ANZ Superannuation Savings Account

Transcription

1 ANZ Superannuation Savings Account ADDITIONAL INFORMATION GUIDE 21 JUNE 2012 Issued by OnePath Custodians Pty Limited ABN , AFSL , RSE L

2 About this Additional Information Guide This Additional Information Guide consists of two documents: the Incorporation by Reference document (the IBR document); and the Other Information document. The information in the IBR document within this Additional Information Guide forms part of the Product Disclosure Statement (PDS) dated 21 June 2012 for ANZ Superannuation Savings Account. Its purpose is to give you more information and/or specific terms and conditions referred to in the PDS. You should consider all that information before making a decision about ANZ Superannuation Savings Account. The Other Information document contained within this Additional Information Guide does not form part of the PDS. Its purpose is to provide you with additional information in relation to ANZ Superannuation Savings Account. If you invest in ANZ Superannuation Savings Account, you can access a copy of the PDS and any other matter in writing that is applied, adopted or incorporated in the PDS from our website at anz.com. Alternatively, you can request a copy of this information free of charge by contacting Customer Services. The information provided in this Additional Information Guide is general information only and does not take into account your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances. Entity details in this Additional Information Guide Name of legal entity Registered numbers Abbreviated terms used throughout the Additional Information Guide OnePath MasterFund ABN , RSE R , SFN OnePath Custodians Pty Limited ABN , AFSL , RSE L Fund OnePath Custodians, Trustee, us, we, our OnePath Life Limited ABN , AFSL OnePath Life, Insurer Australia and New Zealand Banking Group Limited ABN , AFSL ANZ Important information When you or your employer (on your behalf) invests in ANZ Superannuation Savings Account (ANZ SSA), you become a member of the OnePath MasterFund. OnePath Custodians is the trustee of the Fund and the issuer of the PDS and this Additional Information Guide. The issuer is a wholly owned subsidiary of ANZ. ANZ is an authorised deposit taking institution (Bank) under the Banking Act 1959 (Cth). Although the issuer of this product is owned by ANZ, it is not a Bank. Except as described in the PDS and this Additional Information Guide, an investment in ANZ SSA is not a deposit or other liability of ANZ or its related group companies and none of them stands behind or guarantees the issuer or the capital or performance of the investment. An investment in ANZ SSA is subject to investment risk, including possible repayment delays and loss of income and principal invested. The Trustee invests all contributions in a master policy issued by OnePath Life, which then invests the contributions in underlying investments. The master policy is governed by the Life Insurance Act 1995 (Act) and is a contract between the Trustee and OnePath Life. OnePath Life is required to conduct its business in accordance with the Act and, invests all of the assets it receives from the Trustee in statutory funds approved by the Australian Prudential Regulation Authority. OnePath Life must comply with prescribed capital and solvency standards. The Fund is governed by a trust deed. Together with superannuation law, the Fund s Trust Deed sets out the rules and procedures under which ANZ SSA operates and the Trustee s duties and obligations. If there is any inconsistency between the Trust Deed and the PDS and this Additional Information Guide, the terms of the Trust Deed prevail. A copy of the Trust Deed is available from the issuer free of charge by contacting Customer Services on OnePath Life is also the administrator of ANZ SSA. Insurance cover within ANZ SSA is provided by OnePath Life, under group policies issued to the Trustee. The Trustee reserves the right to change insurer, or vary the benefits or premium rates from time to time. The Trustee is responsible for the contents of the PDS and this Additional Information Guide. The invitation to invest in ANZ SSA is only available to persons receiving this Additional Information Guide in Australia. Subject to relevant law, the Trustee reserves the right to refuse any application, transaction or instruction, and will generally do so where the Trustee deems such an application, transaction or instruction not to be in the interests of all investors in the fund. Superannuation Product Identification Number (SPIN): ANZ0415AU

3 Contents Incorporation by Reference document Page How super works 6 Benefits of investing with ANZ Superannuation Savings Account 13 Risks of super 15 Fees and costs 16 How super is taxed 18 Insurance in your super 20 How to open an account 25 Other Information document Page What other information do you need to know? 27

4 About OnePath Helping you shape and protect your future OnePath is one of Australia s leading providers of wealth, insurance and advice solutions. OnePath has been helping Australians grow and protect their wealth for over 130 years, previously as Mercantile Mutual and more recently as ING Australia. Now as a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (ANZ), OnePath operates as ANZ s Australian specialist wealth management and protection business. OnePath has a comprehensive range of wealth and insurance products available through financial advisers or direct to customers making it easier for you to find the solution that best suits your needs. At OnePath we value and appreciate our customers, our staff and the communities we operate in. We are committed to acting with the highest standards and to meeting our corporate responsibilities. We also encourage and support staff involvement in volunteering and charitable activities supporting the wider community. OnePath actively participates in forums looking at regulatory and industry change. We also regularly review and conduct research to ensure we are attuned to changing customer and market needs.

5 5 6 Incorporation by Reference document The information in this document forms part of the PDS dated 21 June 2012 for ANZ Superannuation Savings Account. Its purpose is to give you more information and/or specific terms and conditions referred to in the PDS. You should consider all that information before making a decision about ANZ Superannuation Savings Account.

