TELSTRASUPER DIVISION 2 DEFINED BENEFIT - 1 JULY 2018
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TelstraSuper Division 2
Super Guide
Defined Benefit
1 July 2018Telephone 1300 033 166
Facsimile 03 9653 6060
www.telstrasuper.com.au
contact@telstrasuper.com.au Keeping you up-to-date
The information in this document is general information only and does not take
It’s important that you’re kept informed about your super.
into account your personal financial situation or needs. You should obtain financial
advice tailored to your personal circumstances before making an investment You will receive from us:
decision. • quarterly statements showing your contributions,
© Telstra Super Pty Ltd. investment returns, and deductions
® is a registered trademark in Australia of the Telstra Corporation Limited. • an annual report available online at
telstrasuper.com.au which gives details of
BPay® Registered to BPAY Pty Ltd, ACN 079 137 518
TelstraSuper’s investment performance, financial
Telstra Super Pty Ltd ABN 86 007 422 522, AFSL 236709 is the trustee of the details and products, and other relevant information.
Telstra Superannuation Scheme ABN 85 502 108 833 (TelstraSuper).
You can access or update your account details by calling
Information in this Super Guide that does not materially affect your super 1300 033 166 between 8.30am and 5.30pm (Melbourne
may change from time to time. Any updated information will be available at time) Monday to Friday, or visit your online account at
telstrasuper.com.au or a copy of any updated information can be requested free
of charge by calling 1300 033 166.
telstrasuper.com.au
TelstraSuper is a super fund that provides super benefits to employees and
former employees of Telstra Corporation Limited (Telstra) and associated
Glossary
companies as well as eligible family members of TelstraSuper members. To help keep super as simple as possible for you, we
TelstraSuper has a licence to deal in and provide general advice about products. have included explanations of some super terms in our
Telstra Super Pty Ltd acts on its own behalf in providing these services. glossary on page 29.
2Contents
01 Main features and benefits of TelstraSuper Division 2 4
02 Calculating your defined benefit 4
03 Additional Multiples 7
04 More information about your defined benefit 8
05 Contributing to your super 9
06 Calculating your defined benefit contributions 11
07 Access the investment market 12
08 You’re covered with TelstraSuper insurance 14
09 Fees and other costs 18
10 Tax and super 25
11 Moving on – changing jobs or changing funds 26
12 Important super information 27
13 Glossary 29
14 Easy access to your super online 32
15 Privacy information 32
301/ 02/
Main features Calculating your
and benefits of defined benefit
TelstraSuper Division 2
TelstraSuper Division 2 is principally a
• Telstra sponsored defined benefit
defined benefit arrangement. With a
• the option of opening a Voluntary defined benefit, the benefits payable to
Accumulation Account to access members are based on set calculations
a broad range of investment independent of investment performance.
options for the conservative The defined benefit formula for
through to the aggressive investor, TelstraSuper Division 2 on resignation,
including the ability to invest in retirement or retrenchment is equal to:
term deposits and listed securities,
including ASX300 shares and Final Average Salary (FAS)
Exchange Traded Funds (ETFs)
x Benefit Multiple
• s ecurity for your family through
default* base level Death and = Defined benefit
Total & Permanent Disablement
Cover (TPD) Step 1 – Calculate your
• a
pply for any amount of top-up Final Average Salary (FAS)
Death cover and up to $5 million
Your FAS will be worked out when
top-up TPD cover
you leave Telstra as the average of your
• a
ccess to expert financial last three years of Superannuation
advice through TelstraSuper Salary. Telstra determines your
Financial Planning Superannuation Salary and advises
TelstraSuper. Superannuation Salary is
• s ecure, online access to your your annual salary at your birthday each
personal details at year and may include some allowances.
telstrasuper.com.au Your Superannuation Salary does not
decrease even if your actual salary
decreases.
This Super Guide makes reference to Example
the Investment Guide, which is available
at telstrasuper.com.au/pds or Peter, a member for 5 years, left
by calling us. We encourage you to Telstra on 3 September 2017 and
read it before making any investment his birthday is 5 August. At his last
decisions regarding your Voluntary birthday, his Superannuation Salary
Accumulation Account (if applicable). was $60,000. His FAS is calculated
The Investment Guide outlines as the average of his salary at 5
the investment options available to August 2017 and 5 August for the
you for your Voluntary Accumulation previous two years.
Account, as well as explaining important
investment concepts to help you make + Salary 5 August 2017 $60,000
any investment choices. + Salary 5 August 2016 $58,000
+ Salary 5 August 2015 $56,000
= Total $174,000
÷ divided by 3
= Peter’s FAS is $58,000
*P
lease see section 08 for more details.
4Step 2 – Work out your Table A – Average Contribution
You can contribute between 0% and 10%
Benefit Multiple Rate less than 5%
(in multiples of 1%) of your Superannuation
Your Benefit Multiple is used to calculate Salary towards your defined benefit at any
your defined benefit and depends upon Your Elected Accrual time. However, an Average Contribution
the rate or rates at which you contribute Contribution Percentage Rate of 5% will attract the maximum
to your defined benefit and for how long Rate level of Telstra support and therefore the
you contribute at that particular rate. maximum Telstra Support Multiple (see
0% 8% Tables A & B).
To calculate your Benefit Multiple you
need to multiply the Accural Percentage 1% 10.4% Contribution rates above 5% exist to
applicable to your Elected Contribution allow you to make up for periods during
Rate by the TelstraSuper Division 2
2% 12.8% which your Average Contribution Rate
is less than 5% and make the most of
membership period during which the 3% 15.2% Telstra’s support (see next page).
contribution rate applied. A separate
multiple is calculated for each period of 4% 17.6%
Average Contribution Rate
TelstraSuper Division 2 membership
for which you have a different 5% 20% less than 5%
contribution rate. 6% 22.4% Use Table A to work out your Benefit
These multiples are added together Multiple if your Average Contribution
7% 24.8% Rate is less than 5%.
with any Additional Multiples to make
up your Benefit Multiple. You may have 8% 27.2% As Table A shows, if your Average
Additional Multiples if you transferred Contribution Rate is less than 5%,
from the Commonwealth Superannuation 9% 29.6% you will receive Telstra support for your
Scheme (CSS), or from the former Telstra 10% 32%
defined benefit contributions up to 10%.
Productivity Superannuation Scheme Once your Average Contribution Rate
(TPSS) before July 1996 or if you rolled is equal to or greater than 5%, you will
money into TelstraSuper Division 2 prior Table B – Average Contribution need to use Table B to calculate your
to July 1996 (see page 7). Rate equal to or greater than 5% Benefit Multiple.
