HOW SUPER WORKS VICSUPER FUTURESAVER MEMBER GUIDE
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How super works
VicSuper FutureSaver Member Guide
Date prepared 1 July 2019VicSuper FutureSaver Member Guide
The information in this document forms part of the VicSuper FutureSaver Product Disclosure Statement (PDS)
dated 1 July 2019.
Note: The information in this PDS may be impacted by the proposed changes announced in the April 2019 Federal
Budget, which are not yet law. Visit our website or contact our Member Centre for more information.
A brief overview of how superannuation (or super) works is broken up into three sections below. More information about
how super works is available at vicsuper.com.au/super
Contributions Important contribution rules Access to your super benefits
Super is a tax effective way to build There are important contribution rules It is important to understand that
your wealth for later life and there’s a and caps for super. It is important to super is a preserved benefit. Generally,
number of ways you can contribute to understand these, as in some cases, you cannot access your super until
your account including rollovers, you may have to pay additional tax at you reach your preservation age and
salary sacrifice and personal after-tax a higher rate if you breach rules or permanently retire.
contributions. exceed caps.
1. Contributions
The table below provides a summary of some of the many ways to add to your super account.
Before-tax/concessional contributions 2019/20
Contribution type Description Notes
Employer Your employer is generally required to contribute Contribution caps and tax:
superannuation 9.5% of your Ordinary Time Earnings (OTE) For the 2019/20 financial year
guarantee (SG) (generally your gross salary) on your behalf to the concessional (before-tax)
contributions your super. This contribution is compulsory.1 contributions cap is $25,000 pa,
Additional employer These are additional contributions your employer regardless of your age.
contributions can make in excess of the minimum 9.5% SG to This is an annual cap per person across
your super. These contributions may arise from all super funds.
industrial awards, agreements or other terms of
employment. You are taxed on the contributions above
this cap at your marginal tax rate plus an
Salary sacrifice These are contributions you can make out of your interest charge. You receive a tax offset
contributions regular pay, before income tax has been deducted. equal to 15% of the excess for the
These contributions may be tax effective for your contributions tax already paid by the
situation. Fund. The excess contributions will be
SG contributions paid This is money held by the ATO for you if your counted towards your non-concessional
by your employer to employer did not make sufficient SG contributions cap, but will generally be
the Australian Taxation contributions to your super fund. Contact ATO reduced by any amount of the excess
Office (ATO) on 13 10 20 as you may be able to nominate you choose to release from a super fund.
VicSuper to receive these contributions back Before-tax contributions are taxed at a
from ATO. rate of 15%. However, if your annual
Personal deductible These are contributions you make into your own adjusted income exceeds $250,000 pa,
contributions super, for which you can claim a tax deduction in these contributions are generally taxed
your tax return. at an effective rate of 30%.
These contributions are subject to age eligibility You are able to carry forward your
and work tests.1 unused concessional contribution cap
amounts from 1 July 2018 for up to five
Note: To claim a tax deduction you must give years with 2019/20 being the first year
VicSuper a ‘Notice of intent to claim or vary a you can use any amounts from the
deduction for personal super contributions’ form previous year, provided your total super
before the earlier of when you submit your tax balance is less than $500,000 at the end
return and the end of the next financial year. of 30 June 2019.
1. Refer to ‘Superannuation Guarantee (SG)’ on page 4 for proposed exemptions to these rules.
2VicSuper FutureSaver Member Guide
After-tax/non-concessional (member) contributions 2019/20
Contribution Description Notes
type
Personal after-tax These are contributions you Contribution caps and tax:
contributions can make out of your regular Non-concessional (after-tax) contributions are tax-free up to a
pay, after income tax has been cap of $100,000 pa.
deducted – or as a one-off
lump sum. These contributions You will have a non-concessional contributions cap of $0 if your
are subject to age eligibility total super balance at 30 June of the previous financial year is
and work tests. equal to or greater than the general transfer balance cap. A
transfer balance cap applies to the amount of super you can
Spouse Contributions that you can transfer into your retirement income account/s without incurring
contributions make into your spouse’s super additional tax. For the 2019/20 financial year, the general transfer
account, or that your spouse balance cap is $1.6 million.
can make into your super
account. This may be an Generally, if you are under age 65 you can bring forward two
effective strategy to reduce the years of future entitlements, equalling a cap of $300,000 over
tax you pay as a couple. These three years (if your total super balance is equal to or greater than
contributions are subject to $1.4 million, your eligibility to bring forward is reduced).
age eligibility and work tests. Exceeding the caps:
These caps are per person across all super funds that
you may have.
