Super frequently asked questions
Definitions
What is meant by ‘retail’ superannuation?
A retail superannuation fund is offered to members of the public.
Anyone who is eligible to contribute to superannuation can become a member of our retail superannuation fund, subject to acceptance by the trustee. Rules on eligibility are in the section Accumulation and rollover (page 29) in the Product Disclosure Statement.
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A superannuation trustee is responsible for looking after the property of a superannuation fund for the benefit of the members.
Australian Ethical Superannuation Pty Ltd is the trustee for the Australian Ethical Retail Superannuation Fund. The trustee is legally responsible for managing the Fund in accordance with the trust deed (PDF file 2.2MB).
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A strategy is an investment option within a superannuation fund. Australian Ethical offers five strategies for both accumulation/rollover and income stream accounts.
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General
What are the benefits of investing with Australian Ethical?
- professional experience
- diversification
- simplicity
- transparency
- investment choice
- investment information
- account information
- potential investment returns.
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What are the risks associated with investing in a superannuation strategy?
All investments are subject to varying risks and their value can go up as well as down.
You should be aware of:
- the market conditions which prevail at the time
- the varying risk/return characteristics of different Fund strategies.
Refer to the How we manage risk section of the PDS for a detailed explanation of particular investment risks.
Further information
- What is your investor profile?
- Product Disclosure Statements
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How is risk managed?The trustee has identified and recorded what it considers to be the material risks currently facing the trustee and the Fund. It has developed a risk management strategy and a risk management plan for the Fund. The risk management plan is available to members on request. Risk management is monitored by a board committee appointed by the trustee.
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Which superannuation strategy should I invest in?
The best mix of investments for you will depend on your personal financial circumstances, your investment goals and timetable, and how you balance risks and rewards.
Our super PDS provides information to help make your investment decision. However after reading it in full, if you are still uncertain about which product is most suitable, you should see an accredited financial adviser. Australian Ethical can offer general advice on the Superannuation Fund but will not provide individually tailored advice to you on which investment strategy you should invest in.
Further information
- Your investor profile
- Product Disclosure Statements
- List of financial advisers and helpful contacts
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Do I have a choice of super fund?
To find out whether choice is available to you:
- check with your employer
- visit www.superchoice.gov.au where you can also download Part B of the standard choice form.
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Can I invest in Australian Ethical's Superannuation Fund if I have a self-managed superannuation fund (SMSF)?
If you operate a self-managed superannuation fund you can invest in the Australian Ethical investment trusts. See our Product Disclosure Statements for the trusts or contact us for more details.
A SMSF cannot invest directly into a retail superannuation fund.
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Performance
What investment returns can an investor in the Fund expect?
While future performance can never be guaranteed, the Fund has historically been able to achieve competitive long-term performance for each of its investment strategies.
Past returns shouldn’t be used to calculate your future returns but are a useful guide to the overall performance of the Fund's investment strategies. By referring to them, in conjunction with other information (such as fees and risk), you can compare our returns with other products of a similar type when deciding where to invest.
Note that:
- all investments can rise and fall in value
- past performance is not necessarily indicative of future performance
- returns are affected by variations in market forces and there will be changes in the value of your superannuation account according to how investments in the Fund are performing
- the risk characteristics of each strategy should be considered along with the potential returns.
Further information
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How is the unit price calculated?
The unit price is calculated by dividing the net assets by the total number of units on issue for that superannuation strategy.
For example, if a superannuation strategy had a total of $1 000 000 net assets and there were 1 000 000 units on issue, then the unit price for that strategy for that day would be $1.00.
Further information
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Your superannuation account
Is there a cooling-off period?
Yes, there is. The cooling-off period is outlined on page 23 of the super PDS. If you invest, you will receive a confirmation letter which includes the final date that you may use this option. This is typically within 14 days of receiving a confirmation letter, before which you can exercise your cooling-off right.