The percentage that will be used in Your Elected Accrual
the calculation of your Benefit Multiple, Contribution Percentage
Example
known as your Accrual Percentage, Rate Alec is 58 and leaving Telstra with
depends on whether your Average
a FAS of $70,000. He has been a
Contribution Rate is above, below or 0% 8%
member of TelstraSuper Division 2
equal to 5%.
1% 10.4% for 20 years. He has no Additional
The following tables will assist you Multiples. So, using Table A, Alec’s
in calculating your Benefit Multiple. 2% 12.8% Benefit Multiple is calculated for each
If you are unsure whether your Average contribution period as follows:
Contribution Rate is above, below or 3% 15.2%
Alec’s Benefit
equal to 5%, call us on 1300 033 166. 4% 17.6% Contribution history Multiple
5% 20% (20% x 10)
5% for 10 years
= 2.0
6% 21% (17.6% x 5)
4% for 5 years
7% 22%
= 0.88
(20% x 5)
8% 23% 5% for 5 years
= 1.0
9% 24% Alec’s Benefit Multiple
= 3.88
at Retirement
10% 25% Alec’s defined benefit is equal to:
Includes Telstra support FAS $70,000
x Benefit Multiple 3.88
= Alec’s defined
$271,600
benefit
5Average Contribution Rate As Telstra does not provide support for a TelstraSuper Division 2 provides
equal to or greater than 5% TelstraSuper Division 2 member’s defined members with the flexibility to change
benefit contributions above an Average their Elected Contribution Rate at any
Use Table B on page 5 to work out Contribution Rate of 5%, you may want time. This means you can lower your
your Benefit Multiple if your Average to consider other options to increase Elected Contribution Rate if you need to
Contribution Rate is equal to or greater your super savings. (See Access the and increase your Elected Contribution
than 5%. As Table B shows, if your investment market on page 12.) Rate when feasible to meet your own
Average Contribution Rate is equal to financial needs whilst making the most of
or greater than 5%, you will only receive Making the most of Telstra’s support.
Telstra support for your contributions up
to 5%.
Telstra’s support To change your contribution rate, please
see your Payroll Officer.
The optimal Average Contribution Rate
Example for TelstraSuper Division 2 is 5%. By Please note that limits apply to pre and post-tax
contributions. See page 10 for details.
achieving an Average Contribution Rate
Kate is 60 and is leaving Telstra with of 5% you make the most of Telstra’s
a FAS of $70,000. She has been a support throughout your TelstraSuper
member of TelstraSuper Division 2 Division 2 membership.
for 20 years. Using Table B, Kate’s
Benefit Multiple is calculated for each
contribution period as follows: Example
Kate’s Benefit Nicole joined TelstraSuper Division 2 at age 25 and resigned at age 50. The table
Contribution history Multiple below shows how, over her career, Nicole was able to catch up those periods
(22% x 5) during which she was not able to contribute 5% of her Superannuation Salary
7% for 5 years to achieve an Average Contribution Rate of 5% (equal to the maximum Telstra
= 1.1
Support Rate) over her period of employment with Telstra.
(21% x 10)
6% for 10 years
= 2.1 Benefit
Age Situation Contributions
(20% x 5) Multiple
5% for 5 years
= 1.0 Some spare cash.
25–30 5% for 5 years (20% x 5) =1.00
Kate’s Benefit Multiple No family or major debts.
= 4.2
at Retirement Needs extra money. Buying
30–40 3% for 10 years (15.2% x 10) =1.52
Kate’s defined benefit is equal to: house, raising young family.
FAS $70,000 Rise in income. More cash
to spare. Increases
40–50 7% for 10 years (24.8 x 10) =2.48
x Benefit Multiple 4.2 contributions to make the most
of Telstra's support.
= Kate’s defined
$294,000
benefit Nicole’s Benefit Multiple at resignation =5.00
603/
Additional Multiples
If you have Additional Multiples, these Excess Contribution Multiple Roll-ins prior to July 1996
will be added to your Benefit Multiple to
work out your total TelstraSuper Division If your Average Contribution Rate is If you rolled in money from another super
2 Defined Benefit. above 5%, those contributions in excess arrangement prior to July 1996, you will
of the 5% average will be shown as an have a Roll-in Multiple. Before July 1996,
You may have one or more of the Excess Contribution Multiple on your TelstraSuper did not offer a Voluntary
following Additional Multiples: Super Summary Payment Advice and Accumulation Account, so any money
• CSS Multiple quarterly statements. rolled into TelstraSuper was converted
• CSS Supplementary Multiple Your Excess Contribution Multiple is the into a Roll-in Multiple.
• TPSS Multiple difference between your current Benefit This Roll-in Multiple is calculated by
Multiple and the Benefit Multiple which dividing the amount of the roll-in by
• Roll-in Multiple
would have resulted from an Average your FAS at the date of the roll-in. Your
• Excess Contribution Multiple. Contribution Rate of 5% over the same Roll-in Multiple is included in your total
period of time, known as your maximum TelstraSuper Division 2 Benefit Multiple
Members who transferred Telstra Support Multiple. shown on your quarterly statement and is
shown as an Additional Multiple on your
from the Commonwealth
Example Super Summary and Payment Advice.
Superannuation Scheme
(CSS) If we take the example of Kate on Example
page 6, Kate’s Average Contribution
If you transferred from the CSS into
Rate was above 5% over her 20 Rob rolled in an amount of $10,000 in
TelstraSuper Division 2, you received
years of service, equal to a Benefit July 1994. At that time, his FAS was
a CSS Multiple and perhaps a CSS
Multiple of 4.2. Kate does not receive $40,000. Rob retired in July 2000 and
Supplementary Multiple. These are
Telstra support for the contributions his FAS on retirement was $60,000.
included in your total TelstraSuper
she made above a 5% Average
Division 2 Benefit Multiple shown on
Contribution Rate. Instead, this
your quarterly statement and are shown First we calculate Rob’s Roll-in
amount is represented by an Excess
as Additional Multiples on your Super Multiple:
Contribution Multiple of 0.2%.
Summary and Payment Advice.
Average Roll-in Multiple $10,000
Benefit
Members who transferred Contributions 4.2
Multiple FAS at time of roll out $40,000
from the former Telstra Rate above 5%
Productivity Superannuation Average
Maximum Rob’s Roll-in Multiple 0.25
Scheme (TPSS) before Telstra
Contribution 4.0 When Rob retired, his Roll-in Multiple
Support
1 July 1996 Rate of 5%
Multiple
was applied to his FAS as part of his
Benefit Multiple:
If you transferred into TelstraSuper Division Excess
2 before 1 July 1996, from the former 0.2 Contribution Roll-in Multiple 0.25
TPSS, but were not a member of the CSS Multiple
immediately before your transfer, your x FAS at time of
$60,000
former TPSS benefit was automatically roll out
rolled into your TelstraSuper Division 2 = Roll-in Multiple
$15,000
arrangement as a TPSS Multiple. Your on retirement
TPSS Multiple is equal to the transfer
amount at the date of transfer divided
by your FAS at the transfer date. Your
TPSS multiple is included in your total
TelstraSuper Division 2 Benefit Multiple
shown on your quarterly statement and is
shown as an Additional Multiple on your
Super Summary and Payment Advice.