If you exceed the cap and you do not elect for the excess and the
related earnings to be refunded, additional tax will be applied.
Excess contributions are taxed at the top marginal tax rate plus
Medicare levy.
If you elect to refund the excess and the related earnings,
you will be taxed on the earnings at your marginal tax rate.
You will be entitled to a non-refundable tax offset equal
to 15% of the earnings.
Additional tax may apply.
Rollovers To roll over means moving money from one super fund to another.
Government If you’re eligible, the government will match your personal contributions with $0.50 for every $1
co-contribution you contribute up to $500. This is available if you have an assessable income below $38,564 pa
and reduces on a sliding scale up to $ 53,564 pa. Eligibility conditions include any after-tax
contributions you make not exceeding your cap and, as at 30 June of the previous financial year,
your total super balance is less than the transfer balance cap ($1.6 million for 2019/20).
Super You may be able to transfer some of your before-tax contributions into your spouse’s super
contributions account after the end of the financial year.
splitting
CGT exempt Contributions to super, which come from the sale of a small business, subject to limits.
contributions Contact your tax accountant for more information.
Low income The Low Income Super Tax Offset (LISTO) can help eligible low-income earners save for their
super tax offset retirement. A LISTO is for members who earn $37,000 or less per year (adjusted taxable income).
Eligible members who have provided their TFN number will automatically receive a government
super payment that is 15% of their before-tax super contributions – up to a maximum of $500.
Downsizer If you are aged 65 or over, you can contribute into your super up to $300,000 ($600,000 for
contribution couples) from the proceeds of selling your home, which you have owned for 10 years or more. Your
downsizer contribution will not count towards your contribution caps. Conditions apply.
3VicSuper FutureSaver Member Guide
Rollovers Superannuation guarantee (SG) Salary sacrifice
To roll over means transferring funds Australian employers are currently Salary sacrificing your super
you have in one complying super required to pay 9.5% of your Ordinary contributions involves paying some of
fund into another. Times Earnings or OTE (generally your before-tax salary into your super
Changing jobs can leave you with your gross salary) as SG account.
several accounts in different super contributions. Your employer is not When you and your employer enter
funds. Having multiple accounts may obliged to pay SG contributions until into a salary sacrifice arrangement,
mean you are paying unnecessary your salary exceeds $450 gross per your employer pays contributions
fees that are eating into your calendar month. directly from your gross salary into
retirement savings. If your employer is required to make your super account before you pay
Consolidating your funds into one contributions under an award or personal income tax. Salary sacrificing
account may have several benefits, agreement, these contributions can may lower your taxable income and
such as: be made regardless of your age. marginal tax rate as more of your
• reducing the fees and costs of If your employer chooses to make salary is being paid into your super
investing your super additional contributions which are fund instead of being taxed as income.
• cutting down paperwork not for the purpose of satisfying the You are eligible to make salary
• reducing the likelihood that you’ll employer’s SG, award or agreement sacrifice contributions if you are
lose track of where your super is obligations, then these contributions under age 65. Additional eligibility
invested. can be made up until age 75 criteria outlined in the ‘The Work test’
You can roll over your super from subject to you meeting work test section applies if you are between
other complying super funds at any requirements. Final applicable age 65 and 74 (inclusive).
time, although some super funds may contributions must be received by You cannot make salary sacrifice
limit the number of times you can roll VicSuper within 28 days from the end contributions after you turn age 75.
out of their fund in a year. of the month in which you turn 75.
Once you turn age 75, the final salary
It is also important to note that it is Changing jobs? sacrifice contribution must be
not possible to roll over an Take VicSuper with you! received by VicSuper within 28 days
Employment Termination Payment Thanks to choice of fund legislation, from the end of the month in which
(ETP) into super. it’s likely that you can choose to have you turn 75.
VicSuper does not charge you a fee SG paid by your new employer into
your VicSuper FutureSaver account. How do you start salary sacrificing?
to roll money in or out of your
You’ll need to check with your
VicSuper account. This way, you can keep your super in employer first to ensure they can
Before you roll money over from one place, even if you change jobs. accommodate salary sacrifice
another fund, you should check for To stay with VicSuper, complete a contributions because contributions
any tax implications and how any Choice of superannuation fund Choice are arranged through your employer’s
insurance cover or other benefits you nomination form (V1005) and give it payroll team. If they can, you can
may have with your other fund will be to your employer, available at salary sacrifice from your future
affected. vicsuper.com.au/forms regular salary, bonuses and/or
allowances.
