User Guide for smartMonday models including: MS10_SM_HSW Prime Tesf, MS10_SM_HSW, Prime Tesf, Tesf
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DocumentDocumentPRIME
How smartMonday PRIME Works Guide
Preparation date: 22 November 2024
Contact details for smartMonday PRIME Phone 1300 614 644 Email enquiry@smartmonday.com.au Web www.smartmonday.com.au Mail GPO Box 1202, Brisbane QLD 4001
1. How super works 2. Benefits of investing 3. Risks of super 4. How we invest your money 5. Fees and costs 6. How super is taxed 7. Other important information
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The information in this document forms part of the smartMonday PRIME Product Disclosure Statement (PDS) dated 22 November 2024. The PDS, Insurance Guide and Target Market Determination can be found at
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www.smartmonday.com.au or by contacting us on 1300 614 644.
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The information in this document is general information only and does
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not take account of your personal financial objectives, situation or needs. You should obtain financial advice that is tailored to your personal
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circumstances before making a decision about this product.
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The information in the PDS, this document and the Insurance Guide is
up-to-date at the date of preparation, however it is subject to change
from time to time. If a change is made to information that is not materially
adverse, this document may not be updated. Updated information will
be published at www.smartmonday.com.au. You may request a free
paper copy or electronic copy of any updated information by calling us
on 1300 614 644.
This document is issued by Equity Trustees Superannuation Limited (ABN 50 055 641 757; AFSL 229757; RSE Licence No. L0001458) as trustee of Smart Future Trust (ABN 68 964 712 340) ('the Fund'). References to `we', `us' and `our' in this document are references to the trustee. smartMonday PRIME is a product in the Fund.
The Sponsor of the Fund is smartMonday Solutions Limited (ABN 48 002 288 646; AFSL 236667). smartMonday is a registered trading name of smartMonday Solutions Limited.
The trustee, nor any of its related entities, guarantees your investment in the product. The trustee does not in any way endorse, warrant or accept responsibility for any services to members or prospective members provided by or on behalf of Sponsor in its own right.
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1. How super works
Superannuation (super) is a powerful tool to help you save for your retirement, but aspects of the super system can be complex. That's why it's important that you are empowered to take action to get the best out of your super for your future.
Contributing to super
It's your choice
Most people can choose the super fund to which their employer contributes, called having a 'Choice of Fund'. Check with your employer if you are eligible. If you haven't exercised Choice of Fund in the past, you may have multiple super accounts across different super funds from different employers. To stop the creation of multiple super accounts the Government introduced a system whereby your existing super fund is 'stapled' to you when you change jobs, unless you take action to make a change. Your new employer obtains information about your stapled super fund from the ATO. If you have never had a super account before you will need to choose a fund, or your employer will create an account for you with their default super fund. It's important you take an interest in your super and help it grow into a healthy retirement nest egg. More general information on choice and stapling is available from the ATO's website. Boost your balance
smartMonday PRIME is committed to helping you live the best possible lifestyle in retirement and that means helping you save the money you need. A quick and easy way to increase your super savings is for you to make regular additional contributions. Even small amounts paid regularly can build up to make a huge difference over time. While it is good to start early, it's never too late to start contributing and give your super a helping hand. Contributions can be made into your account either by you, your spouse, or your employer. As super receives tax breaks, the Government limits contributions that can be made to super without incurring extra tax these limits are referred to as `contribution caps'. Different limits apply depending on whether the contributions are classified as concessional or non-concessional contributions. All types of contributions can be accepted from you or on your behalf if you are under 75 years of age. For members aged 75 or older, only compulsory employer contributions, or downsizer contributions, can be accepted for or on your behalf. Other forms of personal contributions, including spouse contributions, cannot be made by you or on your behalf.
Types of contributions
Providing you meet the age-related requirements set out above and any other applicable eligibility rules, the types of contributions that can be made to your super (accumulation) account include:
Contributions from your employer (including compulsory and other employer contributions); Your own contributions (including contributions under the Government's First Home Super Saver (FHSS) Scheme and, from age 55, downsizer contributions); Contributions from your spouse; and Contributions from the Government.
Superannuation Guarantee contributions
Most Australian employers are required by Government legislation to make super contributions for their employees called Superannuation Guarantee (SG) contributions. SG contributions are a prescribed percentage of an eligible employee's Ordinary Time Earnings (subject to a maximum dollar limit). For the 2024/25 financial year the prescribed percentage is 11.5%. Ordinary time earnings are generally what you earn for ordinary hours of work, including over-award payments, commissions, allowances, bonuses, and paid leave. The SG contribution rate is legislated to increase to 12% from 1 July 2025.
Some awards, enterprise agreements and other registered employment agreements have extra terms about super. These terms apply on top of the SG legislation.
SG contributions are currently required to be paid by an employer to an eligible employee's super fund at least quarterly, however this timing may change in the future.
SG contributions and any other compulsory employer contributions are concessional contributions and are subject to concessional contribution limits (refer to the How super is taxed section of this document for information about these limits). For more general information about SG contributions including the circumstances in which they are payable, visit the ATO's website.
Salary sacrifice contributions
Salary sacrifice is an arrangement with your employer to have some of your before-tax salary or wages paid into your super fund instead of to you (that is, reducing your take home pay). This is a voluntary arrangement between an employer and an employee.
Salary sacrifice contributions (like other employer contributions) are concessional contributions subject to concessional contribution limits (refer to the How super is taxed section of this document for information about these limits). For more general information about salary sacrifice contributions, visit the ATO's website.
IMPORTANT: Salary sacrifice contributions may be regarded as Reportable Employer Superannuation Contributions. Reportable Employer Superannuation Contributions are contributions over which the member has some influence and count as income when assessing a person's eligibility for a number of Government benefits, including welfare benefits. For more information about Reportable Employer Superannuation Contributions, visit the ATO's website.
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Personal contributions You can make personal contributions to your super account from your after-tax salary (that is, your take-home pay). We can only accept personal contributions from you if we hold your Tax File Number. Personal contributions are non-concessional contributions and are subject to non-concessional contribution limits (refer to the How super is taxed section of this document for more information about these limits) unless you validly claim a tax deduction in relation to the contributions. For more general information about personal contributions, visit the ATO's website. Claiming a tax deduction for personal super contributions You may be able to claim a tax deduction for personal super contributions that you make to your super fund from your after-tax income. If you wish to claim a tax deduction, you must meet the eligibility criteria and complete the required ATO notice form in your member online account. This notice must be submitted within the required timeframe and acknowledged by us to be effective. Contact 1300 614 644 and we'll take you through what is required. For information about eligibility and further general information about claiming a tax deduction for personal super contributions go to the ATO's website. Spouse contributions Your spouse can make contributions into your super account from their after-tax salary to help you to top up your retirement savings. To be eligible to receive contributions from your spouse, you must be under age 75, and you and your spouse must both be Australian residents for tax purposes and must be married or living together on a genuine domestic basis. Spouse contributions are non-concessional contributions and count towards the receiving spouse's non-concessional contribution limit not the spouse making the contribution (refer to the How super is taxed section of this document for more information about these limits). For more general information about spouse contributions, visit the ATO's website. What are the benefits?
The contributor may receive a tax offset for contributions for a low income or non-working spouse The super balance of a spouse who has little or no super will be boosted and your retirement savings as a couple will be increased, and You and your spouse may benefit from the lower rate of tax applicable on investment earnings within super compared to wealth accumulation outside super.
