
13/14
25
20
15
10
5
0
-5
-10
-15
-20
-25
LTSAA
20.0%
13.0%
0.5%
1.0%
9.0%
11.5%
6.0%
28.0%
11.0%
3.65%
7.86%
8.88%
0 in 6 years
0 in 6 years
0 in 1 year
1 year
3+ years
4+ years
Number of negative
annual returns
Minimum
investment
timeframe
(1/7/09)
Table notes:
1. Risk level: The Risk Level is based on an industry wide Standard Risk
Measure, which relates to the number of expected negative annual
returns over a 20 year period.
Risk band: The Standard Risk Measure ranges across seven risk
bands, from 1 (very low risk) to 7 (very high risk). The Standard Risk
Measure is not a complete assessment of all forms of investment risk.
For more information about the Standard Risk Measure, go to
www.cbussuper.com.au/risk
12 | Super Income Stream PDS
(1/7/09)
Range
5.0 – 35.0%
0.0 – 28.0%
0.0 – 9.5%
0.0 – 19.0%
1.5 – 21.5%
0.0 – 16.5%
0.0 – 58.0%
1.0 – 41.0%
8.8
0.0 – 5.0%
0.0 – 10.0%
2.0 – 12.0%
4.0 – 13.0%
10.0 – 70.0%
0.0 – 50.0%
HIGH
Australian shares
International shares
Private Equity
Opportunistic Growth
Infrastructure
Property
Alternative Debt5
Fixed interest
Cash
14/15
Range
2.0 – 22.0%
0.0 – 18.0%
10.0
LTSAA
12.0%
8.0%
0.0%
0.0%
5.0%
7.0%
8.0%
40.0%
20.0%
12/13
5.8
2.6
14/15
11/12
2.8
13/14
7.1
3.3
12/13
25
20
15
10
5
0
-5
-10
-15
-20
-25
10/11
4.6
11/12
4.9
10/11
(crediting rate %)
At 30 June
25
20
15
10
5
0
-5
-10
-15
-20
-25
09/10
Annual
investment
return
3.8
Range as at
1 November 2015
LOW
Australian shares
International shares
Private Equity
Opportunistic Growth
Infrastructure
Property
Alternative Debt5
Fixed interest
Cash
8.7
Range
n.a.
09/10
Assets are
maintained
within these
ranges
LTSAA
100.0%
Cash
(2/12/13)
2. For all investment option objectives: Cbus expects all investment options
to achieve their targeted returns 75 per cent of the time.
3. Cbus sets a Long Term Strategic Asset Allocation and a Target
Portfolio allocation. For more details, go to the investment section
on www.cbussuper.com.au
4. Average returns are based on crediting rates and are to the period ending
30 June 2015.
5. Formerly known as Credit.
Very High Growth
LOW
HIGH
High Growth
Very High Growth
LOW
HIGH
LOW
Growth
Growth
LOW
HIGH
High Growth
High Growth
HIGH
LOW
HIGH
Medium to High (5)
High (6)
Deliver a return of inflation plus:
3.5% a year over rolling 10-year periods
Growth
Deliver a return
of inflation plus:
3.75% a year over rolling 10-year periods
Conservative Growth
3 in every 20 years
LOW
5 in every 20 years
HIGH
LOW
Conservative
LOW
Conservative Growth
HIGH
LOW
12.7
Cash Saving
18.8
21.9
HIGH
Asset allocation and ranges
Asset allocations show how much
Cbus invests in different types of assets.
For example, cash, shares, fixed interest
and property.
They are set within the range, which is
the minimum and maximum percentage
Cbus will invest in an asset class.
-1.3
10.3
12.3
LOW
14/15
13/14
12/13
HIGH
11/12
25
20
15
10
5
0
-5
-10
-15
-20
-25
10/11
14/15
13/14
LOW
LTSAAHIGH
Range
Australian shares
44.5% 26.5% – 56.5%
International shares
29.5% 12.5 – 42.5%
Private Equity Conservative
3.0%
0.0 – 20.0%
Opportunistic Growth
7.0%
Infrastructure
7.0%
0.0 – 14.0%
Property
9.0%
0.0 – 18.0%
0.0%
0.0 – 10.0%
Alternative Debt5
09/10
11.2
15.4
18.0
12/13
11/12
10/11
09/10
1.8
9.5
10.1
LTSAA
Range
Australian shares
29.0% 14.0 – 44.0%
International shares
19.0%
4.0 – 34.0%
Private Equity Cash Saving
2.0%
0.0 – 17.0%
Opportunistic Growth
5.0%
Infrastructure
11.0%
1.0 – 21.0%
Property
13.0%
3.0 – 23.0%
6.0%
1.0 – 16.0%
Alternative Debt5
Fixed interest
12.0%
0.0 – 24.0%
LOW
HIGH
Cash
3.0%
0.0 – 20.0%
25
20
15
10
5
0
-5
-10
-15
-20
-25
HIGH
Investment warning
10.88%
12.22%
Investment returns can go up and down.
Past performance is not a reliable indicator
of future performance.
0 in 6 years
1 in 6 years
7+ years
10+ years
Visit www.cbussuper.com.au/investments
in case the information on this page has
changed since publication.
(1/7/09)
(1/7/09)
Super Income Stream PDS | 13
3 Investments (continued)
Asset classes are the building blocks of standard Cbus investment
options. How much we invest in each asset class depends on each
option’s investment objective.
What we invest in
Shares
If you have shares in a business you are a part owner. Company shares ‘listed’ on the stock exchange are usually in
large multi-million dollar companies that can be either Australian or international. Cbus invests in listed Australian
and international shares through fund managers.
Property
You can invest directly in property by buying an existing building, or by developing a building. You can also
invest indirectly in property by buying shares in a listed or unlisted property trust. The major types of property
investments include office, retail, industrial and residential. Cbus invests in property directly (through our wholly
owned subsidiary property company Cbus Property) and indirectly in unlisted property trusts.
Infrastructure
Infrastructure assets are facilities that provide services a society needs to function. They are often highly regulated
by governments, due to their ‘essential’ nature. In some cases, infrastructure investments also involve constructing
the facility (e.g. a road). As infrastructure assets tend to be large and are expected to provide services for many
years, they are typically long term investments. Examples include ports, airports, railroads, communications
systems, utilities such as water or power, and social infrastructure such as hospitals.
Fixed interest
Fixed interest investments typically involve lending money to either governments or companies. Cbus’ fixed
interest asset class is generally made up of loans to governments, government-related organisations and
companies rated highly by credit ratings agencies.
Alternative Debt
(formely Credit)
Alternative debt investments are a type of fixed interest investment. Cbus’ alternative debt investments are
generally made up of bank loans, direct lending and corporate debt securities. These loans generally have lower
credit ratings than investments in the fixed interest sector and as such command a higher rate of return to
compensate the investor for the risk of default.
Cash
Cash includes bank deposits, cash management trusts and money market investments and term deposits.
Private Equity
Private equity investments are made by buying a direct interest or ‘unlisted’ shares in a company. ‘Unlisted’ means
they are not traded on the stock exchange. These companies may be small or new and may be seeking new
investors so they can grow or restructure their finances.
Opportunistic Growth
Opportunistic growth investments are non-traditional investments that present opportunities for Cbus to obtain
strong returns but do not fit the standard descriptions of the other asset groups described above.
Investments in these asset classes are typically managed by Cbus fund managers. For more information on
asset classes and our investment managers, visit www.cbussuper.com.au/investments
14 | Super Income Stream PDS
Our investment process
Investment objectives and asset allocation
Cbus has set a different investment objective for each investment
option. This gives members options ranging from lower expected
return and risk to a higher expected return and risk.
We work with our investment consultant, Frontier Advisors (Frontier),
to set an investment strategy (asset allocation) we believe is most
likely to meet each option’s investment objective.
The strategy uses in-depth modelling undertaken by Frontier on each
asset type’s expected return and risk.
The strategy has two levels: a Long Term Strategic Asset Allocation
(LTSAA) and a Target Portfolio allocation. The LTSAA is the asset
allocation that Cbus thinks is appropriate over the long term (more
than 20 years), without taking into account what we think may
happen in investment markets over the medium term (5 years).
Investment consultant
Frontier works with the Cbus investment team to set and implement
the investment strategy. It is an Australian-owned company that
provides investment advice to institutional investors. Frontier
provides advice to clients with combined investments of around
$240 billion.
The Target Portfolio builds on the LTSAA, by including our view of the
medium-term investment environment. It is reviewed quarterly.
Frontier sets out to identify special skills in investment managers
that are likely to lead to superior performance over time. Cbus is a
part-owner of Frontier.
You can see the LTSAA and Target Portfolio allocations at
www.cbussuper.com.au/investments
Frontier is licensed by the Australian Securities and Investments
Commission, ABN 21 074 287 406 AFSL 241266.
Reviews and asset allocation changes
Cbus Property
Cbus regularly reviews every asset class’ performance,
our fund managers and the Target Portfolio asset allocation.
Guided by the Target Portfolio, we can change the asset mix of our
investments (within the minimum and maximum range). These
changes are made if Cbus believes market movements change the
strategic balance between risk and return, or when opportunities
arise to improve returns to members without exposing them to too
much risk.
Cbus invests directly in property through Cbus Property Pty Ltd,
a wholly owned subsidiary.
Cbus Property develops major projects across Australia, allowing
Cbus to invest in the construction, building and allied industries
where many of our members work. All projects must fit Cbus’
strategic asset allocation and provide appropriate returns.
For more information visit www.cbusproperty.com.au
Super Income Stream PDS | 15
3 Investments (continued)
Fund managers
Cbus uses Australian and international fund managers. Each fund
manager is responsible for managing the investment of a set amount
of Cbus’ assets. They are managed in accordance with a mandate
agreed between the manager and Cbus or through a Trust Deed.
Cbus monitors the performance of each fund manager.
Responsible investing
Cbus believes companies that act in a responsible way will perform
better over the long term. Therefore, it makes sense for us, and
our investment managers, to consider environmental, social and
corporate governance (ESG) issues before we invest in a company.
We consider these issues alongside traditional financial factors when
we make investment decisions.
We do this because:
■■
■■
■■
■■
■■
■■
■■
You can switch between investment options at any time.
The minimum amount you can switch in each of the options
is $1,000 unless you are switching your entire balance.
You’ll find the Switching form for Cbus Super Income Stream at
www.cbussuper.com.au or by calling the Service Centre.
it is consistent with our fiduciary obligations to our members
in the light of changing external conditions
You can send the switch form in the mail, or just log into your income
stream account at www.cbussuper.com.au/login
we expect it will lead to better returns for members
If you’re invested in Cbus Self Managed, you can make investment
switches by logging into the Cbus Self Managed online platform.
ESG issues are expected to impact on the long-term
sustainability of companies and assets, and therefore form an
important input to the risk management process
organisations that manage the risks and opportunities arising
from ESG issues effectively are likely to be more successful
than those that do not over the long-term.