How do you roll over to VicSuper?
Head to our website at
vicsuper.com.au/forms and
download the Roll over your super to
VicSuper form (V303).
The fund you are rolling out of may
ask for your Unique Superannuation
Identifier (USI), which is
85977964496001.
You may also need to quote
VicSuper Fund’s ABN which is
85 977 964 496. We will arrange your
rollover on your behalf, at no charge.
How to set up salary sacrificing
1. Head to our website at
vicsuper.com.au/forms and download the Make a personal and/or salary
sacrifice contributions through your employer form (V302).
2. Complete the form and then give it to your HR or payroll manager.
3. They will start making payments into your VicSuper account.
4VicSuper FutureSaver Member Guide
Personal deductible contributions You’ll then get a letter back from us, super are taxed up to a maximum of
These are contributions you make which you’ll need to use to claim your 15%, compared with up to the top
into your own super, for which you deduction in your tax return. marginal tax rate (plus the Medicare
can claim a tax deduction in your If you leave VicSuper, roll over to a levy) that may be applied on earnings
tax return. VicSuper Flexible Income account or from other types of investments.
Most members under the age of 75 make a partial withdrawal from your You are eligible to make personal
are able to claim tax deductions for account, you must provide this form contributions if you are under age 65.
personal super contributions. to VicSuper prior to the withdrawal to Additional eligibility criteria outlined
Eligibility to make these contributions ensure you are still able to claim a tax in the ‘The Work test’ section applies
is subject to the same age and work deduction. if you are between age 65 and 74
test as outlined in the ‘Personal For a copy of the form, download (inclusive).
after-tax contributions’ section that the form from the ATO website You are not eligible to make personal
follows. ato.gov.au or vicsuper.com.au/forms contributions after you turn age 75.
Personal deductible contributions will Contact our Member Centre on The final contribution must be
count towards your concessional 1300 366 216 to discuss your received by VicSuper within 28 days
(before-tax) contributions cap of eligibility to claim deductions. from the end of the month in which
$25,000. The amount counted is you turn age 75.
based on the deduction claimed in Personal after-tax contributions If your after-tax contributions are
your tax return. Personal after-tax contributions are in excess of the non-concessional
After you’ve made an after-tax contributions you make using after- contributions cap, additional tax
contribution into your VicSuper tax money. These are also known as may apply.
account, you have until the earlier of, non-concessional contributions.
before you lodge your tax return and The advantages of making a personal
the end of the following financial year, contribution, within the non-
to claim your tax deduction. You have concessional (ie after-tax) cap are
to let us know you intend to claim a that they are not subject to tax when
deduction in your tax return by you contribute the money to super, or
completing the Notice of intent to when you withdraw it, and you may
claim or vary a deduction for personal also be eligible to receive a
super contributions form before government co-contribution.
lodging your tax return. Additionally, investment returns in
Make personal deductible and personal after-tax contributions
There are lots of ways to make Cheque or money order 3. Complete the form and give it to
contributions to your VicSuper 1. Head to our website and your HR or payroll officer (do not
account. Select from these options download the Make a personal give it to VicSuper). They’ll
to find the one that suits you best. contribution directly to VicSuper arrange the rest with us directly.
Any of the forms you’ll need can be (V301) or Make a personal Your employer must send
downloaded from our website at deductible contribution to deductions from your pay to
vicsuper.com.au/forms VicSuper form (V311). VicSuper by the 28th day of the
Or you can call us on 1300 366 216 2. Complete the form, and post it month after the month of
for a copy. along with your cheque or money deduction.
order for your contribution Direct Debit
Online via BPAY amount to: VicSuper, GPO Box 89,
1. Log in to MembersOnline. 1. Head to our website and
MELBOURNE VIC 3001
download the Personal
2. Select ‘Build my Super’, and
Regular deductions from your contributions via direct debit
then select ‘Add to my Super’. salary (V307) or Personal deductible
3. Read and follow the prompts 1. Check with your HR or payroll contributions via direct debit form
on screen. department if you can make (V312).