704/
More information
about your defined
benefit
Part-time employees Leave without pay Arrears
Members of TelstraSuper Division 2 who Periods of leave without pay may not If your actual contributions are lower than
work less than full-time hours are able to count as superannuation membership your Elected Contribution Rate, you will
contribute and build a defined benefit on for the purposes of calculating your be in arrears.
a pro-rata basis of actual hours worked TelstraSuper Division 2 Defined Benefit. TelstraSuper recovers arrears through
to normal full-time hours for that position. For details regarding the treatment Telstra’s payroll system to ensure that
A Service Fraction, which represents of leave without pay, check with your members:
the proportion of full-time hours you HR/personnel unit. If you would like
information regarding contributions • are not financially disadvantaged due
worked, will be applied to your Benefit to reduced super benefits resulting
Multiple. Your Service Fraction is equal to during leave without pay, or how leave
without pay affects the calculation from arrears
your actual hours worked divided by the
prescribed full-time hours for the position. of your benefit, please call us on • are fully insured for death and
1300 033 166. TPD benefits
The Superannuation Salary used to
• fulfill their super obligations
determine your FAS is the equivalent full Surplus and arrears to Telstra Super Pty Ltd.
time salary for your position.
If for some reason your actual If you have arrears, Telstra’s payroll may
Example contributions differ from your Elected deduct arrears at the rate of 2.5% of your
Contribution Rate, you may have either Superannuation Salary.
Susan retires after being a member surplus contributions or be in arrears.
of TelstraSuper Division 2 for 5 years. Members have the option to:
If you have surplus contributions or are
Susan always worked 18 hours in arrears, these will be shown on your • increase the arrears payment
per week. The prescribed full-time quarterly statement, Super Summary and automatically deducted
hours for her position is 36 hours per Payment Advice. • reduce the arrears payment
week. Susan’s equivalent full-time (minimum $20 per pay)
Superannuation Salary when she
left was $52,000 and her equivalent
Surplus • not pay the arrears.
FAS was $50,000. As Susan always If your actual contributions are higher If you’re in arrears when your defined
contributed to her defined benefit at than your Elected Contribution Rate, you benefit is due to be paid you can pay the
a rate of 5%, her Benefit Multiple for will have surplus contributions. arrears as a lump sum or your defined
her 5 years of service is 1.0. benefit will be reduced by:
If your quarterly statement or Super
Summary shows that you have surplus • the amount of arrears
Susan’s Service Fraction
contributions, you should contact Telstra • the amount representing Telstra’s
Actual hours 18 Payroll or call us on 1300 033 166. support for these unpaid contributions.
divided by full-time hours 36 If you have surplus contributions when
your defined benefit is due to be paid, Minimum benefit
= 0.5 your surplus will be added to the total In all cases the benefit payable to
of your defined benefit, but it does not TelstraSuper Division 2 members must
Susan’s defined benefit
count towards an Excess Contribution be equal to or greater than the benefit
FAS $50,000 Multiple (see page 7). required under the Superannuation
Guarantee (SG) legislation. This means
x Benefit Multiple 1.0
that as a TelstraSuper Division 2 member,
x Service Fraction 0.5 the benefit payable to you will be the
greater of your defined benefit and
= $25,000 the SG benefit. The SG benefit is the
minimum amount of superannuation
Note: If you change from full-time to part-time support your employer must provide to
employment, your Defined Benefit entitlements on
Death and TPD will progressively reduce as part-
you by law.
time employment becomes a bigger proportion of
your TelstraSuper Division 2 membership, see pages
14 and 15 for details.
805/
Contributing to
your super
If you’re under age 65 you can make Contributions splitting To make a spouse contribution you
regular or one-off contributions to your can do so via BPay® or cheque. If you
super at any time. Contributions splitting legislation allows make a contribution via cheque you
you to split your super contributions into will need to complete a Member and
If you’re aged between 65 and 74 your spouse’s† account annually after
(inclusive) you can contribute to your Spouse Contribution form available
30 June each year. Contributions your at telstrasuper.com.au/forms or by
super providing you’re gainfully employed spouse has made to their super account
on at least a part-time basis in the calling us.
can be received into your TelstraSuper
financial year in which the contributions Division 2 Voluntary Accumulation
were made. To be considered ‘gainfully Account. The following contributions
First Home Super Saver
employed on a part-time basis’ you need can be split between spouses at any Scheme
to have worked at least 40 hours in a time in the financial year in which the
period of not more than 30 consecutive The First Home Super Saver Scheme
contributions were made. (FHSSS) allows eligible first home
days in that financial year.
Employer Superannuation Guarantee buyers to withdraw voluntary super
Once you reach age 75 you cannot (SG) contributions and pre-tax (salary contributions, along with deemed
make contributions to your super. sacrifice) contributions – you can split earnings, to put towards a house deposit.
Your employer may contribute to any amount, less the 15% contributions
your super including SG and Award You can only withdraw contributions
tax payable on these contributions. under the Scheme once and you can’t
mandated contributions. So, effectively you can split up to 85% withdraw the super that your employer is
of these gross contributions. obliged to pay. Only additional voluntary
Co-contributions Splits can be made between spouses’ contributions you’ve made after 1 July
The government may make accumulation accounts within the 2017 are eligible for withdrawal.
co-contributions for members who make same super fund, or to another super The FHSSS is administered by the
post-tax contributions and meet eligibility fund or retirement savings account you ATO, however you make contributions
conditions (which includes an earnings nominate. Amounts split to a spouse’s as normal into your TelstraSuper
threshold). account are preserved on entry to the account. Contributions are made using
receiving account. To arrange a split you a salary sacrifice arrangement with
You will not be eligible for the government
will need to complete a Contributions your employer, through tax-deductible
co-contribution in a financial year if:
Splitting Application form available super contributions or alternatively, you
• your total superannuation balance is at telstrasuper.com.au/forms or by can make non-concessional (after-tax)
equal to or greater than $1.6m as at calling us. contributions to your account.
the end of 30 June of the previous
Contributions to defined benefits cannot To be eligible to withdraw contributions
financial year, or
be split out to a spouse’s account. under the FHSSS, you must:
• you have exceeded your non- Only contributions made to a Voluntary
concessional contributions cap in that Accumulation Account can be split out to • be over 18
financial year. your spouse’s account. • have never owned a home in
For more information on co-contributions Australia, or have previously owned
including an online calculator please Spouse contributions a home but are currently eligible for
visit telstrasuper.com.au or the financial hardship as determined by
A spouse contribution allows you to the ATO, and
Australian Taxation Office (ATO) website make post-tax (non-concessional)
at www.ato.gov.au • have not previously accessed the
contributions to your spouse’s account.
