How super works. Making contributions to REI Super

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1 Issue date: 1 July 2016 How super works Superannuation is a tax-effective retirement savings vehicle. Generally, your REI Super account can accept contributions from your employer, yourself, your spouse, the Government or from rollovers from other super accounts you may have elsewhere. Making contributions to REI Super Contributing to your super now can make a big difference to your final retirement outcome. Compulsory employer contributions on your behalf Your employer is generally required to make Superannuation Guarantee Contributions (SGC) on your behalf, in addition to your salary. Employers are required to pay SGC at least quarterly if you earn over $450 (before tax) per month. Where you are under age 18, you must also work at least 30 hours per week. From 1 July 2014, the minimum required under the Superannuation Guarantee (SG) is 9.5 % of your ordinary time earnings. Your employer contributions are considered concessional contributions. There are limits to the amount of concessional contributions that can be made during a financial year. For more information about the concessional contributions caps and to understand how concessional contributions are taxed go to reisuper.com.au and see How super is taxed for more information. You can check how much your employer contributes to your REI Super account on your annual Member Statement, or by accessing your account online at reisuper.com.au or via REI Super s mobile app. After-tax contributions It s easy to make contributions to your REI Super account from any after-tax income or savings. You can make after-tax contributions by: BPAY, login to your account online Direct Debit, use our Direct Debit Request form Payroll deduction, check with your employer Personal cheque, use our Application to Make a Lump Sum Contribution form After-tax contributions are also known as non-concessional contributions. To start making after-tax contributions visit reisuper.com.au to access your account online or download our forms from the Forms and Publications section. Effective 3 May 2016, the Government stated in its 2016 Budget that it has introduced a $500,000 lifetime cap on non-concessional contributions taking into account all nonconcessional contributions made since 1 July The cap is slated to apply to individuals aged up to 75, and will be indexed in $50,000 increments in line with wages. Therefore, if the Budget proposal becomes law, if you make a contribution that causes you to exceed the cap, you will be notified by the Australian Tax Office to withdraw the excess from your superannuation account. If you choose not to, the excess will attract a penalty tax of 45% plus the Medicare Levy and, if applicable, the Budget Repair Levy. You must provide your Tax File Number (TFN) to enable us to accept your after-tax contributions. To see how making after-tax contributions could work for you, check out the Super Contributions Optimiser calculator at moneysmart.gov.au. A gift from the government The Federal Government s super co-contribution scheme is designed to help Australians boost their retirement savings. For every (after-tax) dollar eligible members make to super, the government will contribute up to an extra 50 cents. For the financial year, the maximum co-contribution that the government will make is $500 per annum, and is available for individuals with a total income up to $36,021. The maximum co-contribution reduces by 3.3 cents for each dollar of total income over $36,021 and cuts out at $51,021.

2 To be eligible for the co-contribution: you must have made one or more eligible personal super (after-tax) contributions to your super account during the financial year your total income for the financial year is less than the higher income threshold ($51,021 for ) 10% or more of your total income comes from eligible employment-related activities or carrying on a business, or a combination of both you were less than 71 years old at the end of the financial year you did not hold a temporary visa at any time during the financial year (unless you are a New Zealand citizen or it was a perscribed visa) you lodge your tax return for the relevant financial year. For more details on the Government s super co-contribution scheme, visit ato.gov.au/super. Salary sacrifice You and your employer may agree to increase before-tax super contributions to your account, reducing your salary by a nominated amount. This means the sacrificed amount is taxed as a concessional contribution rather than income. Salary sacrificing will reduce your annual assessable income. For example, if your income is $50,000 and you sacrifice $1,000, your assessable income becomes $49,000. You should seek financial advice about whether salary sacrifice is right for you. Also check that your employer will continue to calculate their SG contribution and your other entitlements on your pre-sacrifice salary. For more information about the concessional contributions caps and to understand how concessional contributions are taxed go to reisuper.com.au and see How super is taxed. Personal tax-deductible contributions You may be able to claim a tax deduction on personal contributions made to your REI Super account if less than 10% of your total income is from working as an employee. For example, this may be the case if you are self-employed. If you intend to claim a tax deduction for your personal contributions, you must lodge an Australian Taxation Office (ATO) Notice of intent to claim or vary a deduction for personal super contributions form (NAT 71121) with us. You must receive our acknowledgement by the date you lodge your tax return, the end of the financial year after the contribution was made, or when you withdraw your super from your REI Super account (whichever