4. You’ll also be provided with personal contributions into your 2. Complete the form – be sure to
a biller code and a reference super directly from your salary. include the monthly amount you’d
number, so make a note of these. 2. Head to our website and like us to direct debit from your
5. Then, head to your financial download the Make a personal nominated bank account – and
institution’s website (or use their and/or salary sacrifice post it to us: VicSuper, GPO Box
phone banking services) to contributions through your 89, MELBOURNE VIC 3001
transfer your contribution, using employer form (V302).
your biller code and reference
number as provided.
5VicSuper FutureSaver Member Guide
First Home Super Saver Scheme Government co-contribution Government co-contributions do not
(FHSSS) To encourage Australians to build count towards either your
The FHSSS is aimed at helping their super, the government has a concessional or non-concessional
Australians boost their savings for co-contribution initiative. If you’re contribution caps.
their first home by allowing them to eligible, the government will If you claim a tax deduction for
build a deposit inside super. contribute $0.50 for every $1 of your personal contribution, this
The FHSSS applies to voluntary super personal (after-tax) contributions you amount won’t be eligible for a
contributions of up to $15,000 per make into super in a financial year, up co-contribution.
year and $30,000 in total across all to a maximum of $500.
The ATO will automatically match
years. These contributions, along with To receive the maximum information from your tax return with
deemed earnings (at the rate of the co-contribution of $500, you have to information provided by VicSuper. If
Shortfall Interest Charge), can be earn less than $38,564 in a financial you’re eligible, the co-contribution will
withdrawn for a home deposit on year and you need to make a personal be paid into your super account
your first home. contribution of $1,000. The maximum during the following financial year
These contributions will be subject to co-contribution reduces for every and will be preserved until you meet a
existing caps. dollar of income you earn over condition of release.
$38,564 per annum, phasing out
This process will be administered by The co-contribution will generally be
completely if your total income is
the ATO. Visit ato.gov.au for more deposited into the super account with
$53,564 per annum or greater.
information or speak to a VicSuper the most personal contributions this
financial planner. To qualify for the co-contribution, you financial year, or which received a
need to: co-contribution previously (if
For tax implications, refer to applicable). To specify the super
vicsuper.com.au/memberguide • make a personal (after-tax)
contribution into your super fund account your co-contribution should
‘How super is taxed’. be paid to, download a
by 30 June
Superannuation Fund Nomination
• have a total income below $53,564
form from vicsuper.com.au/forms
per annum (total income is defined
below) To find out more about the
• earn at least 10% of your gross government co-contribution initiative,
total income as an employee, from contact the ATO Superannuation
operating a business, or both Infoline on 13 10 20.
• not be a temporary resident of
Low income super tax offset
Australia at any time during the
year The Low Income Super Tax Offset
(LISTO) can help eligible low income
• be under age 71 at the end of the
earners save for their retirement.
financial year
• not exceed your non-concessional A LISTO is for members who earn an
contribution cap for the year adjusted taxable income of $37,000
• have a total super balance as at or less per year. Eligible members
30 June of the previous financial will receive a government super
year less than the general transfer payment that is 15% of their before-
balance cap (2019/20 $1.6 million) tax super contributions – up to a
maximum of $500.
• lodge a tax return for the same
financial year in which you made Members do not need to apply for a
the contribution. LISTO. The ATO will determine a
member’s eligibility using information
Your total income includes:
on their income tax return and/or
• your assessable income for the other available information. LISTO
financial year payments will be made within
• your reportable fringe benefits 14 months from the end of the
for the fringe benefits tax year financial year in which the before-tax
(1 April to 31 March) contributions were made.
• your reportable super contributions Members must provide their TFN
for the financial year (eg generally to VicSuper to receive their LISTO
any salary sacrifice and personal payment.
deductible contributions).
These criteria apply to both
employees and self-employed people.