To encourage fund managers to integrate ESG, the Cbus Investment
Committee takes the following actions:
■■
Switching between
investment options
Account balance switches will be processed weekly. You can only
make one application to switch your account balance in any week.
Your application to switch your account balance must be received
by close of business Tuesday (or midnight Tuesday for online
applications) to occur on the Thursday of the same week. The switch
will be reflected in your account on the first business day of the
following week.
include a clause requiring fund managers to consider ESG issues
within their investment processes in all new or renegotiated
Investment Management Agreements
Once your switch has been processed, we will send you a letter
confirming the details of your switch.
assess fund managers’ abilities to incorporate ESG in their
investment process as part of the manager assessment and
due diligence process
Before you switch
measure fund manager progress in integrating ESG annually as
part of the manager review and sector review processes, and by
asking fund managers to report on their ESG activity
encourage fund managers to sign the PRI and to source and
review ESG related research.
Cbus is a signatory to the United Nations’ Principles for Responsible
Investment (PRI).
16 | Super Income Stream PDS
It is important to consider the range of investment options available,
your investment time frame and the impact of switching investment
options, particularly in response to short-term market volatility.
Cbus recommends you seek financial advice prior to making an
investment switch.
If you are considering switching investment options and would like
help in understanding what option may suit your circumstances,
please call the Cbus Advice Team on 1300 361 784.
Crediting rates for investment options may
vary during the year, and can be negative.
We recommend you get an up-to-date account balance
estimate before switching investment options. If you
have any queries, call the Service Centre or visit
www.cbussuper.com.au
Please note:
■■
How your account is valued
when you switch
The Fund’s custodian provides Cbus with a valuation of each
option’s investments every week.
Weekly declared crediting rates are determined for each option
on the basis of these valuations, together with an estimate of the
options’ investment costs.
■■
■■
If you switch your total account balance, earnings will be
credited to your account from your ‘new’ option at the end of
the financial year, but you will not receive any more earnings
from your ‘old’ option.
If you only switch part of your account balance, at the end
of the financial year the earnings credited to your account will
be calculated separately for each option, for the period that it
has held money for you.
If you do not switch any of your account balance during the
year, the annual earnings for your investment option are
credited to your account at the end of the financial year.
When you switch from one option to another, earnings on the
amount you switch are calculated using the relevant year-to-date
accumulated weekly crediting rates up to the weekly valuation
following your switch application.
The annual crediting rates for each option will be detailed in
Cbus News, the Annual Report and on our website.
The earnings are then switched to your ‘new’ investment option,
together with the amount of your account balance that you switch.
For the most up-to-date information visit
www.cbussuper.com.au/investments
Super Income Stream PDS | 17
3 Investments (continued)
Cbus Self Managed investment option
Cbus Self Managed is an investment option that allows you greater
choice and more control over how your retirement savings are
invested without selling down your assets and with potential taxation
benefits.
■■
Via a user-friendly online platform, Cbus Self Managed allows you to
invest directly in:
■■
term deposits,
■■
shares in companies in the S&P/ASX 300 Index1,
■■
■■
Exchange Traded Funds (ETFs) covering a diverse range of asset
classes2, and
Managed Investments, including investments in assets such as
property and infrastructure3.
Cbus Self Managed gives you the flexibility to create and implement
your own investment strategy in a low-cost environment.
1The S&P/ASX 300 Index incorporates the largest 300 companies on the
Australian Securities Exchange (by market capitalisation).
2ETFs are traded like shares but are structured like a managed fund. ETFs
contain a collection of securities and generally represent a particular
market index (e.g. Australian Small Companies).
3Managed Investments are a range of specialist investment opportunities
especially sourced for Cbus Self Managed investors.
In specie transfers
If you are already invested in Cbus Self Managed with your super, you
can transfer your account across to your Super Income Stream with
an in specie transfer, from 1 December 2015. Normally when you
transfer from accumulation to an income stream account you need
to sell down any investments you have, so the transaction itself can
occur as cash. However an in specie transfer through Cbus allows
you to do this without selling down your assets and with potential
taxation benefits.
What you should know
There are a few things you should know about in specie transfers:
■■
■■
■■
■■
■■
■■
■■
You can’t transfer any term deposit investments.
The tax benefit of any realised and unrealised capital losses will
be forgone (calculated at 10% of the losses) if not used to offset
realised capital gains prior to the transfer.
You’ll still have to re-register for your online access Pension online
to your Cbus Super Income Stream account in order to access
CSM, though we’ll advise you with a letter once your account
has successfully transferred. Your transaction account will be
transferred across along with your assets.
You can’t transfer while there’s pending transactions – like cash
transfers, partial withdrawals, or unfulfilled/unsettled trades.
You can’t merge two CSM accounts that you may hold.
You can’t transfer CSM incitements on a partial transfer between
Cbus Super and Cbus Income Stream accounts.
You can transfer from a Cbus Super Income Stream account to
another Super Income Stream with us if you are setting up a new
account – for example consolidating.
18 | Super Income Stream PDS
Your standard Cbus investment options will not be transferred on
an in specie basis. You’ll also need to nominate your investment
selection for standard options or the balance of funds will be
allocated to the default option – Growth (Cbus MySuper).
Please refer to the In Specie Transfer fact sheet for more information,
available at www.cbussuper.com.au/cbusselfmanaged
Who can invest?
Cbus Self Managed may be suitable for people who are interested in
actively managing their super and have at least a basic understanding
of investing, including the key elements of risk and return, and the
concept of diversification.
To invest in Cbus Self Managed, you need to:
 be a Cbus member
 have $40,000 or more in your Cbus account
 have access to the internet and a current email address
 be an Australian resident
 not have a pending Family Law split in progress
 not have an active record of bankruptcy
 have provided Cbus with your tax file number (as applicable)
 have registered for online access to your Income Stream account.
You will need to maintain a balance of at least $500 in your Cbus Self
Managed transaction account at all times. If you choose to invest in
Cbus Self Managed for both your Cbus Super and Cbus Super Income
Stream accounts, you will need to maintain the minimum transaction
account balance for each. The minimum balance is for each account
and is not aggregated.
You will also need to retain the greater of:
■■
$10,000, OR
■■
the equivalent of your minimum annual pension payment amount
in one or a mix of standard Cbus investment options: Cash Savings,
Conservative, Conservative Growth (default), Growth and High
Growth. This condition is measured when you open your Cbus Self
Managed Super Income Stream account and is re-tested annually at
1 July.
Multiple Cbus accounts
You can invest in the Cbus Self Managed investment option in
each Cbus account you hold. You will need to register separately
for Cbus Self Managed for each Cbus account and you will have a
separate Cbus Self Managed transaction account for each. Eligibility
requirements, conditions and fees and costs are applicable per Cbus
Self Managed account.
High Growth
Growth
LOW
HIGH
LOW
Conservative Growth
LOW
HIGH
HIGH
Growth
LOW
HIGH
Risk and return for Cbus Self Managed investments
The table below outlinesConservative
the risk and returnConservative
information
Growth for each of the Cbus Self Managed investments.
Very High Growth
Term deposits
LOW
HIGH
Exchange Traded Funds (ETFs)
LOW
HIGH
Bond ETFs
Cash Saving
Risk/Expected
return
LOW
Risk level
Risk Band
HIGH
Very low
LOW
HIGH
LOW
HIGH
High Risk to
VeryGrowth
High Risk
3
Varies, depending
on the ETF,
between 6 and 7
HIGH
LOW
HIGH
LOW
HIGH
Cash Saving
LOW
Minimum
suggested
timeframe*
LOW
HIGH
LOW
HIGH
LOW
High Growth
7
LOW
Property
HIGH
LOW
HIGH
Infrastructure
High Growth
High Growth
Very High Risk
HIGH
LOW
HIGH
High Risk
High Risk
Growth
Growth
6
6
HIGH
HIGH
To deliver a return, before fees and taxes,
that is closely aligned to that of the
Conservative Growth
underlying index. Refer to the
individual ETF
provider for more information on
their index, and on the expected level of risk.
LOW
Managed Investments
Very High Growth
Conservative
Likelihood of
negative annual
returns
Shares included in
the S&P/ASX 300
Index
High Growth
LowCash
to Medium
Saving
1
To provide an
income return
through exposure
to a fixed interest
rate investment
with a fixed term to
maturity.
HIGH
Share ETFs
Conservative
LOW
Investment
objective
LOW
Very High Growth
Very High Growth
Individual member
Growth
results
will vary
significantly
depending on the
shares that are
bought. Different
LOW
HIGH
company shares
can have different
Conservative
Growth
risk
characteristics.
The objective below
is indicative only
and is based on a
broadly
diversified
LOW
HIGH
portfolio that is close
to representing the
‘market’
index of the
Conservative
top 300 shares by
capitalisation.
Objective - For a
LOW
HIGH
broadly
diversified
portfolio of shares, to
deliver an after-tax
Cash Saving
return
of at least
inflation plus
3.25% p.a. over rolling
10-year periods
75% of the time.
LOW
HIGH
LOW
HIGH
LOW
HIGH
LOW
HIGH
LOW
HIGH
To aim to deliver an
To aim to deliver an
after-tax return of
after-tax return of
Conservative
Growth
Conservative
Growth
at least
inflation
plus
at least
inflation
plus
3.0% p.a. over
3.5% p.a. over
10-year rolling periods 10-year rolling periods
75% of the time.
75% of the time.
Conservative
Conservative
LOW
HIGH
LOW
Cash Saving
Cash Saving
LOW
HIGH
HIGH
LOW
HIGH
Negligible in
20 years
Varies, depending
on the ETF,
up to 2 in every
20 years
Varies, depending
on the ETF,
from 4 up to greater
than
6 in every 20 years
6 or greater
in every 20 years
4 or greater
in every 20 years
4 or greater
in every 20 years
0-1 year
3 years
10+ years
10+ years
10+ years
10+ years
*T
he minimum suggested timeframe for all your investments in this option will depend on the investments selected. The suggested timeframe shown applies to
the different types of investment in this option.
The Risk Band is based on the Standard Risk Measure, which relates to the number of expected negative annual returns over a 20-year period. The seven bands
range from Very Low to Very High Risk of negative annual returns over that period. This is not a complete assessment of all forms of investment risk. For instance,
it does not detail what the size of a negative return could be, or the potential for a positive return to be less than a member may require to meet their financial
objectives. Members should still ensure that they are comfortable with the risks and potential losses associated with their chosen investment option or options.
Visit the investment section on the Cbus website for more information about the Standard Risk Measure. Note that the Risk Bands are indicative; the level of risk
may vary significantly depending on the shares, ETFs or Managed Investments selected.
For more information regarding Cbus Self Managed, read the Cbus Self Managed Investment Guide available at
www.cbussuper.com.au/cbusselfmanaged
Super Income Stream PDS | 19
4
Fees and other costs
The Cbus Super Income Stream has low fees.