Scheme.
You may be eligible to claim a tax offset
Low Income Superannuation of 18% (up to a maximum of $540) on the While there is no change to the amount
Tax Offset (LISTO) first $3,000 of the contributions if your of money you can contribute to super,
spouse's income for the financial year is annual contribution caps still apply,
The Government will refund the tax paid below $40,000. You will not be eligible to and limits apply to how much you can
on pre-tax (concessional) contributions, claim a tax offset if: withdraw for the FHSSS. A $15,000
up to a cap of $500 for low income
• your spouse earns more than $40,000 limit applies to contributions that can be
earners with an adjusted taxable income
eligible for withdrawal in one financial
up to $37,000. • your spouse's total superannuation
year and a $30,000 limit applies to total
balance is greater than $1.6m as at the
contributions eligible across all years.
end of 30 June of the previous financial
This means a couple saving for a first
year, or
home could contribute up to $60,000
• your spouse has exceeded their non- combined.
concessional contributions cap in that
financial year.
To be eligible for contributions splitting you and your spouse must be living together. Your spouse must be under 65 years of age, even if they are still working.
†
If your spouse is over their preservation age, they must declare they have not retired in order to receive contributions from your account. Further eligibility
conditions may apply, visit telstrsuper.com.au for details. 9The ATO will calculate the amount you To make a downsizer contribution, carried forward that have not been
contribute as part of the FHSSS and the you will need to complete a downsizer used after five years will expire. You
amount those contributions are deemed contribution form from the ATO and can access the unused concessional
to have earned and include that in the provide it to TelstraSuper when making contributions cap from 1 July 2019. For
releasable amount. or prior to making the contribution. If you further information visit the ATO website
Applications for withdrawal are made make multiple contributions, you must at www.ato.gov.au
via the ATO, with TelstraSuper advised provide a form for each contribution.
Please be aware that if you have more
of the amount that can be released after All downsizer contributions must be
than one fund, all contributions made
submission of an application. made within 90 days of receiving the
to all your funds are added together
Release of your concessional proceeds of sale, with extensions granted
and count towards the caps.
contributions and deemed earnings will by the ATO in limited circumstances.
be taxed at your marginal tax rate less a Where the ATO determines that a
downsizer contribution is invalid and you Limits on post-tax (non-
30% tax offset.
are unable to meet other contribution concessional) contributions
The ATO will not require proof of a eligibility criteria, the contribution will be
home purchase before allowing release, If your balance is less than $1.6m as
refunded.
but once the ATO does release your at 30 June in the previous financial
contributions, you must purchase For more information on downsizer year, your post-tax contributions cap is
your home within 12 months, or sign contributions and to see a full list of $100,000. If your balance is greater than
a contract within 12 months to build eligibility criteria, visit the ATO website $1.6m, you are not permitted to make
a house. If this does not happen, you at www.ato.gov.au. post-tax contributions to your account.
can apply for an extension of up to 12 Contributions included in the post-tax
months, or recontribute the amount to Limits on pre-tax cap are:
your super fund, or use the money for (concessional) contributions
• contributions you make from post-
other purposes and pay additional tax.
The 2018/19 pre-tax contributions cap is tax income (where no deduction is
For more information on FHSSS and to $25,000 for all individuals. claimed)
see a full list of eligibility criteria, visit the • contributions your spouse makes for
Contributions included in the pre-tax cap
ATO website at www.ato.gov.au. you
includes:
• employer Superannuation Guarantee • pre-tax contributions in excess of the
Downsizer contributions pre-tax contributions cap
(SG) and award contributions
If you're 65 years old or over and sell your • salary sacrifice contributions • transfers from overseas funds.
primary residence after 1 July 2018, you
• insurance premiums paid directly by Contributions that are not included in the
may be eligible to contribute a portion of
your employer. cap include:
the proceeds into super. Contributions up
to $300,000 for individuals or $600,000 Pre-tax contributions that you • rollovers from other super funds
for couples can be made with existing subsequently split to your spouse still
• government co-contributions
contribution caps and restrictions not count towards your own cap; they do not
applicable to the downsizer contribution. count towards your spouse’s cap. • proceeds from the disposal of
There is no restriction on making eligible small business assets up
Contributions up to the caps will be to an indexed lifetime limit (for further
non-concessional contributions under
subject to 15% contributions tax. conditions and to find out the
the downsizing cap, even if you have
This tax is 30% for any amount of current limit, visit the ATO website
over $1.6 million in your total super
eligible income over $250,000. Pre-tax www.ato.gov.au)
balance. However, if you have reached
contributions in excess of the pre-tax
your $1.6 million transfer balance cap, • proceeds from certain settlements
contributions cap will be taxed at your
these contributions must remain in the for injuries resulting in permanent
marginal tax rate if they are not withdrawn
accumulation phase. disablement
from the fund and will count towards your
It is important to note that downsizer post-tax contributions cap. These caps • downsizer contributions.
contributions will count towards your Age and taxes may change in the future.
Pension assets test. The post-tax contributions cap will not be
From 1 July 2018, you will be able to directly indexed but is set at four times
To be eligible to make a downsizer 'carry-forward' any unused amount of the pre-tax contributions cap, which is
contribution: your concessional contributions cap. usually indexed.
