ANZ Super Advantage. Supplementary Product Disclosure Statement. Fee changes. 1 November Change to the Withdrawal Fee and index used

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1 ANZ Super Advantage Supplementary Product Disclosure Statement 1 November 2008 This Supplementary Product Disclosure Statement (SPDS) replaces the Supplementary PDS dated 1 July 2007 and supplements the ANZ Super Advantage Member and Employer Product Disclosure Statements dated 1 January 2006 and Investment Information Book SPDS dated 9 December 2006, and Insurance Guide(s) PDS dated 1 January 2006 and SPDS dated 9 December 2006 (PDS) and is to be read together with that PDS. Terms defined in the PDS have the same meaning as in this SPDS. ING Custodians Pty Limited (ABN , AFSL , RSE L ) (ING Custodians) is the Trustee of the ING MasterFund (ABN , RSE R ) and the issuer of this SPDS. The purpose of this SPDS is to update the PDS to include: Fee changes Change to the Withdrawal Fee and index used Increase to the Credit Suisse Property fund's Investment Management Fee Increase to some of the Perpetual funds' Investment Management Fees Alternative Form of Remuneration Register Investment menu changes Correction to ING Cash investment objective Changes to investment funds Other important information Other updated disclosure Insurance administration payment Superannuation contribution caps Why it s more important than ever that we have a member s Tax File Number (TFN) ANZ servicing Change in administrator for Defined Benefit services Anti-money laundering and counter-terrorism legislation Launch of a new Financial Ombudsman Service Supermatching Simpler Super changes resulting from the 2006/2007 Budget changes 2008/2009 Federal Budget changes Fee changes Change to the Withdrawal Fee and index used The Withdrawal Fee is indexed annually in line with changes in the Consumer Price Index (CPI) using the 31 December year end rate. Replace the dollar based Withdrawal Fee and corresponding footnote disclosed in the following parts of the PDS with the updated fee and footnote shown in the boxes below. Please disregard the 31 March 2006 and 1 April 2006 date references where they appear in the following parts of the PDS: ANZ Super Advantage PDS Member Book What are the fees and other costs Page 14 Additional explanation of fees and costs Page 17 Example of annual fees and costs for a balanced investment fund Page 20 ANZ Super Advantage PDS Employer Book What are the fees and other costs Page 13 Additional explanation of fees and costs Page 17 Example of annual fees and costs for a balanced investment fund Page 20 $77.16 ($65.59 after tax) * For withdrawals processed after 1 July 2008 and depending upon the fee plan applicable to the employer's plan, the Withdrawal Fee may be $77.16 ($65.59 after tax) indexed in line with changes in the Consumer Price Index (CPI). This fee is indexed annually in line with the 31 December year ended rate. Increase to the Credit Suisse Property fund's Investment Management Fee (IMF) Effective 8 December 2008, the IMF of the Credit Suisse Property fund is increasing. Replace the IMF disclosed in the following part of the PDS with the updated fee shown below: ANZ Super Advantage SPDS Investment Information Book Investment Management Fees Page 8 The IMF is as follows: Investment fund IMF p.a. IMF p.a. (after tax) Credit Suisse Property 0.91% 0.77% ING Custodians Pty Limited ABN AFSL RSE L Kent Street Sydney NSW 2000

2 2 ANZ Super Advantage Supplementary PDS Increases in the IMFs for some of the Perpetual investment funds Replace the Investment Management Fees (IMFs) disclosed for the relevant Perpetual funds with those shown in the table below, in the following part of the PDS: ANZ Super Advantage SPDS Investment Information Book Pages 7 9 The IMFs are as follows: Investment fund IMF p.a. IMF p.a. (after tax) Perpetual Conservative Growth 0.84% 0.71% Perpetual Balanced Growth 0.97% 0.82% Perpetual Australian Shares 0.97% 0.82% Alternative Form of Remuneration Register Insert the text shown in the box below within the following parts of the PDS: ANZ Super Advantage PDS Member Book Investment menu changes Correction to ING Cash investment objective Replace the investment objective disclosed within the following part of the PDS with text shown in the box below. ANZ Super Advantage SPDS Investment Information Book Defensive Cash/Fixed Interest single manager Page 34 Investment objective The fund aims to achieve returns (before fees, charges and taxes) that exceed the UBS Bank Bill Index, over periods of one year or more. Changes to investment funds The below mentioned investment funds have updated disclosure. Please replace the disclosure as indicated in the relevant parts of the PDS, with text shown in the boxes. What are the fees and other costs? Page 19 ANZ Super Advantage PDS Employer Book What are the fees and other costs? Page 19 ING Australia Limited maintains an Alternative Form of Remuneration Register (Register) in accordance with IFSA Industry Code of Practice on Alternative Forms of Remuneration in the Wealth Management Industry. The Register outlines the alternative forms of remuneration which are paid and received from givers and receivers of such remuneration. If members would like to view the Register, please contact Customer Services on