6VicSuper FutureSaver Member Guide
Eligible spouse contributions The spouse making the contribution Downsizing contributions
These are contributions paid by your will not be eligible for the tax offset if: If you are aged 65 or older and meet
spouse into your VicSuper account on • the after-tax contributions of the the eligibility requirements, you may
your behalf. These contributions may spouse receiving the contribution be able to choose to make a
reduce the tax your spouse pays. are in excess of that spouse’s non- downsizer contribution into your
Your spouse does not need to be concessional contributions cap, or super of up to $300,000 from the
a VicSuper Fund member to make • the total super balance of the proceeds of selling your home.
eligible spouse contributions on spouse receiving the contribution This applies to the sale of your home,
your behalf. If your spouse has made on 30 June of the previous financial which you or your spouse have
eligible spouse contributions into year equals or exceeds the general owned for at least 10 years and which
your VicSuper account, they may be transfer balance cap. For the was your main residence, where the
eligible for a tax offset of up to $540 2019/20 financial year this cap is exchange of contracts for the sale
each financial year. The tax offset $1.6 million. occurred on or after 1 July 2018.
reduces when your adjusted income It is not a non-concessional
is greater than $37,000 and phases
The Work test
contribution and will not count
out completely when your adjusted If you are between age 65 and 74
towards your contributions caps.
income exceeds $40,000. (inclusive), voluntary contributions
such as salary sacrifice, personal and It will count towards your transfer
Your spouse can make eligible spouse balance cap, currently set at
spouse contributions can only be
contributions on your behalf at any $1.6 million as well as the Age Pension
made if you have been gainfully
time if: means test. This cap applies when
employed for a minimum of 40 hours
• they are your legal spouse, or in a period of not more than 30 you move your super savings into
• they are a person living with you consecutive days in the financial year retirement phase, eg if you move your
on a bona fide domestic basis as in which the contributions are made. super balance, including your
your partner (this includes same sex downsizer contribution, to a VicSuper
However, if your total super balance is
couples), and Flexible Income account. It also
less than $300,000 at the end of the
• you are under age 65. Additional contributes to your overall total super
previous financial year, you can make
eligibility criteria outlined in the ‘The balance on 30 June after you make
voluntary contributions for an
Work test’ section applies if you are the contribution.
additional 12-month period from
between age 65 and 69 (inclusive). the end of the financial year in which Visit ato.gov.au for more information
Eligible spouse contributions cannot you last met the work test. This work or speak to a VicSuper financial
be accepted after you, the member, test exemption can only be used planner.
reach age 70 nor can they be made once and you will not be able to
through salary sacrifice arrangements. make contributions in subsequent
The spouse receiving the contribution financial years.
will need to provide their TFN to The 2019 Federal budget included
VicSuper on the contribution form. measures which if implemented
Eligible spouse contributions are would increase the minimum age
after-tax contributions and count limit at which the ‘work test’ applies
towards the cap of the spouse from 65 to 67 from 1 July 2020.
receiving the contribution.
How to make spouse Online via BPAY Direct Debit
contributions 1. Head to our website and 1. Head to our website and
download our Eligible spouse download an Eligible spouse
You or your spouse can make
contributions form (V306). contributions via direct debit form
eligible spouse contributions. Any
2. Send your completed form to us: (V308).
of the forms you’ll need can be
downloaded from our website at VicSuper, GPO Box 89, 2. Send your completed form to us:
vicsuper.com.au/forms MELBOURNE VIC 3001 VicSuper, GPO Box 89,
3. Once we receive your form, we’ll MELBOURNE VIC 3001
Or you can call us on
mail you the biller code and Cheque or money order
1300 366 216 for a copy.
reference number – make a note
1. Head to our website and
of these as you’ll need them to
download an Eligible spouse
make your contribution.
contributions form (V306).
4. Head to your financial institution’s
website (or use their phone 2. Complete the form, and post it
banking services) to transfer along with your cheque or money
your contribution, using the biller order for your contribution
code and reference number we amount to: VicSuper, GPO Box 89,
gave you. MELBOURNE VIC 3001
7VicSuper FutureSaver Member Guide
Super contributions splitting Split contributions are preserved until What is an ‘inactive low-balance’
You can transfer certain types of the receiving spouse reaches their account?
super contributions to the super preservation age and permanently Your VicSuper account will be
account of your spouse. retires, or turns age 65. Remember, deemed to be inactive if:
the original amount before being split
You can split up to 85% of before-tax • Your account has not received a
is counted towards the concessional
contributions (which includes SG, contribution or any other amount
contributions cap of the person
salary sacrifice, additional employer for the last 16 months; and
making the split.
contributions and personal • you have less than $6,000 in the
deductible contributions) and, in any Split contributions are considered as account; and
event, not more than the rollovers and do not count towards • there are no outstanding
concessional contributions cap. the non-concessional contributions contributions or any other amounts
You cannot split non-concessional cap of the person receiving the split. owed to your account; and
contributions (eg after-tax personal If a contributions split is made from a • you have no insurance cover with
and eligible spouse contributions). VicSuper Fund account to another VicSuper and
Contributions can be split provided: fund, there must be a minimum • you have not met a relevant
balance of $6,000 remaining in the condition of release allowing you to
• each partner agrees to the split
VicSuper Fund account after the split. access your super.
