Continuous Disclosure and Important Information
PRODUCT DISCLOSURE STATEMENT (PDS)
PRODUCT INFORMATION INCORPORATED BY REFERENCE
The PDS refers to other information relevant to the product (information which is ‘incorporated by reference’) which can be found below. This incorporated information forms part of the PDS and should be read together with the main PDS document above.
These documents are relevant to the features offered in the Perpetual Small APRA Fund Service.
Significant event and material change notices
The below table summaries recent significant events or material change notices for the Perpetual Small APRA Fund Service.
|Notice date||Nature of event or change||Impact of the change|
|1 April 2019||
The broker fee included in the Fees and other costs section on page 27 of the PDS is replaced with the following:
|1 April 2019||
Brokerage on Listed Security Transactions
The section on Brokerage on listed Security Transaction on page 28 of the PDS is replaced with the following:
When you open your account, a broker from our current approved panel is assigned by The Trust Company (UTCCL) Limited ABN 35 008 426 784, AFSL 235170 (UTCCL) as the platform broker authorised to purchase and sell ASX listed securities on your account. You authorise your adviser to request these trades on your behalf. Whenever your adviser requests a trade for you, UTCCL will arrange for its execution by your assigned platform broker. UTCCL will charge a trading fee of up to 0.33% of the value of the trade to cover all costs associated with arranging and executing the trade, including UTCCL’s administration costs and the platform broker’s brokerage charges.
|1 November 2018||Change to external dispute resolution (EDR) scheme.||
From 1 November 2018 there will be a change to the EDR scheme which unresolved complaints can be referred to. Please refer to this transitional disclosure for more information.
|7 April 2017
Important note – this section provides information about the rules currently applying to superannuation and the changes applicable from 1 July 2017, which were passed into law in November 2016. Refer to the flyer for further information.
Information on ‘Concessional Contributions’ is now inserted to the ‘Accumulation Accounts’ section of the PDS on page 19.
REDUCTION TO THE ANNUAL CONCESSIONAL CONTRIBUTIONS CAP
The current general concessional contributions cap ($30,000 for the 2016/2017 financial year) and the transitional cap ($35,000 for individuals aged 49 years or over on the preceding 30 June) will be reduced to $25,000 from 1 July 2017. This amount will be indexed in line with Average Weekly Ordinary Time Earnings (AWOTE) once the increase in the indexed amount is greater than $2,500.
NEW PROVISION TO MAKE ‘CATCH-UP’ CONCESSIONAL CONTRIBUTIONS
Members with a total superannuation balance1 of $500,000 or less on 30 June of the previous financial year who have not fully utilised their concessional contributions cap in the 2018/2019 or subsequent financial years will be able to carry forward the unused cap amounts on a rolling five consecutive year basis to make additional concessional contributions. The 2019/2020 financial year will be the first time that additional concessional contributions will be able to be made.
1 Your total superannuation balance is generally the withdrawal value of all of your superannuation, including any accumulation, transition to retirement and pension accounts
Information on ‘Non-Concessional Contributions’ is now inserted to the ‘Accumulation Accounts’ section of the PDS on page 19.
REDUCTION TO THE NON-CONCESSIONAL CONTRIBUTIONS CAP
A lower non-concessional contributions cap of $100,000 (that is, four times the new concessional contributions cap) will apply from 1 July 2017. Where a member has a total superannuation balance of $1.6 million or more on 30 June of the previous financial year, they will not be eligible to make non-concessional contributions in that financial year. Members under age 65 will be eligible to bring forward two or three years of non-concessional contributions depending on their total superannuation balance. Transitional arrangements will apply to ‘bring forward’ amounts triggered in the 2015/2016 or 2016/2017 financial years that are not fully utilised by 30 June 2017 such that your cap will be reassessed on 1 July 2017 to reflect the new annual cap.
Information on ‘Government Co-Contribution’ is now inserted to the ‘Tax’ section of the PDS on page 33.
For the 2017/2018 financial year, the lower income threshold is $36,813 with a higher income threshold of $51,813.
ADDITIONAL ELIGIBILITY REQUIREMENTS
Members will not be eligible for Government co-contributions if they exceed their non-concessional contributions cap for that year or where the member has a total superannuation balance of $1.6 million or more on 30 June of the previous financial year.
LISC REPLACED BY LOW INCOME SUPERANNUATION TAX OFFSET (LISTO)
From 1 July 2017, the LISC will be replaced by the LISTO. The LISTO retains the same limits and rates as the LISC and will generally operate in the same way.
Information on ‘Concessional Contributions Tax Deductions’ is now inserted to the ‘Tax’ section of the PDS on page 32.
EXTENSION OF TAX DEDUCTIONS FOR PERSONAL CONTRIBUTIONS
From 1 July 2017, tax deductions for personal contributions up to the concessional contributions cap, currently available only to the self-employed, will be extended to all individuals under the age of 75 (subject to meeting the work test if you are aged 65 or over).