• you must be 65 years old or over. You will be able to access your unused
concessional contributions cap on a If you’re aged under 65 years, you will be
• the house must be in Australia and rolling basis for five years if your Total able to bring forward two years of post-
cannot be a caravan, houseboat or Superannuation Balance (including all tax contributions limited to the number
mobile home. balances if you have more than one of years that would take your balance to
• you or your spouse must have owned super account) is less than $500,000 $1.6m and make a lump sum contribution
the residence for more than ten years. at the end of a financial year. Amounts
1006/
Calculating your
defined benefit
contributions
of $300,000 in one financial year. For If you’re aged 63 or 64 you’re able to Post-tax (non-concessional)
example, if you made a $300,000 bring forward two years’ contributions contributions
contribution during the 2018/19 financial without meeting the work test in the Post-tax contributions to your defined
year, you would not be allowed to make subsequent two years. If you’re aged benefit are shown on your quarterly
any further post-tax contributions until the 65 years or over you cannot bring statement or Super Summary. Your total
2021/22 financial year.* forward contributions. post-tax contributions for the purposes
Where your balance is close to Transitional arrangements will apply if of the contribution caps will include your
$1.6m, you will only be able to make you have made a post-tax contribution in post-tax defined benefit contributions
a contribution in that year and access the 2015/16 or 2016/17 financial year. If and any post-tax contributions made
the bring forward of future years’ you have triggered the bring forward rule to an accumulation account such as a
contributions that would take your but haven’t fully met your bring forward Voluntary Accumulation Account.
balance to $1.6m, as highlighted in the cap, the transitional arrangements will
table below: reflect the reduced annual post-tax Pre-tax (concessional) contributions
contributions cap, as highlighted in the Remember that even if you only make
Contribution table at the bottom of the page. pre-tax contributions to your defined
Superannuation and bring benefit, your employer still makes pre-
Balance forward The ATO will monitor your pre and
tax contributions to fund your defined
available post-tax contributions and send you a
benefit. Pre-tax member and employer
tax bill if you exceed the caps.
Less than $1.3 contributions to defined benefits (which
3 years ($300,000)
million count towards contribution caps) will
be calculated using the formula on
$1.3 –07/
Access the
investment market
Exemption for Defined increase in contribution rate will result in All TelstraSuper Division 2 members
Benefit members the forfeit of the exemption. have the opportunity to open a Voluntary
However, a change from a 5% Accumulation Account and access the
If you were a Defined Benefit member investment market.
contribution rate to a 10% contribution
on 12 May 2009 and your Notional
rate (or any rate in between) will not Your Voluntary Accumulation
Taxed Contributions exceed the pre-tax
result in the loss of the exemption as Account is made up of
contribution cap, they will be taken to
contributions between 5% and 10%
equal the cap and no additional tax will Member contributions
(inclusive) represent a 12% Notional
be applied (provided TelstraSuper has
Contribution Rate. A change from a 4%
+ (if you make any)
your TFN)*.
contribution rate to a 5% contribution rate Government co-contributions
However, for this dispensation to apply, will result in a loss of the exemption as + (as applicable)
no changes can have been made to this represents a change from a Notional
your defined benefit from 12 May 2009 Super you may roll-in (transfer)
Contribution Rate of 10% to a Notional + from another super fund
onwards. Contribution Rate of 12% and will also
A change of contribution rate will be result in a greater defined benefit. – Administration fees
considered a change to the defined Before changing your contribution
benefit arrangement and result in the rate, you should consider seeking – Tax payable
loss of this exemption if the change in financial advice from TelstraSuper = Your units
contribution rate increases the Notional Financial Planning about the impact this
Taxed Contribution rate and also results may have on the calculation of your pre- x Unit prices
in a greater defined benefit. tax contributions. To discuss your advice
Your Voluntary Accumulation
In general, when a member decreases needs, please call TelstraSuper Financial = Account’s value
their contribution rate they will remain Planning on 1300 033 166 between
entitled to the exemption, while an 8.30am and 5.30pm (Melbourne time),
Unlike your TelstraSuper Division 2
Monday to Friday.
Defined Benefit, the balance of your
Voluntary Accumulation Account
increases or decreases according to
Calculating Notional Taxed Contributions investment performance. This gives
The formula for the calculation of Notional Taxed Contributions is: you the opportunity to use the Member
Investment Choice to build your super
[(Notional Contribution Rate x Superannuation Salary at 1 July) the way you want.
less any post-tax member contributions] x 1.2
For more information on investment
Example choice see the Investment Guide
available at telstrasuper.com.au/pds
Terry is a 41 year old TelstraSuper Division 2 member with a Superannuation or call us.
Salary of $75,000. For the 2018/19 financial year he makes pre-tax contributions
of 5% of his Superannuation Salary to his defined benefit, giving him a Notional A Voluntary Accumulation Account is
Taxed Contribution Rate of 12%. Terry’s Notional Taxed Contributions are opened in your name:
calculated as: • at your request
(Terry’s Notional Taxed Contribution Rate 12% • when government co-contributions
$9,000 are received on your behalf
x Super Salary at 1 July $75,000)
• when you roll-in* money from
Less post-tax member contributions to his defined benefit -$0 another super fund.
Sub total $9,000 The balance of your Voluntary
Multiplied by x 1.2 Accumulation Account is paid in addition
to your TelstraSuper Division 2 Defined
Equals Terry’s Notional Taxed Contributions = $10,800 Benefit in all instances.
So Terry’s Notional Taxed Contributions are under the pre-tax contribution cap.
Note: when calculating notional contributions you need to use your Superannuation Salary at
1 July and not your Superannuation Salary as at your birthday.
*P
rovided the roll-in was made after 1 July 1996. ^
ithin limits. See contributing to your super on
W
See page 7 for more information on roll-ins prior page 9 for more details.
to 1 July 1996.
12Member contributions Tax payable Number of units held
With a Voluntary Accumulation As an incentive for retirement savings, the
x daily unit price
Account you can boost your super by government provides pre-tax tax rates for
making additional member contributions. super contributions and earnings: =Y
our Voluntary Accumulation
You can choose to: Account's value
• any pre-tax contributions, including
• m ake additional contributions from voluntary contributions made from
Percentage based administration and
your pre-tax salary^ your pre-tax salary, and any deductible
investment fees, transaction costs and
• make regular pre-tax or post-tax member contributions up to the pre-
taxes are deducted when calculating
member contributions in multiples of tax contributions cap are subject to
daily unit prices.
$1 each fortnight from your salary^ a 15% contributions tax. This tax is
30% for members with eligible income Unit prices reflect the earnings on the
• make contributions at any time. investments of your chosen investment
over $250,000. Contributions tax is
To make a one-off contribution to deducted from your account option. A new unit price is set each
your account please complete a Victorian business day, reflecting the
• investment earnings are taxed at the
Member and Spouse Contribution changing value of the underlying assets
low (pre-tax) rate of up to 15%. This tax
form available on our website in the investment option(s).
on earnings is taken out as part of the
telstrasuper.com.au/forms calculation of unit prices Unit prices are released on our website
or call us. Alternatively, if you at telstrasuper.com.au and by calling
want to make regular contributions • an additional tax called surcharge may
1300 033 166.