• the eligible contributions were If your spouse is a member of
made during the previous financial VicSuper Fund, you must leave a How can you stop this from
year and/or the current financial minimum balance of $7,000 in your happening?
year provided you are exiting your account after the split has occurred. If you want to stop your account
VicSuper account to roll into
from being transferred to the ATO,
another VicSuper product What’s the difference between you can take one of these actions to
• the couple is married or in a eligible spouse contributions and make your account ‘active’:
de facto relationship (includes contributions splitting?
same sex couples) Contributions splitting is used by • change or update your investment
people to transfer contributions such options
• the ‘receiving’ spouse has not
reached preservation age, or is as SG contributions or salary sacrifice • make a contribution or roll-in to
between preservation age and age to their spouse. This may be the account
65 and not yet permanently retired beneficial if their spouse is • make changes in relation to your
• you, the member, have not already approaching preservation age. It can insurance
made an application in respect of also be tax-effective if both you and • make or amend a binding death
the same financial year. your partner are planning to receive a benefit nomination, or
pension between preservation age • provide written notice to the ATO,
Please refer to the tables on page 2 and age 59 inclusive. declaring you are not a member of
and 3 for the applicable contribution
Eligible spouse contributions are an inactive low balance account.
caps and tax details.
made using after-tax savings. People
use these to contribute to their
Unclaimed Super
How do you apply to split your spouse’s super. A tax offset of up to Your account may also be paid to the
eligible contributions? $540 per annum may be available on ATO in specified circumstances
1. Head to our website and the contributions. where we have attempted to contact
download a Contributions you, but have been unsuccessful.
splitting form (V310). Inactive accounts will be Further details on unclaimed super
transferred to ATO are available at ato.gov.au
2. Send your completed form
along with certified proof of From 1 July 2019, Protecting Your
Super law comes into effect, which
Accounts that will have their
identity for both you and your insurance cover cancelled
spouse to us: aims to protect members’ super
balances from being eroded by fees. Under the new Protecting Your Super
VicSuper, GPO Box 89,
To try to help Australians consolidate laws, from 1 July 2019, if you do not
MELBOURNE VIC 3001
multiple super accounts, VicSuper is receive any contribution into your
3. VicSuper will notify you in required to transfer any inactive account for a continuous period of 16
writing when the accounts with less than $6,000 to months, the insurance cover you hold
contributions split amount the ATO. The ATO will then try to with VicSuper will be automatically
has been debited from your combine that account with an active cancelled.
VicSuper Fund account. super account you may have If you want to keep your insurance
elsewhere. active, you must:
Accounts transferred to the ATO may • make a contribution to your
be rolled into another super account account, or
with a different super fund. Therefore, • provide written instruction to
you may no longer enjoy the benefits VicSuper to maintain your cover.
of being in a profit-to-member super
fund – like VicSuper.
8VicSuper FutureSaver Member Guide
2. Important contribution 3. A
ccess to your super Claiming a benefit
rules benefits To claim a benefit, contact VicSuper
Before-tax contributions (eg SG, Your super benefits are generally or log into MembersOnline to
salary sacrifice and personal preserved until you reach your download a copy of the appropriate
deductible contributions) and preservation age and permanently form. You can access your super by
after-tax contributions (eg personal retire. Your preservation age depends taking a lump sum or by
after-tax contributions) are subject on when you were born and is shown commencing an income stream.
to caps. in the table below. You may want to get advice from a
VicSuper financial planner
For more on caps, refer to ‘Tax –
Date of birth Preservation age particularly if you are under age 60
Contributions’ in the Member Guide
Before 1 July 1960 55 years and are making a withdrawal as
‘How super is taxed’ available at
there could be tax implications.
vicsuper.com.au/memberguide 1 July 1960 to 56 years
What happens if I exceed my 30 June 1961
Conditions of release
contribution caps? 1 July 1961 to 57 years Your super can be accessed in certain
You are taxed on the before-tax 30 June 1962 circumstances where a ‘condition of
contributions above the cap at your release’ has been met.