Downsizer contributions If you are aged 55 and over (there is no maximum age limit) and meet the eligibility requirements, you can make a one-off non-concessional contribution of up to $300,000 from the proceeds from the sale of a principal residence in Australia, held for at least 10 years by you or your spouse, into your super account. This measure only applies where the contract of sale was exchanged after 1 July 2018, and does not include caravans, houseboats or other mobile homes. A downsizer contribution can only be made from the sale of one home. Once the house is sold and the downsizer contribution has been made, there is no requirement to purchase another home to prove that you are downsizing. Other conditions apply. If you wish to make a downsizer contribution, please complete the Downsizer contribution into superannuation form available from the ATO's website and provide it to us either before or at the time of making the contribution. The downsizer contribution must be made within 90 days of receiving the proceeds of sale (which is usually the date of settlement). A downsizer contribution does not count towards either of your contribution caps and can be made regardless of the size of your Total Superannuation Balance (across all super funds you participate in). However, a downsizer contribution will count towards your transfer balance cap, which applies when you move your super into retirement phase, and will be taken into consideration when determining eligibility for the Age Pension. For more general information about downsizer contributions visit the ATO's website. COVID-19 re-contribution If you withdrew money from your super fund through the COVID-19 early release of super program, you may be eligible to rebuild your super by making personal super contributions of the same amount that was paid to you under the COVID-19 early release scheme, without exceeding your non-concessional contributions cap. These contributions can be classified as 'COVID-19 re-contributions'. If you have decided to re-contribute the super that you took out as part of the COVID-19 early release scheme and you are close to going over your non-concessional contributions cap for the financial year, you may choose to complete and lodge a Notice of re-contribution of COVID-19 Early Release amounts available from the ATO's website. You will be ineligible to claim a personal super deduction for any amounts you choose to have treated as a COVID-19 re-contribution. If you are not going to go over your cap for a financial year by making your re-contribution, it is not necessary for you to complete the notice, but the amount will count towards your non-concessional contributions cap. You should consider seeking professional tax advice on whether this is the right decision for you. The re-contribution will count towards your transfer balance cap, which applies when you move your super into retirement phase. It will also count towards your Total Superannuation Balance when it is recalculated to include all your contributions on 30 June at the end of the financial year. You are permitted to make these re-contributions up to 30 June 2030. You do not need to re-contribute to the same fund that you received the payment from. For more general information about COVID-19 re-contributions, visit the ATO's website.
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Government co-contribution
The Government co-contribution is a contribution made by the Government to your super account to recognise the non-concessional (after-tax) contributions you have made to your account during the financial year.
To qualify for the Government co-contribution, you must meet certain criteria including (in summary):
Make a personal non-concessional (after-tax) contribution to your super account by 30 June and not claim a tax deduction for it. (The contribution must not exceed the non-concessional (after-tax) contributions cap - see the How super is taxed section of this document for more information.) Have total assessable income (meaning income plus reported fringe benefits plus SG contributions) between applicable income thresholds for the financial year ($45,400 and $60,400 for the 2024/25 financial year). Receive at least 10% of your assessable income from employment or self-employment activities. Be less than 71 years of age at the end of the financial year in which your personal non-concessional contributions are made. Not have been a temporary resident of Australia for any part of the financial year (unless you are a New Zealand citizen, or it was a prescribed visa). Lodge an income tax return with the ATO for the financial year. Have a Total Superannuation Balance (across all super funds you participate in) of less than the General Transfer Balance Cap, on 30 June of the year before the financial year in which the personal non-concessional contributions are made.
As long as the ATO is satisfied that the relevant criteria (as applicable to a financial year) have been met, the ATO will determine the amount of the co-contribution for you and pay it directly into your super account (usually, but not always, the fund to which you made the personal super contributions). The maximum amount that you can receive as a co-contribution is $500 per financial year (the amount you receive depends on your assessable income). The co-contribution will not be subject to contribution tax, nor will it count against the contribution caps.
IMPORTANT: The amount of the co-contribution and the co-contribution income thresholds are subject to change. For the amount of co-contributions and income thresholds applicable from year to year, full eligibility criteria and other information about the Government co-contribution, go to ATO's website.
IMPORTANT: For further information about contribution caps, and other rules related to the taxation of contributions (including the General Transfer Balance Cap), refer to the How super is taxed section of this document. For further general information about the types of contributions that can be made to superannuation go to www.moneysmart.gov.au or www.ato.gov.au.
First home super saver (FHSS) scheme
First home buyers can make voluntary personal contributions or arrange employer (salary sacrifice) contributions of up to $15,000 per financial year, and up to $50,000, in total per person for the purposes of saving for a home deposit through the Government's FHSS Scheme. Contributions made as part of participating in the FHSS Scheme will still count towards the relevant contribution cap (for more information, see the information below about withdrawing FHSS amounts and the How super is taxed section of this document). For more general information about the FHSS Scheme visit the ATO's website.
Making contributions
Contributions can only be made by or on your behalf to an accumulation account. See How to open an account in the smartMonday PRIME PDS for more information. If you are an insurance-only member we cannot accept contributions other than employer contributions for you. If we receive a contribution for a person that has not been accepted as a member, monies may be returned. Contributions may be made to your account in the following ways:
Via your employer - Employers are required to make SG or any other compulsory contributions through a 'Superstream' compliant mechanism. Employers have access to a clearing house (issued by another financial services entity) through which employer contributions can be made. It is up to your employer to determine which SuperStream compliant system they will use. NOTE: The trustee does not in any way endorse, warrant or accept responsibility for any services provided by the clearing house. Voluntary contributions - Voluntary or personal contributions can be made at any time and there is no minimum contribution required, although there are maximum caps which can have tax implications if exceeded (for more information see the How super is taxed section of this document). Voluntary contributions can be made:
By BPAY® Members will receive BPAY payment details when they join smartMonday PRIME.
® Registered to BPAY Pty Ltd ABN 69 079 137 518
IMPORTANT: We cannot accept personal contributions from you or on your behalf (other than employer contributions), if we do not hold your Tax File Number or age-related requirements are not satisfied. Contributions made in contravention of contribution rules in superannuation legislation must usually be rejected or refunded within 30 days of receipt. A refund may be adjusted for any permissible investment fluctuations, reasonable administration and transaction costs and insurance fees for cover provided prior to the refund. For more information, see the How super is taxed section of this document.
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Contribution splitting
Concessional contributions including SG contributions, salary sacrifice contributions and personal contributions for which a tax deduction has been claimed, can be split with your eligible spouse (including a de-facto spouse of the same or opposite sex). It is not possible to split non-concessional contributions. To arrange to split your super contributions with your spouse, you can download the Contribution splitting form from www.smartmonday.com.au and ensure that you have your spouse's super account details handy.
Generally, only contributions made in the financial year prior to the financial year in which the contributions splitting application is lodged, can be split. The exception is if you are closing your account with smartMonday PRIME. In this case you can apply to split contributions made in the current financial year (provided the application is made before your account is closed).
Only 85% of the eligible concessional contributions made to your account in the financial year that you nominate for the contributions split, may be split with your spouse. This is because 15% of concessional contributions are ordinarily deducted for tax, when the contributions are received. We may make whatever adjustments we consider appropriate to the splitable amount for any tax liabilities.
Split contributions are treated like rollovers, and do not count towards the non-concessional (after-tax) contributions cap of the person receiving the split contribution. However, the contributor cannot split more than the concessional (before-tax) contributions cap applicable to them.
We keep records of the amount of contributions which you are eligible to split with your spouse for a given financial year and can provide these details to you on request.
In order for an application to split contributions to be eligible:
The contributing spouse and the receiving spouse must be married or in an eligible de-facto relationship; The receiving spouse must have agreed to receiving split contributions from the contributing spouse; The receiving spouse must be either aged less than their preservation age or aged between their preservation age and age 65 and not permanently retired; The eligible contributions must have been made during the previous financial year (unless an exception applies); and The transferring spouse must not have already made an application to split contributions in respect of the same financial year.
If an application to split contributions is accepted by us, the contributions will be split by being paid to the super account of the receiving spouse within 90 days of us receiving your application.
Split contributions are preserved until the receiving spouse turns 65, permanently retires on or after age 60 or meets some other condition of release.
For more general information about contributions splitting, see the ATO's website.
Rollovers or transfer into your super account
You are generally able (some exceptions do apply) to rollover or transfer accounts you have with other super funds to your smartMonday PRIME account. This is called 'consolidating your super accounts'. You may be able to combine your super into your smartMonday PRIME account online through your member online account. If you have a MyGov account linked to the ATO, you can rollover your super online. Alternatively, you can download a paper rollover form from www.smartmonday.com.au. Special rules apply to rolling over money from an SMSF. Refer to the ATO's website for information on rolling over using SuperStream.
IMPORTANT: Before closing any other superannuation account that you may have, you should consider what fees and costs you may incur, what benefits you may lose or any other significant implications of closing your account (for example, loss of insurance cover). For advice that takes into account your financial situation, needs or objectives, we recommend you contact a financial adviser.
