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Super Member Guide Additional Information Super Member Guide Additional Information 1 July 2020 1300 130 780 mypartner@lucrf.com.au lucrf.com.au PO Box 211 North Melbourne VIC 3051
The information in this document forms part of the Super
Member Guide – Product Disclosure Statement. Issued 1 July
2020 for the Labour Union Co-operative Retirement Fund
(LUCRF Super) USI LUC0001AU ABN 26 382 680 883 by the
Trustee of the Fund, L.U.C.R.F Pty Ltd ABN 18 005 502 090
AFSL 258481.
You should read the information in this document as well
as the relevant Super Member Guide – Product Disclosure
Statement (PDS), the Insurance Guide, the Investments Guide
and the Fees and Costs booklet before making a decision to
invest. All documents are available at lucrf.com.au or by calling
1300 130 780.
The information in this document is general only and does not
take into account your personal financial situation, objectives
or needs. It is essential that you read the PDS and consider
obtaining financial advice tailored to your own circumstances
before making a decision about the Fund.
Ratings (awards) are only one factor to be taken into account
when deciding whether to join LUCRF Super. Visit lucrf.com.au
or call 1300 130 780 to find out more. The Trustee holds
Australian Financial Services Licence No. 258481 which
authorises it to provide personal financial advice.
This Super Member Guide – Additional Information, the PDS,
the Insurance Guide, the Investments Guide and the Fees and
Costs booklet do not take the place of the Trust Deed, which
is a legal document governing the operation of the Fund.
The Trust Deed is binding on the Trustee, all contributing
employers and all members of the Fund. A copy of the Trust
Deed and Rules is available at lucrf.com.au.
Information contained in this document and the PDS is current
at the date of preparation.
Changes and updates
Where advance notice is not required or is otherwise
impossible, information on changes will be provided as soon
as practicable following the change. The most up-to-date
copy of this document is available by contacting LUCRF
Super on 1300 130 780 or at mypartner@lucrf.com.au, or
by visiting lucrf.com.au.
Contact us
1300 130 780
lucrf.com.au
2 | Super Member Guide – Additional Information | 1 July 2020
For over forty years,
we’ve put our members
first. We exist to help them
achieve financial dignity,
now and in retirement.
What’s inside
About LUCRF Super 4
How super works 5
Contributing to your super 6
Accessing your super 10
Rolling over your super 13
Nominating beneficiaries 14
How super is taxed 16
How to open an account 19
Super Member Guide – Additional Information | 1 July 2020 | 3
About LUCRF Super
LUCRF Super (the Labour Union Co-operative Retirement Fund) was established in
1978 as Australia’s first industry superannuation fund. Our creation helped to expand
Australia’s superannuation system beyond a privileged few to every worker.
Today, we look after approximately 126,000 members and 23,000 employers. We have
more than $6.4 billion in funds under management.
When you join us, you’ll benefit from:
Solid long-term An award-winning
investment returns Competitive fees fund
A friendly, in-house Personalised A wide range of
contact centre financial advice investment options
Flexible Practical information and A secure mobile app and
insurance cover educational seminars online account access
4 | Super Member Guide – Additional Information | 1 July 2020
How super works
Superannuation, or super, is money saved over your working life for your retirement.
The money in your super account includes:
• your employer’s contributions What does LUCRF Super offer?
• your own contributions We’re a public offer fund, which means anyone can join.
• any government contributions you may be eligible for We offer:
• any investment earnings that apply. • a MySuper Balanced investment option that
operates as a default option
Your employer is generally required to make Superannuation
Guarantee (SG) contributions to your super equal to a
• 10 investment choices including single and multiple
asset class options
percentage of your salary. The current SG rate is 9.5%.
• three pension products:
The government also encourages you to add to your super by
– a transition to retirement pension – if you wish to
providing tax savings on contributions, investment earnings,
ease into retirement
and withdrawals from your account when you’ve reached your
preservation age (between 55 and 60, depending on when you – a retirement pension – if you wish to retire completely
were born). – a disability pension – if you’re permanently incapacitated
• flexible insurance
Choice of fund • Personal Plan membership – available if you don’t have
You’re generally free to choose your super fund, although some a contributing employer, you’re self-employed or you’re
workplaces are covered by awards or workplace agreements the non-working spouse of a LUCRF Super member.
that specify default funds.
The default account your employer makes payments into must
be a MySuper account, like our MySuper Balanced account.
How your super account works
Contributions Deductions
• Employer and SG contributions • Fees and other charges
• Personal contributions (voluntary) • Insurance premiums
• Salary sacrifice contributions (if applicable)
• Government co-contributions • Government taxes
(if eligible) • Withdrawals
• Spouse contributions Net • Net investment returns Your
• Other approved payments investment (if negative)
super
• Roll-ins (transfers from other funds) returns balance
IMPORTANT
Take LUCRF Super with you To choose LUCRF Super as your super fund, or to take us with
you when you change jobs, complete a Choice of Super Fund
Leaving an employer doesn’t mean you have to leave us.
Form. You can do this by:
Keeping your super in one account throughout your working
life means you avoid paying multiple fees to different funds, • completing the form online at lucrf.com.au and emailing it
and helps your super grow faster. to your employer’s pay office
• downloading the form from our website and handing the
completed form to your employer’s pay office.
Call us on 1300 130 780 if you need any help.
Super Member Guide – Additional Information | 1 July 2020 | 5
Contributing to your super
The money your employer puts into your super is a great kick-start to your retirement
savings. Making extra contributions while you’re working can lead to a more
comfortable retirement.
Salary sacrifice
Types of contributions This is an arrangement with your employer to pay part of your
gross (before-tax) salary directly into your super account.
Generally, there are two types of contributions that can be If you’re considering making salary sacrifice contributions, ask
made to your super: your pay office whether:
• your employer allows you to make this type of contribution
Concessional (before-tax) contributions
• a salary sacrifice arrangement will affect any of your work
These include salary sacrifice contributions or entitlements, such as bonuses, allowances, leave, severance
contributions for which a tax deduction is claimed, benefits and income protection insurance.
such as employer SG contributions.