to your account you can do so via be payable. The government abolished
People Express. the surcharge from 1 July 2005,
however assessments may still be Example
issued for previous years. See page 25
Government co-contributions for more information on tax and super. Barry’s opening Voluntary
The government may make Accumulation Account balance
co-contributions for members who make Your units is $50,000. The unit price for his
post-tax contributions and meet eligibility chosen investment option the day he
Your contributions and roll-ins buy
conditions (which includes an earnings opened this account and purchased
units in our broad range of investment
threshold). Visit telstrasuper.com.au for his units was $1.00000. Therefore,
options, covering all major asset classes,
more detail. Barry has 50,000 units.
to suit the conservative through to the
aggressive investor. You can choose After one month, the unit price
Roll-ins (transfers) an option that suits your own personal for Barry’s chosen investment
You can also boost your super by circumstances and financial goals. If you option has risen to $1.05375.
rolling in (transferring) any super decide not to make a choice now, your As he has made no contributions
you may have in other super super will be invested in a default option or withdrawals and no dollar based
arrangements into your Voluntary based on your age. administration fees have been
Accumulation Account. To do this visit For more information on investment deducted during the month, his
telstrasuper.com.au/consolidate choice options and default options, number of units is still 50,000 but his
or call us. please see the Investment Guide account balance is now $52,687.50
available at telstrasuper.com.au/pds (50,000 x $1.05375).
Administration fees You can update your investment option
TelstraSuper Division 2 members anytime via your online account or by
currently do not pay the $1.50 weekly completing an Investment Choice form
administration fee for their Voluntary available at telstrasuper.com.au/forms
Accumulation Account. This fee is
currently paid by Telstra Corporation Unit prices
Limited. A percentage based
All contributions and roll-ins buy units in
administration fee of 0.20% pa of the
the investment options you have chosen.
balance of your Voluntary Accumulation
Any money withdrawn from your account
Account is deducted daily as part of the
reduces the number of units held using
unit price calculation.
the sell price.
Fees and other costs apply. See page 18
for details.
1308/
You’re covered with
TelstraSuper insurance
The cover described on these pages is Calculating your Death and
insured by TAL Life Limited (TAL) ABN 70 Example
TPD benefit
050 109 450 AFSL 237848. Russell has been a member of
As a member of TelstraSuper Division 2, If you’re younger than age 60 TelstraSuper Division 2 for 8 years.
you get default cover for Death and Total Your Death and TPD benefits are In October 2013, he is seriously hurt
and Permanent Disablement (TPD) at calculated as if you had retired at age in an accident and will never be able
no cost. You’re covered 24 hours a day, 60. If you die or qualify for a TPD benefit to work again. Russell was 53 at the
seven days a week, 365 days a year. before age 60, your defined benefit will time of his TPD and his FAS was
be calculated using the Benefit Multiple $85,000. Over the eight years he has
When are the Death and TPD you had built up at the date of death or worked for Telstra, Russell has always
TPD plus a Prospective Multiple† that contributed 5% to his defined benefit.
payments made?
represents the period of time between
Death benefits will be processed First we must calculate Russell’s
your date of death or TPD and the
promptly and paid to your dependants Benefit Multiple for the period of
date you would have reached age 60.
or legal personal representative at the TelstraSuper Division 2 membership
The Prospective Multiple assumes an
discretion of Telstra Super Pty Ltd. leading up to his TPD:
Average Contribution Rate of 5% from
To be eligible for a TPD benefit, you must: the date of your death or TPD until age 5% member contributions
= 1.6
60, and assumes that your FAS remains for 8 years (20% x 8)
• have ceased work with Telstra because the same for that period.
of TPD (and having not worked for six Russell’s Benefit
= 1.6
consecutive months)* If you’re older than age 60 Multiple
• satisfy the definition of TPD. If you’re older than 60 at the date of your As Russell was younger than 60 at
death or TPD, your death or TPD benefit the date of TPD, we now need to
A TPD benefit is only payable if you leave is calculated the same as if you had calculate his Prospective Benefit
Telstra before age 60 because you are retired on the day of your death or TPD, Multiple†:
seriously ill or injured and are unable to using the Benefit Multiple you had
ever work again in a job for which you accrued to that date. 20% (5% assumed
0.2
are reasonably qualified by education, contributions)
training or experience. In all instances, x 7 years until age 60 7
the definition of TPD contained within the
insurance policy will prevail. = Russell’s
Prospective 1.4
Should you be unable to take care of
Benefit Multiple†
your financial affairs at the time the TPD
benefit becomes payable, Telstra Super These multiples are then
Pty Ltd has the right to pay your TPD added together and multiplied by
benefit to a separate trust. Russell’s FAS:
Benefit Multiple 1.6
+P
rospective Benefit
1.4
Multiple†
= 3.0
Benefit Multiple on
3.0
death or TPD
x FAS $85,000
= Russell’s TPD
$255,000
Benefit
Had Russell been older than 60 at
the time of his accident, his TPD
benefit would have been the same as
his retirement benefit on the day
of his TPD.
*S
ix month waiting period may be waived
in some circumstances.
†
rospective benefit is insured by TAL
P
for claims that are incurred on or after
26 September 2005.
14Part-time employees Cancel or reduce your cover Leave without pay
If you have been employed for less than You can cancel or reduce your top- Subject to all Policy conditions,
including the payment of premiums,
full-time hours during your period of up cover at any time by emailing
top-up cover will continue while you
TelstraSuper Division 2 membership, underwriting@telstrasuper.com.au or
are on paid or unpaid leave.
your Prospective Benefit Multiple* will be calling us on 1300 033 166. Alternatively,
adjusted to reflect your average hours you can complete a Cancel or Reduce Overseas members
actually worked during the last two Insurance form available on our website
years of your TelstraSuper Division 2 telstrasuper.com.au/forms Subject to satisfying the relevant Policy
conditions, worldwide cover is provided
membership before you became entitled If you do cancel or reduce your top- 24 hours a day, seven days a week for
to receive a Death or TPD benefit. up cover and you wish to increase or insured members who are overseas, as
recommence cover at a later date, well as members who are on leave.