Information on ‘Additional Contributions Tax’ is now inserted to the ‘Tax’ section of the PDS on page 32.
DECREASE IN INCOME THRESHOLD FOR ADDITIONAL CONTRIBUTIONS TAX TO APPLY
The income threshold (including concessional contributions) from which tax of 30% will apply instead to concessional contributions (within the concessional contributions cap) will be reduced from $300,000 to $250,000 from 1 July 2017.
Information on ‘Spouse Contributions’ is now inserted to the ‘Tax’ section of the PDS on page 33.
INCREASE TO INCOME THRESHOLD FOR SPOUSE CONTRIBUTIONS
From 1 July 2017, access to the low income spouse superannuation tax offset will be expanded by increasing the income threshold for the low income spouse from $10,800 to $37,000. The offset will remain at 18% of the amount of eligible spouse contributions up to a maximum of $3,000, therefore remaining capped at $540 per year.
Information on ‘Tax on Death Benefits’ is now inserted to the ‘Tax’ section of the PDS on page 33.
REMOVAL OF ANTI-DETRIMENT PAYMENTS ON DEATH BENEFITS
The anti-detriment provisions for death benefits paid as a lump sum to certain eligible beneficiaries will be removed for members who died on or after 1 July 2017 and for all members where the death benefit is paid after 30 June 2019.
Information on ‘Overview’ is now inserted to the ‘Pension Accounts’ section of the PDS on page 23.
NEW INCOME STREAM TOTAL ACCOUNT BALANCE LIMIT
From 1 July 2017, a transfer balance cap of $1.6 million will apply to the total amount of accumulated superannuation that a member can transfer into the retirement (income stream) phase. Subsequent earnings on balances in the retirement phase will not be capped or restricted. The general transfer balance cap will be indexed in line with the Consumer Price Index (CPI) in $100,000 increments.
Where a member accumulates amounts in excess of $1.6 million in their superannuation account, they will be able to maintain the excess amount in their superannuation accumulation account where earnings will continue to be taxed at the concessional rate of 15%.
Members already in the retirement phase with total account balances above $1.6 million will have to reduce their retirement phase balance to $1.6 million by 1 July 2017 by either transferring the excess back into a superannuation accumulation account or withdrawing the excess amount. Transition to retirement (TTR) pensions do not count towards your transfer balance cap since these amounts are not considered to be in the retirement phase.
Members who breach the transfer balance cap will be subject to penalty arrangements and the Australian Taxation Office (ATO) can issue a commutation authority to the Fund which requires us to transfer the amount determined by the ATO (the reduction amount) back into a superannuation accumulation account. Transitional arrangements, generally with reduced penalties, will apply for the six months from 1 July 2017 to 31 December 2017.
Information on ‘Tax on Investment Earnings’ is now inserted to the ‘Tax’ section of the PDS on page 33.
EARNINGS ON TTR PENSIONS TO BE TAXED
The earnings on assets supporting TTR pensions are currently not subject to tax. From 1 July 2017, these earnings will be taxed at the maximum rate of 15%, which is the same as the concessional tax rate applying to fund earnings on superannuation accumulation accounts.
Information on ‘Tax on Benefit Payments’ is now inserted to the ‘Tax’ section of the PDS on page 33.
TAX TREATMENT OF INCOME PAYMENTS
Members are currently able to elect that TTR pension amounts paid from the taxable component be treated as lump sums for tax purposes. These payments are then received tax-free to the extent that they are within the member’s low rate cap up to age 59 (currently $195,000). Members will no longer be able to make this election from 1 July 2017, which means that members under age 60 who had not previously fully utilised their low rate cap will incur tax at their marginal tax rate (less a 15% tax offset if aged 58-59) on all TTR pension income amounts paid from the taxable component.
TAX ON LUMP SUM BENEFITS –
TAX ON PENSION BENEFITS –
|1 July 2015||Changes to release condition ‘Terminal Medical Condition’||Effective from 1 July 2015, the Government has amended the ‘terminal medical condition’ definition of release. The life expectancy period which enables members’ tax-free access to their superannuation benefits where a member is suffering a terminal illness (as certified by two medical practitioners, at least one of whom must be a specialist) has changed from less than 12 months to 24 months.
Where a insurance policy is held by a Small APRA Fund (SAF) a terminal illness payment is generally payable where an insured member of the SAF is diagnosed with a terminal illness and has less than 12 months to live.
As a result a member may meet the terminal medical condition of release and be entitled to withdraw their investment benefit but may not qualify to receive their insured benefit amount under terminal illness definition of the insurance policy until their life expectancy is less than 12 months.
In this circumstance in order to continue the insurance cover in your SAF you will need to ensure a sufficient balance is maintained in the Perpetual Cash Account to meet ongoing insurance premiums and any other fees, costs or taxes.
|28 February 2013||Enhancement of Perpetual Portfolio Management Service.||
Members received enhanced services from 2 April 2013 including: