Focussed on strong returns Page 2 - Could the Age Pension work for you? Important super updates Markets bounce back - For members approaching ...
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September 2021
Could the
Age Pension
work for you?
> Page 4
Important
super updates
> Page 5
Markets
bounce back
> Page 6
rong returns > Page 2
ed on st
Focuss
Focussed on strong
Super
returns for you
A message from
our CEO Justin Arter
Despite the challenging times we’ve all faced, I’m proud that Cbus remains a resilient industry
leader, delivering strong outcomes for you.
Strong performance Through Cbus Property† we invested in major new
projects for our members to work on, even in the middle
What has never changed is our focus on delivering the of the pandemic. And now that the economic recovery
best return to our members. We’re here to maximise your is accelerating, we continue to invest in projects that
super balance to give you the best chance of having the will deliver for Australia and, most importantly, through
retirement you want. employment opportunities for our members.
Supporting our single-minded drive to maximise your
investment returns is the way we support members with Government changes to super
quality service and advice. The government has passed some changes to super –
I’m pleased to report that Cbus has delivered on all these the change we are most concerned about is ‘stapling’
fronts. This year Cbus Super has announced a 19.34% (where a worker is kept in their existing account when they
return for its Growth (Cbus MySuper) option, the largest change jobs), which is due to begin on 1 November 2021.
ever annual return in the fund’s 37-year history.* This Our main concern with this reform is that workers moving
double-digit return means that by sticking with Cbus, your to building and construction from another industry are at
balance will have benefited from investment returns that risk of not being adequately covered with industry-specific
are among the best from super funds in Australia. insurance through their super.
Reflecting our commitment to service and also the strong You are already in Cbus so nothing changes, we’ve got you
interest we get from you, our members, we took over covered. What we will be doing is working hard to let workers
320,000 general calls, had more than 27,000 advice-related new to the industry know about the benefits of Cbus including
discussions and provided 767 statements of advice this year. our tailored insurance so that they can be covered too.
We also delivered 153 online seminars and arranged for
over 2,000 visits on site. This all adds up to a membership
Thanks for putting your trust in Cbus.
that knows we’re always there when they need us. We are so proud to serve you.
Building for growth * The return for the Growth (Cbus MySuper) option is based on the crediting
rate, which is returns minus investment fees, taxes and until 31 January 2020,
I’m also proud to share our contribution to the road to the percentage-based administration fee. Excludes fees and costs that are
deducted directly from members’ accounts.
recovery for our members and the economy generally. † Cbus Property Pty Ltd is a wholly owned subsidiary of United Super Pty Ltd
and has responsibility for the development and management of Cbus’ direct
property investments.
Your coordinators
Local Cbus Coordinators are here to give face-to-face
support when you and your worksite need it. Get in contact
today if you need help, or to organise a workplace information
session. Go to cbussuper.com.au/coordinators to find
your local Cbus Coordinator.
2 | Cbus News | September 2021
Big goals in sight
Lifestyle
Working in high-risk environments has given
Darryl Rohl a knack for keeping his eye on the big picture.
After many years as a steel fixer, Darryl knew his back would
thank him if he pursued other work. While on a mine site job
involving crane driving, he secured his dogman ticket and
“I’m giving my
hasn’t looked back. super a good
A Brisbane native who now calls Townsville home, Darryl boost so I reach
typically works 10-hour days but enjoys the variety of being my retirement
a dogman labourer.
“I’m driving a hoist, working towards extra tickets and doing
goal.”
a bit of everything”, he says.
Support on the job
Having insurance cover through Cbus has been vitally
important to Darryl. A comfortable retirement ahead
“Working at heights, you want to be covered! I don’t have to At 58, Darryl has become more focused on growing his
worry about taking out another policy because I have the super in recent years. He shares, “my goal is in striking
right insurance through my super.” distance, especially with the extra money I’m putting into
He also values regular contact with his local Cbus super each fortnight”.
Coordinator – support that he missed from his previous For Darryl, knowing he’s on track to retire by his mid-60s,
super fund once he moved to regional Queensland. as planned, is a very rewarding feeling.
Don’t lose your super to scammers
Australians lost $851 million* to scams in 2020. Scams aren’t
always easy to spot, but there are things you can do to guard
against fraudsters stealing your super.
1. Beware of bogus callers – Some members have fallen victim to
criminals pretending to be from a super fund or other financial
service. Hang up and always call the organisation directly.
2. Only use trusted advisers – Some criminals pose as financial
advisers offering help. Always check Moneysmart’s financial
adviser register before getting advice.
3. Keep your identity safe – Don’t give copies of your ID for an
unknown purpose, and check your contact details for your
super account are correct.
Visit
moneysmart.gov.au for more tips on how to
protect yourself against financial scammers.
* Targeting Scams: Report of the ACCC on scams activity 2020.
Cbus News | September 2021 | 3
Investments
Could the Age Pension
Super
work for you? Add in SIS type photo here
Top tips for making the most of a Cbus Super
Income Stream and the Age Pension.
Thinking about retirement? A Cbus Super Income Stream gives you a regular income once you stop working. It’s designed to
work with the Age Pension, and your money stays invested so it can keep growing.
You might be surprised to know that with as little as $80,000* in super, you could receive a regular income of $28,000+ a year
(when combined with the Age Pension).
What can help people qualify for the Age Pension?
1 Make improvements to your home – Your assets need to be under a certain level to qualify
for the Age Pension. Thankfully, your home (usually your biggest asset) is generally exempt.
That means any money you spend on your home may not affect your eligibility.
Your savings are counted as an asset, so you might also like to think about bringing forward spending
that you had already planned on (like that holiday you’ve been dreaming about).
2 Gift assets to family members – Gifting to family is another way to reduce assets. There are
limits to the amounts you can gift within each annual and five-year period. If you go over these
limits, it can impact your Centrelink entitlements.
For example, if you’re thinking about gifting a considerable amount to your children to help with a
home purchase, consider doing this more than 5 years before your Age Pension starts.
3 Pre-pay your funeral expenses – Pre-paying your funeral expenses or purchasing a burial plot,
regardless of value, are both exempt from the Age Pension assessment. Funeral bonds are exempt
up to $13,500 per person.
4 Make super contributions to your spouse – When you reach Age Pension age (or set up
an income stream account) your super counts as an asset. For couples, if one partner has reached
this age, they can reduce their super by moving it into their younger partner’s super account
(contribution cap limits apply).
This can immediately increase the pension income for the older partner.
For help on your Age Pension options, call Cbus Advice Services on 1300 361 784 (and press 4).
* Estimated total retirement income in year one of $28,530 ($3,978 from the Cbus Super Income Stream account and $24,552 from the Age Pension). ASFA retirement
standard: superannuation.asn.au/retirement-standard. Both incomes are projected to increase by 3.5% p.a., to cater for inflation and increase in living standards. The
income from the Cbus Super Income Stream is projected to last until age 90. The Government Age Pension entitlement is based on current Centrelink income rates
using the following assumptions: Single person, homeowner, $25,000 in personal assets. Account-Based Pension investment return of 5.25% p.a. after fees and taxes.
Administration fee of $104, with 0.19% asset-based administration fee.
4 | Cbus News | September 2021
Super snapshot
Super
Some important changes took effect from 1 July 2021.
Here’s what you need to know.
Increase to super contribution caps
There are caps on how much you can contribute to super each
year at lower tax rates. These caps have increased for the first
time in four years. Good news if you want to boost your super!
■ Before-tax contributions – $27,500 a year.
■ After-tax contributions – $110,000 a year. And if you’re under
age 67, you may now be able to contribute $330,000 in any
three-year period.*
If you contribute more than these limits you may pay extra tax.
Visit ato.gov.au/super for more information.
* Limits apply: If you made more than $100,000 in after-tax contributions during
2019/20 or 2020/21, you can only contribute $300,000 in any a three-year period.
Your minimum employer contributions have
risen to 10%
If you’re working, you might have noticed a recent boost in super
from your employer. The minimum percentage employers are
required to pay has increased from 9.5% to 10%.
It’s a good idea to check your super contributions to make sure
you’re getting the right amount. Just log into your account at
cbussuper.com.au/login or call us on 1300 361 784. Or reach
out to your Union Delegate or Cbus Coordinator and they can
check for you.
The transfer balance cap is rising
Your transfer balance cap is a lifetime limit on the total amount
of super you can transfer from your super account into tax-free
retirement phase accounts (like our Fully Retired income stream).
If you started a retirement phase account for the first time on
or after 1 July 2021, your personal transfer balance cap will be
$1.7 million. If you started one before then, your transfer balance
cap was $1.6 million. It can be complex to calculate whether you’ll
benefit from this increase to $1.7 million. Cbus Advice Services
can help work it out for you. Visit ato.gov.au/transferbalancecap
for more information.
Need help calculating your transfer balance cap?
Access to Cbus Advice Services is included as part of your
membership – just call 1300 361 784 and press 4.
Cbus News | September 2021 | 5
Investments
Investing for
sustained growth
This year we’ve seen our strongest ever
returns as the market bounced back.
The first half of 2021 marked the 12-month anniversary Supporting our members
of the COVID-19 pandemic and during this time, markets
We’re proud to have supported more than 279,000
returned to their pre-COVID levels; in part thanks to the
members to access $2.3 billion in early super access
world’s largest vaccination campaign which recorded more
payments due to financial hardships as a result of the
than 3.35 billion* doses administered.
pandemic.
Our Growth (Cbus MySuper) option In addition, we continue to look at new and different ways
to reduce fees for our members. We’re continuing to move
has delivered a 19.34%† return for our much of our investments function internally, which means
members – the largest ever annual hiring directly through Cbus and creating important jobs for
return in our 37-year history. our community. This has enabled us to lower investment
costs for members by roughly 8% for each dollar invested
This record result builds on a strong relative result in the over the 2020–21 financial year. Currently in its fourth
previous financial year, where Cbus was one of a small year, this program has saved members over $400 million in
group of funds to record a positive return of 0.75%‡. investment fees to date – that’s around a 40% saving.
Cbus’ significant investments in asset classes such as We’re also proud to have supported the building and
Australian and global shares, infrastructure and property construction industry throughout the pandemic, along
have helped deliver a fantastic result over the 12 months with contributing to economic recovery. Through Cbus
to 30 June 2021. The investment team’s active Property§ we invested in major new projects and, at the
management allowed real-time changes to take advantage height of the pandemic as banks tightened their lending,
of market opportunities as soon as they happened. Cbus stepped up and lent to successful residential
One example is the $4 million gain through investing in development projects that were struggling to get financing.
GameStop (NYSE: GME), a stock that skyrocketed earlier This kept projects going, supported jobs in construction
in the year. and added to our investment bottom line.
We’ve also been able to capitalise on some of the Through a combination of capital raisings, debt finance
fundamental market conditions like low interest rates and and project finance Cbus has committed and invested over
emerging market trends such as the global shift to clean $1.5 billion through the COVID-19 crisis and into the
energy. The team has used this knowledge to maximise recovery. We currently have over $1 billion in funding
returns for members while investing in opportunities approved to deploy into further opportunities in this space.
arising from the transition to a more sustainable global
economy. This is also something we’ve embedded in our
fund strategy so that this remains an important focus
in the years to come.
* Source: Bloomberg. As at 9 July 2021.
† For the year to 30 June 2021.
‡ For the year to 30 June 2020.
The return for the Growth (Cbus MySuper) option is based on the crediting rate, which is returns minus investment fees, taxes and until 31 January 2020, the
percentage-based administration fee. Excludes fees and costs that are deducted directly from members’ accounts.
§ Cbus Property Pty Ltd is a wholly owned subsidiary of United Super Pty Ltd and has responsibility for the development and management of Cbus’ direct property investments.
6 | Cbus News | September 2021
Investments
Lifestyle
Performance (%) to 30 June 2021
Growth (Cbus MySuper) option* SuperRatings fund median†
19.34
17.85
9.81 9.21 9.55
8.72 8.00 8.28
1 year (%) 5 years (% per year) 7 years (% per year) 10 years (% per year)
* The return for the Growth (Cbus MySuper) option is based on the crediting rate, which is returns minus investment fees, taxes and until 31 January 2020, the
percentage-based administration fee. Excludes fees and costs that are deducted directly from members’ accounts.
† The average median return is taken from the SuperRatings SR50 Balanced (60-76) survey (June 2021). SuperRatings is a ratings agency that collects information from
super funds to enable performance comparisons – visit superratings.com.au.
To learn more about our investment options visit cbussuper.com.au/investment-holdings or call Cbus Advice
Services on 1300 361 784 (press 4) – this service is included in your membership.
It pays to have your super
in the one place
Combining your super into your Cbus account could mean more in your pocket when you retire.
If you’ve had more than one job, you could have more than one super account. And this means you’re probably paying
more fees than you need to. By combining your super into Cbus, you can save on fees and benefit from our history of strong
long-term returns.
Here’s how:
Know the details of your other funds? It’s easy to combine your super online. Simply log into your account
at cbussuper.com.au/login and go to Consolidate my super.
Want us to search for other super you might have? Just call us on 1300 361 784 to do a search on your
behalf. You’ll need your tax file number handy, and we’ll need to run an ID check with you (to make sure the
super belongs to you).
Cbus News | September 2021 | 7
Strength in numbers
Two of Australia’s leading super funds – Cbus and Media Super – are progressing well
on our proposed merger.
Cbus and Media Super
– stronger together
Cbus and Media Super are working hard to merge the two funds over the next year. Stronger together, our plan
is to increase our collective scale and make two great funds even better for our members. Launching more options
for you to invest your account in is just one boost that’s in the works.
It’s exciting times, so keep an eye on cbussuper.com.au/news for all the latest updates.
Contact us Find us on
1300 361 784 8am to 8pm (AEST/AEDT) Cbus, Locked Bag 5056
Monday to Friday, closed on national public holidays PARRAMATTA NSW 2124
cbusenq@cbussuper.com.au Visit Cbus in person in Adelaide, Brisbane, Melbourne,
cbussuper.com.au Perth and Sydney. Details: cbussuper.com.au/contact
1213.1 09-21 ISS11
Stories and images have been reproduced with the individuals’ consent which has not been withdrawn at the publication date. All care has been taken to ensure that the information
contained herein is correct, but neither the Trustee nor its advisers accept responsibility for the content, any error or misprint, or for any person who acts on this information. Cbus
News is issued by United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 as Trustee for Cbus ABN 75 493 363 262. This information is about Cbus and doesn’t take into account
your specific needs. You should look at your own financial position, objectives and requirements before making any financial decisions. Read the relevant Cbus Product Disclosure
Statement to decide if Cbus is right for you. Call 1300 361 784 or visit cbussuper.com.au for a copy. Also read the relevant Target Market Determination at cbussuper.com.au/tmd
(available from 5 October 2021). Past performance isn’t a reliable indicator of future performance.
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