Fees at a glance
Cbus only charges fees to cover costs, not to make a profit. As Cbus only charges fees associated with the administration, investment
management and operation of your account on a cost recovery basis, you are unable to negotiate the fees shown in this PDS.
The following statement is required to be included in this document by law.
Consumer advisory warning
Did you know?
Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns. For
example, total annual fees and costs of 2 per cent of your balance rather than 1 per cent could reduce your final return by up to 20 per
cent over a 30-year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior
investment performance or the provision of better member services justify higher fees and costs. You may be able to negotiate to pay
lower contribution fees and management costs where applicable. Ask the fund or your financial adviser.
To find out more
If you would like to find out more, or see the impact of fees based on your own circumstances, the Australian Securities and Investments
Commission (ASIC) website www.moneysmart.gov.au has a superannuation calculator to help you check out different fee options.
Fees and other costs
The section below shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the
returns on your investment, or from the fund assets as a whole. Other fees, such as activity fees and advice fees for personal advice may also be
charged, but these will depend on the nature of the activities or advice services chosen by you. You should read all the information about fees
and other costs because it is important to understand their impact on your retirement savings.
Type of fee
Amount
How and when paid
Investment fee
Nil
Not applicable – see the information about the indirect cost ratio for each
investment option below
Administration fee
$104 per year ($2 per week)
Plus
0.08% of your account balance
(capped to $640 per year)
Deducted from your account the earlier of the end of the financial year or if
you fully exit the fund during the year.
Buy-sell spread
Nil
Not applicable
Switching fee
Nil
Not applicable
Exit fee
$35
Paid from the benefit on full withdrawal of your account.
Not applicable
Advice fees
Nil
Other fees and costs1
Additional activity fees and charges may apply when other services are requested.
Indirect cost ratio2
High Growth – 0.84% pa
Growth – 0.74% pa
Conservative Growth (default) – 0.51% pa
Conservative – 0.36% pa
Cash Savings – 0.21% pa
1
2
This amount is not directly deducted from your account but is adjusted
from the investment returns.
It is directly deducted from the gross investment return before Cbus
declares the crediting rate.
Other fees and costs may apply, see the Additional explanation of fees and costs on the next page.
The Indirect cost ratio is calculated at 30 June each year and may change from year to year. These figures are for the 2014/15 financial year. It includes the
cost to invest funds assets, establishing and maintaining fund reserves and the Trustee’s costs to manage the fund as a whole.
20 | Super Income Stream PDS
Example of annual fees and costs for the Conservative Growth (default)
investment option
This table gives an example of how the fees and costs in the Conservative Growth investment option for this product can affect your
investment over a one year period. You should use this table to compare Cbus Super Income Stream with other products.
Example – Conservative Growth
(default) investment option
Investment fee
Balance of $50,000
Nil
For every $50,000 you have in the Conservative Growth option you will be charged $0
$104 ($2 per week)
Plus
0.08% of your balance
And you will be charged $104 in administration fees regardless of your balance
Plus
an asset charge of $40 which is based on the balance of your account
0.51%
And indirect costs of $255 each year deducted from your investment
Plus
Administration fee
Plus
Indirect costs
EQUALS
If your balance was $50,000 then for that year you will be charged fees of $399
Cost of product
Note: Additional fees may apply. And, if you withdraw from the Cbus Super Income Stream you may also be charged the exit fee of $35 for a full
withdrawal or $20 for a partial withdrawal which is deducted from your account balance.
Additional explanation of fees and costs
Other fees and costs may apply if other transactions are made to
your account.
The following limits apply:
■■
■■
Type of fee
Amount
How and when paid
Family Law
requests
Requests for
information:
$100
Paid by cheque at the time of
request.
These are fees
Payment split:
charged for any
Family Law requests $80
for information and
Family Law splits.
Paid from the benefit at the
time of the payment split.
Partial
withdrawal fee
Deducted from your account
if you draw a lump sum
payment (commutation) that
is additional to your regular
income payments.
Financial Planner
Payments
$20
Up to $7,000 per
financial year, as
negotiated
Deducted from your account
after advice is provided (see
eligibility below).
Financial Planner Payments
Financial Planner Payments may only be authorised for FPA Professional
Practices participating in the Cbus member referral program. Personal
advice provided must be in relation to your interest in a Cbus account.
In order to qualify for Financial Planner Payments you must have a
minimum of $10,000 in your Cbus Super Income Stream account.
If you don’t have sufficient funds in your account you will need to
pay your financial planner directly yourself.
a maximum of two Financial Planner Payments per financial year
a maximum total of $7,000 for the provision of financial advice
per financial year.
These limits include combined transactions from your Cbus Super
and/or Super Income Stream account/s.
Indirect Cost Ratio
The fees and costs below are not deducted from your account but
from the investment returns before the crediting rate is declared.
Reserves
The Trustee maintains two reserves, a general reserve and an
operational risk reserve. These funds are set aside to meet potential
operational losses, unexpected and unforseen expenses and other
expenses the Trustee deems ought to be met from the reserves
rather than directly from member accounts.
Trustee Operating Cost
Trustee Operating Cost (TOC) covers the costs incurred by the
Trustee in operating Cbus. It is reviewed each year.
Investment management costs
Investment management costs are fees paid to invest and manage
the fund assets. These include fees paid to external and internal
investment managers, custodians, asset consultants, property
management related expenses and bank fees. The investment
management costs may also include performance fees.
Super Income Stream PDS | 21
4 Fees and other costs (continued)
Performance fees
Performance fees are a component of the investment management
cost (all of which are included in the Indirect Cost Ratio), and are the
actual performance fees paid to fund managers during the financial
year. Cbus pays investment performance fees to some of its fund
managers, where they have performed above a defined benchmark;
these fees can vary from year to year.
The previous year’s performance fees give a guide to what may be
expected for the current financial year and are included in the table
below.
Investment
option
Performance Investment
fees
management
costs %
%
TOC
%
Reserves
%
High Growth
0.12
0.61
0.03
0.08
Growth
0.09
0.54
0.03
0.08
Conservative
Growth
0.05
0.35
0.03
0.08
Conservative
0.03
0.22
0.03
0.08
Cash Savings
0.00
0.10
0.03
0.08
These figures are for the 2014/15 financial year.
Defined fees
Activity fees – A fee is an activity fee if:
a) the fee relates to costs incurred by the trustee or the
superannuation entity that are directly related to an activity of
the trustee:
i) that is engaged in at the request, or with the consent, of a
member, or
ii) that relates to a member and is required by law, and
b) those costs are not otherwise charged as an administration fee,
an investment fee, a buy-sell spread, a switching fee, an exit fee,
an activity fee, an advice fee or an insurance fee.
An administration fee is a fee that relates to the administration or
operation of the superannuation entity and includes costs incurred
by the trustee of the entity that:
(a) relate to the administration or operation of the entity; and
(b) are not otherwise charged as an investment fee, a buy‑sell
spread, a switching fee, an exit fee, an activity fee, an advice fee
or an insurance fee.
Advice fees – A fee is an advice fee if:
a) the fee relates directly to costs incurred by the trustee of the
superannuation entity because of provision of financial product
advice to a member by:
a trustee of the entity
ii) another person acting as an employee of, or under an
arrangement with, the trustee of the entity, and
b) those costs are not otherwise charged as an administration fee,
an investment fee, a switching fee, an exit fee, an activity fee or
an insurance fee.
22 | Super Income Stream PDS
Exit fee – is a fee to recover the costs of disposing of all or part of
members’ interests in the superannuation entity.
Indirect cost ratio – (ICR) for an investment option offered by a
superannuation entity, is the ratio of the total of the indirect costs
for the investment option, to the total average net assets of the
superannuation entity attributed to the investment option.
Investment fees – is a fee that relates to the investment of the
assets of a superannuation entity and includes:
(excluding
performance
fees)
i)
Buy-sell spread is a fee to recover transaction costs incurred by
the trustee of the superannuation entity in relation to the sale and
purchase of assets of the entity.
a) fees in payment of the exercise of care and expertise in the
investment of those assets (including performance fees), and
b) costs incurred by the trustee of the entity that:
i)
relate to the investment of the assets of the entity, and
ii) are not otherwise charged as an administration fee, a
buy-sell spread, a switching fee, an exit fee, an activity fee,
an advice fee or an insurance fee.
Switching fee - is a fee to recover the costs of switching all or part
of a member’s interest in the superannuation entity from one class
of beneficial interest in the entity to another.
Tax
Information about tax in the Cbus Super Income Stream is provided
in the next section.
Fee changes
Cbus may change fees and costs at any time without member’s
consent. You’ll be given at least 30 days’ notice before any increase
to the administration fee or insurance premiums.
Cbus Self Managed fees and charges
Cbus Self Managed has a Portfolio Administration Fee and an Asset-Based Fee. These fees are in addition to the fees and costs incurred by Cbus
members in standard pre mix Cbus investment options. The fees and costs listed below apply for each Cbus Self Managed account you hold.
The Portfolio Administration Fee and Asset-Based Fee provide you with access to the Cbus Self Managed online platform, which includes
20-minute delayed ASX pricing, live shares quotes and Thomson Reuters market data. Brokerage also applies when you trade shares or ETFs.
To check whether these fees are current, visit www.cbussuper.com.au/cbusselfmanaged
Type of fee
Amount
How and when deducted
Portfolio Administration Fee
$20 a month ($240 per year)
Calculated daily and deducted at the end of each
month from your Cbus Self Managed transaction
account. Fees are applied pro rata upon entry and
full exit.
Asset Value Fee1
0.08% of your total Cbus Self Managed
balance (capped at $760 a year)
Trustee Operating Cost
0.03%
Calculated daily and deducted at the end of each
month from your Cbus Self Managed transaction
account. Fees are applied pro rata upon entry and
full exit.
Operational Risk Reserve
0.075%
Asset-Based Fee
(comprises three
components)
Brokerage
(shares and ETFs)
Transaction value: Up to $10,000
Fee: $19.50
Deducted from your transaction account at time
of purchase or sale.
Transaction value: $10,000.01 to $27,500
Fee: $29.50
Transaction value: above $27,500
Fee: 0.11%
Management fee
Including management fees, custody costs
and other expenses
Cbus Self Managed Property■
0.37% p.a. (Estimate only)
Deducted from the unit price.
Cbus Self Managed Infrastructure■
0.69% p.a. (Estimate only)
Deducted from the unit price.
Fees are incurred by ETFs and vary
depending on which ETF is chosen.
Deducted from the returns of the underlying
securities in the EFT. The price quoted on the ASX
for each EFT reflects all fees and expenses incurred
in managing the EFT.
For information on ETF fees refer to
the ASX website.
1
Any capping credit will be applied at 30 June each year.
Brokerage and Management Fees do not apply to term deposits investments.
Super Income Stream PDS | 23
5
Tax
Income stream payments
The following table outlines the tax treatment of regular income
stream payments:
Investing in a Cbus Super Income
Stream provides a number of tax
benefits.