3 OptiMix specialist investment manager changes ANZ Super Advantage SPDS Investment Information Book Specialist investment managers Page 12 Replace the specialist investment managers table with that shown below: International shares Global emerging markets Global smaller companies * Australian shares Australian property securities 3 ANZ Super Advantage Supplementary PDS * Global property securities Cash Global fixed interest Australian fixed interest Australian inflation linked fixed interest bonds * Currency manager Manages US Mortgage backed securities within International Fixed Interest. The specialist investment managers are current as at the time of the preparation of the SPDS. The investment managers are regularly reviewed and may be removed at any time and the investment objectives and strategies may be changed without prior notification to you. As a result, the investment managers within may vary throughout the life of the PDS. Current information on the specialist investment managers is available at

4 4 ANZ Super Advantage Supplementary PDS Long/short investment strategy It is proposed that OptiMix will introduce a long/short investment strategy for its international shares asset class in the future. Accordingly, the disclosure shown in the box below should be included in the following part of the PDS. ANZ Super Advantage SPDS Investment Information Book How the OptiMix investment process works Page 12 Long/short investment strategies involve the purchase of undervalued shares (long position) and short selling of overvalued shares (short position). The benefits A long position allows a manager to profit from stocks that are expected to increase in value. Short selling allows managers to profit from stocks that are expected to decline in value by selling borrowed stock at a higher price and buying it back at a lower price. This means that a long/short investment strategy allows managers to add value from both falling and rising stock prices, thereby potentially enhancing returns for investors. When will the change occur? Changes to Barclays Global Investors Diversified Growth fund Replace the asset allocation benchmarks and ranges with those shown in the box below within the following part of the PDS: ANZ Super Advantage SPDS Investment Information Book Growth single manager Page 29 Asset allocation benchmarks and ranges Asset class Benchmark (%) Range (%) Cash Australian fixed interest International fixed interest Property securities Australian shares International shares (unhedged) International shares (hedged) 8 Global listed infrastructure (unhedged) Commodities Global inflation-linked bonds This is a proposed change and as such, it has no definitive start date. Where relevant law permits, we expect this strategy to be implemented towards the end of Funds impacted by the change: OptiMix Balanced OptiMix Conservative OptiMix Global Shares OptiMix Growth OptiMix High Growth OptiMix Moderate Changes to Zurich Managed Growth fund Replace the fund's name, investment objective, investment strategy and asset allocation benchmarks and ranges with updated details as shown in the boxes below in the following part of the PDS: ANZ Super Advantage SPDS Investment Information Book 'Investment Management Fees' Page 7 'Growth single manager' Page 31 'Member Investment Choice Nomination Form' Page 56 Zurich Investments Managed Growth ANZ Super Advantage SPDS Investment Information Book Growth single manager Page 31 Investment objective To provide investors with capital growth over the medium to long term and a modest level of income. The fund aims to outperform the performance benchmark over a period of five years. Investment strategy The fund invests in a mix of Australian and international shares, fixed interest securities, property securities and cash. The fund is designed to reduce investment risk by diversifying across asset classes.

5 Asset allocation benchmarks and ranges Asset class Benchmark (%) Range (%) Cash Australian fixed interest International fixed interest Property securities Global property securities Australian shares International shares Changes to Russell diversified investment funds Replace the fund's investment strategy and asset allocation benchmark and ranges as shown in the boxes below, within the following part of the PDS. Russell Growth ANZ Super Advantage SPDS Investment Information Book 'High Growth multi manager' Page 32 Investment strategy This fund typically invests in a diversified portfolio mix with exposure to 90% growth and 10% income investments. Asset allocation benchmarks and ranges Asset class Benchmark (%) Range (%) Cash Fixed interest Defensive alternatives Property Australian shares International shares Growth alternatives Russell Diversified 50 Replace the fund's investment objective, investment strategy and asset allocation benchmark and ranges as shown in the boxes below, within the following part of the PDS: ANZ Super Advantage SPDS Investment Information Book 'Moderate multi manager' Page 24 Investment objective To aim to provide investors with a mix of both medium term capital growth with some volatility and income through exposure to a diversified investment portfolio. 5 ANZ Super Advantage Supplementary PDS Asset allocation benchmarks and ranges Asset class Benchmark (%) Range (%) Cash Fixed interest Defensive alternatives Property Australian shares International shares Growth alternatives Russell Capital Stable Replace the fund's investment strategy and asset allocation benchmark and ranges as shown in the boxes below, within the following part of the PDS. ANZ Super Advantage SPDS Investment Information Book 'Conservative multi manager' Page 20 Investment strategy This fund typically invests in a diversified portfolio mix with exposure to 50% growth and 50% income investments. Asset allocation benchmarks and ranges Asset class Benchmark (%) Range (%) Cash Fixed interest Defensive alternatives Property Australian shares International shares Growth alternatives Investment strategy This fund typically invests in a diversified portfolio mix with exposure to 30% growth and 70% income investments.