date is earlier). For more information and to download the form, visit ato.gov.au/super Consolidating multiple super accounts Combining or rolling over all your super into one account means more money goes towards your retirement savings not into extra fees! There are no fees to roll other super balances into your REI Super account. Rolling your other super into your REI Super account is easy. You can rollover your other super either: Online, login to your account online and use our online rollover request form or access our consolidation tool at reisuperconsolidation.com.au or; use our Rollover Form contained within our PDS, or download from reisuper.com.au Some other super funds charge entry and exit fees and your insurance entitlements will cease, so you should think about whether rolling over is right for you. If you need help, you can speak to one of our qualified financial advisers by calling Are you one of the many Australians who have more than one super account? We can reunite you with your lost account! Complete our Find lost super form available from reisuper.com.au, or provide us your consent via your account online. Spouse contributions Making contributions into a super account on your spouse s behalf can help you share more in retirement. A tax offset is available for people who make super contributions on behalf of a low-income or non-working spouse (including a de facto spouse of the same or different sex). The maximum offset is 18% of the first $3,000 of contributions per year, which means the maximum offset available is $540. Your spouse must have a total income of less than $10,800 per year for the member to qualify for the maximum offset. The offset limit reduces by $1 for every $1 of total income over $10,800 and cuts out at $13,800. We can accept the below contributions for spouse members: Spouse contributions Rollovers in There are some instances in which we cannot accept spouse contributions; they are: where you cease to be a Spouse if the REI Super member ceases to be a member of the Fund, and where they are made as salary sacrifice contributions i.e. pre-tax. Contributions made to a spouse account are subject to standard preservation rules. For more information, visit ato.gov.au.

3 Contribution splitting Splitting your super with your spouse means you can both have super to draw on when you retire. It allows non-working or low-income spouses to build up their own super. You can split the lesser of: 85% of concessional contributions for that financial year and/or; the concessional contributions cap for that financial year. You cannot split: non-concessional and government co-contributions made to a super fund contributions if you have withdrawn your super from your REI Super account. Contributions can only be split with an eligible spouse who has not retired or reached age 65. An eligible spouse includes: your husband or wife another person (whether of the same sex or not) with whom you are in a registered relationship, or another person who, although not legally married to you, lives with you on a genuine domestic basis as a couple. We must receive your completed Superannuation contributions splitting application form (call ) by 18 June in the year after the contributions were made. For example, an application to split contributions made in the financial year must be received by the end of June For more information, visit ato.gov.au/super. Other contributions Other types of payments that can be contributed to your REI Super account include: some Employment Termination Payments some proceeds from the disposal of qualifying small business assets proceeds of some compensation payments for a permanently disabling personal injury. The rules applicable to these contributions can be complex. If you are considering making these types of contributions, we recommend you seek expert advice. What contributions can REI Super accept? Under Super Guarantee (employer) Employer additional* ^ ^ Salary sacrifice (Personal before-tax) ^ ^ Personal after-tax ^ ^+ ^+ Personal tax-deductible # ^# ^# Spouse contribution ^ ^+ Contribution split ** Rollovers * Employer additional contributions are where you employer contributes additional amounts not required under the Super Guarantee or salary sacrifice payments ^ You must have worked at least 40 hours in not more than 30 consecutive days in the financial year the contribution is made + If your TFN has not been provided to us, we cannot accept the contribution. # If your TFN has not been provided to us, we can only accept the contribution if we receive the ATO s Notice of intent to claim or vary a deduction for personal super contributions form (NAT 71121) within 30 days ** The recipient of the contribution must not be permanently retired Superannuation laws impose rules on superannuation contributions. The rules shown are valid as at 1 June 2016 and are subject to change by the Federal Government from time to time. Where can I find other information? If you d like more information about super, visit resiuper.com.au/pds and read the following: Risks of super Investment Guide Fees and costs How super is taxed Insurance Guide How to make a complaint Need advice about your super? We are here to help. Take control of your super - and your future by calling one our qualified financial advisers on