Be aware that salary sacrifice contributions count towards your
total income when determining your eligibility for Centrelink
Non-concessional (after-tax) contributions payments and the government super co-contribution.
These are contributions made from after-tax income Learn more about salary sacrifice at lucrf.com.au. To start
such as your take-home pay or other savings you salary sacrifice contributions, complete the Request for
may have. Payroll Deduction Form, available on our website or by calling
1300 130 780, and hand it to your pay office.
Low income superannuation tax offset (LISTO)
If you’re a low-income earner, the government will refund or offset
IMPORTANT the tax you paid on your before-tax contributions by making a
payment back into your super.
You don’t have to provide us with your tax file number (TFN). To be eligible:
However, there are tax implications if you don’t. See the ‘How
• your adjusted taxable income must be $37,000 or less per year
super is taxed’ section in this guide for more details. We also
won’t be able to accept any personal contributions from you • concessional (before-tax) contributions must be made into
your super account by 30 June
without your TFN. This includes contributions made by your
spouse on your behalf. • you must not have been a temporary resident of Australia for
any part of the financial year
• you need to make sure we have your TFN. If we don’t have
Concessional contributions your TFN, we won’t be able to accept a LISTO payment on
your behalf.
These include employer contributions and those made under
a salary sacrifice arrangement. They’re taxed at a rate of 15%. The maximum payment you can receive in a financial year is
$500. Visit ato.gov.au for more information.
Employer or SG contributions
Under the Superannuation Guarantee (SG) legislation,
Splitting contributions with your spouse
your employer is required to contribute 9.5% of your wages Concessional contributions may be split between you and
(calculated on your ordinary time earnings) into the super fund your spouse, as long as you’re both LUCRF Super members.
of your choice. Some employers are also bound by awards or A ‘spouse’ is defined as someone (of any gender) who:
workplace agreements to pay more than this. These awards or • you’re in a relationship with that has been registered
agreements may also specify default funds. under a prescribed state or territory law, or
You’re generally eligible for SG payments if you’re over 18 and • although not legally married to you, lives with you on a
earn more than $450 per month (before tax). genuine domestic basis in a relationship as a couple.
6 | Super Member Guide – Additional Information | 1 July 2020
Contributing to your super
You can split up to 85% of your concessional contributions Contributions to a spouse account
each financial year, up to the concessional contributions cap You can help your spouse build their super by making extra
(see page 8). You can only make one contribution split per contributions into a LUCRF Super account on their behalf.
financial year.
If you make a spouse contribution on behalf of a non-working
Your spouse must either be: or low-income-earning spouse, you could qualify for an
• under their preservation age (whether they’re working or not), 18% tax rebate. The maximum rebate per financial year is
or capped at $540 when a spouse contributes $3,000 or more.
• between their preservation age and 65, and not retired. To be eligible for a spouse rebate, your spouse must earn
To make a contribution split with your spouse, complete the an assessable income (plus reportable fringe benefits and
Contributions Splitting Form available by calling us. You must reportable employer super contributions) of less than $40,000
lodge your application with us either: for the financial year in which the spouse contribution is made.
Other conditions apply. Visit ato.gov.au for more details.
• in the financial year immediately after the financial year in
which the contributions were made, or If your spouse already has an account with us, your spouse
contribution(s) can be accepted immediately. If not, they’ll need
• in the financial year the contributions were made only if you
to open an account before any spouse contributions can be
close your account before the end of that financial year.
accepted.
Limits apply to the amount of concessional contributions you can For the definition of ‘spouse’, see the ‘Splitting contributions
contribute into your super in a financial year. See ‘Contribution with your spouse’ section on page 6.
limits and conditions’ in this section for more information.
Downsizing contributions into your super
If you’re 65 or over, you can make a non-concessional
Non-concessional contributions (after-tax) contribution into your super account from the sale
proceeds of your family home (up to $300,000 for individuals
These are generally personal contributions made into or up to $600,000 for couples). Your downsizer contribution
your super from after-tax income. Non-concessional won’t count towards your contributions caps (see page 8) or
contributions aren’t subject to the 15% contributions tax. be affected by the total superannuation balance test in the
They’re tax-free when you eventually withdraw them from year you make it. However, there’s still a transfer balance cap
your super regardless of your age. of $1.6 million that you can move into retirement phase.
The government super co-contribution Additional eligibility criteria apply – visit ato.gov.au for details.
If you’re a low-income earner, the government will contribute up
to 50 cents for every dollar you put into your super, to a maximum Contribution limits and conditions
of $500 per year. To receive the full co-contribution amount for Contribution limits apply to both before and after-tax
the 2020/21 financial year, you must earn a total gross income contributions.
of less than $39,837 in that year. If you earn more than this, the
Contribution limits are for each person, not each super
co-contribution gradually reduces and stops altogether if your
account. They apply to all of your super accounts, not just
total gross income exceeds $54,837 for that year.
those held with us.
Eligibility for the government super co-contribution
The work test
To receive the government super co-contribution, you must:
If you’re aged 67 to 74, you must also satisfy a work test before
• be an Australian permanent resident under 71 you can make any voluntary super contributions. This means
• earn 10% or more of your total income from eligible you must work a minimum of 40 hours of paid employment in a
employment, from running a business, or a combination consecutive 30-day period within the financial year of payment.
of both
Under the work test exemption (effective from 1 July 2019), you
• earn a total gross income of less than $54,837 per year can make voluntary contributions for an additional 12-month
• have given your TFN to your super fund period from the end of the financial year in which you last met the
• make a personal (after-tax) contribution into your super work test, as long as:
account by 30 June • your total super balance is below $300,000 at the end of the
• lodge an income tax return. previous financial year
• you satisfied the work test in the previous financial year
• you have not previously relied on the work test exemption.