6 How super works Super is a tax effective long-term savings plan that enables you to save money for your retirement and is, in part, compulsory. There are different ways that you and your employer can contribute to your super. While you are working, your employer is, in most cases, required to make contributions to your super account (known as compulsory super or Super Guarantee). Generally, you have the right to choose the super fund to which these contributions, including employer contributions are made. You, your spouse or your employer may also be eligible to make voluntary contributions to your super account (subject to eligibility). Sometimes even the Federal Government may make contributions to your super account. The Federal Government provides incentives for you to contribute towards your super. However, there are some limits on the contributions that you can make to super. There are also restrictions around when you can access your super. However, when you reach age 65 or your preservation age and have retired, you can access your super savings as a lump sum or receive a regular income stream through a pension account. A pension account allows you to draw a regular income from your super savings while taking advantage of tax concessions for income streams. Of course, there may be other circumstances when you can access your super. What contributions and rollovers can be made into my super account? Types of superannuation contributions The table below provides details about the types of contributions that can be made to ANZ SSA. We recommend you speak to a financial adviser if you require further information about any of these contributions. Contribution type Personal What is this contribution? You may decide to make regular or lump sum contributions. Personal contributions are member contributions made by you or on your behalf, and include payments from: foreign superannuation funds directed termination payments (relating to an employment termination payment) (only until 30/6/12) eligible proceeds that relate to capital gains tax (CGT) small business concessions payments that relate to structured settlements or orders for personal injuries. Spouse Employer contributions Your spouse* may make a member contribution for your benefit which will be treated as a non-concessional contribution. Your employer may make contributions, including mandated contributions, for your benefit (limits may apply). Employer contributions may include salary sacrifice contributions. Salary sacrifice is an arrangement between you and your employer whereby your employer makes a contribution to your ANZ SSA instead of making an equivalent gross payment as salary to you. Third party contributions These are contributions made for you by anyone other than your spouse or employer. Sometimes these are called family and friend contributions. * Your spouse includes a person (same or different sex) who, although not legally married to you, lives with you on a genuine domestic basis in a relationship as a couple. It generally does not include a person who lives separately and apart from you on a permanent basis.

7 Who may contribute? The following table outlines the rules relating to who can make super contributions. 7 8 Your age Under 65 At least 65 but under 70 At least 70 but under 75 Who can contribute? You, your spouse, your employer and a third party. You, your spouse, your employer and a third party, provided you meet the work test *. Even if you do not meet the work test * your employer can still make mandated employer contributions #. You and your employer, provided you meet the work test *. Even if you do not meet the work test * your employer can still make mandated employer contributions #. This excludes Superannuation Guarantee payments unless the payments relate to a period when you were under age and over Your employer may make mandated employer contributions # on your behalf (excluding Superannuation Guarantee payments). * The work test means you have been gainfully employed for at least 40 hours during any period of 30 consecutive days in that financial year where gainfully employed means you have been employed or self-employed for gain or reward in any business, trade, profession, vocation, calling, occupation or employment. # A mandated employer contribution is one which: reduces an employer s potential liability for the Superannuation Guarantee charge is a payment of a shortfall component is a contribution to satisfy the employer s obligation under an agreement certified, or an award made, on or after 1 July 1986 by an industrial authority. Personal and employer contributions may be accepted on or before the 28th day of the following month, in which you turn 75, if you were gainfully employed for at least 40 hours during any 30 consecutive day period in the financial year that the contribution was made.

8 Contributions for a prior period We may accept contributions on your behalf, if we are satisfied that the contribution relates to a period during which ANZ SSA may have accepted the contribution, even though the contribution is actually made after that period. What are the superannuation contributions caps? Due to the concessional tax treatment of super, limits known as contributions caps have been placed on super contributions. Please see page 18 of this guide for details of the tax consequences of exceeding the caps. Concessional contributions cap Concessional contributions include: employer contributions (including salary sacrifice contributions) personal contributions for which a tax deduction is allowed certain foreign superannuation fund amounts certain directed termination payment amounts certain third party contributions. An annual cap on concessional contributions applies on a financial year basis. Concessional contributions are limited to $25,000 (2011/12 and 2012/13) (indexed) per annum before being subject to additional tax. If you are 50 years old or over at 30 June 2012, a transitional cap of $50,000 applies (note this transitional cap expires 30 June 2012). The concessional contributions cap is indexed to Average Weekly Ordinary Time Earnings (AWOTE) but will only increase in $5,000 increments. Concessional contributions which are split to a spouse are assessed against your cap and not your spouse s cap. There are exemptions to the concessional cap which include: the taxable portion of the vested amount of a foreign superannuation fund transfer taxable portion of a directed termination payment where the taxable component of all transitional termination payments (including directed termination payments) do not exceed $1 million untaxed element of a rollover super benefit. Non-concessional contributions These contributions include: personal contributions for which no tax deduction has been allowed If you are under age 65 at any time in the financial year, you can elect to bring forward the following two years contributions caps (provided you have not already chosen this option in the previous two financial years). This effectively creates a three-year block period where total non-concessional contributions cannot exceed three times the first financial year s non-concessional contributions cap. There are exemptions to the non-concessional cap which include: government co-contributions eligible proceeds that relate to capital gains tax (CGT) small business concessions, up to a lifetime limit of $1.205 million for 2011/12 or $1.255 million for 2012/13 (indexed) payments that relate to structured settlements or orders for personal injuries (no limits apply) rollover super benefits. For further information on contributions caps, we recommend you speak to a financial adviser or refer to Superannuation Guarantee requirements Generally, the law requires employers to make superannuation contributions for their employees. Employers must contribute 9% of each employee s earnings base (Ordinary Time Earnings) up to a set quarterly maximum ($43,820 for 2011/12 and $45,750 for 2012/13) to a complying superannuation fund or retirement savings account. If employers do not make the required contributions for an employee by the due date (see below) they will have to pay the Superannuation Guarantee (SG) Charge which is not tax deductible. Employers must pay eligible employees SG contributions at least every quarter. Employers who are currently paying more frequently than every quarter can continue to do so. The latest due dates are outlined below: SG quarter 1 April 30 June 28 July Latest due date for SG contributions 1 July 30 September 28 October 1 October 31 December 28 January 1 January 31 March 28 April For more information on quarterly SG and reporting requirements, please see the Australian Taxation Office website at spouse contributions non-taxable portion of a foreign superannuation fund amount. These contributions are limited to six times the concessional contributions cap ($150,000 for 2011/12 and 2012/13) per annum.