#
These benefits include:
■■
■■
■■
o tax payable on investment earnings while you are an income
n
stream member;
no tax payable on regular or lump sum payments to members
aged 60 years and over; and
no capital gains tax payable.
The amount of tax you pay will depend on your benefit components
and if you have reached your preservation age (refer to page 7 for
more information on preservation age).
Generally there are two types of payments that can be made from an
income stream: your regular income payment (monthly, fortnightly,
quarterly, half yearly, yearly) and lump sum payments (also called
commutations).
The following summary has been provided for general information.
For advice specific to your individual circumstances, we recommend
that you consult a financial planner.
24 | Super Income Stream PDS
Components
Tax treatment
Tax-free
Nil
Taxable
Below preservation age:
Taxable at marginal tax rate#
Preservation age to age 59 (inclusive):
Taxable at marginal tax rate# less 15 per cent
tax offset.
Aged 60 and over: Not taxed.
Plus Medicare Levy and Temporary Budget Repair Levy (if applicable).
Lump sum payments
The following table outlines the tax treatment of lump sum payments:
Components
Tax treatment
Tax-free
Nil
Taxable
Below preservation age:
Taxed at 20 per cent#
Preservation age to age 59 (inclusive):
Up to the low rate threshold zero tax and the
balance taxed at 15 per cent*#
Aged 60 and over: Not taxed.
* The low-rate threshold is currently set at $195,000 for 2015/16 financial
year and indexed to Average Weekly Ordinary Time Earnings (AWOTE) in
$5,000 amounts (rounded down). It includes the taxable component of all
lump sum payments made before you reach age 60, including payments paid
to you in different financial years and from different superannuation funds
and/or income streams.
#
Plus Medicare Levy.
To find out how tax is calculated for the Cbus
Self Managed investment option, read the Cbus
Self Managed Investment Guide available at
www.cbussuper.com.au/cbusselfmanaged
Tax calculation for members under age 60
If you are under 60 years of age, your benefit will be taxed as per the
table shown on page 24. The components and rates described in the
table were current at the date of the preparation of this PDS. Lump
sum payments from your Cbus Super Income Stream comprise both
taxable and/or tax-free components, and each component is subject
to a different tax treatment.
Tax components
Withdrawals may include both tax-free and taxable components,
with the proportion calculated on the total benefit.
Tax-free amount
This is the portion of each retirement income payment that incurs
no income tax. It is calculated by dividing your tax-free component by
the opening balance of your Cbus Super Income Stream account.
While under 60 years of age, this percentage will be applied to all
future income stream payments and lump sum withdrawals to
determine the portion of that payment that will be tax-free. Once
you reach age 60, all payments are tax-free.
A death benefit paid as a reversionary income stream will be tax exempt
if either the primary or reversionary beneficiary is aged 60 or over.
If both are under age 60 upon the member’s death, then the income
stream, less any tax-free amount, will continue to be taxed at the
reversionary beneficiary’s marginal tax rate (less 15 per cent tax
offset) until the reversionary beneficiary turns age 60 (at which time
it will become tax-free).
Death benefit payments to non-dependants have to be paid as a
lump sum benefit. The taxable component of a lump sum benefit paid
to a non-dependant is taxed at 15 per cent (plus the Medicare Levy).
Anti-detriment death benefit
An anti-detriment death benefit lump sum may be payable in addition
to the account balance where the benefit is paid out as a lump sum
instead of an income stream.
The anti-detriment death benefit represents a refund of contributions
tax deducted from the deceased member’s superannuation and is
calculated based on the current value of the taxable component of
the benefit. The payment can only be made to eligible beneficiaries
including a spouse or child of the deceased member.
Opening your account
Tax offset
Generally, you do not pay any tax on the funds you use to open your
Cbus Super Income Stream account, provided it is coming from a
taxed source.
You may receive a 15 per cent tax offset on your income payments
if you are:
Collection of tax file numbers
■■
over preservation age (but under age 60); or
■■
in receipt of an income stream due to disability; or
■■
i n receipt of an income stream due to the death of another
person and there is a taxable component to their income.
Tax on death benefits
Lump sum death benefits will be tax-free if paid to a tax dependant.
The beneficiary must be considered a dependant at the time of the
member’s death in order to qualify for the dependant tax treatment.
Note: Tax dependants include: a spouse (including a same sex partner);
a former spouse; a child under 18 years; any other person with whom the
deceased had an interdependent relationship at the time of death, or any
other person who was dependent on the deceased at the time of death.
We are authorised to collect and use your tax file number (TFN) under
the Superannuation Industry (Supervision) Act 1993. You do not have
to supply your TFN, however if you don’t, you may be subject to
higher rates of tax.
If you provide your TFN, we may pass it on to another superannuation
fund that receives transferred benefits in the future – unless you tell
us not to do so. Your TFN may also be given to the ATO.
We will only use your TFN for legal purposes, including identifying
or finding your benefits where other information is insufficient,
calculating tax on payments and providing information to the ATO
and Centrelink. Otherwise, your TFN will be kept confidential. Read
our Privacy Policy for more information about how we collect, store
and use your personal information.
Super Income Stream PDS | 25
6
Getting started
Starting a Cbus Super Income Stream is simple. Once you have decided
which options are right for you, all you need to do is complete the form
at the back of this PDS and we’ll do the rest.
Step 1: Get ready
1. Which option is right for you?
Whether you are transitioning to retirement (Option 1) or fully
retiring (Option 2) depends on your age and working status
(whether you are working or retired).
The table below can help you determine which income stream
option is available to you. Also see section 2 of this PDS.
Between preservation age
and 64 years of age
Aged 65+ years
Working:
Eligible for Transition to Retirement (Option 1)
Working or retired:
Cbus Super Income
Stream (Option 2)
Fully Retired:
Cbus Super Income Stream (Option 2)
2. Do you have enough to start a Cbus Super
Income Stream?
You need at least $10,000 to start a Cbus Super Income Stream.
You can transfer money from:
an existing super account, whether or not you are a Cbus member
■■
an approved deposit fund
■■
a retirement savings account
■■
a rollover from an existing income stream from another
financial institution.
■■
26 | Super Income Stream PDS
If you are investing money from more than one source, you need
to be aware that your funds will only be invested into your chosen
investment option/s once all money you intend to invest is
received. Therefore, there will be no investment earnings from
the option/s until money from all sources is received.
To add your super savings into the Cbus Super Income Stream,
simply use the Request to transfer form at the back of this PDS.
You should check if there are any exit fees or penalties for
withdrawing or transferring your money from other super funds
or financial institutions.
You can also check for any lost super. You can do this by contacting
the ATO on 13 10 20 or visit www.ato.gov.au/super
In specie transfers
If you have a CSM account and want to transfer this across to your
Super Income Stream you’ll have to make sure you:
■■
don’t hold any term deposits
■■
have no pending transactions - you must cancel or wait for
these to be finalised before you can complete the transfer
■■
are aware of the time delays this can have on the start of
income stream payments and your ability to manage your
investments for a small amount of time.
We don’t allow in specie transfers to Cbus from other funds or your
own assets.
Step 2: Make some decisions
1. How much do you want to receive?
If you are starting a Transition to Retirement (Option 1) facility,
you must select an annual payment amount that is between
the minimum and maximum limits set by the government.
See section 2 for further information about calculating your
minimum and maximum payments.
If you are starting a Fully Retired (Option 2) facility, there is no
limit on how much you can withdraw from your account each year.
The government does, however, require that a minimum amount
be withdrawn every year. See section 2 for further information
about calculating your minimum payment.
In August, you will be notified of your new income payment amount
for the financial year ahead. Your income payment may increase or
decrease from the previous year. You have the option of altering
this amount providing you meet the minimum and maximum limit
criteria set down by the government.
Indexing
You can nominate to have your income stream payment amount
increased in line with the CPI rate between 1 and 5 per cent or
a nominated percentage, subject to a minimum and maximum
income stream allowance. To do this please ensure you mark the
appropriate box on the Membership application form.
2. How often do you want to be paid?
You can choose to have your Cbus Super Income Stream
payments paid:
Frequency
Fortnightly
Payment date
Every second Friday
Half-yearly
Before you start an income stream, it’s important to consider
who you would like to receive the balance of your account if you
die. The balance of your account is made up of any money remaining
in your account, less outstanding fees and taxes, and can be paid
as a lump sum or as an income stream. This will be paid to your
dependant/s and/or legal personal representative (that is, the
executor or administrator of your estate).
4. Payment of death benefits as an income stream
A death benefit cannot be paid as an income stream to:
■■
■■
Mid-month or
end of month
Yearly
For payment frequencies other than fortnightly, you can nominate
to receive payments on the 15th, or the last day, of the month.
For payment frequencies of quarterly, half-yearly or yearly, you
can nominate the month of your first payment and subsequent
payments will recur as per your chosen frequency. If you do not
nominate a frequency we will pay you monthly.
You must receive at least one payment each year.
Additional lump sum (commutation) payments are not generally
available in the Transition to Retirement (Option 1); however you
can change the frequency of your income payments at any time.
Your income stream payments will be deposited into your
nominated Australian bank, building society or credit union
account. Payments cannot be paid by cheque or to a third party.
Your nominated account must be held in your name, or if the
nominated bank account is held jointly, you must be one of the
account holders.
someone who is not a dependant, or
a dependant who is a child, unless:
–the child is under 18 years of age, or*
–the child is between 18 and 25 years of age and
was financially dependent on you, or*
–the child is over 18 years of age and has a prescribed disability.
* Where a child of the deceased receives their death benefit as an income
stream, they will be required to take the remaining balance as a lump-sum
payment upon turning age 25 (unless the child has a permanent disability).
5. Payment options available to your dependants
Under the reversionary beneficiary option, in the event of your
death, your benefit will be paid as an income stream. Otherwise,
your benefit will normally be paid as a lump sum.
6. Who are dependants?
Your dependants include:
■■
■■
Monthly (default)
Quarterly
3. What happens if you die?
■■
■■
your spouse (including a de facto spouse or same sex partner)
your child/children (any age) including an adopted child, a stepchild, an ex-nuptial child
a person who is wholly or partially financially dependent on you
at the date of your death
a person with whom you have an interdependency relationship.
Interdependent
An interdependency relationship is where two persons (whether
or not related by family) have:
■■
a close personal relationship;
■■
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.
If two persons (whether or not related by family) have a close
friendship, but do not satisfy the other requirements outlined
above because either, or both, of them suffer from a physical,
intellectual or psychiatric disability, they are considered to have an
interdependency relationship. People who share accommodation
for convenience, for example, carers do not qualify.
Note: A non-dependant cannot receive a benefit in the form
of an income stream.
Super Income Stream PDS | 27
6 Getting started (continued)
Step 2: Make some decisions (continued)
7. How do you nominate a beneficiary?
You need to carefully consider which type of nomination best suits
your circumstances. You have several options:
Binding nominations
If you make a binding nomination, the Trustee is required to pay
your benefit to the dependants you nominate, regardless of
whether your circumstances have changed, provided they’re still a
valid nomination. While this can provide certainty, you need to be
careful to keep your nomination up to date.