Special conditions you’ll need to supply detailed health
Special conditions or restrictions may information as part of your application,
apply regarding rehabilitation, deliberately which will be assessed by the insurer.
caused or aggravated TPD and
circumstances where insurance cover Table 1 — Top-Up Death and TPD cover
for your Prospective Benefit Multiple* is
commonly refused or restricted. These Member’s total sum insured Initial requirements
special conditions and restrictions may Under age 55
affect the availability or amount of the Up to $1,500,000 Personal statement
TPD benefit. Personal statement and blood
$1,500,001 up to $2,000,000
tests
Top-up Death and TPD cover Personal statement, blood tests
$2,000,001 up to $3,000,000
and mini health check
You can apply to increase your level of
insurance cover above your base level†. Personal statement, blood
Any insurance in addition to your base tests, medical examination by
$3,000,001 up to $5,000,000 own doctor, Personal Medical
level† of cover is referred to and reported
Attendants Report (PMAR) (if TPD)
as top-up cover. You can apply for any
and financial questionnaire
amount of top-up Death cover and up
to $5 million in total TPD cover‡. Personal statement, blood
You will need to supply evidence of your tests, medical examination by a
specialist, medical report, financial
occupation, health and lifestyle, which will $5,000,001 up to $10,000,000
questionnaire and tax return and
be assessed by our insurer, TAL.
assessment notices for the last
To apply for top-up insurance over the 2 years
phone with our insurer TAL, complete Age 55 and over Up to $1,500,000 Personal statement
an Insurance Telephone Application
Request form available at $1,500,001 up to $2,000,000
Personal statement and blood
telstrasuper.com.au/forms tests
or call us on 1300 033 166 to have the Personal statement, blood tests,
$2,000,001 up to $3,000,000
form sent to you. mini health check and PMAR
For all terms and conditions, please Personal statement, blood tests,
call us to obtain a copy of the Policy medical examination by own
$3,000,001 up to $5,000,000
Document. doctor, PMAR and financial
questionnaire
Personal statement, blood
tests, medical examination by a
specialist, stress ECG, medical
$5,000,001 up to $10,000,000
report, financial questionnaire
* Prospective benefit is insured by TAL and tax return and assessment
for claims that are incurred on or after notices for the last 2 years
26 September 2005.
Your base level is the level of cover provided
†
under your prospective benefit as described
on page 14.
Death cover must be equal to or higher
‡
than your level of TPD cover.
15Transfer your insurance to 1. your application is withdrawn, Premium Rates
TelstraSuper accepted or rejected Any premiums for top-up cover will vary
If you currently have Death only or Death 2. the policy is terminated annually in line with your age. Premium
& TPD insurance with another super fund rates are also reviewed regularly by
3. the Insurer cancels your interim
or life insurance company, you may be Telstra Super Pty Ltd and the fund’s
accident cover
able to transfer that cover to TelstraSuper. insurer, TAL. See Table 3 for current
4. you reach cover cessation age, premium rates.
To transfer your external cover to
which is 65 for TPD, 75 for Death
TelstraSuper, please complete These top-up premium rates are
cover
the Transfer External Insurance applicable to white collar employees.
Application form available at 5. the date any existing cover under the Additional occupational and health
telstrasuper.com.au/forms or by policy ceases loadings may apply to these rates
calling us. 6. or 120 days has passed (whichever is depending on your occupation (e.g.
Upon receipt of your completed form, earliest). blue collar) and current health status.
we’ll forward it on to TAL for assessment. Members who are given a premium
If your application is successful, you will Insurance premiums loading during the underwriting process
be provided with the equivalent top-up Insurance premiums for base Death and will be given the opportunity to cancel
cover in TelstraSuper as provided by your TPD cover are currently paid for by your their application for cover if they do not
previous super fund or insurer. See Table employer. want the premium loading.
3 on page 17 for top-up premium rates. Occupational loadings that may also
Insurance premiums for top-up
Any transferred Death only or Death & cover are payable by you and will be be applicable to your cover are outlined
TPD cover will apply in addition to any applied to an Insurance Premium in Table 2 below:
existing cover you currently hold with Account in your name. Interest will be
TAL. A cap of $2,000,000 on all transfers charged on the balance of this account Table 2 – Premium loadings
applies and the cap is exclusive of any at a rate equivalent to the daily earning Death
cover you may already have with TAL. rate of TelstraSuper’s Balanced Occupation Death only
and TPD
It is important that you do not cancel investment option.
your cover with your other super fund Light blue 1.25 1.40
You’re under no obligation to make a
or insurer until TelstraSuper has advised Medium blue 1.50 2.00
payment toward your premiums. If you
you in writing that your insurance transfer
choose not to make a payment, the Heavy blue 1.75 2.50
application has been accepted.
balance of your Insurance Premium
Account will be deducted from your total
Interim accident cover benefit when it becomes payable.
If you apply for additional insurance If you would like to make a payment
cover, you will receive interim accident into your Insurance Premium Account,
cover for the period of time your you will need to complete an
application is being assessed (known as Insurance Premium Payment
the interim accident cover period). Defined Benefit form, available at
If you have an accident during the telstrasuper.com.au/forms or call us.
interim accident cover period that If you have a Voluntary Accumulation
results in your death or TPD, you will be Account (VAA), you can request that
covered for the applied amount (up to funds be transferred from your VAA
the maximum interim accident benefit into your Insurance Premium Account.
of $1.5 million for Death or TPD) for Transferring funds from your VAA
the period starting from the date your offers the advantage of paying for your
completed application is received by insurance premium with concessionally
TelstraSuper and finishing when: taxed dollars.
16Table 3 – Top-up insurance premiums per $1,000 Table 3 – Top-up insurance premiums per $1,000
sum insured sum insured
Age next Death only Death and TPD Age next Death only Death and TPD
birthday* Male Female Male Female birthday* Male Female Male Female
16 0.69 0.37 0.70 0.39 46 1.31 0.95 2.51 2.15
17 0.81 0.37 0.82 0.39 47 1.46 1.04 2.84 2.38
18 0.88 0.36 0.94 0.37 48 1.57 1.10 3.16 2.64
19 0.95 0.36 1.03 0.37 49 1.74 1.20 3.53 2.91
20 0.96 0.35 1.04 0.36 50 1.86 1.30 3.91 3.26
21 0.96 0.35 1.05 0.36 51 2.03 1.39 4.37 3.58
22 0.95 0.30 1.06 0.33 52 2.17 1.48 4.80 3.99
23 0.89 0.29 1.03 0.32 53 2.36 1.60 5.29 4.40
24 0.87 0.28 1.03 0.30 54 2.55 1.74 5.86 4.90
25 0.81 0.27 0.98 0.29 55 2.75 1.83 6.40 5.39
26 0.78 0.23 0.95 0.29 56 2.95 1.96 7.03 6.00
27 0.75 0.22 0.91 0.28 57 3.17 2.06 7.67 6.64
28 0.69 0.22 0.85 0.29 58 3.44 2.17 8.41 7.34
29 0.64 0.21 0.82 0.30 59 3.69 2.33 9.17 8.07
30 0.60 0.21 0.81 0.33 60 3.98 2.43 9.98 8.79
31 0.58 0.22 0.78 0.34 61 4.28 2.58 10.87 9.51
32 0.57 0.22 0.77 0.38 62 4.63 2.71 11.81 10.26
33 0.57 0.23 0.77 0.43 63 5.00 2.86 12.81 11.00
34 0.57 0.28 0.78 0.50 64 5.41 3.03 13.92 11.76
35 0.57 0.29 0.81 0.57 65 5.86 3.20 15.06 12.51
36 0.58 0.32 0.85 0.62 66 6.32 3.40 n/a n/a
37 0.60 0.36 0.90 0.74 67 6.82 3.61 n/a n/a
38 0.67 0.40 1.03 0.83 68 7.37 3.83 n/a n/a
39 0.71 0.46 1.11 0.96 69 7.97 4.07 n/a n/a
40 0.78 0.51 1.25 1.08 70 8.60 4.31 n/a n/a
41 0.82 0.57 1.39 1.24 71 9.29 4.57 n/a n/a
42 0.90 0.61 1.57 1.36 72 10.04 4.84 n/a n/a
43 1.00 0.71 1.76 1.53 73 10.84 5.13 n/a n/a
44 1.09 0.78 1.98 1.74 74 11.71 5.43 n/a n/a
45 1.20 0.85 2.24 1.94 75 12.65 5.76 n/a n/a
* As at last 1 July
1709/
Fees and other costs
Leaving your employer There are no fees or charges attached This document shows fees and other
If you cease employment with Telstra, to your TelstraSuper Division 2 Defined costs that you may be charged. These
you receive 30 days extended Death & Benefit, the fees and charges described fees and other costs may be deducted
TPD insurance cover. This cover ceases on the following pages apply to your from your money, from the returns on
30 days after ceasing employment or Voluntary Accumulation Account only. your investment or from the assets of the
immediately upon withdrawal of your superannuation entity as a whole. Other
entire benefit from TelstraSuper. DID YOU KNOW? fees, such as activity fees, advice fees for
personal advice and insurance fees, may
When we receive notification that you’re Small differences in both also be charged, but these will depend
leaving Telstra, your account balance will investment performance and fees on the nature of the activity, advice or
be transferred into our portable, flexible and costs can have a substantial insurance chosen by you.