6 6 ANZ Super Advantage Supplementary PDS Russell Balanced Replace the fund's investment strategy and asset allocation benchmark and ranges as shown in the boxes below, within the following part of the PDS. ANZ Super Advantage SPDS Investment Information Book 'Growth multi manager' Page 28 Investment strategy This fund typically invests in a diversified portfolio mix with exposure to 70% growth and 30% income investments. Asset allocation benchmarks and ranges Asset class Benchmark (%) Range (%) Cash Fixed interest Defensive alternatives Property Australian shares International shares Growth alternatives Correction to benchmark for OptiMix Balanced investment fund for Global emerging markets shares asset class Replace the benchmark asset allocation for the 'Global emerging markets shares' asset class disclosed within the following part of the PDS with the allocation shown in the box below: ANZ Super Advantage SPDS Investment Information Book 'Growth multi manager' Page 27 Global emerging markets shares should read 5%. Changes to some of the ING investment funds asset allocations Replace the relevant funds asset allocation benchmarks and ranges as shown in the boxes below within the following part of the PDS: ING Capital Stable ANZ Super Advantage SPDS Investment Information Book Conservative single manager Page 21 Asset allocation benchmarks and ranges Asset class Benchmark (%) Range (%) Cash Enhanced cash 15 n/a Australian fixed interest International fixed interest Property securities Global property securities Australian shares International shares Alternative assets (defensive) ING Balanced ANZ Super Advantage SPDS Investment Information Book Moderate single manager Page 24 Asset allocation benchmarks and ranges Asset class Benchmark (%) Range (%) Cash Diversified fixed interest International fixed interest Property securities Global property securities Australian shares International shares Alternative assets (growth) Alternative assets (defensive)

7 ING Managed Growth ANZ Super Advantage SPDS Investment Information Book Growth single manager' Page 29 Global property securities Insert the new text shown in the box below within the following part of the PDS: Asset allocation benchmarks and ranges Asset class Benchmark (%) Range (%) Cash Diversified fixed interest International fixed interest Property securities Global property securities Australian shares International shares Alternative assets (growth) Alternative assets (defensive) ANZ Super Advantage SPDS Investment Information Book INGIM's investment processes' Page 13 A multi-step portfolio construction process is employed combining top-down portfolio design and bottomup security analysis. These steps include top-down country/region allocation, top-down property sector allocation and bottom-up security selection. Regional and property type allocations are determined following a systematic evaluation of public and private real estate market trends, conditions and research by team members based in local markets throughout the world. A proprietary valuation process is used in the selection of individual securities that identifies investments with superior current income and growth potential relative to their peers. 7 ANZ Super Advantage Supplementary PDS Other important information Relevant parts of the PDS require updating as indicated below. What standards do we adhere to when investing? The text in the box below is updated information and replaces the first paragraph as indicated in the following part of the PDS: ANZ Super Advantage SPDS Investment Information Book What standards do we adhere to when investing Page 53 The Trustee does not take into account labour standards, environmental, social or ethical considerations for the purpose of selecting, retaining or realising investments. With the exception of ING Sustainable Investments Australian Shares, INGIM does not explicitly take into account labour standards, environmental, social or ethical considerations for the purpose of selecting, retaining or realising investments. However, where such issues may materially impact financially on a company in which INGIM holds an investment, INGIM may divest itself of that investment. For this reason, these factors are implicitly taken into account when making investment decisions. Short selling risk Insert the text shown in the box below within the following parts of the PDS: ANZ Super Advantage PDS Member Book Other risks Page 12 ANZ Super Advantage PDS Employer Book Other risks Page 11 Where relevant law permits, some of the investment funds available on ANZ Super Advantage may engage in short selling. The objective of short selling is to benefit from falling markets, whereby a manager sells a security it does not own, in the hope of buying it back at a later date and at a lower price. The potential loss on a short position is theoretically unlimited. This is because there is potentially no limit on how much the price of the security can rise, before the short position is closed off. Super Safety RSE licensing and registration numbers Insert the text shown in the box below at the end of the second paragraph within the following parts of the PDS: ANZ Super Advantage PDS Member Book ANZ Super Advantage PDS Employer Book Inside front cover Inside front cover The Trustee s Registrable Superannuation Entity (RSE) licence number is RSE L The RSE registration number for the ING MasterFund is RSE R