Super Member Guide – Additional Information | 1 July 2020 | 7Contributing to your super
Concessional (before-tax) contribution limits
The concessional contributions cap is $25,000 per year,
regardless of your age.
A 15% tax is applied to concessional contributions.
However, if your total adjusted income, including concessional
contributions, is more than $250,000 per year, you’re considered
a high-income earner and an additional 15% tax will apply. This
is known as the ‘Division 293 tax’.
If you make contributions to your super over the concessional
contributions limit, the excess amount will be included in
your assessable income for the financial year and taxed at
your marginal tax rate. You’ll also be charged interest by the
government for the delay in receiving the tax from you.
A tax offset that reduces your tax liability applies to excess
contributions. This accounts for the 15% tax on contributions Non-concessional (after-tax) contribution limits
that applied when the contributions were paid to your account.
The non-concessional contributions cap is $100,000 per year.
You can elect to have up to 85% of the excess concessional You cannot make non-concessional contributions if you’re over
contributions refunded back to you. The released amount will 75, or if your total super balance is $1.6 million or more. If you do,
not count towards your non-concessional contributions cap. they’ll be treated as excess contributions subject to extra tax.
If you’re under 65
Handy tip You can contribute up to $300,000 in total over a three-year
period, depending on your total super balance (on 30 June
You can ‘carry-forward’ any unused amount of your of the previous financial year). This is known as the
concessional contributions cap from previous years (on a ‘bring-forward’ rule. Visit ato.gov.au for more details.
rolling basis for five years), provided your super account If you’re 65 to 74
balance at the end of the previous financial year was less
You can contribute up to $100,000 each year, provided you
than $500,000.
passed the work test (see page 7) in that financial year.
Amounts carried forward that haven’t been used after five There’s no bring-forward option if you’re 65 or over.
years will expire. The first financial year in which you can
access unused concessional contributions (accumulated
Important: As at 1 July 2020, a bill currently before Federal
since 1 July 2018) is 2019/20. Parliament contains a proposed change to the bring-forward rule
to also apply to those aged 65 and 66. If it passes, it’s likely to be
backdated to 1 July 2020, and details will be published at lucrf.com.au.
What happens if you exceed your contribution limits?
Excess contributions made over the contribution limits will be
subject to extra tax (see the ‘How super is taxed’ section on
page 6 for more information).
The non-concessional contributions cap is calculated at four
times the level of the (indexed) concessional contributions cap.
Handy tip
For more information about concessional and
non-concessional contributions, visit the Australian
Taxation Office (ATO) website at ato.gov.au.
8 | Super Member Guide – Additional Information | 1 July 2020Contributing to your super
How to make personal contributions
You can make personal contributions into your account by:
1. BPAY® 2. Payroll deduction
BPAY is a quick and easy way to make personal Complete the Request for Payroll Deduction Form,
contributions online, or by phone, directly into your available at lucrf.com.au or by calling 1300 130 780, and
account at any time. hand it to your pay office.
When making a contribution by BPAY, enter the biller code
and your Customer Reference Number (CRN).
Your CRN can be obtained from your online account, Note: There’s a $100,000 maximum BPAY transaction value.
your annual statement, or by calling us. Payments may take up to four days’ processing time and will be
effective the day the funds are received in our bank account.
Biller Code: 484 469
®Registered to BPAY Pty Ltd ABN 69 079 137 518.
BPAY CRN: (contact us if you don’t know your CRN)
Can you make a contribution?
Your age
Contribution type
Under 65 65-66 67-69 70-74 75+
Concessional (employer SG)
Concessional (salary sacrifice
Yes, if you meet Yes, if you meet
and contributions by
the work test# the work test#
self-employed members)
Yes, if you’re Yes, if you’re
Non-concessional* employed and meet employed and meet
the work test# the work test#
Non-concessional Yes, if you meet Yes, if you meet Yes, if you meet Yes, if you meet
(proceeds of downsizing) additional criteria^ additional criteria^ additional criteria^ additional criteria^
Yes, if you’re 70
or under as at
Government
30 June for the
co-contributions
financial year of your
personal contribution
#
To satisfy the work test, you must work a minimum of 40 hours of paid employment in a consecutive 30-day period within the financial year
of payment. See page 7 for details.
^
Visit our website or ato.gov.au for details of eligibility criteria.
* For a spouse contribution, your spouse must be under 65 years old (or meet the work test or work test exemption if they’re aged 65 to 69). As at
1 July 2020, a bill currently before Federal Parliament contains a proposed change to the maximum age for spouse contributions to increase from
69 to 74. The work test will not apply if a spouse is aged 65 or 66, but it will apply if they’re aged 67 to 74.
Super Member Guide – Additional Information | 1 July 2020 | 9Accessing your super
As super is money saved for your retirement, there are rules around when you can access it.
What’s your preservation age? Unrestricted non-preserved benefits
From 1 July 1999, all contributions and fund earnings, regardless Unrestricted non-preserved benefits can be paid out to you
of their source, are preserved within the super system until you on request, regardless of your age, employment situation or
retire. Under government regulations, you can only withdraw your financial position. These are generally benefits that you’ve
super once you reach a minimum age (called your ‘preservation already become entitled to receive but have voluntarily decided
age’) and you meet a condition of release. Your preservation age to keep within the super system.
depends on your date of birth as outlined below.
Handy tip
Preservation age by year of birth
If you’ve chosen to invest your super in multiple investment
Date of birth Preservation age options, you can specify which option your super payments
are withdrawn from. Call us on 1300 130 780 for more
Before 1 July 1960 55 information.
1 July 1960 – 30 June 1961 56
1 July 1961 – 30 June 1962 57
When can you access your super?
1 July 1962 – 30 June 1963 58 You can have your benefit paid directly to you if you meet one or
1 July 1963 – 30 June 1964 59 more of the following criteria:
After 30 June 1964 60
• You’re 65 or over.
• You’re 60 to 64 and have ceased a gainful employment
arrangement since turning 60.