9 Providing your tax file number (TFN) You are not obliged to provide your TFN and deciding not to quote your TFN is not an offence. However, if you do not provide us with your TFN you could be subject to the following: you could pay additional tax on concessional contributions (an additional 31.5%) we may be unable to accept member contributions you could miss out on any government co-contributions (if eligible). Note that ANZ SSA does not accept government co-contributions you may not be able to continue your membership if only insurance cover is held i.e. without an account balance you may incur additional tax on lump sum payments. We are authorised to collect your TFN under taxation and superannuation laws and will treat your TFN as confidential. If you do decide to provide your TFN we: will only use it for legal purposes including finding or identifying your super benefits, facilitating the consolidation of your super accounts, providing other relevant information and receiving the results associated with searching the Lost Member Register, Super Guarantee, Superannuation Holding Account records, calculating tax on any contributions or payments you may be entitled to and providing information to the Commissioner of Taxation, such as reporting details of contributions for the purposes of the government co-contribution (if eligible), lost member reporting and monitoring of contributions caps may provide your TFN to the trustee of another super fund or RSA provider where the trustee or provider is to receive your transferred benefits in the future How do you search for lost super? The ATO website provides a lost super online search facility that can help you track down any lost super you may have. Visit the ATO website at superseeker to access the Superseeker online search facility. Supermatching 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 super benefits. We may conduct this search process on behalf of members. If we match you with your missing benefits, we will advise you and offer to consolidate your benefits within your ANZ SSA. If you do not want us to undertake this free service on your behalf please advise us in writing. How does salary sacrificing work? Salary sacrificing to super is an agreement between you and your employer for you to forgo a portion of your salary in exchange for your employer making an employer contribution to your super account. Salary sacrificing can reduce income tax and increase retirement savings. The sacrificed portion goes directly into super and is taxed at the 15% super contributions rate. Salary sacrifice contributions to super are included in the definition of income for certain government payments. Your employer may be required to report salary sacrifice contributions to the Australian Taxation Office (ATO) as reportable employer superannuation contributions. To make salary sacrifice contributions or to find out more, speak to your employer and/or your financial adviser will not pass your TFN to another fund if you tell us in writing that you do not want us to pass it on. The purposes for which we can use your TFN and the consequences of not providing it can change in future as a result of changes to the law. Rollovers These include benefits transferred from another super or rollover fund and may be done as part of setting up a new superannuation account, or when adding to an existing superannuation account. Incorrect TFNs Each year, the ATO notifies us of any incorrect TFNs that we have recorded on our system. If your TFN is incorrect, we will endeavour to contact you or your employer for the correct TFN. If we are unable to obtain a correct TFN for you: the TFN will be removed from our system you may be charged no TFN contributions tax on concessional contributions (including employer contributions) we may be required to refund any member contributions any life or salary continuance insurance cover linked to your superannuation may be cancelled, as the reduced account balance may be insufficient to meet premium obligations. You will also receive notification from the ATO, advising that we hold an incorrect TFN for you and what the tax consequences of this may be. Are there restrictions on withdrawing money from my superannuation account? Accessing superannuation benefits The Federal Government has put rules in place to restrict when your superannuation benefits can be accessed. These rules, known as preservation, help to ensure that your superannuation savings are used for retirement purposes. You may receive your benefit as a lump sum if you satisfy a condition of release (restrictions may apply). Generally, you may also elect to transfer or rollover to commence a pension or another complying super or pension fund. A transition to retirement pension may also be available. Access to your superannuation savings will depend on the preservation status of your benefit, based on the following categories (these rules do not apply to temporary residents): Unrestricted non-preserved These amounts may be accessed at any time.

10 Restricted non-preserved These amounts may be accessed on leaving the service of a contributing employer or when preserved benefits are payable. Preserved These amounts can only be accessed on meeting a condition of release. Conditions of release include: reaching your preservation age (listed below) and you have permanently retired* reaching age 60 and subsequently ceasing a gainful employment arrangement reaching age 65, whether you have retired or not permanent incapacity terminal medical condition severe financial hardship (limits apply) specified compassionate grounds (limits apply) reaching preservation age (payment restricted to a transition to retirement pension). * Permanently retired means ceasing an arrangement of gainful employment and never intending to be gainfully employed for ten or more hours weekly. Gainful employment means being employed or self-employed for gain or reward in any business, trade, profession, vocation, calling, occupation or employment. Permanent incapacity means the Trustee must be reasonably satisfied that you are unlikely, because of ill health (whether physical or mental) to engage in gainful employment for which you are reasonably qualified by education, training or experience. Terminal medical condition means that the following circumstances exist: a) two registered medical practitioners have certified, jointly or separately, that the person suffers from an illness, or has incurred an injury, that is likely to result in the death of the person within a certification period that ends not more than 12 months after the date of the certification b) at least one of the registered medical practitioners is a specialist practicing in an area related to the illness or injury suffered by the person c) for each of the certificates, the certification period has not ended. A terminal medical condition payment to another superannuation or pension fund is not a rollover superannuation benefit and is assessed against the non-concessional contributions cap. You should speak to your financial adviser for further information on terminal medical condition payments, as consequences may apply. Preservation age The table below shows your preservation age which depends on your date of birth. Temporary residents (holding a temporary visa under the Migration Act 1958, other than a retirement visa, Subclass 405 or 410) If you are a temporary resident, as defined above, you are only able to access preserved benefits on meeting one of the following conditions of release: eligibility for a Departing Australia Superannuation Payment (DASP) # permanent incapacity* terminal medical condition* death. # A DASP cannot be paid as an income stream. * Refer to the footnotes under the section titled Preserved for an explanation of these conditions. If you are a temporary resident and you permanently depart Australia or no longer hold a visa, we are obliged to transfer your unclaimed super to the ATO after six months of your departure or cessation of your visa (as notified by the ATO). Irrespective of whether you later return to Australia or remain overseas, you can apply to the ATO for release of your super. Transferred super benefits can be claimed via the ATO s website at On transfer of your super benefit to the ATO, you will cease to be a member of ANZ SSA. In this case, we are not required to provide you with an Exit Statement or any other exit disclosure. If you become an Australian or New Zealand citizen or permanent resident, the obligation to transfer your super benefit to the ATO does not apply and you can continue to be a member of ANZ SSA. Note: This section does not apply to temporary residents, as defined above, who satisfied a condition of release before 1 April For information on the rules for accessing super applying to these members, please speak to your financial adviser. Withholding tax rates for temporary residents Withholding tax rates apply on DASP benefits cashed out by temporary residents upon permanent departure from Australia. The rates currently in effect are: tax free component no tax payable If you were born Preservation age taxable component (taxed element) taxed at 35% taxable component (untaxed element) taxed at 45%. before 1 July between 1 July 1960 and 30 June between 1 July 1961 and 30 June between 1 July 1962 and 30 June Government co-contribution The government co-contribution is a superannuation contribution made by the government when an eligible member makes personal non-concessional contributions to superannuation. between 1 July 1963 and 30 June after 30 June