8 8 ANZ Super Advantage Supplementary PDS Other updated disclosure Various parts of the PDS have updated disclosure as follows: Insurance administration payment Replace the disclosure that currently appears within the following parts of the PDS with the updated text shown in the box below: ANZ Super Advantage Member Book 'Insurance commission' Page 18 ANZ Super Advantage Employer Book 'Insurance commission' Page 18 ANZ Super Advantage SPDS Insurance Guide TOWER Australia Limited - Death and Total and Permanent Disablement Cover Employer-sponsored members 'Commission' Page 2 ANZ Super Advantage SPDS Insurance Guide - TOWER Australia Limited - Group Salary Continuance Cover Employer-sponsored members 'Commission' Page 2 ANZ Super Advantage SPDS Insurance Guide TOWER Australia Limited Death and Total and Permanent Disablement Cover - Retained and Personal members 'Commission' Page 2 ANZ Super Advantage SPDS Insurance Guide - TOWER Australia Limited Group Salary Continuance Cover - Retained and Personal members 'Commission' Page 2 Insurance administration payment The insurer may pay ING Life Limited (as the administrator) an amount of up to 10% of insurance premiums. No GST is payable on this amount. Insurance premiums are inclusive of this amount. Superannuation contribution caps Insert the text shown in the box below within the following parts of the PDS: ANZ Super Advantage PDS Member Book 'Member contributions' Page 27 ANZ Super Advantage PDS Employer Book 'Super contributions' Page 26 Because of the concessional treatment of superannuation, limits known as contribution caps have been placed on superannuation contributions. Please refer to page 11 for further details on the taxation consequences of exceeding the caps. Concessional contributions Concessional contributions include employer contributions (including salary sacrifice contributions), personal contributions for which a tax deduction has been claimed and certain directed termination payment amounts. Concessional contributions cap An annual cap on concessional contributions applies on a financial year basis. The cap is $50,000 for 2008/09 and will be indexed to Average Weekly Ordinary Time Earnings (AWOTE) but will only increase in $5,000 increments. A transitional cap of $100,000 (not indexed) applies for people aged 50 or over during a transitional period ending 30 June Concessional contributions which are split to a spouse are assessed against the member's cap and not their spouse s cap. Please refer to the Contributions Splitting Policy available on Products and Services/ANZ Super Advantage page for more information on contributions splitting. There are exemptions to the concessional cap which include: > Taxable portion of a foreign superannuation fund amount > First $1,000,000 of a directed termination payment > Untaxed element of a roll over superannuation benefit.

9 Non-concessional contributions Non-concessional contributions are generally not subject to tax in the superannuation fund. They include: > personal contributions for which no tax deduction has been claimed > spouse contributions > government co-contributions. Non-concessional contributions cap An annual non-concessional contributions cap applies on a financial year basis. The non-concessional cap is $150,000 for 2008/09 and is set at three times the concessional contributions cap. Please note that individuals age 50 or over who have a transitional concessional cap of $100,000 will not be entitled to a non concessional cap of $300,000. If the member is under age 65 at any time during the financial year, larger contributions can be made by bringing forward two years contributions. There are exemptions to the non-concessional cap which include: > government co-contribution > eligible proceeds that relate to Capital Gains Tax (CGT) small business concessions up to a lifetime limit of $1,045,000 dollars (indexed) > payments that relate to structured settlements or orders for personal injuries > rollover superannuation benefits. For further information on contribution caps, we recommend members speak to a financial adviser. Why it s more important than ever that we have a member's TFN The text shown in the box below is updated information for inclusion in the following parts of the PDS: ANZ Super Advantage PDS Member Book What do members need to know about taxation? Pages ANZ Super Advantage PDS Employer Book What do employers need to know about taxation? Page 28 The changes to legislation, effective 1 July 2007, mean that if a member s superannuation is with us and we don t have their TFN, they: > could pay 46.5% tax on concessional contributions (such as compulsory employer contributions and salary sacrifice) > will be unable to make member contributions (after-tax contributions) > could miss out on any government co-contribution payment (if eligible) > will not be able to split their eligible contributions with their spouse. These factors could significantly impact a member s superannuation savings. How can this be avoided? It s simple a member needs to be sure to provide us with their TFN. Please refer to the Tax File Number Notification form in relation to what you should know when providing a TFN. 9 ANZ Super Advantage Supplementary PDS Contributions and Tax File Numbers (TFN) Members are not required to provide their TFN. Declining to quote their TFN is not an offence. However, if a TFN is not provided, either now or later, we may not be able to accept non-concessional contributions, and members may be liable to pay additional tax on concessional contributions. The government has placed limits known as contributions caps on concessional (taxable) and nonconcessional (after-tax) contributions. The Trustee is unable to accept non-concessional contributions that exceed the member's non-concessional cap or member contributions if the member has not provided their TFN. Further details on the contributions caps are outlined above and the taxation consequences of exceeding the contributions caps are detailed on page 11. How can a TFN be provided to us? A member can provide their TFN in the following ways: > by completing the Tax File Number Nomination Form and returning it to us via post or fax. > the Tax File Number Nomination Form is available from This form can then be sent to GPO Box 4028, Sydney NSW 2001 or faxed to > by calling , weekdays between 8.00am and 8.00pm (AEST)