1 July 1962 to 58 years
marginal tax rate plus an interest
30 June 1963 You can access the preserved money
charge. You receive a tax offset equal
in your VicSuper account if you:
to 15% of the excess for the 1 July 1963 to 59 years
contributions tax already paid by the 30 June 1964 • reach your preservation age (at
fund. If you exceed the concessional least 55, depending on your date of
After 30 June 60 years
contributions cap, the excess will be birth) and permanently retire from
1964
counted towards your non- the workforce. You are considered
concessional contribution cap, but will You are considered permanently permanently retired if you have a
generally be reduced by any amount retired if your present intention is to present intention to never again
of the excess you choose to release never again become gainfully become gainfully employed for
from the super fund. employed for 10 hours or more 10 hours or more each week
per week. • reach your preservation age and
You have the option of withdrawing
Super amounts are divided into three access your super in the form
excess before-tax contributions from
categories: of a transition to retirement
super funds. However, this does not
1. preserved income stream
alter the tax treatment outlined
above. 2. restricted non-preserved • reach age 60 and you cease an
employment arrangement with an
If you exceed the non-concessional 3. unrestricted non-preserved.
employer
(after-tax) contributions cap and you Preserved amounts must remain in • cease employment with a VicSuper
do not elect for the excess and the your VicSuper account until you meet registered employer and have a
related earnings to be refunded if the a condition of release. Read the preserved benefit that is less than
contributions are still in a super fund, ‘Conditions of release’ section in this $200
then additional tax will be applied. guide for details. • have a benefit that is less than $200
The excess contributions are taxed at
Government rules require that any and you were previously a lost
the top marginal tax rate plus
restricted non-preserved money member
Medicare levy. If you elect to refund
the excess and the related earnings, remain in your VicSuper account • meet one of the early release
you will be taxed on the earnings at until you: conditions (see page 10)
your marginal rate. You will be • t erminate employment with an • need to pay a release authority
entitled to a non-refundable tax offset employer who contributed to from the ATO
equal to 15% of the earnings. VicSuper Fund on your behalf, or • have left Australia permanently
• meet one of the conditions of after being here on an eligible
Additional tax may apply.
release for preserved amounts. temporary visa that has expired or
been cancelled
Unrestricted non-preserved funds can
be withdrawn at any time from your • turn age 65
VicSuper account. You can choose • become permanently incapacitated
the investment options from which • are diagnosed as having a terminal
your partial withdrawal will be paid, medical condition
provided you have money in those • die.
investment options (conditions apply
if you are invested in the Term
Deposit investment option).
9VicSuper FutureSaver Member Guide
Early release conditions –– to pay for expenses associated Terminal medical condition
You may apply for early release of with the death, funeral or burial You may apply for early release of
all or part of your benefit if: of a dependant of you. your account balance should you be
• y ou meet the criteria for early –– to meet other expenses where diagnosed with a terminal medical
release on the grounds of severe the release is consistent with any condition. A terminal medical
financial hardship and you apply to of the above grounds. condition exists if:
VicSuper If you have a benefit approved by • two registered medical practitioners
–– To access your super under the ATO to be released, you will be have certified, jointly or separately,
this criterion, Commonwealth required to provide certified proof that you are suffering from an
legislation requires you to have of identity, along with your letter of illness, or have incurred an injury,
been in receipt of Commonwealth approval from the ATO and signed that is likely to result in death within
income support payments. If you instructions on how you would like 24 months from the date of the
have reached your preservation your benefit paid. certification, and
age, you must have been in If you are a temporary resident in • at least one of the registered
receipt of these payments for Australia (ie not an Australian or medical practitioners is a specialist
at least a cumulative period of New Zealand citizen, a permanent practising in an area related to the
39 weeks; if you are under your resident or the holder of certain condition, and
preservation age, you must have retirement visas) you can only • the certification period of 24
been in receipt of payments for at access your benefit if you have left months has not ended.
least 26 consecutive weeks. Australia permanently after being in Benefits paid to terminally ill
–– Access limits apply and you must the country on an eligible temporary members with a life expectancy of
obtain a Centrelink Q230 or visa (as defined under the Migration less than 24 months are paid tax-free.