11 ANZ SSA is unable to accept government co-contributions. However, if you have made a personal contribution to ANZ SSA and are eligible for a government co-contribution, you may direct the co-contribution to another superannuation fund. Your entitlement will be assessed by the Australian Taxation Office (ATO) upon completion of your income tax return. Conditions apply to the government co-contribution. You should speak to a financial adviser or contact the ATO if you think you may be eligible. Government low income superannuation contribution From 1 July 2012 a government contribution of up to $500 (non-indexed) is payable for persons with adjusted taxable income* of up to $37,000 (non indexed) (conditions apply). This contribution effectively offsets the tax (up to $500) on concessional contributions. ANZ SSA is unable to accept government low income superannuation contributions. You may wish to direct this contribution to another superannuation fund. * Adjusted taxable income includes taxable income, reportable employer superannuation contributions, personal deductible contributions, adjusted fringe benefits, target foreign income, total net investment losses, government tax free pensions / benefits less child maintenance support. What happens to your super if you die? Your benefit must be paid in the event of your death. The account balance (plus any life insurance benefit, if payable) may be paid to your dependants, estate, or a combination of both or as permitted by superannuation law. All beneficiaries must be either: a dependant or your estate (we call this your legal personal representative ). Under superannuation law (which includes the Trust Deed), you cannot nominate persons as beneficiaries who do not fall into one of the above categories. Who can be a dependant A dependant includes: your spouse (including a person (same or different sex) who, although not legally married to you, lives with you on a genuine domestic basis in a relationship as a couple. It generally does not include a person who lives separately and apart from you on a permanent basis) your children (including an adopted child, a stepchild or an ex-nuptial child), a child of your spouse, someone who is considered your child under family law any other person who is financially dependent on you at the time of your death any other person with whom you have an interdependency relationship (see below). Interdependency relationship Two people (whether or not related by family) have an interdependency relationship if: they have a close personal relationship; and they live together; and one or each of them provides the other with financial support; and one or each of them provides the other with domestic support and personal care. An interdependency relationship can also exist where two people (whether or not related by family) have a close personal relationship but do not meet the other criteria above because either or both of them suffer from a physical, intellectual or psychiatric disability. How members nominate a beneficiary You can nominate a non-binding beneficiary: when you join ANZ SSA, on the Application Form at any other time, by completing the Nomination or Change of Beneficiary Details Form or by notifying the Trustee in writing. You can contact Customer Services on for assistance in nominating a beneficiary. Nominating a legal personal representative Alternatively you may wish to nominate a legal personal representative as your preferred beneficiary. A legal personal representative is the person who looks after the estate of a deceased person. This may be: the executor of the Will who is granted probate of the estate the administrator of the estate if the person dies without making a valid Will (known as intestacy). It is important to note that there may be different taxation consequences if there is a payment to a legal personal representative, compared to payments to dependants. This will depend on the circumstances of the estate and your dependants. How a death benefit is paid When you provide us with a non-binding nomination, the Trustee will ordinarily pay your benefit to the beneficiaries you have nominated and in such proportions as you have specified, provided: the nominated beneficiary(ies) is a dependant or is your legal personal representative at the time of your death you are not married, entered a de facto or like relationship with a person of either sex or permanently separated from your spouse or partner since making your nomination the nomination has not been revoked and is not defective (see below) for any reason While nominations do not have to be updated regularly, it is very important that you keep your nomination up to date in line with your personal circumstances so that it continues to reflect your wishes.

12 Defective nominations Your nomination will be defective if: it is unclear to the Trustee (e.g. because it is illegible or because the nominated proportions do not total 100%) you did not sign or date the form it is not witnessed correctly (if applicable). A non-binding nomination will also be defective if we receive information before paying the death benefit that, when you made the nomination, you did not understand the consequences of making it. Your nomination may become partially or fully defective after you make it if a nominated beneficiary dies or ceases to be a dependant while you are still living. You should revise your nomination if any of these events occur. No nomination, defective nomination or cancelled nomination If you don t make a valid nomination or cancel your existing nomination, or to the extent your nomination is defective, we will pay your death benefit to your legal personal representative, unless your estate is insolvent or a legal personal representative is not appointed within six months or such longer time period we may allow. If we are unable to pay your death benefit to your legal personal representative, we will pay your death benefit to your spouse or de facto (equally, if more than one) or otherwise to one or more of your dependants (as determined by us). If you do not have a non-binding nomination, you should consider making a Will or altering your Will to cover your death benefit.