10 10 ANZ Super Advantage Supplementary PDS What are an employer s TFN responsibilities? For a number of years, the employer has had an obligation to pass on a TFN to the super fund where the employee has authorised the employer to provide their TFN to the superannuation fund. From 1 July 2007 an employer must provide the employee s TFN to their superannuation fund where the employee has completed a TFN declaration. This will apply to all new employees and any existing employees who complete a TFN declaration form. If an employer makes a superannuation contribution for their employee, they need to give their employee s superannuation fund their TFN within 14 days of receiving his or her TFN declaration form. But if an employer does not make a contribution for the employee in that period, they may pass the employee s TFN on to their superannuation fund at the time when the employer first makes such a contribution after receiving the declaration form. For more information visit our website at ANZ Servicing Throughout the PDS it should be noted that any services provided by ANZ will now be provided by either ING Australia Limited (a joint venture partnership between ING, which owns 51% and ANZ, which owns 49%) or ANZ Financial Planning. For any queries please call Customer Services on Change in administrator for Defined Benefit services The Trustee has appointed ING Life for the provision of specialist Defined Benefit administration services and accordingly references to AON Consulting Pty Limited within the following parts of the PDS need to be deleted. ANZ Super Advantage PDS Member Book ANZ Super Advantage PDS Employer Book Inside front cover Inside front cover ANZ Super Advantage Investment Information Book Inside front cover ANZ Super Advantage PDS ING Life Death and Total and Permanent Disablement Inside front cover ANZ Super Advantage PDS ING Life Group Salary Continuance Inside front cover ANZ Super Advantage PDS TOWER Life Death and Total and Permanent Disablement Employer sponsored members Inside front cover ANZ Super Advantage PDS TOWER Life Death and Total and Permanent Disablement Personal/Retained members Inside front cover ANZ Super Advantage PDS TOWER Life Group Salary Continuance Employer sponsored members Inside front cover ANZ Super Advantage PDS TOWER Life Group Salary Continuance Personal/Retained members Laws were implemented from 12 December 2007 to improve Australia s existing anti-money laundering and counter-terrorism financing (AML/CTF) system. These laws meet higher international standards to protect Australian businesses from being used for money laundering and terrorism financing. As a result, ING is required to identify their clients for certain transactions. Client verification will be needed when the following scenario occurs: Superannuation products withdrawal stage. Inside front cover Anti-money laundering and counter terrorism legislation The text shown in the box below is updated information for inclusion in the following parts of the PDS: ANZ Super Advantage PDS Member Book What else do members need to know? Page 45 ANZ Super Advantage PDS Employer Book What else do employers need to know? Page 33 Generally, your financial adviser will undertake the steps necessary to verify your identity, but to enable them to do so, you will need to provide certain documents (such as your passport or current drivers licence) for sighting and verification. If you are undertaking these transactions without a financial adviser, you will need to include certified copies of these documents with your transaction request. If you do not provide identifying documents we will not be able to process your transaction. The AML/CTF Act also imposes reporting obligations on us if we form suspicions about the identity of someone we are transacting with or about the transaction itself. In these circumstances, we may decide to delay or decline to process that transaction and report it to the regulator if we are concerned that the request or transaction may breach the provisions of the AML/CTF Act or cause us to commit an offence under the Act. If we take this step you will not incur any liability from us. Please note: we will still request verification of a member s identity under existing business procedures that are separate from the AML/CTF legislation, e.g. cash payments over certain amounts, death benefit payments, etc.

11 Launch of a new Financial Ombudsman Service The text shown in the box below is updated information for inclusion in the following parts of the PDS: ANZ Super Advantage PDS Member Book What else do members need to know? Page 45 ANZ Super Advantage PDS Employer Book What else do employers need to know? Page 33 A new Financial Ombudsman Service (FOS) began operating on 1 July The FOS represents a merger of three of the complaints schemes operating in the financial services industry the Financial Industry Complaints Service (FICS), the Banking and Financial Ombudsman Service (BFSO) and the Insurance Ombudsman Service (IOS). The new FOS will continue to operate the rules and procedures of the three existing schemes, with a view to operating under a single set of rules no later than 1 January Tax information Many factors can influence the way superannuation is taxed. This section is of a general nature only and is based on current tax law, which may change. Members should speak to their financial adviser or tax adviser if they require further tax information. Tax can apply to superannuation at the contribution stage, during the investment earning stage, and at the withdrawal stage. The tax members pay in a superannuation fund is generally lower than the tax that would be paid outside superannuation. Tax on contributions Concessional contributions Concessional contributions are taxed at 15% in the superannuation fund. Non-concessional contributions Non-concessional contributions are generally not subject to tax in the superannuation fund. 11 ANZ Super Advantage Supplementary PDS Supermatching Insert the text shown in the box below within the following part of the PDS: ANZ Super Advantage PDS Member Book 'What else do members need to know?' Page 45 Supermatching is a service the ATO provides to super funds which allows them to search various ATO databases, including the Lost Members Register, so that members may be matched with their benefits. The Trustee may conduct this search process on behalf of members. If we match a member with their missing benefits, we may advise them and offer to consolidate the funds into their existing superannuation account with us. If a member does not want the Trustee to undertake this free service on their behalf then they will need to advise the Trustee in writing. Simpler super changes resulting from the 2006/2007 Federal Budget The text shown in the box below is updated information and replaces the text disclosed within the following parts of the PDS: ANZ Super Advantage PDS Member Book What do members need to know about taxation? Pages ANZ Super Advantage PDS Employer Book What do employers need to know about taxation? Page 28 Tax consequences of exceeding contribution caps Annual caps apply to both concessional and nonconcessional contributions. Tax is payable if the relevant cap in a financial year is exceeded. The caps will be monitored by the Australian Taxation Office (ATO) and if a cap for a financial year is exceeded, members will be sent an assessment by the ATO and a release authority, such that the additional tax can be paid from superannuation monies. If the concessional cap is exceeded, additional tax at 31.5% will apply for the amount that exceeds the cap. The tax can be paid from superannuation monies or from personal monies outside the superannuation system. If the non-concessional cap is exceeded, tax at 46.5% will apply for the amount that exceeds the cap. The tax must be paid from superannuation monies. Contributions in excess of the concessional cap will also count towards the non-concessional contributions cap. No-Tax File Number Contributions Tax If a TFN has not been provided to the Trustee of the Fund by the 30 June following the date on which a concessional contribution was made, additional tax at a rate of 31.5% will apply to that contribution. The additional tax is refundable if members subsequently quote their TFN to the Trustee within certain time limits.