Q251 letter confirming you are in Act 1958) that has expired or been
receipt of benefits. cancelled, or are permanently Minimum account balance
• you apply to the ATO on incapacitated, die, or are diagnosed requirements
compassionate grounds if you with a terminal medical condition. To keep your VicSuper account open,
have not been in receipt of For more information regarding the when you request a partial transfer or
long-term Commonwealth income eligibility criteria, contact the withdrawal from your account, a
support for the required period. VicSuper Member Centre on minimum balance needs to remain in
Generally, the grounds on which 1300 366 216. the account:
the ATO will release benefits for
compassionate reasons include: • For partial transfers to another
Other conditions of release
complying super fund, the minimum
–– to pay for medical treatment or Transition to retirement balance is $6,000.
medical transport for yourself or a • For partial transfers to another
You can access your super in the form
dependant where the treatment is VicSuper account, the minimum
of a VicSuper Flexible Income (with
not readily accessible through the balance is $7,000.
transition to retirement feature) once
public health system. The medical
you reach your preservation age, • For partial withdrawals, the
treatment must be necessary to
regardless of whether you have minimum balance is $7,000.
treat a life threatening condition,
retired. This enables people who have
alleviate acute or chronic pain, If a partial transfer or withdrawal
reached their preservation age to
or alleviate an acute or chronic would result in your balance falling
remain employed and access their
mental disturbance. Certificates below the minimum, VicSuper has
super benefits via an income stream
to this effect, from two medical the discretion as to whether to
while giving them the flexibility to
practitioners (one is a specialist) accept the transfer or withdrawal
reduce the hours they work.
are necessary. request. Consideration will be given
–– to enable you to make a payment Resignation or retrenchment on application.
on a loan to prevent foreclosure If you resign or are retrenched, you
on, or a mortgagee sale of, your may meet one of the conditions of
principal place of residence release. If so, you may be able to
(home). access your super benefit.
–– to modify your family home
and/or vehicle to meet special Permanent incapacity
needs of a severely disabled You may apply for the early release of
member or their severely disabled your account balance on the grounds
dependant. of ‘permanent incapacity’. Benefits
–– to pay for palliative care for can be paid if VicSuper is reasonably
yourself or a dependant. satisfied that you are unlikely to
engage in gainful employment for
which you are reasonably qualified by
education, training and experience
due to physical or mental ill-health.
10Get in touch – we’re here to help Call our Member Centre 1300 366 216 (from outside Australia +61 3 9667 9875) and speak to a VicSuper super consultant between 8.30am and 5pm, Monday to Friday Visit us Bendigo | Blackburn | Geelong | Melbourne CBD | Traralgon Monday to Friday 8.30am to 5pm To make an appointment to see a VicSuper financial planner call (03) 9667 9200 Send us a fax (03) 9667 9610 Write to us VicSuper GPO Box 89 MELBOURNE VIC 3001 Browse our website vicsuper.com.au Download our app vicsuper.com.au/mobileapp Manage your account online Simply visit our website to login The information contained in this VicSuper FutureSaver Member Guide is given in good faith and has been derived from sources believed to be reliable and accurate. No warranty as to the accuracy or completeness of this information is given and no responsibility is accepted by VicSuper Pty Ltd or its employees for any loss or damage arising from reliance on the information provided. If there is an inconsistency between the information in this guide and the terms of the VicSuper Fund trust deed, those legal documents will prevail. This publication has been prepared without taking into account your objectives, financial situation or needs. You should therefore consider the appropriateness of the advice in light of your individual circumstances before acting on the advice. You should also obtain and consider a copy of the relevant Product Disclosure Statement available at vicsuper.com.au before making any decisions VicSuper Pty Ltd ABN 69 087 619 412 (VicSuper) is the Trustee of VicSuper Fund ABN 85 977 964 496. The Trustee holds an Australian Financial Services Licence (AFSL 237333) under the Corporations Act 2001 and a RSE Licence under the Superannuation Industry (Supervision) Act 1993. Under its AFSL, VicSuper is licensed to deal in, and provide financial product advice on superannuation products. At present, VicSuper representatives are limited to providing financial product advice on VicSuper products; ESSSuper - Revised, New, SERB and Transport Schemes; providing advice on whether a member should consolidate or roll over their superannuation holdings (excluding personal advice on self-managed superannuation funds) into VicSuper; and general superannuation matters. At an additional fee, financial advice can be provided on a broader range of financial matters and products under an Australian Financial Services Licence held by a third party, who is responsible for the advice. © 2019 VicSuper Pty Ltd. All rights reserved. No part of this handbook covered by copyright may be reproduced or copied in any form or by any means without the written permission of VicSuper Pty Ltd. V326 07/19
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