Other amounts that can be paid into super
There are other amounts that may be paid into your super account, such as certain disablement amounts on settlement of a disability claim (outside of super), proceeds from the sale of a small business, and super sourced from a foreign super fund. Special rules apply to these amounts. If you are going to receive any of these amounts or are considering contributing them into super, we recommend you consult a financial adviser. Go to the ATO's website for more information.
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Payments from super
Restrictions on when you may access your benefits
Super is a long-term investment. The Government has placed restrictions on when you can access your benefits. In general, your benefits are preserved and cannot be paid to you until:
You are age 60 and have permanently retired1 from the workforce; You reach your preservation age and begin a transition to retirement (TTR) income stream (restrictions apply); You cease an employment arrangement on or after reaching age 602. You have reached age 65 (whether or not you have retired); or You have satisfied another 'condition of release' (see below).
Your 'super benefit' is the sum of all contributions and rollovers that have been made into your account, plus positive investment earnings, less negative investment earnings and any fees and costs (including insurance fees), government taxes and withdrawals that have been made from your account.
From 1 July 1999, all contributions made by or for a member, and all investment earnings, have been subject to the preservation rule. This means your super benefit cannot be withdrawn from the super system unless you satisfy a condition of release that gives you access to some or all of the benefit. Contributions made by or for a member prior to 1 July 1999 may be defined as 'restricted non-preserved benefits' or 'unrestricted non-preserved benefits'. In certain circumstances you may be able to withdraw these benefits earlier. For example, when you change jobs, you may be able to withdraw any restricted non-preserved benefits you may have.
The amount of your preserved, restricted non-preserved and unrestricted non-preserved benefits that make up your accumulation account will be identified on your smartMonday PRIME Annual Member Statement. For further general information about preservation rules go to www.moneysmart.gov.au or ATO's website. Taking your super as an income stream while you are working
If you have reached your preservation age and are eligible, you can start a Transition to Retirement (TTR) account to access part of your super while you are still working. This gives you access to an additional income stream (pension) with the flexibility to reduce the hours that you work.
There are some conditions that apply. You should read the smartMonday PENSION PDS and applicable Target Market Determination before deciding to start a TTR account. You should also consider obtaining personal financial advice.
To access the smartMonday PENSION PDS visit www.smartmonday.com.au.
Preservation age
The preservation age is set by the Government and determines when you can access the preserved component of your super. If you are born on or after 1 July 1964, your preservation age is 60. Note: Anyone born before this date has already reached their preservation age.
Until your preservation age is reached, in most circumstances, you are unable to withdraw your super benefit even if you cease to be in the employment of your employer.
Other conditions of release
The other circumstances in which some or all of your super benefit may be released to you (regardless of your age), if you are an Australian citizen, New Zealand citizen or permanent resident, are:
You are temporarily or permanently incapacitated (conditions apply); You die; You suffer a terminal medical condition (as defined in super legislation); You experience severe financial hardship; Under compassionate grounds (if approved by the relevant government body)3; The amount in your account is less than $200; You are participating in the FHSS Scheme (for more information on FHSS Scheme payments, see below); or Any other circumstances allowed by law, for example, on presentation of an ATO Release Authority.
If you are a temporary resident, the circumstances in which your benefit may be released to you are more limited (e.g., death, permanent incapacity). You may also access your benefit if your visa has expired or been cancelled, and you have permanently departed Australia. For more information on Departing Australia Superannuation Payments (DASP), see below.
1. Permanently retired is defined as a genuine intention to never work in paid full time or part time employment again (where part time means working at least 10 hours per week).
2. If you are aged 60 or over and cease one employment arrangement but start or continue in another employment arrangement, you may withdraw all of your super accumulated up to the date your original employment arrangement ceased. Any super accrued after that date in connection with any other employment arrangement will be preserved and cannot be withdrawn until a condition of release is met.
3. Compassionate grounds are limited to specific situations including where you need money to pay for medical treatment, transport, accommodating a disability and/or palliative care for you or your dependant; making a payment on a home loan or council rates so you don't lose your home; and expenses associated with the death, funeral or burial of your dependant. For more information, visit the ATO's website.
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Portability within Australia
While accessing your super benefit in cash is subject to restrictions, your benefit may be transferred to another complying super product within Australia at any time. Under portability arrangements, you can generally rollover or transfer part or all of your super accounts into another fund of your choice. The portability rules allow us to refuse a portability request in some circumstances; for example, where an amount of less than $6,000 will be left in your accumulation account after the transfer. The time period for processing transfer requests is usually 3 business days from the date of receiving the request and all the relevant information required to effect the transfer, however a longer processing time may sometimes occur. If you request to transfer the balance of your accumulation account to another fund, we must be satisfied that you have received or know that you can request all the information you reasonably need to understand the impact that actioning your request may have on your benefits. For example, any insurance cover you hold will cease if you close your accumulation account with us. If you require any further information prior to making a portability request, contact us on 1300 614 644 or via email at enquiry@smartmonday.com.au. Departing Australia superannuation payment
If you have worked and earned super in Australia as a temporary resident and you have permanently left the country, you may be eligible to claim the super benefit you have accumulated while working here, less any tax. The payment is called a Departing Australia Superannuation Payment (DASP). A DASP can be claimed if:
You visit Australia on an eligible temporary resident visa; and Your visa ceases to be in effect (it has expired or been cancelled); and You have permanently left Australia. To apply for a DASP, visit the ATO's website. If you are a temporary resident and you permanently leave Australia, you have six months to claim your super benefit. If you do not claim it within this timeframe, it will be transferred to the ATO as unclaimed money. If that happens, you will need to contact the ATO to claim it. For more information, visit the ATO's website.
FHSS scheme payments If you have made voluntary contributions to your super account since 1 July 2017 and wish to access these contributions (and associated earnings) under the Government's FHSS Scheme, you will need to apply to the ATO, who manages and administers the FHSS Scheme, to have these funds released from your account for use for a first home deposit. The application process is done through your myGov account. Voluntary contributions for the purpose of the FHSS Scheme are limited to salary sacrifice contributions and personal (after-tax) contributions. Personal contributions that have been claimed as a tax deduction are also considered to be voluntary contributions available for release under the FHSS Scheme. SG contributions made by your employer and spouse contributions cannot be released under the FHSS Scheme. To qualify, you must be 18 years of age or over, intending to purchase a residential home or land to build a home on, never owned property in Australia, and not previously made a FHSS release request under the FHSS Scheme. Other conditions apply. The amount you can access under the FHSS Scheme is limited to $15,000 of your voluntary contributions from any one financial year, up to a total of $50,000 across multiple years (plus associated earnings). The ATO will determine how much you can withdraw and the tax payable on the withdrawal and will let us know if your application has been approved. We will then arrange to release the money from your super account in line with the ATO's instructions within a reasonable processing time. Amounts withdrawn under the FHSS Scheme will be subject to tax at your marginal tax rate, less a 30% tax offset. Once you have accessed your super through the FHSS Scheme, you must use it to purchase or construct a home within a specified period. Other complex rules apply. If you don't comply with the rules, you may have to transfer the funds back into super or pay tax equal to 20% of the amount released. For more general information about the FHSS Scheme visit the ATO's website. Payments on death Generally, benefits must be paid to one or more of your dependants or your legal personal representative if you die. You can make a nomination in relation to the payment of any death benefits. See the Benefits of investing section of this document for further information on nominating a beneficiary.
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General benefit payment requirements When any benefit is paid from your accumulation account, it will be broken down into tax-free and taxable components. For more information, see the How super is taxed section of this document. In exceptional circumstances, the trustee may alter (including by suspending or deferring) benefit payment or transfer processes or timeframes, where it considers necessary or appropriate. For example, this may occur in the case of investments that become illiquid or impaired temporarily or permanently. The Government's Anti-Money Laundering and Counter-Terrorism Financing legislation (AML/CTF legislation) requires you (or your beneficiaries in the event of your death) to provide proof of identity prior to being able to access your super benefits (including when you wish to access your benefits via a pension account). It's often called the 'customer identification and verification' requirements. If you or your beneficiaries do not comply there may be consequences, for example, a delay in the payment of benefits.
IMPORTANT: The payment of super benefits is subject to the provision of satisfactory proof of identity by you or (where applicable) your beneficiaries, as determined for the Fund. Note: Temporary residents should note that you are generally required to provide certified documents to verify your identity as part of your DASP application. It's much easier to have documents certified in Australia, so we recommend you do this before you leave. For more information, contact us on 1300 614 644.