The cooling off period does not apply to
- a wholesale investor as defined by the Corporations Act 2001
- an investor who has previously exercised rights as a member of the Fund
- switches between investment strategies.
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What sort of superannuation accounts are there?
There are two sorts of accounts:
- Accumulation and rollover – this account gathers and builds your savings. Benefits are usually paid out in a lump sum or transferred to a pension account on retirement.
- Account-based income stream (allocated pension) – this account allows you to draw on your savings in regular payments during retirement (or in some circumstances, pre-retirement).
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What types of contributions are accepted in the accumulation and rollover account?
Concessional contributions:
- employer contributions: superannuation guarantee and other contributions
- salary sacrifice (before tax) contributions.
Non-concessional contributions:
- voluntary (after tax) contributions and spouse contributions
- super co-contributions
- rollovers and transfers.
Further information
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Am I eligible for super co-contributions?
If you earn less than $28 980 taxable income (assessable income plus reportable fringe benefits) you may be entitled to the full benefit. This means that for every $1 you contribute to your super as a personal (after tax) contribution, the government will put in an extra $1.50 (up to a maximum of $1500).
If you earn between $28 980 and the upper limit of $58 980, the government will match each $1 you contribute (up to $1000) with a contribution that decreases as your income increases.
Refer to the superannuation page of the Australian Taxation Office for further information on co-contributions.
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Do I need to apply for super co-contributions?
No. At the end of each financial year, the Australian Taxation Office will receive your tax return and a statement from the Fund indicating your level of contributions. The Australian Taxation Office will then determine the level of co-contribution required, based on your income.
Visit the Australian Taxation Office for further information on co-contributions.
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What are concessional contributions?
Previously known as deductible or taxable contributions, these contributions are typically made on your behalf by your employer. They include the superannuation guarantee and award superannuation payments, and superannuation salary sacrifice arrangements. See making super contributions for contribution rules.
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What are non-concessional contributions?
Previously known as undeducted or after tax contributions, these are typically personal after-tax contributions, but also include after tax contributions made by your spouse. See making super contributions for contribution rules.
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What are the accumulation and rollover contribution rules?
Rules concerning concessional contributions and non-concessional contributions are based on age and employment. See page 30 of the superannuation Product Disclosure Statement for details.
Further information
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Fees and discounts
Where do I find information on fees and costs?
Refer to the fees and costs section for super.
It is very important that you understand the fees that will be charged on your investment because they will affect your returns. If, after reading the fees and costs section on the website or in the PDS, you are in doubt about the fees you will be charged, please contact us or see an accredited financial adviser before investing.
Further information
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Can I obtain a contribution fee discount?
We offer fee discounts for certain investments made directly into the Fund. See Table 2: Important additional disclosure items under fees and costs.
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What is the impact of the contribution fee on your investment?
When you invest your money, a contribution fee is deducted from it. For example, when you invest $1000, and if the contribution fee is 4%, your net investment would be $960 ($1000 investment less $40 contribution fee). If the unit price is $1.00 you would receive 960 units.
Further information
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Keeping you informed
Can I access my information online?
Yes you can. If you want to use this facility, you will need to register online to be issued with a password to access your information. If you have an adviser, they will be able to access your membership information with their own password.
You can find your current unit balance, latest transactions and the online registration at the Client Log-in for superannuation.
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How often will I receive statements and information?
You will receive:
- a confirmation report for any rollovers and switches
- two member statements per year, detailing your balance and a transaction summary, including any earnings and charges or fees during the period
- an annual report on the financial position and performance of the Fund
- two newsletters per year.
These will be sent as long as we have your current address details (postal and email).
You may elect to receive all statements by email.
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Where do I find…
Forms to change my superannuation details?Forms for members are found in the superannuation section, or may be accessed directly from the homepage from Client forms. Forms are also available at the end of the super PDS.
To protect the security of your investment, we will not accept notice of these changes by phone or email.
Please quote your member number on all correspondence.