4 Choice of fund Under the Choice of Fund legislation, most employees may choose to direct their employer to pay their superannuation guarantee contributions to any complying superannuation fund. Your employer should advise whether you are able to make this choice. REI Super is the default fund under the Modern Real Estate Award 2010 and the Clerks Private Sector Award This means that if you do not nominate a fund and your employer does not have an alternative in place as set out in an enterprise agreement, your employer and employee super contributions may be paid to your account in REI Super. When can you access your super? Your super is designed to help support you financially when you retire, so the government has placed restrictions on when you can access your benefit. These are called preservation rules and mean your benefit may consist of preserved and non-preserved amounts. Preserved amounts By law all contributions to members accounts and investment earnings accruing after 1 July 1999 are preserved until you meet a condition of release. Conditions of release All or part of your preserved amount may generally only be paid out if you meet at least one of these conditions: you permanently retire or commence a Transition to Retirement Income Stream on or after your preservation age Your Date of Birth Preservation age Before 1 July July June July June July June July June After 30 June you reach age 60, your employment arrangement has ended and you meet certain conditions you reach age 65 you become permanently incapacitated you have a terminal medical condition you die you meet government criteria and receive government approval for the release of some of your super on compassionate grounds or due to severe financial hardship you change jobs and your account balance is $200 or less, or you are a lost member who is found and you have less than $200 in your account on its release it s necessary to enable a payment under a release authority in accordance with the Income Tax Assessment Act If you are a temporary resident your preserved amount may generally be paid out if you meet at least one of these conditions: you die you become permanently disabled you have a terminal medical condition you permanently depart Australia it s necessary to enable a payment under a release authority in accordance with the Income Tax Assessment Act Non-preserved amounts Restricted non-preserved amounts may generally only be paid out if: you meet one of the conditions of release for preserved amounts, or you are no longer employed by a contributing employer. Unrestricted non-preserved amounts may generally be paid out at any time. What can I do when I reach my preservation age? When you reach preservation age you can transfer your super benefit to REI Super Pension under the transition to retirement rules, even if you re not permanently retired. Paid to provide a regular income (instead of a lump sum), the REI Super Transition to Retirement Pension enables people who are semi-retired to work part-time while using some of their super to supplement their income. Alternatively, if you are fully retired from the workforce you can commence an REI Super Account Based Pension or leave your super in your current REI Super account (however, your balance must be paid out in the event of your death). Partial payments If you make a partial withdrawal of non-preserved benefits, or transfer preserved benefits to another fund, you must keep at least $5,000 in your account for it to remain active. A separate Exit fee (currently $90) applies to each partial payment. Tax is not normally deducted where your benefit is rolled over to another complying super fund. See How super is taxed for more information. Accessing your benefits Under the Anti-Money Laundering and Counter Terrorism Financing Act 2006, you (including your beneficiaries or agents) must provide certified copies of identification documents when receiving certain services, such as the payment of super benefits or pension payment. We may be required to transfer your account to the ATO There are some circumstances where we may be required to transfer your account to the ATO. If you are a temporary resident We are required to transfer to the ATO any super held for a temporary resident who has left Australia for more than six months and whose visa has expired or been cancelled. This may affect your super if you are not an Australian citizen, a New Zealand citizen or a permanent resident.

5 In accordance with relief provided by the Australian Securities and Investments Commission (ASIC), we will not provide an exit statement. However, you can contact us to receive information about the transfer that will enable you to apply to the ATO to claim your benefit. For more information about unclaimed benefits, contact the ATO on If you are considered a lost member You are considered to be a lost member when your account balances is less than $4,000 and: 1. You are uncontactable For you to be considered uncontactable, we must not have received a contribution or rollover within the last 12 months and either: we have never held an address for you, or two written communications sent to you have been returned unclaimed, or; 2. Your account is inactive For you to be considered inactive, you must have joined REI super no less than two years ago, and: we have not received a contribution or rollover within the last 5 years. There are some circumstances where we won t transfer your account to the ATO, they are: where we have verified your address in the past two years, or; you are an inactive member of the fund, but indicated by a positive act, for example, deferring a benefit, that you wish to remain a member of REI Super, or; you have requested your account to be permanently excluded from being transferred to the ATO. Where a member has died We must also transfer to the ATO any benefit held where: the member has died, we have determined that, under the governing rules of the Fund or by operation of law, a benefit is immediately payable for the member, we have not received an amount for the member within the last two years, after making reasonable efforts and after a reasonable period has passed, we are unable to ensure that the benefit is received by the person who is entitled to receive the benefit. Your REI Super account The money in your account is used to purchase units in the investment