Splitting of superannuation benefits upon relationship breakdown In the event of a marriage breakdown, your super benefit may be split between you and your ex-spouse (including a de-facto spouse) under Family Law legislation. This can be done under a superannuation agreement or a Family Court order. A 'flag' can also be imposed on your super benefit. This will preclude you from cashing, transferring or rolling over benefits in your account while it is in place. A flag can be removed by agreement with your ex-spouse or by an order from the Family Court. Splitting of benefits may result in your ex-spouse being entitled to all or part of your super benefits and the transfer of their entitlements to a new account in the Fund or an account with another super fund over which you will not have any rights or be able to make decisions. Where an eligible person informs us that they need information to properly negotiate a superannuation agreement or to assist in connection with Family Law rules, we may be required to provide the information and cannot tell you about the enquiry. In addition, 'Visibility of Superannuation' laws allow a party to a permitted Family Law proceeding to request super information through the Federal Circuit and Family Court of Australia (FCFCoA) or Family Court of Western Australia (FCWA). The ATO must disclose information that it holds in relation to a person's super benefits to the Courts, who then provide the information to all parties in a proceeding. You or your legal representative can apply directly to the Courts for visibility of super information of a current or former spouse/de facto partner. To be eligible to make an application. you must be in a permitted Family Law proceeding in either of the Courts. For more general information on super and relationship breakdowns, see the ATO's website.
IMPORTANT: These laws are complex, and members and their ex-spouses should each seek independent legal advice in the event of a marriage or other relationship breakdown.
Unclaimed monies and lost super
In certain circumstances prescribed under super legislation, super benefits must be treated as unclaimed or lost money and reported and paid to the Australian Taxation Office (ATO).
If super benefits are transferred to the ATO, they will not attract interest, nor will the unclaimed amount retain any associated insurance cover.
Unclaimed or lost monies can be claimed directly from the ATO including through your myGov account (if linked to the ATO).
A summary of the circumstances in which super benefits must be transferred to the ATO is set out below. For more general information on unclaimed and lost monies, visit the ATO's website.
Low balance inactive members You are considered to be 'low balance inactive' if, in respect of your accumulation account:
The balance is less than $6,000; and You don't hold insurance cover through your account; and We have not received, for 16 consecutive months, a contribution or rollover into your account; and During the same time period, you did not update or make a new binding death benefit nomination or make changes to your insurance cover or take other steps indicating your account is active.
In respect of account balances we are required to pay to the ATO under this measure (twice yearly), the ATO has 28 days after receiving your super benefit to reunite you with your money via an active super account in your name (meaning an account that has received a contribution or rollover from you or on your behalf during the current or previous financial year), so long as the active account will hold a balance of greater than $6,000 following the reunification. Without an active super account in your name, the ATO may retain your balance as ATO-held super until you claim it directly from the ATO. You can claim ATO-held super via your myGov account.
To prevent your account balance being transferred to the ATO due to being low balance inactive, ensure that you or your employer are making regular contributions to your account or notify us (in writing) declaring you're not a member with an inactive low-balance account (the written notice is valid for 16 months).
Inactive members aged 65 or more If you are 65 years of age or more, you are considered to be inactive if, in respect of your accumulation account:
We have not received any contributions or rollovers from you or on your behalf in the last two years; and It has been five years or more since you last contacted us; and We are unable to make contact with you.
Lost, uncontactable member You are considered to be 'lost uncontactable' if, in respect of your accumulation account:
We've been unable to contact you by mail or email at the address(es) we hold for you; and You haven't been in contact with us, or accessed your super account via the member online account facility, in the last 12 months; and We have not received a contribution or rollover into your account in the last 12 months.
Other reasons Benefits for the following people may also be transferred to the ATO:
Former temporary resident members who have departed Australia without claiming their super benefits within 6 months of departure and the ATO has issued a notice to the Fund requesting payment; Deceased members whose benefits that have gone unclaimed following death; and A spouse who is entitled to a benefit split under the Family Law Act 1975 that has not been claimed.
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2. Benefits of investing
To help you save for retirement and look after yourself and your family, smartMonday PRIME offers the following benefits and features:
Benefits and features of smartMonday PRIME
Access to advice As a member, you have access to smartCoaches who can provide intra-fund advice about your investment mix, contributions, retirement adequacy, and insurance within the Fund. Any intra-fund advice is provided by or on behalf of Future Group Financial Services Pty Ltd (ABN 90 167 800 580; AFSL 482684) and not the trustee. The cost of intra-fund advice is included in the administration fees and costs shown later in this document, and is not an additional cost to you. To find out more information about the intra-fund advice services available to you, refer to the Financial Services Guide (FSG) issued by Future Group Financial Services Pty Ltd or call 1300 614 644. Choice of investment options You have a range of investment options including a MySuper product, smartMonday LifeCycle, a simple, low-cost option for members who don't want to make an investment choice. See the How we invest your money section of this document for more information on the investment options available. Flexible insurance cover Insurance cover in the Fund is designed to be flexible and affordable. If something happens to you, insurance can help you to look after yourself and your family, while maintaining an income and continuing to save for retirement. See the Insurance Guide for more information on our insurance offering, including eligibility requirements and insurance costs. There for you if you change jobs You can retain your account when you cease employment with the employer that joined you to smartMonday, unless you are an insurance-only member. You can request your new employer to contribute to your account. As a retained member, any Death and Total and Permanent Disablement (TPD) insurance cover you have may continue (subject to certain conditions). However, the cost of your insurance cover may change and any reduction in the asset administration fee (if applicable) will cease. See the Fees and costs section of this document and the Insurance Guide for more information. There for you when you move into retirement The Fund has a pension product called smartMonday PENSION that enables you to access your super as a tax- effective income stream. You should consider the smartMonday PENSION PDS and Target Market Determination available at www.smartmonday.com.au before deciding whether to acquire the product and consider obtaining personal advice.
Death benefit nominations
You can nominate a beneficiary for payment of a lump sum death benefit, on either a binding or a non-binding basis, by completing and lodging the relevant form available for download at www.smartmonday.com.au.
Non-binding nominations
A non-binding death benefit nomination is a written request made by you that suggests to the trustee the beneficiaries that may receive your super benefit in the event of your death. You can change your non-binding death benefit nomination at any time by logging into your member online account. The trustee has the final say as to who should receive your benefit. The trustee will consider your nomination but is not bound to follow it. The trustee has the discretion to pay to any one or more of your dependant(s) or legal personal representative(s) or a combination of both. A non-binding death benefit nomination has no expiry date. Binding death benefit nomination
You can make a binding death benefit nomination. Generally, your valid binding death benefit nomination binds the trustee to pay your death benefit to the nominated beneficiary(ies) provided the nomination is effective at the time of your death. Your binding death benefit nomination expires every three years from the date it is signed, unless you renew it before it expires. You will be notified of your options before expiry. You can change your nomination at any time by making a new binding death benefit nomination. To make or change your binding death benefit nomination, provide us with a duly completed Binding Death Benefit Nomination form, available on the website. You can renew or revoke your binding death benefit nomination at any time by completing the Binding Death Benefit Nomination form, available on the website. Nominating a beneficiary
You can nominate one or more of your dependants, or your Legal Personal Representative to receive your superannuation benefit in the event of your death. If you make a valid binding nomination, nominating your Legal Personal Representative, it is a good idea to have a valid Will and keep it up-to date, as the trustee must pay your death benefit to your estate. Under superannuation law, your 'dependants' are defined to include:
Your spouse (including a de-facto spouse of the same or opposite sex); Your child (including a child of a spouse who is not your biological child); A person in an 'interdependent relationship' with you; or Any other person who the trustee considers was financially dependent on you for maintenance or support, at the date of your death. Someone can be in an interdependent relationship with you if:
You have a close personal relationship; You live together; One or each of you provides the other with financial support; and One or each of you provides the other with domestic support and personal care. Dependency can also arise where two people have a close personal relationship but don't live together or provide each other with financial support or personal care because of a physical, intellectual or psychiatric disability (e.g., one person lives in a psychiatric institution suffering from a psychiatric disability).
IMPORTANT: the definition of a dependant for tax purposes differs to that under superannuation law. For more information see the How super is taxed section of this Guide.