13 Benefits of investing with ANZ Superannuation Savings Account ANZ SSA provides a flexible and convenient way to save for retirement with a low level of investment risk. OnePath Life guarantees that your account balance will not be reduced by negative investment returns. All contributions into ANZ SSA currently invest in secure, low risk, ANZ retail bank deposits. Contributions may also be invested in other fixed interest assets such as debentures, government and semi government bonds. Who is ANZ Superannuation Savings Account suitable for? Employers ANZ SSA may be suitable for employers who: want a simple solution to meet their Superannuation Guarantee obligations have between two and 50 employees want to provide a low investment risk superannuation solution to employees want a low maintenance superannuation plan with no minimum contribution obligations want the security and confidence offered by OnePath/ANZ want the option for eligible employees to receive life insurance cover. Personal members ANZ SSA may be suitable for individuals who: are looking to invest tax-effectively into a superannuation fund want to make your own regular contributions want a low risk environment to roll over superannuation benefits want to consolidate retirement savings before starting an income stream, e.g. an account based pension want to have contributions made by your spouse on your behalf What are the key benefits? ANZ SSA offers a range of key benefits. A secure investment ANZ SSA offers a secure investment while protecting capital value. OnePath Custodians does not guarantee investment returns. However, OnePath Life guarantees all amounts credited to and remaining in members accounts, after deducting fees, insurance costs (where applicable) and taxes. Tax-effectively save for retirement The Federal Government encourages all Australians to save for their retirement, and one of the ways it does this is to provide tax concessions for money invested in superannuation. To ensure the maximum taxation savings are obtained, we recommend you speak to a financial adviser or taxation adviser before investing. Death Only and Death and Total and Permanent Disability (TPD) insurance personal members can apply for Death Only or Death and TPD insurance cover. Additional health evidence may be required employee members who are employed full-time automatically receive one unit of Death and TPD Cover if insurance is selected by the employer employee members who are employed part-time, will automatically receive one unit of Death Only Cover if insurance is selected by the employer. An easy way to invest ANZ SSA allows you to make one-off or regular contributions into your account. There are certain restrictions that apply to who can make contributions, when contributions can be made and the maximum amount of contributions that can be made. Please refer to What contributions and rollovers can be made into my super account? on page 6 for more information. want access to convenient life insurance cover. We recommend you speak to a financial adviser before investing in ANZ SSA. Minimum contribution requirement There is no minimum limit on the number or size of contributions, and no obligation to make regular additional contributions. Please refer to page 7 for details regarding contribution eligibility.

14 How does ANZ Superannuation Savings Account benefit employers? In addition to the benefits offered to members, employers receive the following benefits: Simplicity and convenience ANZ SSA provides a simple and convenient way for employers to provide superannuation for their employees. Save time Using ANZ SSA may save employers time. The time and energy that has previously been spent administering a company superannuation fund can be used to concentrate on their business. Easy administration Contributions for members can be made at any time by EFT, via cheque or at any ANZ Branch. When making contributions, a deposit book may be utilised. This is available by contacting Customer Services on An Annual Statement will be sent to employers showing the total contributions made for each member. These statements are available more regularly on request. Optional insurance cover Employers can select insurance cover (subject to eligibility) which may be made available to their employees. The selection of insurance options should be carefully considered, and should reflect the insurance needs of employees. Information about insurance cover available for employers to select can be found on pages 20 to 24 of this Additional Information Guide.

15 Risks of super Investing in super provides both opportunities and risks. It is important to be aware of, and assess, the risks associated with investing. The following are significant risks that may impact your investment. Investment risk Investment risk generally means the value of an investment could fall. However, OnePath Life guarantees that investment returns will not reduce your account balance, i.e. negative returns will not occur. Liquidity risk Liquidity risk in this context means that sufficient assets cannot reasonably be expected to be realised and converted into cash to satisfy a withdrawal request within the timeframe set by legislation or ANZ SSA s governing rules. Assets such as shares, listed property securities, fixed interest and cash are generally considered to be liquid because they are actively traded on markets where they can more easily be sold or converted into cash at their full value. Private and unlisted assets such as direct property, leveraged leases and infrastructure are generally considered to be less liquid. They are not generally traded on active markets and, as such, can take longer to convert into cash. During abnormal or extreme market conditions some normally liquid assets may become illiquid, restricting the ability to sell them and to make withdrawal payments for investors. By investing in ANZ SSA you acknowledge that it may take longer than 30 days to process a withdrawal in the unlikely event of its investments ceasing to be liquid. Risk of low capital growth ANZ SSA may produce lower returns compared to other types of superannuation funds. You should be aware that ANZ SSA is not designed for capital growth, and may be inappropriate for long-term investment. Other superannuation products with different investment options may provide greater returns over the long term. You may wish to seek advice from a financial adviser in this regard. Restricted access Contributions and all earnings credited to ANZ SSA (like any other superannuation entity) are preserved (see page 9 for further details). You will not be able to access preserved benefits prior to meeting a condition of release, such as permanent retirement on or after your preservation age. The risk that you may need to, but cannot, access your funds if required should be considered before investing in any superannuation fund. Changes in legislation There is a risk that changes in legislation, such as taxation laws, may occur in the future and impact your investment. When changes such as these occur, we will usually notify you in the OnePath MasterFund Annual Report. For information about the impact of any superannuation law changes on a your personal situation, we recommend you discuss any future changes with a financial adviser. Insurance risks When an employer sets up a superannuation account in ANZ SSA, Death Only or Death and TPD insurance cover can be selected for their employees. The Insurer may provide automatic acceptance of cover for the employee members. Personal members may also apply for insurance. There are a number of insurance risks you should be aware of, including: the maximum benefit level for employee members or personal members may be insufficient to provide adequate insurance cover in the event of injury or illness if your account balance is insufficient to meet the cost of premiums, cover will cease you are not covered for death, or any illness or injury that occurs in the period between when you satisfy the At Work test and when your cover commences in ANZ SSA (refer to page 20 for the definition of At Work ) if employers or members do not disclose every matter that they know, or could be reasonably expected to know, would be relevant to the Insurer s decision whether to accept the risk of the insurance and, if so, on what terms, the Insurer may avoid the cover within three years of granting it. If the non-disclosure is fraudulent, the Insurer may avoid the cover at any time.