Benefit types • You’ve reached your preservation age, have permanently
retired from the workforce and you don’t intend to work again
Your super is classified as one or more of the following benefit for 10 or more hours per week.
types. These classifications may impact your ability to access your
• The super you’d like to claim is classified as an unrestricted
super before you reach your preservation age. non-preserved benefit.
Preserved benefits • You meet the criteria for early release (outlined later in
this section).
Preserved benefits must generally be kept in a super fund until
after you’ve reached your preservation age and you’ve retired. If you believe you meet one (or more) of the above criteria and
would like to make a claim, call us on 1300 130 780.
Restricted non-preserved benefits
Contributions that went into super before 1 July 1999 may be The First Home Super Saver Scheme
classified as restricted non-preserved benefits. This means
that those benefits can only be paid out to you once you stop If you’re a first-home buyer, you can apply to withdraw voluntary
working for the organisation that made those contributions, contributions you’ve made to your super after 1 July 2017 to
or meet a condition of release. use as a home deposit. You can withdraw up to $15,000 per
year, and $30,000 in total. The contributions must be made
within your existing annual concessional and non-concessional
contributions caps.
To withdraw these contributions, and their associated earnings,
for a first-home deposit, you’ll need to make a request to the tax
commissioner. Eligibility criteria apply. Visit ato.gov.au for more
information.
10 | Super Member Guide – Additional Information | 1 July 2020Accessing your super
Accessing your super early Terminal medical condition
There are some exceptional circumstances under which you Your super benefit may be released early where your life
can apply for the early release of the preserved and restricted expectancy is 24 months or less. To make a claim, you’ll need to
non-preserved parts of your benefit. These are outlined here. provide us with two medical certificates (one from your general
practitioner and one from your treating specialist) stating that
You have a small amount of super your life expectancy is 24 months or less.
If you have less than $200 in your super account and you’re
no longer employed by the organisation which made those IMPORTANT
contributions, you can apply to have your benefit paid out.
Severe financial hardship A different rule applies to terminal illness insurance
claims. For details read our Insurance Guide, available at
If you’re under preservation age
lucrf.com.au or by calling 1300 130 780.
You’ll need to have been receiving a qualifying Centrelink
income support payment for a period of 26 continuous weeks.
You’ll also need to provide sufficient documentary evidence to Permanent incapacity
support your claim that you’re unable to meet reasonable and
Your benefit may be released early if you become permanently
immediate family living expenses.
incapacitated. You’ll need to submit medical certificates from
If you’re over preservation age two legally qualified medical practitioners stating that because
of ill health (physical or mental), you’ll never again be in gainful
You need to have been receiving a qualifying Centrelink income
employment for which you’re reasonably qualified by education,
support payment for a combined period of 39 weeks after
training or experience. Note that payment under this condition
reaching your preservation age. In addition, when making your
only allows for the release of money from your super account
application, you must not be gainfully employed (either full-time
and doesn’t automatically entitle you to an insurance payout.
or part-time) but not yet fully retired from the workforce.
There are limits to how much and how often you can make a Temporary early release of super (COVID-19)
claim due to severe financial hardship. Your benefit payments If you’ve been financially affected by COVID-19, you may be able
may also be subject to tax. to access up to $10,000 in the 2020/21 financial year. You’ll need
to apply directly with the ATO between 1 July and 24 September
2020. Visit ato.gov.au for details.
IMPORTANT
If you’re considering making a claim for the early release
of your super due to severe financial hardship, call us on
1300 130 780. We’ll help you work out if you’re eligible and
guide you through the process.
Compassionate grounds
In specific circumstances, you can apply to the ATO to have your
super benefit, or part of it, released on compassionate grounds.
The ATO must be satisfied that your application meets the criteria
for early release.
Grounds under which the ATO will consider an application
include situations where you or your dependants incur costs
for medical treatment, medical transport, funeral assistance,
palliative care, modifications to your house or car due to severe
disability, or preventing foreclosure on your mortgage or home.
Contact the ATO directly on 131 020 if you have any questions.
Super Member Guide – Additional Information | 1 July 2020 | 11Accessing your super
Temporary residents departing Australia If your benefit is $5,000 or more:
If you’re a temporary resident who has permanently departed You’ll need to complete a ‘Certification of Immigration Status and/
Australia, you’re eligible for the early release of your preserved or request to cancel a Temporary Resident visa’ form (Form 1194)
super under specific circumstances. This is known as a and submit it to the Department of Home Affairs (DHA). The form
departing Australia superannuation payment (DASP). is available at homeaffairs.gov.au or by calling the DHA on 131 881.
The DHA will confirm your eligibility for payment and forward your
You’ll be liable to pay withholding tax at 35% (45% without a
completed application to us.
TFN) on the taxable component when it’s paid to you.
Please note that we can only pay your DASP via electronic funds
Your DASP will be subject to 65% tax if:
transfer to a valid Australian bank account in your name.
• you hold or have held a 417 (Working Holiday) or 462
(Work and Holiday) visa (or an associated bridging visa), What happens if you don’t claim your DASP?
and had super contributed for you while working under If you don’t claim your super benefit from us within six months
either of these visas of the expiry or cancellation of your temporary visa, we may be
• your DASP is paid to you on or after 1 July 2017. required to pay your benefit to the ATO as unclaimed money.
In this case, you’ll need to claim any benefit directly from the
The 65% rate will apply to your total DASP amount, including any
ATO. While we’re not obliged to issue you with an exit statement
super you may have earned while working under a different visa.
if your DASP benefit is transferred to the ATO, you can ask us to
Australian and New Zealand citizens, or permanent residents send you one.
of Australia who depart the country even on a permanent basis,
To claim your benefit from the ATO you can:
do not qualify under this criteria. If you move to New Zealand on
a permanent basis, you may elect to transfer your whole benefit • call +61 2 6216 1111 from outside Australia
to a New Zealand KiwiSaver account, provided you satisfy • call 131 020 if you’re within Australia
certain conditions.
• email DASPmail@ato.gov.au
Applying for a DASP • visit ato.gov.au.
If your benefit is less than $5,000: Email us at mypartner@lucrf.com.au for details or to obtain
The quickest and easiest way to have your benefit paid is the relevant claim form.
by completing the online application at ato.gov.au. You can
also complete an ATO ‘Application for departing Australia
superannuation payment (DASP) from a super fund or retirement
savings account’ form (NAT 7204), and send it, with certified
copies of supporting documentation, to us. The form is available
at ato.gov.au. If you need help, call the ATO on 131 020 if you’re in
Australia, or +61 2 6216 1111 from overseas.
12 | Super Member Guide – Additional Information | 1 July 2020Rolling over your super
Rolling over your super into a single account is one of the most important things
you can do to grow your super.
If you’ve had more than one job, you may have more than one Inactive, low-balance accounts
super account. This means you could be paying more than one
set of fees, which can reduce your retirement savings. If you have a super account that is deemed to be an inactive,
low-balance account, your super will be transferred to the ATO.
Combine your super into LUCRF Super How do you know if you have an inactive,
Simply call us on 1300 130 780 to arrange a rollover of your low-balance account?
super over the phone. Your account is an inactive, low-balance account if:
Alternatively, complete the Transfer Between Funds Form • it has a balance of less than $6,000
available at lucrf.com.au and return it to us.
• it hasn’t received any rollovers or contributions in 16 months
We’ll notify you when we’ve received your money from other • there’s no insurance with the account
super funds.
• you haven’t made any changes to your investment options,
You’ll need to lodge a separate Transfer Between Funds Form insurance coverage or binding beneficiary nominations
for each super account you’d like to transfer into LUCRF Super. for 16 months
Before you combine your super accounts, check to see if any • you haven’t informed the ATO that you do not want your
insurance will be altered or cancelled as a result of rolling out inactive, low-balance account transferred to them.
your super. You can check your account balance and transactions at
any time by logging in to your online account, using our mobile
Super search consent app, or calling us on 1300 130 780.
With your consent, we can use your TFN to search for If you’d like to keep your account with us, you can complete
any lost, unclaimed or active super accounts you may an Inactive Low-balance Account Authorisation Form, available
have. If we find any, we can help you combine it into one on our website, and send it back to us. We’ll notify the ATO on
LUCRF Super account. your behalf.
You can provide your consent:
What happens if your account is transferred to
• in writing using the Member Application Form or, if the ATO?
you’re already a member, the Super Search Consent Form
Where possible, the ATO will combine the balance of your
available on our website or by calling us
transferred account into an active account you may have with
• over the phone (your identity must be confirmed) another super fund. If you don’t have an active account with
• by emailing your details and consent to another fund, your account will be managed by the ATO.
mypartner@lucrf.com.au
• by logging in to your online account.
Lost super
Any super you have with us is deemed to be ‘lost’ if:
• no contributions or rollovers have been received into your
account for 12 continuous months and we’ve never had a
current address for you, or we’ve been unable to contact you
• you have not contacted us or accessed your account online
• you haven’t advised us that you wish to stay with us
• you transferred to us from another super fund as a lost
member and we haven’t found or been advised of a
new address.
If your account balance is less than $6,000, it will be transferred
to the ATO. Once your funds are transferred to the ATO, any
insurance you had with us will be cancelled.
Super Member Guide – Additional Information | 1 July 2020 | 13Nominating beneficiaries
It’s important to consider where you’d like your super savings to go in the event of your
death. The person or people you choose are called nominated beneficiaries.
You can let us know who you’d like to receive your benefit To ensure that your nomination continues to reflect your wishes,
by making either a non-binding or binding nomination. it’s important that you update it if there’s a significant change in
your personal circumstances (e.g. death, marriage, divorce, or
All forms are available at lucrf.com.au or by calling
the birth or adoption of a child).
1300 130 780.
What’s an ‘interdependent relationship’?
Non-binding nomination Two people have an interdependent relationship if they have a
You nominate who you’d prefer your death benefit to be paid close personal relationship (whether or not related by family), and
to and the Trustee will use this as a guide when deciding how • they live together, and
your benefit will be distributed. However, your nomination is
• one or each of them provides the other with financial
not legally binding and it may not be reflected in the Trustee’s support, and
final decision. The Trustee also takes into consideration your
circumstances at the time of your death, and other eligible • one or each of them provides the other with domestic
people that you may not have nominated. support and personal care.
To advise us of your preferred non-binding nomination, please Two people can also have an interdependent relationship if they
complete the relevant section in the Member Application Form. have a close personal relationship (whether or not related by
If you’re already a member, you can make or update your family) and don’t fulfil the above criteria because one or both of
non-binding nomination at lucrf.com.au or by completing them suffer from a physical, intellectual or psychiatric disability.
a Change of Details Form. What’s a ‘close personal relationship’?
A close personal relationship involves one person’s
Binding nomination demonstrated and ongoing commitment to the emotional
Under a binding nomination, the Trustee must pay your death support and wellbeing of another.
benefit to the person(s) you have nominated (subject to
It excludes those who provide domestic support and personal
superannuation law). Binding nominations are valid for three
care under an employment contract or a contract for services,
years. You’ll need to confirm your nomination within this period
or on behalf of another person or organisation such as a
for it to remain valid. You can change or cancel your binding
government agency, a body corporate, or a benevolent or
nomination at any time.
charitable organisation.
If your nomination is invalid, or hasn’t been received by us when
you pass away, your death benefit will be paid at the Trustee’s What happens if you don’t make a nomination?
discretion in accordance with our Trust Deed.
Your death benefit will be distributed at the Trustee’s discretion.
To advise us of your binding nomination, please complete The Trustee will gather information about your family situation,
the Binding Death Benefit Nomination Form. any dependants, and the provisions in your will, amongst other
Please note that the Trustee may be legally prevented from things, before making a decision.
paying a nomination if a court order stops them from doing so.