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Invalid nominations
Your nomination may be invalid or become ineffective if:
One of your beneficiaries dies before you do; One of your nominated dependants is not a dependant at the time of your death; You are no longer a member of smartMonday PRIME at the time of your death; or The nomination was not made directly by you (the trustee will not accept nominations made under a Power of Attorney, or from anyone other than a member).
If your nomination is not valid and in effect at the time of your death, the trustee will treat it as a non-binding nomination and will pay the benefit at its absolute discretion.
Death benefit nominations in your Annual Statement
We will confirm your death benefit nomination details each year in your Annual Member Statement. It is important that you take note of this and review your nomination to ensure it continues to suit your circumstances, especially if they have changed.
Keep your nominations up-to-date
It's important that you keep your beneficiary nominations up-to-date. If your spouse dies, or you separate or divorce, you should update your beneficiary nomination by completing and lodging the relevant form available from www.smartmonday.com.au. We will write to you and confirm any new, amended or cancelled nomination received on your behalf.
Trust Deed
The Fund is governed by a Trust Deed which sets out the rights of members and beneficiaries, and the rights, duties and responsibilities of the trustee. In the event of any inconsistency between the PDS (including this document) and the terms of the Trust Deed, the terms of the Trust Deed will prevail.
You can obtain a copy of the Trust Deed free of charge by calling 1300 614 644 or by email at enquiry@smartmonday.com.au.
From time to time, the trustee may determine to amend the Trust Deed as circumstances change, such as to reflect changes in legislation. The trustee can generally amend the Trust Deed without your consent if:
The amendment does not reduce the existing accrued benefits of members or beneficiaries; or All relevant consents as required by law or by the Trust Deed are obtained; or In the opinion of the trustee, the principal purpose of the amendment is to better enable the Fund to comply with super law.
Reporting
As a member, you will receive or be given access to the member and Fund level information as required by law.
Annual Member information
We prefer to communicate with our members electronically. The sorts of information we send can include significant event notices, your Annual Member Statement, and transaction confirmations. Information can be sent via email, or by making the communication available on the website or on your member online account and notifying you when the information is ready to view. We may notify you electronically or by post, depending on your preference and what contact information we have for you. You can opt out of electronic communications and change your contact preferences online or by contacting us. We're happy to send you printed copies of any information upon request free of charge.
Following the end of each financial year you'll receive or have access to an Annual Member Statement, which provides a summary of your super benefit as at the previous 30 June. Annual Member Statements will be uploaded to your member online account. You will receive an email directing you to login when your statement is ready. The transactions that will appear on your statement include (where applicable): balance at the end of the previous year; contributions, rollovers, investments earnings (net of relevant fees, costs and taxes); withdrawals, fees and costs (including insurance premiums) and tax deducted from your account and the balance at the end of the year.
Annual Fund information
Each year, you will have access to a Fund Report that will provide you with information on the management and the financial position of the Fund as at the previous 30 June. The Fund Report will be available from www.smartmonday.com.au. You may request that a copy be sent to you (free of charge) by post or in electronic form.
Other information about the Fund (e.g. Financial Statements, Auditor's report) and the trustee (e.g. Director's report) is available at www.smartmonday.com.au
Exit information
When you cease to be a member of, or close an account in smartMonday PRIME, you will receive an Exit Statement and, if applicable, a Rollover Benefit Statement and/or a PAYG Payment Summary, unless this occurs as a result of your benefit being paid to the ATO as the unclaimed monies of a former temporary resident.
IMPORTANT: If you are a former temporary resident whose super benefits are transferred to the ATO as unclaimed money, you may not be notified of this or receive an exit statement after the transfers occurs. The trustee will rely on relief provided by the Australian Securities & Investments Commission (ASIC) Corporations (Unclaimed Superannuation Former Temporary Residents) Instrument 2019/873] which says, in effect, that the trustee of a super fund is not obliged to meet certain disclosure requirements in relation to non-residents that have ceased to hold an interest in the Fund as a result of the payment of unclaimed super to the Commissioner of Taxation. You have a right, under the Government's legislation, to claim your super money directly from the Australian Taxation Office (subject to the applicable tax rates).
If you require any further information, phone 1300 614 644.
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3. Risks of super
It is important to understand that there are risks inherent in any investment. The purpose of this section of this document is to outline the types of risks, including investment risks that may apply to this product. Further information about risks, based on a 'Standard Risk Measure' developed by the super industry to indicate the risk level associated with available investment strategies or options, is shown in the How we invest your money section of this document Investment risk is the chance that your investment will fall in value (e.g. due to negative investment returns). Some significant types of investment risk are: Climate change risk Climate change risks are typically organised into three categories:
transition risks, which arise from the transition to a low carbon economy, such as increased costs associated with meeting new policy or regulatory changes; physical risks, such as supply chain disruption and increased insurance premiums arising from damage caused by changing climate conditions or increased extreme weather events; and liability risks, such as the potential for increases in stakeholder litigation and regulatory enforcement related to a failure to appropriately respond to the impacts of climate change. Company specific risk The value of an investment in a particular company may vary because of changes to management, product distribution or the company's business environment. Credit risk Credit risk is the risk that a borrower will default on its obligations under a loan. This is relevant where the trustee invests in corporate, government and semi-government bonds and other fixed interest securities, because these are effectively loans to the bond issuer. The risk is sought to be mitigated to an extent by the knowledge and experience of the underlying investment managers. Derivatives risk Derivatives are generally contracts that call for money to change hands at some future date, such as company issued options or listed exchange traded warrants or foreign exchange contracts. The trustee does not permit any investments directly in any futures, options or other derivative instruments however derivatives may be used for the purpose of hedging transactions and managing risk. Risks associated with derivatives include the value of the derivative failing to move in line with the value of the underlying asset, market or index. This risk is relevant across all investment strategies within the Fund. Diversification risk The extent of diversification across the Fund's assets may impact the amount of investment risk associated with a particular investment strategy. Diversification of investments can help manage investment risk. Diversification in the underlying assets or investments of an available investment strategy can help moderate the risk of lower investment returns and a lack of diversification can increase investment risk.
Foreign currency risk Investment in international equities and other non-Australian assets may give rise to foreign currency exposure. This means the value of foreign investments may vary as exchange rates change. Fluctuations in foreign currency can have both a positive and negative impact on investments with exposure to international equities, depending on how the investments are made. Inflation risk The rate of inflation can exceed the return from your investment. If this happens, the real value of your investment reduces. Interest rate risk Changes in official interest rates can directly and indirectly impact on investment returns. Generally, an increase in interest rates has a negative effect on the general economy and thus the valuation of stocks. Liquidity risk Investments may become illiquid due to market developments or other factors (that is, they cannot be readily converted to cash, at all or quickly enough to meet liabilities, in particular benefit payments). Market risk Changes in legal and economic policy, political events and technology failure can all directly or indirectly create an environment that may influence the value of your investments. Market timing risk The timing of your investment decision(s) may expose you to lower returns or capital losses. Mismatch risk The investment option you chose might not suit your needs or circumstances or the underlying investments might diverge from the investment strategy for the Fund's underlying investments. Sequencing risk The risk that a sequence of negative investment returns close to retirement could erode your retirement savings. Your account balance is likely to be at its largest when you approach retirement, and large negative returns at this time would have a more significant impact in dollar terms than if they were to happen when you're just starting out at a younger age. Sovereign risk There may be uncertainty of returns on a foreign investment due to the possibility the foreign Government might take actions which are detrimental to the investors' interests.
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Other risks that may be relevant are: Legislative risks There is a risk that changes to current legislation, such as taxation law or standards in tax law (including benefit payment or pension standards) may occur in the future and have an effect on the value, benefits or taxation of your investment. Longevity risks - The amount of contributions you make into super, even after good investment returns, may not provide you with enough income in your retirement. There's a possibility you could outlive your retirement savings. Compliance risks Legislation governing super funds is complex and constantly changing. There is a risk of non-compliance with legislative requirements by the trustee or its service providers that could impact on member benefits. Operational risks Operational risks include the risks due to inadequate or failed internal or service provider processes, people and systems that could impact the administration of the Fund, this product or members benefits. Insurance risks Insurance is obtained from a third party. This involves the risk that the third-party insurer may not be able to meet its obligations under the contract of insurance. We cannot guarantee the payment of an insured benefit or the performance of an insurer.