16 Fees and costs This section shows fees and other costs that you may be charged. These fees and costs may be deducted from your account balance, from the returns on your investment or from the Fund assets as a whole. Taxes and insurance costs are set out in another part of this document. You should read all the information about fees and costs because it is important to understand their impact on your investment. The fees and costs disclosed in the table below include the net effect of Goods and Services Tax (GST) which is the applicable rate of GST less any reduced input tax credit available to the Fund. Type of fee or cost Amount How and when paid Fees when your money moves in or out of the Fund Establishment Fee The fee to open your investment. Contribution Fee The fee on each amount contributed to your investment by you, your spouse or your employer Withdrawal Fee The fee on each amount you take out of your investment. Termination Fee The fee to close your investment. Management costs The fees and costs for managing your investment.* Service fees Investment Switching Fee The fee for changing investment funds. Nil Nil Nil Nil Investment Management Fee 0.98% p.a. (0.83% p.a. after tax) Expense recoveries 0.75% p.a. (0.64% p.a. after tax) Member Fee $97.74 p.a. ($83.08 p.a. after tax) Nil Not applicable. Not applicable. Not applicable. Not applicable. The Investment Management Fee and Expense recoveries are calculated daily as a percentage of your account balance and deducted before determining the interest rate applied to the Fund. The Member Fee is deducted from your account shortly after 1 October each year. Please refer to Member Fee in the Additional explanation of fees and costs section on page 17 for more information. Not applicable. * This fee includes an amount payable to ANZ for selling this product. Please refer to Payment of commission in the Additional explanation of fees and costs section on page 17. Please refer to Income tax and fees in the Additional explanation of fees and costs section on page 17. Expense recoveries relate to expenses incurred in the administration of the product. The Member Fee is indexed to increases in the Consumer Price Index as at 30 June each year. For updated Member Fee information, please contact Customer Services on

17 Additional explanation of fees and costs Member Fee The Member Fee is an account keeping fee that is charged to you. The fee is charged to your account shortly after 1 October each year. The Member Fee is pro-rated in the first year your account is established and on exiting ANZ SSA. The Member Fee shown in the PDS and this Additional Information Guide is current as at 21 June 2012, but is indexed to increases in the Consumer Price Index as at 30 June each year. Updated Member Fee information can be obtained by contacting Customer Services on Payment of commission OnePath Life currently pays a commission to ANZ for selling this product. This payment is already incorporated into the fees outlined on page 16. Any commission paid to ANZ is not charged directly to your account. The current ongoing commission payable is 0.385% p.a. including GST. For example, for a $10,000 investment in ANZ SSA, ANZ receives $38.50 p.a. in ongoing commission. Other payments In addition to ongoing commissions, the Trustee may make payments to ANZ based on commercial arrangements. Any such payments will be made by the Trustee and are not charged to you. Maximum fees and charges The master policy allows for a maximum Investment Management Fee of 2% p.a. The master policy also permits an Account Closure Fee and Excess Activity Fee, both of which are currently not charged. Alterations to fees We reserve the right to change any of the fees and costs from their present levels (up to any maximums outlined above) without your consent, but any increase will only take effect after the Trustee has provided you with 30 days advance notice. The fees contained in this Additional Information Guide are up to date at the time of its preparation. For updated information please contact Customer Services The amount of remuneration paid to ANZ may be increased or altered at any time at the Trustee s discretion. Insurance premiums If applicable, this product currently charges you $1 (gross) per unit of cover per week, which is deducted monthly in arrears from your account. More information on insurance offered through ANZ SSA can be found on pages 20 to 24. Government charges Any additional costs resulting from any government charges will be deducted from your account. Member protection Under Federal Government legislation, superannuation funds may be required to protect small account balances from erosion by fees. A small account is an individual member s account with a balance of less than $1,000 that includes employer contributions for Superannuation Guarantee or Award purposes. The Member Fee will be pro-rated for an account with a small balance so that the amount charged to the account is not more than the interest earned for the period starting from 1 October every year. However, insurance premiums or taxation, if any, will continue to be deducted from account balances less than $1,000. If your account balance is less than $1,000, we may transfer your account balance to an Eligible Rollover Fund (ERF) that accepts small balances and complies with member protection rules. Our preferred ERF is the Australian Eligible Rollover Fund. For more information on the ERF see page 28 of this Additional Information Guide. Family law fees The Trustee may charge for costs incurred in attending to enquiries and/or other work in relation to family law and superannuation matters. Currently, we do not charge such fees. We reserve the right to charge a family law fee in the future. Other fees and additional information Income tax and fees The Fund may be entitled to claim a tax deduction for fees paid from your account. Where a deduction is claimed by the Fund, the benefit of that deduction may be reflected in your account balance. This is represented by the after tax fee that may be charged to your account. Goods and Services Tax (GST) and fees Your contributions into and transfers or withdrawals from this product are not subject to GST. The fees and costs incurred in managing your investment in this product may be subject to GST. Unless stated otherwise, the fees and costs disclosed in this Additional Information Guide that are charged to you include the net effect of GST, which is, any GST at the applicable rate less any reduced input tax credits available to the Fund.