Who can you nominate? IMPORTANT
You can nominate one or more of your dependants, or your legal
personal representative (LPR) as a binding nomination. Your LPR You can now request for your spouse or child to receive your
is generally the executor of your estate. death benefit as an income stream. The income stream can
either be commenced with us or rolled over to another super
Dependants can include: fund. To be eligible to receive a benefit as an income stream,
• your spouse your dependant must be:
• your child (including a child from a same or different-sex • your spouse
relationship, a child of your spouse or from a previous • your child who is under 18
association brought into a relationship, or an adopted child,
stepchild or ex-nuptial child)
• your child who is between 18 and 25 and financially
dependent on you
• a person with whom you have an interdependent relationship
• your child who has a permanent disability, or
• someone who’s financially dependent on you.
• in an interdependent relationship with you.
14 | Super Member Guide – Additional Information | 1 July 2020Nominating beneficiaries
Nominating beneficiaries – a summary
Non-binding nomination Binding nomination
What’s the This nomination is only used as a guide for the The Trustee is required to follow your instructions on
difference Trustee when deciding how your death benefit will how you want your death benefit to be distributed.
between be distributed. It’s not legally binding. It’s important to ensure that your nomination is valid and
each type of those nominated are your dependants or LPR.
nomination? The nomination form must be signed in the presence of
two witnesses who are over 18 and aren’t nominated as
beneficiaries.
If your binding nomination has not been received by us
when you pass away, your death benefit will be paid at
the Trustee’s discretion.
How many No limit. No limit, but they must be your dependant(s) or LPR.
beneficiaries can
you choose?
Who can you A death benefit can generally only be paid directly to You can only nominate your dependant(s) or LPR.
nominate as your dependant(s) or LPR.
beneficiaries? You can nominate someone else (e.g. a friend), but
the Trustee must be satisfied that all of your possible
dependants are considered.
How long does For as long as you’re a member of LUCRF Super, or until For three years from the date of your signature,
your nomination you lodge a new nomination. provided your form has been received and accepted by
last? us. We’ll write to you when your nomination is about to
expire. If left to expire, your nomination will no longer be
binding and will only be used as a guide for the Trustee
when distributing your death benefit.
Can you change Yes, at any time. Yes, at any time.
your choice or Go to Members Online at lucrf.com.au or complete a You must complete a Binding Death Benefit Nomination
nomination? Change of Details Form to change your non-binding Form.
nominations.
Super Member Guide – Additional Information | 1 July 2020 | 15How super is taxed
The impact of tax on your super depends on your individual circumstances.
This section provides a general guide to tax rules that currently apply.
It’s important to note that tax law is complex and may What happens if you exceed your
change in the future.
contributions caps?
To help you make good choices regarding your super, it’s
Limits apply to the amount of concessional and
recommended that you seek advice from a professionally
non-concessional contributions you can make without
qualified and independent financial planner before making
having to pay extra tax. See the table on the following
any decisions.
page for more information.
When is tax taken out of your super? Claiming a personal contribution as a
Under Australian law, tax may be deducted: tax deduction
• from before-tax contributions received into your
If you’re under 75, you may be able to claim a tax deduction for
account, including:
personal super contributions (including if you’re between 67
– super contributions from your employer and 74 and you meet the work test on page 7). You can claim
– any salary sacrifice payments you’ve arranged out of a deduction for personal super contributions made on or after
your before-tax salary 1 July 2017 if:
– contributions where a tax deduction has been claimed • you made the contribution to a complying super fund
– rollovers from an untaxed fund (like LUCRF Super)
• from any investment earnings (if tax is due, it will be deducted • you meet the age restrictions
prior to declared returns being applied to member accounts) • you notify us in writing of the amount you intend to claim
• when you withdraw a benefit from your super account. as a deduction, and
• we then give you written acknowledgement of your notice
How much tax do you pay on investment of intent to claim a deduction.
earnings? The contributions that you claim as a deduction will count
We pay a maximum of 15% tax on our investment earnings. towards your concessional contributions cap. If you exceed
This is deducted from our gross investment earnings and not your cap, you’ll have to pay extra tax on the excess amount.
directly from your super account. Any excess concessional contributions will count towards
your non-concessional contributions cap.
Tax on contributions
Notice of intent
Super contributions fall into two categories:
You’ll need to advise us each year of the amount you’re claiming
1. concessional contributions made with before-tax income as a tax deduction by submitting a notice to us in accordance
2. non-concessional contributions made with after-tax income. with the Income Tax Assessment Act. Please complete a
‘Notice of intent to claim or vary a deduction for personal super
contributions’ form (NAT 71121) available at ato.gov.au.
Handy tip Your intent must be made to us at whichever is the earlier of:
If you’re thinking about making extra contributions into your • the day you lodge your personal tax return for the financial
year in which you made the contribution
super, it’s always best to talk to a qualified financial adviser.
To speak with one of our financial advisers call us on • the end of the financial year following the financial year in
1300 130 780. which the contributions were made
• the day you commence a retirement pension or transition to
retirement pension with us
• the day you withdraw funds from your LUCRF Super account
• the day you rollover your balance to another super fund.
We’ll then send you a letter acknowledging your intention to
claim your personal contribution as a tax deduction.
16 | Super Member Guide – Additional Information | 1 July 2020How super is taxed
Contributions – a summary
Concessional (before-tax) contributions Non-concessional (after-tax) contributions
Contribution type • All employer contributions including the • Voluntary member contributions
and description Superannuation Guarantee (SG) • Government co-contributions
• Salary sacrifices • Spouse contributions
• Contributions where a tax deduction is claimed
Tax entering super 15%^ 0%
Caps (contribution • $25,000 per year# • Up to $100,000 per year, or
limits) for 2020/21 • $300,000 (over a three-year period using the
‘bring-forward’ rule)*
Tax on amounts over Included in assessable income and taxed at marginal You’re able to release your excess contributions and
the caps rates (less a 15% tax offset) include earnings in assessable income. If you don’t
withdraw earnings or excess contributions, you’ll be
taxed at 47%
^
Those earning over $250,000 in total adjusted income per annum will be liable for an extra 15% tax (known as the ‘Division 293 tax’) on top of the
15% tax that applies to concessional contributions when they enter the Fund.