Management of investment risks
The trustee manages investment risks by establishing appropriate investment strategies that consider a range of factors including the risk, return, diversification and cash flow needs of the Fund, and its products , as well as by providing members with a range of investment option choices to help meet their own needs.This includes managing, analysing and monitoring the liquidity position of the Fund and taking such action as may be required to enable the Fund to discharge its liabilities and meet its cash flow requirements in the best interests of members as a whole. For example, the trustee may alter transfer, withdrawal or investment processes; allocations to cash; freeze withdrawals from illiquid or impaired assets temporarily or permanently; or cease accepting further investments in illiquid or impaired assets temporarily or permanently. The trustee monitors investment performance on a regular basis to ensure the investment objectives associated with available investment strategies are appropriate. The trustee has appropriate organisational structures, including systems and processes to monitor and deal with risks associated with the operation of the Fund, with the assistance of its service providers. These arrangements are reviewed regularly to ensure operational risks are identified and managed efficiently. The trustee also maintains an Operational Risk Reserve, in accordance with super legislation (see the Fees and costs section of this document for more information). Further information about this reserve appears in the Fund's annual report for each financial year.
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4. How we invest your money
The basics of investing
Asset classes and risks Different types of investments are broadly categorised into 'asset classes'. These include Cash, Fixed Interest, Shares, Property and Alternative investments. Each asset class carries a different level of potential risk as well as different level of potential return (known as the risk/return relationship). In addition, assets are categorised as either 'growth' or 'defensive'. Shares and Property are considered growth assets. Cash and Fixed Interest are considered defensive assets. Alternative investments may be characterised as either growth or defensive assets, depending on their characteristics. The higher the level of risk associated with an investment, the higher its potential return over the long term, and conversely the lower the level of risk, the lower its potential return over the same term. Generally, growth assets are expected to produce the highest return over the long term, say 20 years or more. They also have the highest chance (or risk) of producing a negative return or loss in value in the short to medium term. Defensive assets tend to provide comparatively lower returns over the long term, but also have a lower chance of producing a negative return or loss in value. This means that investment strategies with a higher proportion of growth assets, such as shares and property, have historically provided better long-term returns than investments which have a higher exposure to defensive assets, such as fixed interest and cash. Having enough time in the market is an important consideration when selecting investments and strategies. Short-term fluctuations in investment returns are generally less important when your focus is on achieving a long-term growth objective. Risk profiles The risk profile of an investment reflects the likely fluctuations (that is, rises and falls) in returns. smartMonday PRIME's available investment options have different risk profiles depending on their underlying investments, including the degree of diversification in the underlying assets or asset types (asset allocation). The risk profile information shown later in this section of this document is based on a Standard Risk Measure, designed to help you compare different investment options or choices within and across super funds.
Standard Risk Measure
The Standard Risk Measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. The Standard Risk Measure is not a complete assessment of all forms of investment risk. For instance, it does not detail what the size of a negative return could be, or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and costs and tax on the likelihood of a negative return. Members should still ensure that they are comfortable with the risks and potential losses associated with their chosen investment option. The Standard Risk Measure is grouped into the following bands:
Risk Band Risk Label
Estimated Number of Negative Annual Returns Over Any 20 Year Period
1
Very Low
Less than 0.5
2
Low
0.5 to less than 1
3
Low to Medium 1 to less than 2
4
Medium
2 to less than 3
5
Medium to High 3 to less than 4
6
High
4 to less than 6
7
Very High
6 or Greater
The appropriate level of risk for you will depend on a range of factors including your age, your investment timeframes, your risk tolerance and what other investments you hold and how they are invested. You should assess your personal situation carefully before making an investment decision.
IMPORTANT: Your investment is not guaranteed. The value of your investment can rise or fall. Neither the trustee, nor any related entities or any other persons referred to in this document, guarantee the capital invested, your account, the underlying investments, or the performance of investments. If you close your account, you may get back less than the amount paid in because of the level of returns earned by your investments (including negative returns) and applicable fees and costs.
We recommend you consult a financial adviser for assistance with how to manage your investment risk having regard to your personal financial objectives, situation, and needs.
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Are you ready to invest?
There are several factors to consider when choosing how to invest:
What are your goals? You can use a financial calculator to help you understand how much you need to live the lifestyle you want at retirement. ASIC provides a retirement calculator available on www.moneysmart.gov.au. You can also access financial calculators from www.smartmonday.com.au/Retirement/Calculators. Calculators accessible from www.smartmonday.com.au/Retirement/Calculators are made available by a third party, not the trustee. Have you considered your investment horizon and how long your super will be invested for? Generally, having a longer investment timeframe allows for a more growth-oriented investment approach. This is because you may have more time to ride out market fluctuations, giving your investments a chance to recover from short-term declines. However, it's important to consider your period of retirement, risk tolerance and financial goals, as market downturns can still impact long-term outcomes. Do you understand investment risk? What level of investment risk are you prepared to accept? Have you considered how you will balance those risks with your retirement goals? Do you know your needs and the types of investments that may be right for you?
Diversification
You've probably heard the expression "Don't put all your eggs in one basket". It's often used to describe the concept of diversification. For your super, this means spreading your investments across different asset classes, underlying fund managers and investment strategies to create a diversified portfolio. The purpose of diversification is to reduce the level of overall risk of your investments.
A diversified portfolio typically falls into one of three strategies:
Growth-orientated--typically invests mainly in shares and listed property which are diversified across geographies and industries and are expected to generate high capital growth over the longer term. The portfolio has a higher risk of capital loss than defensively-orientated strategies. It may also provide some income in the form of dividends from shares. The portfolio may also contain some alternative assets. Defensively-orientated--invests mainly in cash, fixed interest and may include some alternative assets and growth assets. The portfolio has a lower risk of capital loss than growth-orientated strategies. Interest payments from fixed interest securities may provide steady income streams. Moderate--invests in a mix of growth-orientated and defensively-orientated strategies aiming to deliver a moderate return with a moderate level of risk.
You can access a range of investment options available to you to help you to diversify your super portfolio. When selecting investment options you should speak with a financial adviser, if you have one. As a member, you're also entitled to the smartCoach intra-fund advice service provided by Future Group Financial Services Pty Ltd ABN 90 167 800 580 AFSL 482684. Call us to access the service.
Different investment approaches Our range of investment options utilises both a blend of indexed and active management investment approaches. An indexed approach aims to track the risk and return characteristics of a market index. Indexed managers typically charge less in fees than active managers. An active management approach seeks to use an investment managers research and their portfolio construction process to outperform a specific market index or to meet an investment objective. There is a risk, especially over shorter periods, that such active managers may underperform the relevant market index. Active investment managers seeking to deliver greater investment performance than indexed managers typically charge more in fees as they incur higher costs. The higher fees are based on the expectation of out-performance of the market index.
Investment performance
The investment performance of each investment option is regularly monitored by the trustee to ensure the investment strategy of each option remains appropriate. The most up-to-date investment returns are available at www.smartmonday.com.au. If you don't have internet access, please contact 1300 614 644 and we will provide this information to you. Published investment returns are calculated after the deduction of investment fees and costs (including any performance fees), transaction costs and investment earnings tax.
IMPORTANT: Past investment performance is not a reliable indicator of future investment performance.
Selection of managers
The trustee is responsible for the selection of the Fund's underlying managers, asset allocation and currency management. The trustee appoints specialist investment managers to invest your assets. The Fund's Investment Managers assists the trustee with the selection of underlying managers, and the implementation of the investment strategy of each of the available investment options. The trustee is a related entity of two companies that provide investment management functions and/or issue investment products (in the role of Responsible Entity for those products) that the Fund invests in:
Equity Trustees Limited (ABN 46 004 031 298, ETL) Equity Trustees Wealth Services Limited (ABN 33 006 132 332, ETWSL). ETSL, ETL, and ETWSL are all subsidiaries of EQT Holdings Limited, a company listed on the Australian Stock Exchange (ASX Code: EQT). The roles played by ETL and ETWSL in certain investments of the Fund are as follows: EQT Mortgage Income Fund ETWSL is Responsible Entity, ETL is the investment manager; EQT Cash Management Fund ETL is the Responsible Entity and investment manager; ETL is the investment manager of some Australian Equity and Fixed Income mandates. ETL may also from time to time be the Responsible Entity for managed funds (in which the Fund invests) with other underlying managers that are not part of EQT Holdings Limited. Transactions between ETSL in its capacity as trustee of the Fund and its related companies are conducted on normal commercial terms.