18 How super is taxed Tax law in superannuation is complex and the information provided has been prepared as a guide only and does not represent taxation advice. Please see your tax adviser for independent tax advice taking into account your individual circumstances. Generally, the tax paid in a super fund is lower than the tax that would be paid on an investment outside of super, which is why super can be a tax effective way to grow your retirement savings. Your super may be taxed: when contributions are made while your super is invested when you withdraw from super. Information for employers An employer s circumstances will determine how the tax system applies to them. For this reason, employers should seek professional advice on their own tax position. Deductibility of concessional contributions Employers can generally claim a tax deduction for concessional contributions made on behalf of an eligible employee. However, annual caps apply to concessional contributions and additional tax is payable by the member if contributions exceed the cap in a financial year. Information for members Your personal circumstances will determine how the tax system applies to you. For this reason, you should seek professional advice on your own tax position. Tax can apply to your superannuation at the contribution stage, during the investment earning stage, and at the withdrawal stage. The tax you will pay in a superannuation fund may be lower than tax you would pay outside of superannuation. Tax rates charged at the contribution and investment earning stages are generally concessional rates, which may be lower than the tax rates that would apply to investments outside the superannuation system. Taxation at these three stages is discussed in the following section. Tax on contributions Concessional contributions Concessional contributions are generally taxed at 15% in the superannuation fund. The Government has proposed that from 1 July 2012, tax on concessional contributions will increase from 15% to 30% if your adjusted taxable income is greater than $300,000. Non-concessional contributions Non-concessional contributions are not subject to tax in the superannuation fund. Tax consequences of exceeding contribution caps If you exceed the annual concessional contributions cap, an excess contributions tax of 31.5% may apply to the amount over the cap (in addition to tax on concessional contributions you have paid). This tax can be paid from your super account on presentation of a release authority issued by the ATO, or can be funded from money you have outside of super. Furthermore, contributions in excess of the concessional contributions cap may also count towards the non-concessional contributions cap. Non-concessional contributions which exceed the non-concessional contributions cap may be taxed at 46.5%. This must be paid from your super account. No-TFN contributions tax If a TFN is not provided to the Trustee by 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 a TFN is quoted to the Trustee within certain time limits. Deductions for contributions (conditions apply) If your employer contributes to super on your behalf, you will generally not be able to claim a tax deduction for any personal contributions you make. However, if you do not earn income from employment or if your assessable income, reportable fringe benefits and reportable employer super contributions from employment is less than 10% of your total assessable income, reportable fringe benefits and reportable employer super contributions, you may be entitled to claim a tax deduction for any personal contributions you make to the Fund. Before you can claim the deduction you will need to lodge a notice with us and we must acknowledge that we have received and accepted your notice (conditions apply). Please speak to your financial adviser or tax adviser to determine your eligibility to claim a deduction. Deductions for insurance premiums A tax deduction is generally available within ANZ SSA for life insurance premiums paid from your account. Where the deduction is available this will be reflected in your account balance. If your employer meets the cost of premiums on your behalf, these premiums will be paid as a contribution to ANZ SSA. Your employer is generally able to claim a tax deduction for these contributions. Tax on investment earnings Investment earnings are taxed at a maximum rate of 15%. However, the actual tax payable may be lower as a result of franking credits, foreign tax credits and concessionally taxed capital gains. Tax on withdrawals When you satisfy a condition that allows access to your superannuation, the superannuation benefit may be taken as a lump sum withdrawal or rolled over to another complying superannuation or pension fund. Please refer to Accessing superannuation benefits on page 9 of this Additional Information Guide.

19 Tax payable on lump-sum withdrawals Age 60 or over No tax is payable on benefits you take once you reach age 60. Under age 60 The benefit will generally consist of two components taxable and tax-free. You are required to draw down proportionately from these components. There will be no tax payable in respect of the tax-free component of the withdrawal. The tax-free component may be increased if the payment qualifies as a disability superannuation benefit. The table below shows the maximum rates of tax payable on the taxable component of lump sum withdrawals if you have provided us with your TFN. How is your super taxed if you die? The tax treatment of death benefits depends on whether a dependant or non-dependant ultimately receives the benefit. What if your super is paid to a dependant? A death benefit may be paid to a dependant in the form of a lump-sum. A death benefit lump sum paid to a death benefits dependant is tax free. A death benefits dependant includes a spouse*, former spouse, child under 18 years of age, or someone who had an interdependency relationship with, or was financially dependent on the deceased at the time of death. * Your spouse includes a person (same or different sex) who, although not legally married to you, lives with you on a genuine domestic basis in a relationship as a couple. It generally does not include a person who lives separately and apart from you on a permanent basis Your age Preservation age to age 59 (inclusive) Maximum rate of tax (including Medicare levy) Amount up to low rate cap* Amount over low rate cap* 0% 16.5% Under preservation age 21.5% * The low rate cap for 2011/12 is $165,000 ($175,000 for 2012/13) (the amount may be indexed but in $5,000 increments only). Flood Levy The Temporary Flood and Cyclone Reconstruction Levy (Flood Levy) is a temporary levy introduced by the Government for the 2011/12 financial year. This levy will generally be payable on superannuation lump sum and income stream payments by individuals under the age of 60 with taxable income over $50,000 p.a. The rates applicable are shown in the table below and apply in addition to rates quoted in this section: Taxable income $0 to $50,000 Nil $50,000 to $100,000 Over $100,000 Flood Levy applicable to taxable income Half a cent for each $1 over $50,000 $250 plus 1c for each $1 over $100,000 For information about the Flood Levy, including any exemptions, please refer to the ATO website or otherwise speak to your tax adviser or financial adviser. What if your super is paid to a non-dependant? A death benefits lump sum paid to a person who is not classified as a death benefits dependant will generally consist of taxable and tax free components. No tax is payable on the tax free component. The taxable-taxed element will generally be taxed at a maximum rate of 16.5% (including Medicare levy). Where life insurance cover was in force at the date of death, the benefit may also include a taxable-untaxed element which will be taxed at a maximum rate of 31.5% (including Medicare Levy). Special tax concessions apply to lump sum death benefits paid in respect of a person who dies in the line of duty as a member of the Defence Force, member of the Australian Federal Police or the police force of a State or Territory, or as a protective services officer. A non dependant who receives a lump sum death benefit in these circumstances is taxed as if they were a death benefits dependant. What if your super is paid to your estate? A lump sum payment to your estate will be taxed depending on whether your dependants or non dependants ultimately receive your benefit. Your legal personal representative is responsible for tax arrangements when your estate pays the benefit to your beneficiary(ies). Anti-detriment payments ANZ SSA does not pay any additional amounts to your death benefit if your death benefit is paid to your dependent(s), due to administration and system limitations with ANZ SSA. Tax-free terminal medical condition benefit payments Tax and superannuation laws allow members who have satisfied a terminal medical condition condition of release to receive their lump sum payments tax free. For more information contact your financial adviser.