12 12 ANZ Super Advantage Supplementary PDS Deductions for contributions Where an employer contributes to superannuation on a member s behalf, members will generally not be able to claim a tax deduction for any personal contributions made. Members who do not earn income from employment or whose income from employment is less than 10% of total assessable income plus reportable fringe benefits, may be entitled to claim a tax deduction for personal contributions to the Fund. Before the deduction can be claimed, members will need to lodge a notice with the Trustee of the Fund and the Trustee must acknowledge that they have received and accepted the notice (conditions apply). Deductions for insurance premiums A tax deduction is generally available within the Fund for life insurance premiums paid from a member s account balance. Where the deduction is available this will be reflected in a member s account balance. Tax on investment earnings Investment earnings are taxed at a maximum rate of 15%, however, this rate may be reduced by franking credits, foreign tax credits and concessionally taxed capital gains. Tax on withdrawals When a condition is satisfied that allows a member to access their superannuation, the superannuation benefit can be taken either as a lump sum withdrawal or as a regular income stream. Please refer to Withdrawing benefits on page 30 of the Member Book. Tax payable on lump-sum withdrawals Age 60 or over No tax is payable on benefits taken once a member has reached age 60. Under age 60 The benefit will generally consist of only two components taxable and tax free. Members are required to draw down proportionately from these components. The tax free component may be increased if the payment qualifies as a disability superannuation benefit. There will be no tax payable in respect of the tax free component of the withdrawal. Component Maximum rate of tax including Medicare Preservation age to Amount up to low rate cap* 0% age 59 Amount over low rate cap* 16.5% Under preservation age 21.5% * The low rate cap of $145,000 (2008/09) is indexed annually but will only increase in $5,000 increments. Tax on death benefits The tax treatment of death benefits depends on whether a dependant or non-dependant ultimately receives the benefit. Paid to a dependant A lump sum death benefit paid to a dependant will be tax free. A dependant includes a spouse, former spouse, child under 18 years of age, or someone who had an interdependency relationship with, or was financially dependent upon the deceased at the time of death. In some circumstances we are also able to pay an amount in addition to the death benefit which notionally represents the amount that would have been included in the death benefit had tax not been payable on the contributions. Paid to a non-dependant A lump sum death benefit paid to someone who is not a dependant will generally consist of a taxable and tax free component. There is no tax on the tax free component, and the taxable component will generally be taxed at a maximum rate of 16.5% (including Medicare levy). Where active life insurance cover was in force at the date of death the benefit may also include an untaxed element which will be taxed at a maximum rate of 31.5%. Paid to a member s estate A lump sum payment to a member s estate will be taxed depending on whether dependants or non-dependants finally receive the benefit. The legal personal representative is responsible for tax arrangements when the estate pays the benefit to a member s beneficiary(ies). The table below shows the maximum rates of tax payable on the taxable component of lump-sum withdrawals if members have given us their TFN.

13 2008/2009 Federal Budget update Insert the text shown in the boxes below within the following parts of the PDS: ANZ Super Advantage PDS Member Book What else to members need to know? Page 45 ANZ Super Advantage PDS Employer Book What else to employers need to know? Page 33 The 2008/2009 budget delivered a number of proposed changes affecting superannuation. Some of these initiatives are yet to be legislated and may change. We have summarised some of the proposed changes affecting ANZ Super Advantage members below. Please note: this information is of a general nature only. Your financial adviser can help you determine the impact these changes may have on your investment. Salary sacrificing into superannuation With effect from 1 July 2009, the government is proposing to expand the definition of income that is used to determine eligibility for government support programs and certain tax offsets. To ensure that employees who have access to salary sacrifice arrangements are treated as equally as those who do not, salary sacrifice contributions to superannuation will now be included in income. Payments that may be affected include government co-contribution, income support for people below age pension age, family assistance, child support and financial and retirement savings assistance delivered through the tax system. Same sex couples Proposed legislation has been introduced to remove same sex discrimination from a wide range of Commonwealth laws, including tax, superannuation, social security, health, aged care, veterans entitlements, workers compensation and employment entitlements. The reforms are being phased in over 2008/2009, and will provide new rights for same sex couples and their children. Unclaimed money The text in the box below should be included in the following part of the PDS: ANZ Super Advantage PDS Member Book What else do members need to know? Page 43 If you are age 65 or over and we have not received a contribution or rollover for two years and are unable to contact you after five years since us last contacting you then we will be required to pay your benefit to the government as unclaimed money. 13 ANZ Super Advantage Supplementary PDS Commonwealth Seniors Health Card From 1 July 2009, it is proposed that the Commonwealth Seniors Health Card income test will also include salary sacrifice contributions to superannuation, as well as income from superannuation income streams. Tax free terminal illness benefit payments Changes to tax and superannuation law for benefit payments, effective 1 July 2007, ensure members who have satisfied a terminal medical condition condition of release can now receive their lump sum payments tax free. For more information contact your financial adviser. Payment of Temporary Residents Superannuation to the Australian Government The government is proposing to use unclaimed superannuation arrangements to transfer the unclaimed account balance of temporary residents, six months after they depart Australia and no longer hold a visa. Departed temporary residents will be able to claim back, at any time, any superannuation that has been paid to the government.