product, TelstraSuper Personal Plus. impact on your long term returns.
Taxes, insurance fees and other
Your current level of Death only or For example, total annual fees costs relating to insurance are set
Death & TPD cover will be transferred and costs of 2% of your account out in another part of this document.
to TelstraSuper Personal Plus and may balance rather than 1% could You should read all the information
be split between base cover and top-up reduce your final return by up to about fees and other costs because
cover, to the same total value, without 20% over a 30 year period (for it is important to understand their impact
the need for assessment by TAL.* If you example, reduce it from $100,000 on your investment.
remain in TelstraSuper Personal Plus, to $80,000).
premiums will be payable for this cover.
You should consider whether
If you had top-up Death only or top-up features such as superior
Death & TPD cover as a TelstraSuper investment performance or the
Division 2 member, this will continue provision of better member
in TelstraSuper Personal Plus. You will services justify higher fees and
also have the opportunity to apply for costs.
Income Protection cover provided you
are continuously employed and working Your employer may be able
at least 15 hours per week. Applications to negotiate to pay lower
for additional cover are subject to administration fees. Ask the fund
assessment by TAL. Please refer to or you financial adviser.
the TelstraSuper Personal Plus
Product Disclosure Statement and TO FIND OUT MORE
TelstraSuper Personal Plus Insurance If you would like to find out more,
Guide for more information. These are or see the impact of the fees
available at telstrasuper.com.au/pds based on your own circumstances,
the Australian Securities and
Investments Commission (ASIC)
website (www.moneysmart.gov.au)
has a superannuation fee
calculator to help you check out
different fee options.
*S
ubject to the ‘active employment’ test
contained in the Policy.
18TelstraSuper Division 2 Voluntary Accumulation Account
Type of fee Amount How and when paid
Investment fee 3 0.42% pa for Growth Deducted in the calculation of unit prices daily.
0.38% pa for Balanced
0.26% pa for Diversified Income
0.25% pa for Defensive Growth
0.27% pa for Conservative
0.58% pa for International Shares
0.43% pa for Australian Shares
0.14% pa for Property
0.25% pa for Fixed Interest
0.10% pa for Cash
0.20% pa subject to a maximum of $3,000 pa Refer to the Direct Access Product Guide for
for the Direct Access investment option. more information.
Administration fee $1.50 per week Currently paid for by Telstra Corporation
Limited.
Indirect Administration fees of 0.20% are included
Plus
in the indirect cost ratio for each investment
option listed below (excludes Direct Access).
$172 pa if you are invested in the Direct If you are invested in the Direct Access
Access Investment option. investment option, Administration fees of
0.20% pa will be deducted from the amount
invested in Direct Access (see the Direct
Access Product Guide for more information).
Buy-sell spread The buy cost or sell cost ranges from 0.00% Deducted in the calculation of unit prices at the
to 0.30% depending on the investment time of the transaction.
option. Refer to the ‘Additional explanation
of fees and costs’ section on page 21 for
more details.
Switching fee Nil N/A
Exit fee Nil N/A
Advice fee Nil The cost of general and simple personal
advice about your TelstraSuper account is
included in the Administration fee currently
paid for by Telstra Corporation Limited.
Other fees and costs 1
Indirect cost ratio 0.50% pa for Growth Deducted in the calculation of unit prices daily.
0.47% pa for Balanced
0.27% pa for Diversified Income
0.34% pa for Defensive Growth
0.35% pa for Conservative
0.09% pa for International Shares
0.13% pa for Australian Shares
0.91% pa for Property
0.03% pa for Fixed Interest
0.00% pa for Cash
+
Administration fee of: 0.20% pa.
Estimated borrowing costs ranged between 0.00%-0.94% of the value of the options and reduced the value of the options over the last financial year. These costs were additional to the fees,
indirect costs and other transactional and operational costs. Refer to the table on page 22 for further details.
1. Other fees and costs such as activity fees, advice fees for personal advice or insurance fees may apply. Refer to the 'Additional explanation of fees and costs' section on page 21.
2. T
he indirect cost ratios (ICRs) are indicative and are based on the ICR for each investment option for the year ending 30 June 2018. They include costs which are known or, if not known, are reasonably
estimated, and which reduce either directly or indirectly the return of the investment option. The ICRs may vary from time to time. The actual amount that you will incur in subsequent financial years will
depend on the actual ICRs incurred by the Trustee in managing the investment option. Refer to the 'Additional explanation of fees and costs' section for further information about indirect costs.
3. The investment fees are estimates and include fees which are paid directly by the Trustee such as management fees, any applicable performance fees charged by investment managers and custodian
fees. The investment fees are based on the investment fees for the year ended 30 June 2018. The actual amount you will be charged in subsequent financial years will depend on the actual investment
fees incurred for the relevant period.
19You can also read