option(s) you have chosen. The value of your units rises or falls in line with the underlying value of the assets in the investment option. See our Investment Guide for details. While you maintain an account in REI Super, we deduct administration fees and insurance premiums (if applicable) from your account by redeeming units. See Fees and costs and our Insurance Guide for more information. What happens to your super if... You retire Your super (less any taxes or other costs that may apply) may be paid as a lump sum or pension when you reach your preservation age. You die before you retire We have a legal responsibility to make sure your super goes to your dependants or your legal personal representative. Your dependants include: your spouse (which includes another person, whether of the same sex or a different sex, with whom you are in a relationship that is registered under a law of a state or territory, or a person who, although not legally married to you, lives with you on a genuine domestic basis in a relationship as a couple) your child (which includes an adopted child, a step-child, an ex-nuptial child, a child of your spouse or someone who is your child within the meaning of the Family Law Act 1975) a person who is wholly or partially financially dependent on you a person with whom you have an interdependency relationship. An interdependency relationship is defined as: a close personal relationship between two people who live together, where one or each provides the other with financial support, and one or each provides the other with domestic support and personal care, or a close personal relationship that does not satisfy the other criteria because one or both people suffer from a physical, intellectual or psychiatric disability. Government regulations require that we take into account the following criteria when assessing interdependency: a) all of the circumstances of the relationship between the persons, including (where relevant): I. the duration of the relationship II. III. IV. whether or not a sexual relationship exists the ownership, use and acquisition of property the degree of mutual commitment to a shared life V. the care and support of children VI. the reputation and public aspects of the relationship VII. the degree of emotional support VIII. the extent to which the relationship is one of mere convenience IX. any evidence suggesting that the parties intend the relationship to be permanent b) the existence of a statutory declaration signed by one of the persons to the effect that the person is, or (in the case of a statutory declaration made after the end of the relationship) was, in an interdependency relationship with the other person.

6 Your legal personal representatives include: the executor of your will, or the administrator of your estate. Your dependants or your legal personal representative can be paid all the money in your account plus any death benefit paid by our insurer, less any taxes or other costs that may apply. Preferred death benefit nominations You can advise us of your preferred beneficiaries (the people you would prefer to receive your death benefits) on your REI Super application form. You can update these in future using the Change of membership details form or via your account online. Should you die while you are a member of REI Super, we have absolute discretion and final decision on who receives your benefits, but will consider your preferred beneficiaries. If you keep your Will up to date, this can substantially assist us in exercising our discretion as to who receives your benefit as allowed by law and under our Trust Deed. You become disabled If you have insurance through REI Super, you may be eligible to receive a regular income or lump-sum disability insurance benefit. Your account balance may be paid if your incapacity is permanent or you have a terminal medical condition. Go to reisuper.com.au/pds and read our Insurance Guide for more detail. You want to stay with REI Super when you retire We can continue to look after your super when you retire with the following flexible options. 1. Leave your money in your current REI Super account, which gives you ongoing access to low fees, a tax effective investment vehicle and access to your money when you need it (subject to conditions). 2. Transfer your super to the REI Super Pension. This provides a regular income stream from your super with the added bonus of tax-free investment earnings. Need help? reisuper.com.au join@reisuper.com.au The information in this document forms part of the REI Super Product Disclosure Statement (PDS) issued 1 July To access the other parts of the relevant PDS visit reisuper.com.au or call This document does not relate to the REI Super Pension. Refer to the REI Super Pension PDS for information about that product. The information provided in this Statement is of a general nature only and does not take into account your objectives, personal financial situation or needs. Before acting on this information you should consider it s appropriateness having regard to your objectives, financial situation and needs. You may wish to consult a licensed financial adviser to obtain advice that is tailored to your personal circumstances. This Product Disclosure Statement for REI Super has been prepared and issued on 1 July 2016 by the Trustee of the Fund, REI Superannuation Fund Pty Limited (ABN ), AFSL , SPIN REI0001AU RSE L REI Super ABN RSE R MySuper unique identifier REI Superannuation Fund Pty Limited acts as trustee (in this document referred to as the Trustee or simply we ) of REI Super (in this document referred to as the Fund or simply us ). Where we refer in this document to the word our we may be referring to either or both the Trustee and the Fund. All references for these entities required by law can be found by going to reisuper.com.au. REIS 50775