In order for your binding nomination to remain valid under
superannuation law, it must:
■■
be confirmed (or changed) at least once every three years; and
■■
be signed by two witnesses (aged 18 years or over) in your
presence, neither of whom are nominees (that is, proposed
beneficiaries).
In addition, the person or persons you nominate must be either a
dependant or a legal personal representative at the date of your
death. Where you nominate more than one beneficiary, you must
also clearly state the proportion of the benefit each is to receive.
The Trustee will notify you on your Super Income Stream Statement
of your nomination and provide the opportunity to confirm or change
it. You can also change it at any other time, provided you complete
your nomination in accordance with the requirements detailed above.
Your binding nomination will expire after three years from the date it is
signed (provided it has been submitted to the Trustee).
Note: Your nomination will become invalid if your beneficiary is no
longer a dependant at the time of your death or has predeceased you.
Reversionary beneficiary nomination
You can nominate a reversionary beneficiary at the commencement
of your Cbus Super Income Stream. This means that upon your death,
your payments will automatically revert to the nominated person.
You can only choose one reversionary beneficiary and they must be
a dependent spouse (including a de facto spouse), a child under age
18, financially dependent on you, both at the commencement date
of your super income stream and at the date of your death.
When accepted, a reversionary beneficiary nomination is generally
binding on the Trustee and is irrevocable. If you would like to
change or remove your nominated beneficiary at a later date,
you can only do so by completing a new application form and
transferring to a new Cbus Super Income Stream.
At the time of a claim, your beneficiary can choose to receive the
income stream as a lump sum payment or opt to continue the
income stream.
Preferred beneficiary nomination
If you do not make a reversionary or binding nomination, or your
binding nomination is not valid under law, the Trustee will distribute
your benefit to your dependants and/or legal personal representative
in the proportions and manner it determines, at its sole discretion.
The Trustee is required under law to act in members’ and
beneficiaries’ best interests, and to take proper consideration of your
wishes. This will include consideration of any nomination of preferred
beneficiary you may have made, and/or any will you may have in place.
28 | Super Income Stream PDS
Unlike binding nominations, a nomination of preferred beneficiary
does not need to be regularly confirmed. However, this means
that if your circumstances change, and you do not update your
nomination the Trustee may not be fully aware of your wishes.
For this reason you should periodically review your nominations
and communicate changes to the Trustee.
We recommend you seek financial advice.
No nomination
If you do not nominate a beneficiary, the balance of your account
will be paid to your estate, your dependants or to a combination of
both, as determined by the Trustee.
8. How do you want your account invested?
How you choose to invest your income stream account will depend
on your own personal circumstances, attitude towards risk and
length of time you plan to invest.
You can choose to invest all of your Cbus Super Income Stream
in one investment option or you can invest in a combination of
options to suit your needs. Your options are:
■■
■■
High Growth
Conservative
■■
■■
Growth
Cash Savings
■■
■■
Conservative Growth (default)
Cbus Self Managed*
*
nce your account has been established, and subject to meeting
O
eligibility criteria, you may choose to invest in Cbus Self Managed.
To do so, you need to register online via the Income Stream account
login. For more information, read the Cbus Self Managed Investment
Guide available from www.cbussuper.com.au/cbusselfmanaged
If you do not make an investment choice the balance will be
invested in the default Conservative Growth option.
9. From which option do you want your payments
and fees deducted?
You have a choice about how your income stream payments,
lump sum payments and other fees and charges will be drawn out
of your account.
Your payment and fee drawdown options are as follows:
Proportional – you can nominate which investment options
(by percentage) you would like your payments and fees to be
applied to.
■■
Priority – you can select the order in which your payments and
fees are to be drawn down from each investment option. This
means you can choose to have all payments and fees applied to
one investment option first, and once this has reduced to zero,
transactions will be applied to the next investment option of
your choice, and so on.
■■
Pro-rata (default) – payments and fees would be drawn in
proportion equal to your current investment holdings.
■■
Highest balance first – payment and fees would be drawn from
the strategy with the highest balance.
■■
If you are invested in Cbus Self Managed, you will need to ensure
that you maintain sufficient funds in your standard Cbus investment
options to cover any payments, withdrawals, fees and costs.
If you do not nominate an option, your payments and fees will be
paid on a ‘pro-rata’ basis.
Step 3: Join Cbus
How to join
To open a Cbus Super Income Stream account:
complete the Membership form at the back of this PDS; and
■■
provide certified documents as proof of your identity and
return these to us or complete the authority for Cbus to verify
your identification electronically.
■■
If you wish to collect and combine superannuation lump sums from
one or more funds to commence your Cbus Super Income Stream,
you can do so by completing the Request to transfer form and
returning it to us.
A separate form must be completed for each of your nominated
rollovers. Please photocopy the form or contact us if additional
forms are required.
Note: Where two or more rollovers are received, investment
earnings will commence from the date of the last rollover received.
Once your Cbus Super Income Stream commences, we cannot
accept any further contributions. However, you may commence
a second Cbus Super Income Stream in your name, subject to
meeting the minimum investment requirement.
Changing your name or signing on behalf of someone
Proof of identity
The Trustee has statutory obligations including under the
Anti-Money Laundering and Counter-Terrorism Financing Act 2006
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 will be required to provide proof of your
identity documentation with your application when you open
your Cbus Super Income Stream to prove you are the person to
whom the income stream payments will be made and before you
withdraw your benefit from the fund.
You can either authorise Cbus to use the information you provide
on the form to prove your identify or you can supply certified
copies of the required identification documents.
If you have changed your name or are signing on behalf of the
member, you will need to provide a certified linking document.
A linking document is a document that proves a relationship
exists between two or (more) names.
Change of name – Marriage Certificate, deed poll or Change
of Name Certificate from Births, Deaths and Marriages
Registration Office.
Signing on behalf of Cbus member – Guardianship papers,
or Power of Attorney.
How to certify documents
Take the original identification documents and a photocopy of
both sides of the original document to an authorised person
(see list below) for certification.
EITHER One of the following documents only:
The authorised person needs to:
write or stamp in English on the photocopies, words to the
effect of: ‘This is a true and correct copy of the original’; and
■■
write their name, qualification (for example, Justice of
the Peace, Police Officer, etc.) and registration number (if
applicable); and sign and date.
certified copy of a current driver’s licence which includes your
A
current residential address; or
Faxed copies of certified documents do not comply with our
identification requirements and will not be accepted.
A certified copy of a current passport.
Authorised persons
■■
Identification documents required
Certified and legible copies of the following documents are required
OR One of the following documents:
A certified copy of birth certificate or birth extract; or
certified copy of citizenship issued by the Commonwealth of
A
Australia; or
certified copy of a pension card issued by Centrelink that entitles
A
the person to financial benefits.
AND One of the following documents:
certified copy of a letter from Centrelink regarding a
A
Government Assistance Payment; or
certified copy of Notice issued by Commonwealth, State or
A
Territory Government or local council within the last 12 months
that contains your name and residential address. For example an
Australian Tax Office Notice of Assessment or a rates notice from
Local Council.
Identification papers must be certified by one of the following
authorised persons.
■■
a police officer
■■
a finance company officer with two or more years continuous
service (with one or more finance companies)
■■
an officer with, or authorised representative of, a holder of
an Australian Financial Services Licence (AFSL), having two or
more years continuous service with one or more licensees
■■
a notary public officer
■■
a registrar or deputy registrar of a court
■■
Justice of the Peace
■■
a permanent employee of Australia Post with two or more
years continuous service
■■
a person enrolled on the roll of a State or Territory Supreme
Court, or the High Court of Australia, as a legal practitioner
■■
an Australian consular officer or diplomatic officer
■■
a judge of a court or a magistrate
■■
a Chief Executive Officer of a Commonwealth court.
Super Income Stream PDS | 29
6 Getting started (continued)
What happens next?
We will process your application and write
to you to confirm your investment and detail
the amount and frequency of your income
stream payments.
Your payments must commence in the tax
year in which you join, unless you commence
your Cbus Super Income Stream between
1 June and 30 June, in which case payments
can start in the following financial year.
Cooling-off period
After you have made your initial investment in a Cbus Super Income
Stream, you have 14 days to reconsider.
The 14-day cooling-off period commences on the earlier of:
■■
your receipt of confirmation of your application, or
■■
the end of the 5th day after the interest is issued to you.
Within this period, you may withdraw your investment or transfer
to another institution without being subject to administration fees
imposed by Cbus. To withdraw or transfer your investment, simply
send a letter to Cbus within the 14-day period.
bus
C
Locked Bag 200
Carlton South VIC 3053
If you choose to withdraw during the cooling-off period, the amount
you receive may be less than the amount of your original investment.
It will reflect any movement in the value of the Cbus Super Income
Stream investment options that you have selected, amounts already
paid to you and any tax payable on that amount.
30 | Super Income Stream PDS
If any investments you made into the Cbus Super Income Stream
were transferred from another complying superannuation fund,
Approved Deposit Fund or Retirement Savings Account, and were
either preserved or restricted non-preserved benefits, then those
amounts can only be repaid in cash if you have:
■■
permanently retired from the workforce upon reaching
your preservation age, or
■■
ceased employment at age 60 or over, or
■■
reached age 65, or
■■
become permanently incapacitated or died, or
■■
suffered a terminal medical condition, or
■■
met a condition of release on financial hardship or compassionate
grounds.
Such amounts will otherwise be transferred to another complying,
superannuation fund, Approved Deposit Fund or Retirement Savings
Account of your choice.
7
Forms
Application checklist
Before you send in your Membership form, please ensure you:
1. Fully read this Product Disclosure Statement
2. Complete the Membership application form.
Ensure that you have:
Advised us of your beneficiaries by completing Part 5 of
the form or the Binding death nomination form, depending
on your preference.
Provided details of the name of your previous fund/s and
the amount/s of your rollover/s by completing Part 4.
Selected one or more investment options by completing
Part 6.
Advised the amount and frequency of your income
payments by completing Part 7 (a) and (b).
Selected the investment option/s from which your
Cbus Super Income Stream payments will be drawn by
completing Part 7 (C).
Provided your bank account details, Part 8.
Read, understood and signed the declarations in Part 10.
Authorise Cbus to verify your identity electronically or
provide certified copies of identification documents.
Your application will not be accepted without this.
3. Complete the Request to transfer form.
Ensure that you have:
5. Complete the Binding death nomination form
(optional)
If you choose to make a Binding death benefit nomination,
ensure that:
the allocation of benefits to your beneficiary/ies adds up
to 100 per cent,
the form is signed by two witnesses, 18 years of age or
over, in your presence using the same date as you signed it.