#
Excess concessional contributions may be refunded. If your total super balance is less than $500,000 on 30 June of the previous financial year,
you may be able to carry forward your unused cap amounts for up to five years. Visit ato.gov.au for details.
Available if you’re under 65 at 1 July in the relevant year. Please see page 8 for proposed changes to the ‘bring-forward’ rule for those aged 65 and 66.
*
Note: If your super balance is more than $1.6 million, you cannot make non-concessional contributions. Visit ato.gov.au for more details.
Super Member Guide – Additional Information | 1 July 2020 | 17How super is taxed
Tax on benefit payments
IMPORTANT
The amount of tax deducted from a benefit payment will depend
on your circumstances (including your age), the type of benefit
you receive and the components of your benefit. Make sure you give us your TFN
You don’t have to provide your TFN. However, if you don’t:
If you’re under 60
• you’ll pay higher tax. Funds are required to pay the
Tax may be deducted when your benefit is paid out of the highest rate of tax to the ATO at the end of the income
super system as outlined in the following table: year for super accounts without a valid TFN (tax of 35%
is payable in addition to the 15% contributions tax).
The additional tax will be refunded if you provide a
Tax Maximum tax applied valid TFN to us within a three-year period
component if you’re under 60* • we won’t be able to accept personal (after-tax)
payments from you. This means you could miss out
Tax-free 0% on receiving the government co-contribution through
Taxable for Under preservation age us (if you’re eligible)
2020/21 • 20% tax (plus the Medicare levy) • you may have difficulties tracking any lost super you
may have.
Preservation age to 59
• The first $215,000* is tax-free We are authorised to seek your TFN under the
• Amounts over $215,000 are taxed at Superannuation Industry (Supervision) Act 1993. We will
15% (plus the Medicare levy) use your TFN in confidence and only for legal purposes
*
Departing Australia superannuation payment (DASP) benefits
including finding or identifying superannuation benefits
attract different tax rates to those in the above table (see page 12). where there is insufficient information, calculating tax on
benefit payments and providing information to the tax
commissioner.
If you’re 60 or over We may also provide it to the trustee of any other
No tax is payable for benefit payments to members aged 60 or superannuation fund to which benefits may be transferred.
over. When you receive a benefit payment from us, we’ll give you We will not pass your TFN on to any other fund if you advise
a statement showing the breakdown of your benefit and any tax us in writing not to. Where an employee provides a TFN for
applied to the various tax components. employment purposes, it is also approved to be quoted for
superannuation purposes and your employer must pass the
TFN on to us within 14 days. These purposes may change in
Terminal medical condition, death and the future as a result of changes to legislation.
permanent incapacity benefits
These are taxed at different rates depending on your age, when
you become disabled and to whom the benefit is payable (for
death benefits). The calculation of the actual level of tax is
complex. Contact the ATO on 131 020 or call us on 1300 130 780
for more information.
18 | Super Member Guide – Additional Information | 1 July 2020How to open an account
If you’re joining us through an employer
Complete the Member Application Form. Once you’ve completed this form, send it to us,
Option 1. or hand it to your employer.
If you’d like to apply for insurance other than the default cover, please read our Insurance Guide and
complete the Insurance Election Form or Income Protection Form (if you’re eligible). Please send your
insurance forms to us only (do not hand them to your employer).
Complete the Choice of Super Fund Form (online or printed). Once you’ve completed this form,
Option 2. hand it to your employer if you completed a printed copy, or email it to them if you completed the form online.
The form includes a Notice of Compliance that your employer may need.
After you’ve completed one of the steps above, we’ll send you a welcome letter that includes your account details and
other information.
If you’re joining us without a contributing employer
(known as a Personal Plan membership)
You can still enjoy the benefits of a LUCRF Super membership if you don’t have an employer who pays SG contributions into your
account. This could be the case if you’re self-employed, the spouse of a LUCRF Super member, or your employer pays super into
another default fund at your workplace.
Complete the Member Application Form. Send your completed form to us.
Step 1. You must also include your first payment or roll-in form, along with certified proof of identification.
We’ll open your accounts when your first payment or rollover is received. You can make your first payment a
number of ways – see page 9 for payment options.
Note: If you’d like to apply for insurance cover please read our Insurance Guide and complete the relevant form(s).
IMPORTANT
Make sure you’ve also read our Super Member Guide
(Product Disclosure Statement), Fees and Costs booklet,
Insurance Guide and Investments Guide. All forms and
publications are available at lucrf.com.au or by calling
1300 130 780.
Super Member Guide – Additional Information | 1 July 2020 | 19How to open an account
Cooling-off period Change of name
When advising us of a name change, you must provide us with
If you have a contributing employer
certified proof. The following documents are accepted as proof
No cooling-off period applies. of a formal change of name:
If you don’t have a contributing employer • marriage certificate
(Personal Plan members only) • deed poll name change certificate
If you change your mind about joining us after submitting your • new birth certificate
application, you can cancel your membership within: • a decree nisi (divorce papers).
• 19 days of us receiving your application, or
Signing on behalf of another person
• 14 days of the date of your welcome letter.
If you’re signing something on behalf of another person, you’ll
To cancel your membership, you’ll need to send your request need to provide certified proof of the link between you and the
in writing to: other person. You can use one of the documents below, as well as
LUCRF Super your other certified ID (such as your driver licence or passport):
PO Box 211 • guardianship papers
North Melbourne VIC 3051
• Power of Attorney.
If you cancel your membership during this period, any preserved
and restricted non-preserved benefits will have to be transferred Certification of personal documents
to another complying Australian super fund or retirement
savings account. You won’t be entitled to receive any investment All copied pages of original proof of identification (including
returns, and your initial contribution may be reduced by any tax all linking documents) need to be certified as true copies of
deductions made. the original document by a person authorised to do so. The
person who is authorised to certify the documents must sight
the original and the copy to make sure that both are identical.