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16 16 ANZ Super Advantage Supplementary PDS Customer Services Phone enquiries weekdays between 8.00am and 8.00pm (AEST) Fax Postal address ANZ Super Advantage GPO Box 4028 Sydney NSW 2001 Website A2374/1108

17 ANZ Super Advantage Employer Book The Employer PDS is comprised of: > Employer Book (this book) > Member Book > Investment Information Book > Insurance Guide(s) > Associated Employer Application Form Product Disclosure Statement Product Disclosure Statement 1 January January 2006

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19 Contents Welcome to ANZ Super Advantage 4 What are the benefits? 5 What are the risks? 9 What are the fees and other costs? 12 How does ANZ Super Advantage work for employers? 21 What do employers need to know about contributions and benefit payments? 25 What do employers need to know about taxation? 28 What else do employers need to know? 29 When an employer joins ANZ Super Advantage, their employees become members of ING MasterFund ABN (SFN: ; SPIN ANZ0265AU) (Fund). ING Custodians Pty Limited ABN AFSL (ING Custodians) is the Trustee of the Fund and the issuer of this Product Disclosure Statement (PDS). ING Custodians is a subsidiary of ING Australia Limited ABN (ING Australia). The Trustee invests all contributions in a master life policy issued by ING Life Limited ABN AFSL (ING Life) which then invests in selected investment fund(s). The master life policy is governed by the Life Insurance Act 1995 (Act) and is a contract between the Trustee and ING Life. ING Life is required to conduct its business in accordance with the Act and in the best interests of policyholders, and invest all of the assets it receives from the Trustee in statutory funds approved by the Australian Prudential Regulation Authority and must comply with prescribed capital and solvency standards. ING Life is also the administrator of the Fund. An investment in the Fund is neither a deposit nor a liability of: > Australia and New Zealand Banking Group Limited ABN (ANZ) or any of its related corporations > ING Australia > ING Bank (Australia) Limited ABN (ING Bank) > ING Investment Management Limited ABN (INGIM) > any other company in the ING Group (ING) other than ING Life in relation to the master policy. ANZ Super Advantage Employer Book If you select insurance cover as part of ANZ Super Advantage, the insurance cover is provided by either TOWER Australia Limited ABN (TOWER) or ING Life under group policies issued to the Trustee. Employees are provided with a copy of the relevant Insurance Guide(s), which explains the insurance cover available to them, upon joining the plan. The Insurance Guide(s) form a part of the PDS. The Trustee reserves the right to change the insurer, or vary the benefits or premium rates from time to time. Employees are provided with this PDS comprising of the Member Book, Investment Information Book and Insurance Guide(s), which explain the features of the product, including investment and insurance cover available to them upon joining the plan. This PDS should not be used as a substitute for financial advice and employers should speak to a licensed financial adviser before participating in ANZ Super Advantage. This PDS will assist employers to determine whether this product is suitable for their employees needs and assist members to understand their superannuation benefits, including the available investment and insurance options. You should read all parts of this PDS. The Trustee relies on a number of third parties for the provision of specialist services in respect of the Fund, such as ING Life to provide the master policy and through it: > INGIM to manage ING investment funds, except ING Mortgages which is managed by ING Australia. INGIM is not a subsidiary of ING Australia > INGIM to also manage specialist OptiMix Manage the Managers investment funds > a range of external fund managers who manage the investment funds other than those managed by INGIM > Aon Consulting Pty Limited ABN (Aon) for specialist Defined Benefit administration services. The Trustee operates these relationships on an arms length basis. ING Custodians is responsible for the contents of this PDS except for information about external fund managers and externally managed investment funds. Information about each external fund manager and the investment strategy, objectives and the asset allocation of any investment fund it manages is based on information provided by the external fund manager. The external fund managers have provided consent to be named. The external fund managers consent to information based on information they have provided being included in this PDS in the form and context in which it has been included and they have not withdrawn their consent at the time of preparation of this PDS. They take no responsibility for any other information in this PDS. The value of investments in managed funds, superannuation and retirement products rises and falls. Neither ING Custodians nor any company associated with ING, nor any entity in ANZ, guarantees investment performance or earnings or return of capital investment in the Fund unless otherwise stated. In this PDS, the terms us, we and our refer to ING Custodians. The Trustee can change any procedures or the terms and conditions referred to in this PDS with reasonable notice, as appropriate. The invitation to invest in ANZ Super Advantage in this PDS is only available to persons receiving this PDS in Australia. It is not made, directly or indirectly, to persons in any other country. ING Custodians Pty Limited 347 Kent Street Sydney NSW 2000 Phone Fax