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Environmental, social and other considerations
The trustee believes it is appropriate for underlying fund managers to consider a wide range of short-term and long-term factors in generating returns and mitigating risk. These factors may include environmental, social and governance attributes of the investments they make. The trustee does not specifically take into account labour standards or environmental, social or ethical considerations for the purpose of selecting, retaining or realising these investments. The various underlying fund managers for the investment options may have their own policies concerning labour standards or considerations of an environmental, social or ethical nature. To the extent that the underlying fund managers take into account such policies, they do so in their own right.
Use of derivatives
Under our derivatives policy, we may use derivatives such as futures or options from time to time in a fiduciary capacity for risk management and currency hedging. The underlying investment managers may also use derivatives as part of their overall investment process. In most cases, derivatives are used for risk management purposes only. Derivatives are not used for speculative purposes.
Our unit pricing policy
We have adopted a formal unit pricing policy for the investment options in the Fund. We can change this policy and any underlying procedures at any time. Unit pricing usually occurs daily on business days. The calculation of the unit price for each investment option is:
Net asset valuea (of the relevant option) The number of units on issue to members in that option
a. Net asset value is equal to the gross asset value (i.e. market value of the underlying investments and cash at bank for that investment option) as at the close of business on a given day, plus accrued income minus expense recoveries minus investment income tax provisions.
The buy spread is added to the unit price to obtain the buy price and the sell spread is deducted to obtain the sell price. We reserve the right to suspend unit pricing or transaction processing activities in exceptional circumstances (for example, under situations of extremely volatile market conditions, or when large cash flows are moving into or out of the Fund). Transactions that may be suspended in these circumstances can include benefit payments and investment switches. Application of unit prices
Unit prices are derived and applied in an equitable manner that values members' benefits and distributes investment earnings and losses fairly. We apply a 'forward pricing' mechanism to process transactions to and from your account in the Fund. This means that all transactions are processed using a buy or sell unit price calculated after the Fund has received the transaction request.
Contributions--normally processed within 3 to 5 business days of receipt of a contribution (including rollovers into the Fund) and all the necessary information, using the buy price applicable on the date of processing. Benefit payments-- normally processed within 3 to 5 business days after all necessary information is received, using the sell price on the day benefit payments (including transfers out of the Fund) are processed. Investment switches--we process switches after receipt of the completed request, or quarterly to adjust the portfolio mix for your age if you are in the smartMonday Lifecycle option. The switch will not be processed any earlier than the 3rd business day after receipt, and will normally be processed within 5 business days, using the buy price for switches in and sell price for switches out as applicable on the date of processing. Other transactions -- such as deductions from your account for administration fees or insurance fees and refunds or rebates to your account (where applicable), are processed using the sell price for deductions and buy price for refunds and rebates available in our systems, on the date of processing.
Unit prices fluctuate from day to day but in extraordinary market conditions the price movements can be significant. Price movements can also be significant in smaller (by assets) investment options relative to size of the cash flows in and out of them. We do not accept liability for any losses you may have suffered as a result of these factors, except where it can be established that we have not applied our unit pricing policy correctly.
If you don't make an investment choice when you join, your super will be invested in the default MySuper investment option smartMonday Lifecycle - until you make an investment choice. You can choose a different investment strategy (or allocation) for your account balance and any future contributions into your account. When selecting your investments, there is a minimum weighting of 5% of your account balance required in each investment option you choose. You can switch between investment options online or by sending us a completed Switching investment options form available from www.smartmonday.com.au. Upon formal notification of your death (e.g. receipt of a certified copy of a Death certificate), your account balance will be switched to the Cash investment option. When making any investment decision, also consider the applicable fees and costs in the Fees and costs section of this document.
Important information
Read the information about the investment options, considering the return objectives, risks, and your investment timeframe, before making a decision. The dashboard for smartMonday Lifecycle (MySuper) along with information about the other investment options is available at www.smartmonday.com.au. You should be aware that the asset allocation of your account balance may drift away from your chosen investment strategy over time because of market movements. You can review your strategy at any time via your member online account. We can change, close or terminate investment options at any time. Where practicable we'll endeavour to notify you in advance if there's anything that we feel will significantly affect your investments in the Fund. Asset allocations in pre-mixed options may change without notification.
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Investment options
Pre-mixed
Sector
Suitable if you prefer to leave decisions about asset allocation and selection of securities to us.
Suitable if you want greater control over the asset allocation of your portfolio but prefer to leave the selection of securities to us.
smartMonday Lifecycle (MySuper) High Growth Growth Balanced Growth Moderate Defensive
Australian Shares International Shares Cash
Investment options pre-mixed
smartMonday Lifecycle: an innovative approach to investing your super
smartMonday Lifecycle is our default MySuper investment option where the investment mix is automatically adjusted based on your age:
To focus on growth opportunities when you are younger, and To reduce the risk of capital loss as you approach retirement.
It's a simple way to invest if you prefer to take a less active role in managing your super, and expect to remain invested until your retirement, and at least a minimum of 5 years. smartMonday Lifecycle utilises two portfolios, each of which has different characteristics:
High Growth portfolio
Defensive portfolio
Invests mostly in growth assets (e.g. shares, global infrastructure Invests predominantly in defensive assets including Australian
and listed property) which typically earn higher long-term returns, and international fixed interest with some exposure to shares and
but with a high risk of capital loss.
property.
Up to age 35, you are invested 90% in the High Growth portfolio and 10% in the Defensive portfolio. Your allocation then shifts gradually each year after age 35 from the High Growth portfolio to the Defensive portfolio. This happens automatically each quarter (based on your birthday). At age 75, you are invested 30% in the High Growth portfolio and 70% in the Defensive portfolio.
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smartMonday Lifecycle (MySuper)
Investment Return Objective
Investment Strategy
Suitability
Recommended Minimum Investment Timeframe Risk Levela
Asset allocation Australian shares International shares Alternativegrowth Total growth Alternativedefensive Fixed interest Cash Total defensive
High Growth portfolio
Defensive portfolio
To achieve returns (after investment fees and taxes) that To achieve returns (after investment fees and taxes) of at
exceed movements in the Consumer Price Index (CPI) by least the Consumer Price Index (CPI) over rolling 10
at least 3.5% p.a. over rolling 10 year-periods.
year-periods.
Invests 95100% of the portfolio in growth assets and target of 5% in defensive assets.
Invests 70100% of the portfolio in defensive assets and target of 25% in growth assets.
Intended to be suitable for those who can tolerate negative returns in some years because they intend to remain invested in this option for the recommended minimum timeframe.
5 years
Risk Band 6: High 4 to less than 6 estimated negative annual returns over any 20-year period
Target % 39 50 6 95 0 0 5 5
Range % 070 070 030
90100 010 010 010 010
Risk Band 4: Medium 2 to less than 3 estimated negative annual returns over any 20-year period
Target % 11 14 0 25 15 40 20 75
Range % 020 020 020 030 040 090 090
70100
a. The Standard Risk Measure (SRM) is not a complete assessment of risk. For example, while the SRM indicates the likely frequency of negative annual returns (for a 20- year period), it does not indicate the potential size of negative returns. For more information read the Standard Risk Measure in this section.
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Investment Return Objective
Investment Strategy
Suitability
Recommend Minimum Investment Timeframe Risk Levela
Asset allocation Australian shares International shares Alternativegrowth Total growth Alternativedefensive Fixed interest Cash Total defensive
High Growth
Growth
To achieve returns (after investment fees and taxes) that To achieve returns (after investment fees and taxes) that
exceed movements in the Consumer Price Index (CPI) by exceed movements in the Consumer Price Index (CPI) by
at least 3.5% p.a. over rolling 15 year-periods.
at least 3.0% p.a. over rolling 12 year-periods.
Invests 90100% of the portfolio in growth assets.
Invests 8090% of the portfolio in growth assets and typically 15% in defensive assets.
Suitable for members who can tolerate negative returns in some years and are comfortable that returns can be very volatile over the short to medium term. Historically, high growth assets have offered the highest long-term returns.