6.If you’re completing an in specie transfer
please ensure:
you don’t have any term deposits
you don’t have any pending transactions, such as
investment switches, cash transfers, partial withdrawals,
unfulfilled or unsettled trades or term deposit orders
you’re aware of the time it can take to process an in specie
transfer order, as this will delay the start of your income
stream payments and will also prevent you from viewing or
managing your investments for a small period of time
you aren’t attempting to merge a Cbus Super CSM account
with an Income Stream CSM account. You can’t merge two
CSM accounts together, you can only transfer across from
accumulation to pension
you must ensure an amount equal to your minimum
annual income requirement remains in your standard Cbus
Investment options.
Completed a Request to transfer form for each rollover.
4. Complete the Tax file number declaration form
(only required if you are under age 60)
Ensure that you have completed Section A only.
Remember you can only claim the tax-free threshold once.
Refer to section 5 for information about the benefits of
providing your TFN to Cbus.
If you need further information about the Tax file number
declaration form or need assistance completing it, contact
the ATO on 13 28 61 or your financial planner.
Page references on this form refer to pages in the ATO’s printed
Tax file number declaration instructions.
Talk to us
If you have any questions about any of the other
forms, or would like more information, you can
contact the Service Centre on 1300 361 784.
Your investment earnings will commence when
all rollovers are received and your account has
been established.
Please send completed forms to:
Cbus, Locked Bag 200, Carlton South VIC 3053
Super Income Stream PDS | 31
Membership application for Cbus Super Income Stream
This application form is part of the Cbus Super Income Stream Product Disclosure Statement (PDS) dated 1 November 2015.
Before completing this application please read the PDS.
Please use black or blue pen and CAPITAL letters. Use an X in boxes where required.
Part 1: Product details
Please indicate which product you are applying for: (refer to section 2 of the PDS for further information on the following options)
X I am applying for a Transition to Retirement Cbus Super
OR
Income Stream (for people who are still employed and under age 65)
X I am applying for a Fully Retired Cbus Super Income Stream.
Part 2: Personal details
Title
X Mr
X Mrs
X Miss
X Ms
Date of birth
D D / M
X Other
Gender
M / Y
Y
Y
Y
X Male
X Female
First name(s)
Family name
Mother’s maiden name (information collected for security reasons only)
Telephone (home)
(
Telephone (work)
)
(
Telephone (mobile)
)
Residential address
Suburb/town
State
Postcode
Email address
Do you give Cbus permission to contact you via email?
X Yes
X No
X Yes
X No
X Yes
X No
Postal address (if different from above)
Suburb/town
State
Postcode
Part 3: Existing Cbus super account members only
Existing Cbus member number
1. Cbus Self Managed:
Do you have an existing CSM account?
Do you wish to transfer your CSM account to your Cbus Super Income Stream account?
*Please note:
that 100% of your CSM balance must be transferred and you will no longer have a super CSM account
¡¡
you can’t transfer term deposits
¡¡
you will not have access to trade or be able to monitor investments while they are being transferred.
¡¡
2. I would like to:
1. X T
ransfer my entire standard accumulation account balance (member investment choice) – this will result in the closure of your Cbus Super
account and your insurance cover will cease.
OR
2. X Transfer an amount of
OR
$
.
ransfer my entire Cbus Super account balance, retaining the minimum account balance to keep it open.
3. X T
Note: if you transfer part of your balance from your Cbus Super account, a minimum of $5,000 must be retained in that account.
IF YOU ARE ADDING FUNDS from your existing Cbus Super account to your existing Cbus Super Income Stream account.
Please complete the details above and list your Cbus Super Income Stream member number.
For more information read Adding funds to your income stream on page 8 of the PDS.
* You do not have to complete a Request to Transfer form for your existing account with Cbus but you do have to provide certified identification or authority for Cbus to
validate your identification. For full information see page 26.
Continues next page
Cbus’ Trustee is United Super Pty Ltd. ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262
Page 1 of 6
3183 11/15
Part 4: Rollovers from non-Cbus accounts
Please fill out the details of the fund(s) you wish to rollover money from and the amount of each rollover into the Cbus Super Income Stream.
Fund name
Membership number (if known)
Approximate amount of rollover $
$
$
$
$
Reminder: Please complete and sign a separate Request to transfer form for each rollover request.
For full information refer to page 25.
Part 5: Beneficiary details
In the event of your death there are several ways you can nominate to whom your remaining benefit is paid. Note: You can only select one type of beneficiary
nomination. See section 6 of the PDS for details. If you do not make a nomination, the balance of your account will be paid to your estate, your dependants or
to a combination of both, as determined by the Trustee. Please mark the box below to indicate how you would like your account handled in the event of your death.
Please pay any remaining benefit to:
1. X My binding nomination (ensure you complete and attach the Binding death benefit nomination form)
Binding death nominations can be amended in writing at any time. However, in all cases they MUST be confirmed no later than the end of the
three year period after the day it was first signed, notified, last confirmed or amended by the member making the nomination. If the binding death
nomination is not confirmed or amended within this three year period, it will revert to a preferred beneficiary death benefit nomination.
OR 2. X My reversionary beneficiary
Title
First name/s
Family name
Date of birth
D
D / M
Relationship to you
M / Y
Y
Y
Y
OR 3. X My preferred beneficiary
First given name and initial/s (e.g. John R)
Family name
Relationship (e.g. son, spouse etc)
% share
%
%
%
%
Total 1
You can nominate more beneficiaries on a separate piece of paper and attaching it to this form.
0
0
%
OR 4. X Pay to my Estate (this is not binding on the Trustee but will be taken into consideration)
Part 6: Investment instructions
Either indicate how much you
would like to invest in each option in
percentage terms as a proportion
of your total investment, or indicate
the amount (if known) you would
like to invest in each option. If you
don’t make an allocation Cbus will
invest your money in the default
Conservative Growth investment
option. Investment instructions
exclude Cbus Self Managed.
Investment options
Amount $
OR Percentage of total
High Growth
$
.
%
Growth
$
.
%
Conservative Growth (Default) $
.
%
Conservative
$
.
%
Cash Savings
$
.
%
Total must add up to 100%
$
.
1
0
0
%
Cbus Self Managed is an investment option that allows eligible Cbus members to invest their super directly in a range of key asset classes. To invest
in Cbus Self Managed, you need to register online via the Income Stream account login and meet certain eligibility criteria. For more information, read
the Cbus Self Managed Investment Guide available from www.cbussuper.com.au/cbusselfmanaged.
Continues next page
Cbus’ Trustee is United Super Pty Ltd. ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262
Page 2 of 6
3183 11/15
Part 7: Income stream payment details
Part A: The amount – Please select the option that applies to you:
If you do not nominate a payment amount, we will pay the minimum amount the government requires you to withdraw. Please select one option only.
The amount I would like to receive is:
X Minimum amount (default)
The minimum amount approved under government legislation (see pages 7 and 8 of the PDS before choosing this option)
OR X M
aximum amount (Transition to retirement (TTR) members under age 65 only)
10% of my account balance for a full year. If you have selected the maximum, please choose one of the following options:
X the full maximum for the first financial year
X the maximum for the remainder of this financial year on a pro-rata basis (default)
OR X Nominate a specific amount (TTR members cannot exceed 10% of the account balance each year)
Nominate an amount (per income payment) that will result in an annual amount that is at least your minimum income limit.
$
.
OR X N
ominated amount + CPI (TTR members cannot exceed 10% of the account balance each year)
Nominate an amount (per income payment) of at least your minimum income limit that will be increased in line with CPI each year.
$
.
OR X Nominated amount + indexation (TTR members cannot exceed 10% of the account balance each year)
Nominate an amount (per income payment) of at least your minimum income limit that will be indexed each year.
$
.
Please select the level of indexation each year:
X 1%
X 2%
X 3%
X 4%
X 5%
Note: If you invest between 1 June and 30 June, your minimum amount is zero.
You may choose not to receive a payment until the next financial year by marking here
X
Part B: Frequency
I would like to receive my income payments:
X Fortnightly
X Monthly (default)
X Quarterly
X Half-yearly
X Yearly
Please nominate a starting month for your first payment:
For monthly, quarterly, half-yearly or yearly payments, please nominate a starting date:
X 15th or
X end of month or
X the next available payment period default (15th or end of month)
If you do not nominate the frequency or starting month of your income stream payments, your payment will be paid monthly and commence at the
next available month/payment period. Your payment nomination will remain in place until you advise us in writing to change it.
Part C: Payment drawdown options
I would like my payments drawn from my account in the following way (refer to section 6 of the PDS for more information).
If you do not nominate an option, your payments will be paid from your account ‘pro-rata’.
Please mark one box only.
X Pro-rata (default) – Payments drawn down in proportion equal to your current investment holdings.
X Proportional – Nominate which investment option/s you would like your payments applied to, and the percentage for each option/s.
Investment option
Percentage of total
High Growth
%
Growth
%
Conservative Growth (default)
%
Conservative
%
Cash Savings
%
Total must add up to 100%
1
0
0
%
X Priority – Nominate the order in which you would like
your payments drawn from your account.
EXAMPLE ONLY: Assuming your account is split between Growth and Cash
Savings options
If you indicate
Proportional
CASH SAVINGS – 10%
GROWTH – 90%
Payments would be drawn 10/90 from Cash
Savings and Growth.
Priority
1 – CASH SAVINGS
2 – GROWTH
Payments would all firstly be drawn from the
Cash Savings, then from Growth if the Cash
Savings option was depleted.
Pro-rata
Highest
balance first
ple
m
E x a n ly
O
Payments would be drawn in proportion
equal to your holding in Cash Savings and
Growth.
Payment would be drawn from the strategy
with the highest balance.
Investment option
1.
2.
3.
4.
5.
X Highest balance first – Payment will be drawn from the investment option with the highest balance first.
Cbus’ Trustee is United Super Pty Ltd. ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262
Continues next page
Page 3 of 6
3183 11/15
Part 8: Bank account details
Please pay my income stream payments into my account as follows:
Name of your bank, building society or credit union
Branch address
Suburb/town
State
Postcode
Name account is held in (for example, Fred Smith)*
BSB Account number
*Note: your nominated bank account must be held either in your name or if the account is held jointly, you must be one of the account holders.
Part 9: Proving your identify
Complete this section to prove your identity.
You have two options to prove your identify. Check the box to make your selection.
X O
ption 1: Use electronic identification
By providing my Medicare card details and either my driver’s licence or Australian passport details, I agree to Cbus using these and the other
details on this form to verify my identity electronically using independent data sources.
Important: Make sure the details you provide are accurate. If your personal details on page 1 do not match your electronic identification
details, we will not be able to use your personal details to provide your identity, which will delay processing your request.
Part 1: Medicare details
Full name (including initials – as shown on your Medicare card)
Medicare number
Valid to
D D / M
M / Y
Y
Y
Y
Your reference number
on this card is
Part 2a: Australian driver’s licence – if you provide passport details below, you don’t need to provide licence details here
First name (as shown on your licence)
Surname (as shown on your licence)
Australian driver’s licence number
State of issue
Expiry date
D D / M
M / Y
Y
Y
Y
Part 2b: Australian passport – if you provide licence details above, you don’t need to provide passport details here
Given name/s (including middle name – as shown on your passport)
Surname (as shown on your passport)
Australian passport number
Place of birth (as shown on your passport)
Country of birth (not shown on your passport)
Family name at birth (not shown on your passport)
X Option 2: Provide certified copies of identification documents
I’ve attached copies of my certified proof of identity with this form. If my identification documentation has not been certified correctly
I understand Cbus may use the information from the documents in conjunction with the information on this form to verify my identity
electronically using independent data sources.