Proof of identification (ID) They then must ensure that all pages are certified as true copies
When you become a Personal Plan or LUCRF Pension member, by writing or stamping “This is a true and correct copy of the
and you’re rolling in other super benefits, or you’re requesting a original” on the copy, followed by their signature, printed name,
payout or transfer-out of your super or pension, you may need qualifications and the date.
to provide a certified copy of your proof of ID. The following are
In accordance with Anti-Money Laundering and Counter-Terrorism
legally accepted documents:
Financing Rules Instrument 2007 (No.1), people that can certify copies
1. One of these government-issued photographic ID of the originals as true and correct for these purposes include:
documents: • a pharmacist
• current Australian driver licence • a registered medical practitioner
• Australian passport (current or that hasn’t been expired for • a police officer
more than two years)
• a registrar or deputy registrar of a court
• current foreign passport, or
• a Justice of the Peace
• other current Australian government-issued photographic ID
• a permanent employee of Australia Post with two or more
(such as a proof-of-age card or Australian tertiary institution
years of continuous service
student card).
OR
• an officer with, or authorised representative of, a holder
of an Australian Financial Services Licence (AFSL) with two
2. One of these government-issued, non-photographic or more years of continuous service.
ID documents:
If you’re currently outside Australia, you’ll need to have copies of
• birth certificate or birth extract your original documents certified by consular staff at an Australian
• citizenship certificate embassy, high commission or consulate. If you’re unable to reach
• current foreign driver licence, or one of these places, your documents can be certified by a:
• current Centrelink pension card. • notary public
And one of these documents showing your address:
• Justice of the Peace
• utility bill (less than 3 months old)
• judge of the court
• local government rates notice (less than 3 months old)
• registrar or deputy registrar of a court.
• government benefits notice (less than 12 months old), or
• tax assessment notice (less than 12 months old).
20 | Super Member Guide – Additional Information | 1 July 2020How to open an account
Document verification service (DVS) How do you lodge a complaint?
Alternatively, if you’ve signed the declaration on the Member Complaints can be made by calling 1300 130 780 or writing to:
Application Form, you can send us a scanned photo of your The Complaints Officer
Australian driver licence, Australian passport or Medicare card and LUCRF Pty Ltd
we’ll verify your identification with the relevant government agency. PO Box 211
Visit dvs.gov.au for more information on how this works. North Melbourne VIC 3051
OR
How we communicate with you complaints@lucrf.com.au
From time to time we may be required to send you important Please provide your full name, member number and current
communications such as annual reports, member and exit address in your letter or email, together with a summary of your
statements, notices of material changes or significant events, complaint. Although we’re legally required to deal with your
other member publications and/or marketing and research complaint within 90 days, we’ll make every effort to respond earlier.
materials that are permitted by law. We’ll do this by: All complaints are formally recorded and reported to the Trustee.
• sending them to you by email or a link to a website for
What if you’re not satisfied with the handling
download where you or your employer or other associates
have provided your email address on your behalf
of your complaint?
If you’re not satisfied with the way your complaint is handled
• sending you an SMS where you’ve provided your mobile
or with our reponse, you can refer the matter to the Australian
number
Financial Complaints Authority (AFCA).
• enabling you to download them from a website
AFCA is an independent body set up by the federal government to
• subscribing you to The New Daily news subscription for free assist members, or their beneficiaries, resolve certain complaints.
(you can unsubscribe at any time). AFCA may be able to assist you in resolving your complaint, but will
You can change your communication preferences, or, in instances, only become involved after your complaint has been considered
opt-out, by contacting us or logging in to Members Online. By under the Trustee’s internal dispute resolution process.
opting out of marketing communications, you’ll no longer receive To find out how to lodge your complaint with AFCA, or if it can
marketing offers from our partners, but you’ll still receive important be handled by them, contact them at:
information about your account, including annual statements, Australian Financial Complaints Authority
newsletters and other important notices, as well as opportunities GPO Box 3
to participate in research. Melbourne VIC 3001
Phone: 1800 931 678 (free call)
Protecting your privacy Email: info@afca.org.au
We respect the importance of your privacy. The Privacy Act 1988 Website: afca.org.au
(Cth) sets out Australian privacy law requirements and establishes
the Australian Privacy Principles. Under these principles, we must Anti-money laundering and
document our practices and procedures for handling personal counter-terrorism financing
information in a Privacy Policy.
Under the Anti-Money Laundering and Counter-Terrorism
Our Privacy Policy outlines how we collect, store, use and Financing Act 2006 (AML/CTF Act), we’re required to identify,
disclose your personal information to provide you with mitigate and monitor the money-laundering and counter-
superannuation products and services. It’s available at terrorism financing risks that we may face and have measures
lucrf.com.au/privacy or by calling us on 1300 130 780. in place to reduce these risks.
If you believe your privacy has been breached, you can make a We’ve developed an Anti-Money Laundering and Counter-Terrorism
complaint by contacting us using the details provided here. If Financing Program to fulfil our compliance obligations. You should
you’re not satisfied with our response, you can raise the matter be aware that as part of our compliance with these laws:
with the Office of the Australian Information Commissioner • we’re required to verify your identity when you withdraw
(OAIC). To find out how to make a complaint to the OAIC, your benefit or commence an income stream
please visit oaic.gov.au. • we reserve the right to request further information to
verify identity
Complaints process • we may have to disclose information about suspicious
transactions to the regulator, the Australian Transaction
We have a formal process for handling any enquiries you or your
Reports and Analysis Centre. The legislation prevents us from
beneficiaries may have in relation to a LUCRF Super account.
informing you when any such reporting has taken place.
Read the ‘Proof of identification (ID)’ section on the previous
page to know more about the documents we can accept and
how to get them certified.
Super Member Guide – Additional Information | 1 July 2020 | 21You can also read