20 Insurance in your super You may be able to arrange tax effective insurance cover through ANZ SSA. Depending on eligibility, Death Only or Death and Total and Permanent Disablility (TPD) insurance options are available. Eligibility for insurance cover Cover is subject to eligibility criteria and is available for both employee members and personal members who are aged between 15 and 64 (age attained) at the date of commencement of cover. Applicants must be Australian citizens or permanent residents of Australia and must reside in Australia (unless the Trustee has received written approval from the Insurer that cover may continue whilst residing outside of Australia). TPD cover is not available for certain excluded occupations. Please refer to page 21 for more information on the excluded occupation categories. Cover available for employee members When an employer enrols as a participating employer in ANZ SSA, the employer s plan may be established with one unit of Death Only or Death and TPD insurance cover, provided all eligible employees are enrolled in the plan. Whether or not one unit of Death Only or Death and TPD insurance cover is automatically available for an employee member depends on whether or not the employer selects insurance cover for all of their employees. It is important to note there are minimum member information requirements to establish insurance for a member. Insurance cover will not be provided until this minimum information is provided and all eligibility criteria are met. The insurance cover available to a member depends on whether the employer has selected insurance cover, and whether the member is a full-time, part-time or casual employee. The type of cover provided for each employment classification is detailed in the following paragraphs: Full-time employee members If a member (or proposed member) satisfies the 20 hour rule (see below) they will be classified as a full-time employee. Full-time employee members are eligible for Death Only or Death and TPD Cover. To receive a TPD benefit, the member must also satisfy the 20 hour rule at the date of the event giving rise to their total and permanent disability. A member must be actively At Work * to qualify for automatic acceptance. On joining ANZ SSA, if an employee works in an excluded occupation, cover will be limited to Death Only Cover for that employee (i.e. TPD Cover is not available). Part-time and casual employee members If a member (or proposed member) does not satisfy the 20 hour rule they will be classified as a part-time employee. Part-time and casual employee members are only entitled to Death Only Cover. No TPD Cover is available for members who do not satisfy the 20 hour rule. To ensure employees have insurance correctly established, it is important that the employer accurately discloses the employee s actual occupation and confirms the employee s work status (either full-time, part-time or casual) on the Member Registration Form. Employee members who require a second unit of cover may apply for it and will be required to provide evidence of health. Two units of insurance cover is the maximum cover available through ANZ SSA, and whether the cover provided is for Death Only, or Death and TPD benefits, will depend on the employee member s occupation and work status (either full-time, part-time or casual). * At Work means the eligible person is actively participating in their usual occupation on a full-time basis (if engaged in full-time work) or part-time (if engaged in part-time work) or is on approved leave other than leave which is taken for reasons relating to injury or illness, and is not in receipt of and/or entitled to income support benefits from any source, including workers compensation benefits, statutory transport accident benefits and disability income benefits. Cover available for personal members Personal members (those whose employer has not joined ANZ SSA as an employer sponsor) can select up to two units of either Death Only or Death and TPD Cover. The insurance cover available will depend on the occupation and work status of the member (or proposed member) at the date of application. You are required to provide health evidence when first selecting cover and/or if you wish to increase any existing cover previously accepted by the Insurer. TPD Cover is only available if you satisfy the 20 hour rule. To be eligible to receive a TPD benefit you must also satisfy the 20 hour rule at the date of the event giving rise to your total and permanent disability. Personal members who do not satisfy the 20 hour rule are only eligible for Death Only Cover. Personal members who work in an excluded occupation will not be eligible for TPD Cover, irrespective of whether you satisfy the 20 hour rule or not. It is important that you accurately disclose your occupation and work status (either full-time, part-time or casual) on the Life Insurance Application Form available from anz.com. 20 hour rule The 20 hour rule is tested on the date cover commences (see below) and is tested again as at the date of the event giving rise to your total and permanent disability (where applicable). On the date cover commences, the 20 hour rule is satisfied if you are is engaged by your employer to work 20 hours or more per week as at that date. At the time of your total and permanent disability, if you have been working for six months or more since cover commenced, you satisfy the 20 hour rule if you have worked an average of 20 hours or more per week over a period of six consecutive months immediately prior to the date of the event giving rise to your total and permanent disability. At the time of your total and permanent disability, if you have been working for less than six months since cover commenced, you satisfy the 20 hour rule if you have worked an average of 20 hours or more per week since cover commenced.