Continues next page
Cbus’ Trustee is United Super Pty Ltd. ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262
Page 4 of 6
3183 11/15
part 10: Account authorisations (optional)
The purpose of this section is to give other people access to the details of your account.
This authority permits the person(s) I nominate below to obtain relevant information in connection with my Cbus Super Income Stream account. It does
¡¡
not allow the person(s) to give an instruction to make a change to my account, direct any transactions or request communication that could lead to a
financial transaction on my account.
This authorisation continues until I advise Cbus in writing that I wish to revoke it.
¡¡
PERSONAL RELATIONSHIP
First name/s
Family name
How is this person related to you? (please choose one option only) X Partner
X Parent X Guardian X Sibling X Other family member X Friend
PROFESSIONAL RELATIONSHIP
Company/practice name
Is this a participating practice in the Cbus and Financial Planning Association (FPA) Member Referral Program?
Company/practice address
X Yes
X No
Financial planner/adviser stamp
Suburb/town
Telephone
(
)
State
Postcode
Fax
(
)
Telephone (mobile)
Australian Business Number (ABN)
Australian Financial Services Licence (AFSL)
Key Representative
First name/s
Family name
Email address
Is this person a Certified Financial Planner (CFP®)?
X Yes
X No
X Yes
X No
X Yes
X No
Additional Representative 1
First name/s
Family name
Email address
Is this person a Certified Financial Planner (CFP®)?
Additional Representative 2
First name/s
Family name
Email address
Is this person a Certified Financial Planner (CFP®)?
To nominate additional personal or professional contacts, please complete a Third party authority form available from www.cbussuper.com.au
Continues next page
Cbus’ Trustee is United Super Pty Ltd. ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262
Page 5 of 6
3183 11/15
Part 11: Keeping you up to date on other products
Cbus may send you information on various non-commission products/services from other organisations that it believes may be of interest to you.
If you don’t want to receive this information, mark this box. X
Part 12 Signature and declarations
In signing this form, I declare that:
All details in this application are true and correct; and
¡¡
I have read the Product Disclosure Statement to which this application applies, and agree to be bound by the provisions of the Trust Deed (as amended)
¡¡
governing the Fund; and
The details of my investment in the Cbus Super Income Stream can be provided to the financial planning group or planner shown at the bottom
¡¡
of this application form; and
The whole of my investment is made up of one or more rollover benefits; and
¡¡
If this application is signed under Power of Attorney, the Attorney declares that no notice of revocation of that Power of Attorney has been received.
¡¡
(A certified copy of the Power of Attorney should be submitted with this application unless we have already sighted it).
I declare that, with regard to my eligibility to become a member of the Cbus Super Income Stream, one of the following is true:
(mark as appropriate)
X I have reached my preservation age but have not ceased gainful employment and I agree to be bound by the conditions relating to the payment of
non-commutable income streams, described in this PDS; or
X I have reached my preservation age and am no longer gainfully employed. I am not intending to rejoin the workforce either full-time or part-time at
any time in the future; or
X I am 60 years old or older and I have ceased gainful employment since turning 60; or
X I have been declared permanently and totally disabled/incapacitated and have provided the Trustee with two medical certificates to that effect; or
X I am 65 years of age or older.
Signature of applicant
Sign here:
Date
D
D / M
M / Y
Y
Y
Y
If you require any assistance in completing these forms, please contact our Service Centre on 1300 361 784.
Please detach and send this form to:
Cbus, Locked Bag 200,
Carlton South, VIC 3053
Call our Service Centre
on 1300 361 784
Monday – Friday 8am – 8pm (EST)
Cbus’ Trustee is United Super Pty Ltd. ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262
Visit our website
www.cbussuper.com.au
Page 6 of 6
3183 11/15
Optional
Request to transfer
Use this form to roll over superannuation into the Cbus Super Income Stream. If you
have more than one account to transfer please contact Cbus for additional forms, or
photocopy this one. Each form must have your original signature on it.
Please use black or blue pen and CAPITAL letters. Use an X in boxes where required.
This form is not required for
existing Cbus members who are
transferring an amount from their
Cbus Super account.
Part 1: Member details
Title
X Mr
X Mrs
X Miss
X Ms
X Other
Date of birth
D D / M
Gender
M / Y
Y
Y
Y
X Male
X Female
First name/s
Family name
Other/previous names
Telephone (home)
(
Telephone (mobile)
)
Tax file number
Under the Superannuation Industry (Supervision) Act 1993, you are not obliged to disclose your tax file number,
but there may be tax consequences. However, your tax file number may be required for identification purposes.
Current Address
Residential address
Suburb/town
State
Postcode
Previous Address – If you know that the address held by your FROM fund is different to your current residential address, please give details below.
Previous residential address
Suburb/town
State
Postcode
Part 2: FROM fund details
This is the fund you are transferring out of. If you have multiple account numbers with this fund, you must complete a separate form for each account
you wish to transfer.
Fund name
Fund member number
Fund address
Suburb/town
State
Postcode
Fund phone number
(
)
Australian Business Number (ABN)
Superannuation Product Identification Number (SPIN)
Continues next page
Page 1 of 2
Cbus’ Trustee is United Super Pty Ltd. ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262
3183 06/15
Part 3: Rollover details
I hereby instruct you to rollover/transfer the value shown below to my Cbus Super Income Stream:
X The whole balance of my superannuation account.
X The following amount
$
.
or percentage
% of my account balance.
X Nominate the amount of ‘unrestricted non-preserved’
component (if any) that you wish to retain in your existing fund $
.
X Retain the minimum allowable amount in my superannuation fund to keep it open.
Part 4: Cbus fund details
Fund name
CBUS SUPER INCOME STREAM
Fund address
Locked Bag 200 Carlton South VIC 3053
Australian Business Number (ABN) 75 493 363 262
Administrator
Fund phone number
USI
Superpartners
1300 361 784
75493363262001
Part 5: Authorisation
By signing this request form, I am making the following statements:
I declare I have fully read this form and the information completed is true and correct.
¡¡
I am aware I may ask my superannuation provider for information about any fees or charges that may apply, or any other information about the effect this
¡¡
transfer may have on my benefits, and do not require any further information.
I discharge the superannuation provider of my FROM fund of all further liability in respect of the benefits paid and transferred to the Cbus Super Income Stream.
¡¡
I authorise my FROM fund to release information relating to this rollover to Cbus.
¡¡
I consent to the transfer of superannuation as described above and authorise the superannuation provider of each fund to give effect to this transfer.
¡¡
Name of applicant
Sign here:
Date
D
D / M
M / Y
Y
Y
Y
Privacy
Please refer to the Cbus Privacy Policy and Personal Collection Statement at www.cbussuper.com.au/privacy for details about how Cbus collects and
discloses personal information or contact the Service Centre on 1300 361 784 for a copy.
Please detach and send this form to:
Cbus, Locked Bag 200,
Carlton South, VIC 3053
Call our Service Centre
on 1300 361 784
Monday – Friday 8am – 8pm (EST)
Visit our website
www.cbussuper.com.au
Page 2 of 2
Cbus’ Trustee is United Super Pty Ltd. ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262
3183 06/15
ORIGINAL – ATO copy
Tax file number declaration
This declaration is NOT an application for a tax file number.
■ Use a black or blue pen and print clearly in BLOCK LETTERS.
■ Print X in the appropriate boxes.
■ Read all the instructions including the privacy statement before
you complete this declaration.
ato.gov.au
30920714
Section A: To be completed by the PAYEE
1 What is your tax
file number (TFN)?
6 On what basis are you paid? (Select only one.)
OR I have made a separate application/enquiry to
the ATO for a new or existing TFN.
For more
information, see
question 1 on page 2
of the instructions.
OR I am claiming an exemption because I am under
18 years of age and do not earn enough to pay tax.
OR I am claiming an exemption because I am in
receipt of a pension, benefit or allowance.
2 What is your name?
Title:
Mr
Mrs
Miss
Ms
Surname or family name
Full‑time
employment
Part‑time
employment
Superannuation
or annuity
income stream
Labour
hire
7 Are you an Australian resident
for tax purposes?
Yes
Casual
employment
You must answer no
at question 8.
No
(Visit ato.gov.au/residency to check)
8 Do you want to claim the tax‑free threshold from this payer?
Only claim the tax‑free threshold from one payer at a time, unless your
total income from all sources for the financial year will be less than the
tax‑free threshold.
Answer no at questions 9 and 10 unless you are a
foreign resident claiming a seniors and pensioners,
Yes
No
zone or overseas forces tax offset.
9 Do you want to claim the seniors and pensioners tax offset by
reducing the amount withheld from payments made to you?
First given name
Yes
Other given names
No
10 Do you want to claim a zone, overseas forces or dependent (invalid and carer)
tax offset by reducing the amount withheld from payments made to you?
3 If you have changed your name since you last dealt with us,
show your previous family name
Day
Complete a Withholding declaration (NAT 3093), but only if you
are claiming the tax‑free threshold from this payer. If you have
more than one payer, see page 3 of the instructions.
Yes
Month
Year
11 (a) Do you have an accumulated Higher Education Loan
Program (HELP) debt?
Yes
4 What is your date of birth?
No
Complete a Withholding declaration (NAT 3093).
Your payer will withhold additional amounts to cover any compulsory
repayment that may be raised on your notice of assessment.
No
(b) Do you have an accumulated Financial Supplement debt?
5 What is your home address in Australia?
Yes
Your payer will withhold additional amounts to cover any compulsory
repayment that may be raised on your notice of assessment.
No
DECLARATION by payee: I declare that the information I have given is true and correct.
Signature
Date
Suburb or town
Day
State/territory
Month
Year
You MUST SIGN here
Postcode
There are penalties for deliberately making a false or misleading statement.
Once section A is completed and signed, give it to your payer to complete section B.
Section B: To be completed by the PAYER (if you are not lodging online)
1 What is your Australian business number (ABN) or
your withholding payer number?
7 5
4 9 3
3 6 3
Branch number
(if applicable)
2 6 2
2 If you don’t have an ABN or withholding payer number,
have you applied for one?
Yes
L OC K E D
C A R LT O N
State/territory
S O U T H
3 0 5 3
5 Who is your contact person?
A N D
U N I O N S
S U P E R A N NU A T I O N
2 0 0
Postcode
V I C
3 What is your legal name or registered business name
(or your individual name if not in business)?
CO N S T R U C T I O N
B A G
Suburb or town
No
B U I L D I N G
4 What is your business address?
Business phone number
F U N D
1 3 0 0 3 6 1 7 8 4
6 If you no longer make payments to this payee, print X in this box
DECLARATION by payer: I declare that the information I have given is true and correct.