20 ANZ providing you with access to premium products that are specifically designed to meet the superannuation needs of your employees. ANZ Super Advantage Employer Book As an employer, we are only too aware that the scope and complexity of your organisation can place significant demands on the time and focus of your management team. The responsibilities of a trustee are onerous and when coupled with an increasingly complex regulatory environment, many companies decide to outsource their superannuation requirements. This allows them to focus their efforts on managing their superannuation outcomes, rather than processes, whilst satisfying the company s need for value and risk control. ANZ Super Advantage offers a complete superannuation solution for you and your employees. ANZ Super Advantage outsourcing superannuation with confidence ANZ and ING are very confident that their combination of skills, services, expertise and experience provides you with the building blocks required to offer a premium superannuation solution to your employees.

21 ANZ > Strong > Different > Successful > Sustainable Australia and New Zealand Banking Group Limited (ANZ) is a major international banking and financial services group that has secured and retained a firm position as one of the top 100 banks globally. With more than 1,000 points of representation in over 25 countries and in excess of 16,000 staff in Australia and 23,000 worldwide, ANZ is one of the most efficient, well managed and most successful banks in the world. ANZ s business is financial solutions. Recognised as one of the leading financial institutions in Australia and New Zealand, ANZ is the chief banker to over 35% of Australia s large corporations and ANZ has consistently delivered on that proposition for over 160 years. The ANZ record is clear and independently recognised: > Bank of the Year six years in a row * > Best Financial Institution 2005 * Money magazine s Bank of the Year Personal Investor magazine s Bank of the Year (inclusive). Strategic partners in success ANZ recognises that in order to provide premium financial solutions, external skills and resources spanning a range of specialist functions are required. For that reason, ANZ has formed a number of valuable alliances with premier organisations to ensure delivery of market-leading solutions, across a diverse range of sectors, to our clients. ANZ s search for a premium funds management partner resulted in the selection of the global ING Group (ING) and the formation of ING Australia as a joint venture partnership between ING, which owns 51%, and ANZ, which owns 49%. ING Australia currently manages: > Over $6 billion of employer superannuation funds for more than 28,000 employers and over 510,000 members. > In excess of $30 billion in assets under management for over one million individuals. Through ANZ s joint venture arrangements with ING, ANZ s clients have access to leading investment management, administration and Trustee services. Why ING? ING is one of the world s largest wealth managers and one of Australia s leading fund managers and life insurers, providing employer superannuation solutions for Australian businesses since ANZ Super Advantage Employer Book Australian Banking & Finance magazine ING Australia uses ING Investment Management (INGIM) to manage ING investment fund options, however, INGIM is not a subsidiary of ING Australia. INGIM is the specialist global investment manager within ING Group. INGIM > More than 2,400 staff across 29 countries > Global assets under management A$563 billion > Currently manages in excess of $33 billion in Australia

22 Welcome to ANZ Super Advantage ANZ Super Advantage Employer Book This Employer Book, which forms part of the Product Disclosure Statement (PDS) has been prepared to provide employers with information about ANZ Super Advantage. It will assist you in determining whether ANZ Super Advantage is suitable for your business. This PDS outlines all the relevant information, including the benefits and risks, insurance options, available investment funds, fees, plan features, administration and servicing. References in this Employer Book to you and your are references to the employer.

23 What are the benefits? ANZ Super Advantage offers a complete workplace super solution that provides your employees access to a wide range of benefits designed to help meet their superannuation and retirement needs both now and into the future. ANZ Super Advantage offers you and your employees a range of key benefits. Investment choice and flexible insurance options > Your employees can maximise returns while managing risk by diversifying your superannuation across a choice of over 55 specially managed investment funds > Access to funds managed by ING s active Manage the Managers solution OptiMix, Russell, INGIM, as well as other leading external fund managers > Help your employees protect those closest to them through insurance cover packaged within their superannuation Great value for money > High quality, full service offering > Very flexible and competitive pricing tailored to your organisation s specific needs > Free super clearing service for most plans > Low member fees > Unlimited switching between investment funds Member education and communication > Through ANZ L-earn, our online financial education tutorial, employees can learn about a range of financial topics in their own time and at a pace that suits them > To ensure you and your employees are kept well informed on your super funds, legislative changes, investment performance and related topics of interest, you will receive a series of regular communications and ongoing support throughout the year Consistent and reliable servicing > We work with you to transfer your plan as quickly and smoothly as possible > Prompt and efficient ongoing servicing is available through your dedicated administration team > Simple and easy online servicing available through SuperChoice, allowing contribution remittances to both ING and external funds > Your employees can also manage their superannuation account online or over the phone Expertise, Stability stability and security > Feel confident with your superannuation arrangement now and into the future knowing you are benefiting from the strength of ING and ANZ Portability > Your employees can maintain their superannuation savings, insurance arrangements and many other benefits that applied to them while they were part of your employer plan, when they leave your service ANZ Super Advantage Employer Book