Signature of payer
Date
Day
Month
There are penalties for deliberately making a false or misleading statement.
NAT 3092‑07.2014
NAT
3092-07 2010
[JS 31616]
Year
Return the completed original ATO copy to:
For NSW, QLD or ACT
For WA, SA, NT, VIC or TAS
Australian Taxation Office
Australian Taxation Office
PO Box 9004
PO Box 795
PENRITH NSW 2740
ALBURY NSW 2640
Sensitive (when completed)
IMPORTANT
See reverse side of
Payer’s copy for:
■ payer obligations
■ lodging online.
Binding death benefit nomination
This form tells Cbus who gets your super in the event of your death.
Please use black or blue pen and CAPITAL letters. Use an X in boxes where required.
If you die while a Cbus member, your
dependants will be entitled to claim the
total amount in your account.
You can have greater certainty over who your benefits will go to by nominating
them on this Binding death benefit nomination form.
Otherwise, under Government legislation, your nominations will be regarded as
‘non-binding’. This means Cbus’ Trustee will take into account your nominations
but it will have the ultimate responsibility of deciding to whom benefits are paid.
By making a binding death benefit nomination, Cbus’ Trustee is bound to pay who
you have nominated (providing you are still a member of the Fund when you die
and your nomination was valid at the time of your death).
Please read this
form carefully
The form must be signed and dated by
you in the presence of two witnesses
who are at least 18 years of age and are
not beneficiaries. The witnesses must
also sign the form.
Note: The ‘date signed’ by each
witness must be the same as the date
signed by the applicant.
Also make sure your benefit
nominations total 100 per cent.
Send completed form to:
Cbus, Locked Bag 200
Carlton South, VIC 3053
Cbus does not charge for making a binding death benefit nomination.
Who you can nominate
The person(s) you nominate must be
any one or more of the following:
■■
■■
■■
■■
■■
your current spouse (legal or de facto;
includes same sex partner);
your children (including step, adopted,
ex-nuptial or children of a same sex
relationship);
a ny person(s) financially dependent
on you;
your interdependant; or
your legal personal representative, which
means the executor or administrator of
your estate.
You may wish to inform the beneficiaries of
their nomination.
It is important to note that all your
nominated beneficiaries must be alive and
fall within one of these categories at the
time of your death.
At the time of a claim, a beneficiary may
be able to choose to receive the income
stream as a lump-sum payment or opt to
continue the income stream.
We recommend financial advice is sought
as the tax treatment of benefits will
depend on their personal circumstances.
Dependants
Your dependants include:
■■
spouse;
■■
children;
■■
financial dependants; and
■■
interdependants.
A ‘financial dependant’ is defined as a
person who is wholly or partially dependent
upon you.
An interdependency relationship is defined
to include: A close personal relationship
between two people who live together,
where one or both provides for the
financial, domestic and personal support
of the other.
People who share accommodation
for convenience, for example carers,
do not qualify.
Your nomination will be invalid if:
■■
■■
■■
■■
■■
ou are not a member of Cbus
y
at the time of your death; or
your Binding death benefit nomination
form was signed more than three years
earlier. You must complete a new form at
least every three years; or
a nominated beneficiary dies before
you die; or
a nominated beneficiary (other than your
legal personal representative) is not a
dependant or in an interdependency
relationship with you at the time of your
death; or
if it is not correctly signed or witnessed.
If you are wishing to nominate a person
outside the list of dependants, for example,
a brother or sister, you will be asked to
provide documentary evidence of their
dependency upon you.
Should you wish to clarify what evidence
is required please contact our Service
Centre on 1300 361 784 or visit our
website www.cbussuper.com.au
Optional
Keeping your
nomination up to date
By law a binding death benefit nomination
must be updated at least every three years
(from the date it was first signed, or last
confirmed or amended by you). We will also
print your nominations and their expiry
date on your Annual Benefit Statement.
You can renew, change or cancel your
nomination at any time. It is also important
to update your nominations if your
circumstances change. For example,
if you marry or divorce.
Simply complete a new form to update
your nominations. If you wish to cancel
your nomination, please do so by
writing to us at Cbus, Locked Bag 200,
Carlton South, VIC 3053.
If your nomination expires and is not
replaced by a new binding nomination,
it will become non-binding.
You should consider consulting your
legal adviser before making or cancelling
a binding death nomination.
Privacy
Cbus only collects information that is
essential for the administration of your
binding death nomination. Cbus will not
use the information about you, or your
witnesses, for any other purpose, or pass
it to any other organisation without your
express permission or as required by law.
Please refer to the Cbus Privacy Policy and
Personal Information Collection Statement
at www.cbussuper.com.au/privacy for
details about how Cbus collects and discloses
personal information or contact the Service
Centre on 1300 361 784 for a copy.
Continues next page
Page 1 of 2
Cbus’ Trustee is United Super Pty Ltd. ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262
3183 06/15
Binding death benefit nomination
for the Cbus Super Income Stream
The form must be completed in full. Before completing the form, please read the important information on the front of
this form. This binding nomination only relates to the Cbus Super Income Stream product. Please call our Service Centre
on 1300 361 784 if you have any questions, or visit www.cbussuper.com.au for a new form or more information.
Please use black or blue pen and CAPITAL letters. Use an X in boxes where required.
IMPORTANT: Make a binding nomination. To change an existing nomination, or to make a new nomination, please complete Parts 1 to 4.
Part 1: Member details
Title
X Mr
X Mrs
X Miss
X Ms
X Other
Date of birth
D D / M
Gender
M / Y
Y
Y
Y
X Male
X Female
First name/s
Family name
Telephone (home)
(
Telephone (mobile)
)
Residential address
Suburb/town
State
Postcode
Email address
Part 2: Nominate your beneficiaries
Please nominate to whom you wish your income stream benefit to be paid in the event of your death. Each beneficiary must be one of the following, your
spouse (legal or de facto; includes same sex partner), child (including adopted, step or ex-nuptial), dependant, interdependant or legal personal representative.
The eligible beneficiary/ies are explained in detail on the reverse side of this form. Your total percentage of benefit nominations must add up to 100 per cent.
First given name and initial/s (e.g. John R)
Family name
Relationship (e.g. son, spouse etc)
% share
%
%
%
%
You can nominate more than four beneficiaries by providing their details on a separate piece of paper and attaching
it to this form. Remember to make sure it is signed, dated and witnessed in the same manner as this form.
Total 1
0
0
%
Part 3: Witness declaration
IMPORTANT NOTE: For your binding nomination to be eligible, the witness declarations and the member declaration must be all signed on the same
date. I declare that I am over age 18, I am not a beneficiary nominated on this form and the member signed this binding nomination in my presence.
SIGNATURE OF WITNESS 1
SIGNATURE OF WITNESS 2
Sign here:
Sign here:
Date
D
Date
D / M
M / Y
Y
Y
Y
Print name:
Date of birth
D D / M
D
D / M
M / Y
Y
Y
Y
M / Y
Y
Y
Y
Print name:
M / Y
Y
Y
Y
Date of birth
D D / M
Part 4: Member declaration
I understand that:
my beneficiary(ies) must be my spouse, child, financial dependant, interdependant or a legal personal representative of my estate at the time of my death;
¡¡
my beneficiary(ies) and I will be bound by the provisions of Cbus’ Trust Deed relating to binding death benefit nominations;
¡¡
this binding nomination is only valid for three years from the date it was last signed, confirmed or amended;
¡¡
I may at any time cancel or change a binding nomination notice in accordance with Cbus’ procedures;
¡¡
if a notice is invalid or has not been received by the Trustee when I die, the death benefit will be determined by the Trustee at its discretion;
¡¡
this declaration must be signed by me in the presence of two witnesses (who are not a nominee on this form) both of whom are over age 18;
¡¡
this nomination applies to all my investments within the Cbus Super Income Stream; and
¡¡
I have read the notes on the front of this form that sets out the terms upon which this nomination is made, and I understand that these are consistent with
¡¡
Cbus’ Trust Deed and that I may request a copy if required.
Authorised signature
Sign here:
Date
D
Please note, the dates signed by the witnesses must correspond with the date signed by the applicant.
The form is not valid if the dates are not consistent.
Cbus’ Trustee is United Super Pty Ltd. ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262
D / M
M / Y
Y
Y
Y
Page 2 of 2
3183 06/15
Contact us if you are not satisfied
with our service
Cbus strives to provide good service
for every member
If you are dissatisfied with any aspect of the Fund, write to:
Write to the Cbus Complaints Officer,
Locked Bag 14, Carlton South VIC 3053
1300 361 784
8am to 8pm AEST/AEDT (within Australia).
Open Monday to Friday, closed national public holidays
cbusenq@cbusmail.com.au
Your complaint will be genuinely considered and dealt with within
90 days. If you are not satisfied with Cbus’ response, you can
take your complaint to the Federal Government’s independent
Superannuation Complaints Tribunal.
The tribunal will only deal with your complaint if you have already
approached Cbus, and the tribunal will first attempt to resolve the
matter through conciliation.
If conciliation is unsuccessful, the complaint is formally referred to
the tribunal for determination.
You can ring the Superannuation Complaints Tribunal on
1300 884 114 from anywhere in Australia for the cost of a local call.
You should ring before making a complaint to the Tribunal, to check
if it can handle the complaint and what information you need to
provide. The address is:
Superannuation Complaints Tribunal
Locked Bag 3060, Melbourne VIC 3001
www.sct.gov.au
If your complaint relates to advice that you were given by Cbus on
a non-superannuation product, and your complaint is not resolved
through Cbus’ internal complaints process within 45 days, you may
take your complaint to the Financial Ombudsman Service (FOS).
FOS
GPO Box 3, Melbourne VIC 3001
Call: 1300 780 808
Fund information
United Super Pty Ltd is the Trustee licensed by the Australian
Prudential Regulation Authority (APRA) for managing Cbus
which includes the Cbus Super Income Stream. The Australian
Securities and Investments Commission (ASIC) has licensed
United Super to provide general financial advice on Cbus and
other products available to members.
Cbus is governed by a Trustee Board comprising seven
employee and seven employer representatives from the building
and construction industry, as well as one independent director
and the chair.
The Board meets at least six times a year.
The Fund is governed by a Trust Deed. The Trust Deed is a
legal document that determines the way Cbus is managed.
A copy is available at www.cbussuper.com.au
Need extra help?
If you have any questions about the Cbus
Super Income Stream product you can:
Call our Service Centre on 1300 361 784 between
8am - 8pm (AEST/AEDT) Monday to Friday
Visit www.cbussuper.com.au
www.fos.org.au
Super Income Stream PDS | 45
Contact Cbus
1300 361 784
8am to 8pm AEST/AEDT (within Australia).
Open Monday to Friday, closed national public holidays
cbusenq@cbusmail.com.au
www.cbussuper.com.au
bus
C
Locked Bag 200
Carlton South VIC 3053