Suitable for members who can tolerate negative returns in some years and are comfortable returns are generally less volatile than the High Growth portfolio but can still be very volatile over the short to medium term.
15 years
12 years
Risk Band 6: High 4 to less than 6 estimated negative annual returns over any 20-year period
Target % 36 47 12 95 0 0 5 5
Range % 070 070 030
90100 010 010 010 010
Risk Band 6: High 4 to less than 6 estimated negative annual returns over any 20-year period
Target % 34 41 10 85 5 6 4 15
Range % 070 070 030 8090 015 015 015 1020
a. The Standard Risk Measure (SRM) is not a complete assessment of risk. For example, while the SRM indicates the likely frequency of negative annual returns (for a 20- year period), it does not indicate the potential size of negative returns. For more information, read the Standard Risk Measure in this section.
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Investment Return Objective
Investment Strategy
Suitability
Recommended Minimum Investment Timeframe Risk Levela
Asset allocation Australian shares International shares Alternativegrowth Total growth Alternativedefensive Fixed interest Cash Total defensive
Balanced Growth
Moderate
Defensive
To achieve returns (after investment fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 2.5% p.a. over rolling 10-year periods.
To achieve returns (after investment fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 1.25% p.a. over rolling 3-year periods.
To achieve returns (after investment fees and taxes) that exceed movements in the Consumer Price Index (CPI) by at least 0.25% p.a. over rolling 2-year periods.
Invests 6080% of the portfolio in Invests 6080% of the portfolio in
growth assets and typically 20-40% defensive assets and typically
in defensive assets.
20-40% in growth assets.
Invests 75100% of the portfolio in defensive assets and typically 0-25% in growth assets.
Members who can tolerate negative returns in some years and are comfortable that there is likely to be volatility in returns in the short to medium term, but volatility tends to decline over longer periods.
Members who can tolerate negative returns in some years and are comfortable that there are relatively low returns but with less volatility than Balanced Growth option.
Members who can tolerate an occasional negative return and are comfortable that there are relatively stable returns. Historically, offers lower long-term returns than the other options.
10 years
3 years
2 years
Risk Band 6: High 4 to less than 6 estimated negative annual returns over any 20-year periods.
Risk Band 4: Medium 2 to less than 3 estimated negative annual returns over any 20-year periods.
Risk Band 2: Low 0 to less than 1 estimated negative annual returns over any 20-year periods.
Target % 26 35 9 70 8 16 6 30
Range % 070 070 030 6080 015 030 030 20-40
Target % 12 16 7 35 15 30 20 65
Range % 030 030 015 2040 030 060 060 6080
Target % 5 9 5 19 15 46 20 81
Range % 020 020 020 025 040 090 1090
75100
a. The Standard Risk Measure (SRM) is not a complete assessment of risk. For example, while the SRM indicates the likely frequency of negative annual returns (for a 20-year period), it does not indicate the potential size of negative returns. For more information, read the Standard Risk Measure in this section.
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Investment options sector
Australian Shares
International Shares
Cash
Investment Return Objective
To achieve returns (after investment fees and taxes) that exceed the benchmark return over rolling 5-year periods.
To achieve returns (after investment fees and taxes) that exceed the benchmark return over rolling 5-year periods.
To achieve returns (before investment fees and taxes) that exceed the benchmark return over any 12-month period.
Investment Strategy
Invests in shares mainly listed, or due to be listed, on the Australian Securities Exchange.
Invests in shares listed on stock markets around the world, with partial $A hedging.
Invests in short-term securities. Intended to be suitable for those who put more weight on capital security and liquidity than returns.
Suitability
Members who can tolerate negative returns in some years and are comfortable that returns can be very volatile over the short to medium term. Historically, shares have offered the highest long-term returns.
Members who can tolerate negative returns in some years, and can accept significant volatility from foreign exchange fluctuations; are comfortable that returns can be very volatile over the short to medium term. Historically, shares have offered the highest long-term returns.
Members who put more weight on capital security and liquidity than returns; are comfortable that returns can be low but stable with minimal volatility.
Recommended Minimum Investment Timeframe
15 years
15 years
1-2 years
Risk Levela
Risk Band 7: Very High 6 or greater estimated negative returns over any 20-year period.
Risk Band 7: Very High Less than 0.5 estimated negative returns over any 20-year period.
Risk Band 1: Very Low 6 or greater estimated negative returns over any 20-year period.
Benchmark index
S&P/ASX 300 Accumulation Index
MSCI All Country World Ex-Australia Bloomberg AusBond Index with Special Tax (unhedged Bank Bill Index in AUD)
Target asset allocation
100% Australian shares
100% international shares
100% cash and short-term fixed interest securities
a. The Standard Risk Measure (SRM) is not a complete assessment of risk. For example, while the SRM indicates the likely frequency of negative annual returns (for a 20-year period), it does not indicate the potential size of negative returns. For more information, read the Standard Risk Measure in this section.
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5. Fees and costs
DID YOU KNOW?
Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns. For example, total annual fees and costs of 2% of your account balance rather than 1% could reduce your final return by up to 20% over a
30-year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees
and costs. You or your employer, as applicable, may be able to negotiate to pay lower fees. Ask the Fund or your financial adviser.
TO FIND OUT MORE
If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website www.moneysmart.gov.au has a superannuation calculator to help you check out different fee options.
This section shows the fees and other costs that you may be charged. These fees and other costs may be deducted from your account balance, from the returns on your investment, or from the assets of the super entity as a whole. Other fees, such as activity fees, advice fees (for personal advice) and insurance fees, may also be charged, but these will depend on the nature of the activity, advice or insurance chosen by you. Entry fees and exit fees cannot be charged. Taxes are set out in the How super is taxed section of this document and insurance fees are set out in the Insurance Guide available at www.smartmonday.com.au or by contacting 1300 614 644.
You should read all the information about fees and other costs because it is important to understand their impact on your investment. Investment fees and costs, transaction costs, and buy-sell spreads vary depending on the investment option(s) you are invested in, as set out in the Additional explanation of fees and costs below.
See Defined Fees further below for the definition of each type of fee and cost according to government legislation. Not all the defined fees listed will apply to this product.
Fees and costs summary
Type of fee or cost
Amount
How and when paid
Ongoing annual fees and costsa
Administration fees $72 p.a.b and costs
This dollar-based fee is deducted from your account balance at the end of each month in arrears, or when you close your account.
Plus 0.36% p.a.c
This percentage-based fee is deducted monthly from your account based on your account balance at month end in arrears, or when you close your account.
Plus 0.095% p.a. (Cash investment option is 0.055% p.a.)
This percentage-based fee is deducted from investment returns and reflected in the calculation of unit prices each business day. This fee reduces the return of your investments but is not deducted directly from your account.
Plus 0.03% p.a. (estimated)d
This fee is paid from the Fund's reserves as and when required to cover additional costs incurred by the Fund. This fee is not deducted directly from your account or reflected in the calculation of unit prices.
Investment fees and costs
Depending on the investment option, ranges from: 0.18% to 0.52% p.a. (estimated) e Investment fees and costs for each option are listed under Additional explanation of fees and costs.
Deducted from investment returns and reflected in the calculation of unit prices each business day. This fee is not deducted directly from your account.
Transaction costs
Depending on the investment option, ranges from: 0.00% to 0.07% p.a. (estimated) f Transaction costs for each option is listed under Additional explanation of fees and costs.
Reflected in the calculation of unit prices each business day, depending on the costs incurred outside the Fund in investing the assets of the investment option. This cost is not deducted directly from your account.
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Member activity related fees and costs
Buy-sell spreadg
Depending on the investment option, ranges from: Buy: 0.00 to 0.03% Sell: 0.00 to 0.03% Buy-sell spread for each option is listed under Additional explanation of fees and costs.
Applies when you contribute to your account (buy units), withdraw from your account (sell units), or when you switch between investment options and is reflected in the unit price when units are bought and sold. This cost is not deducted directly from your account.
Switching fee
Nil
Not applicable
Other fees and costsh
Varies, depending on the activity, advice or insurance
Activity and advice fees are deducted directly from your account, when applicable. Any insurance fees (premiums and associated costs) are deducted from your account balance at the end of each month in arrears, or when you close your account.
a. If your account balance for a product offered by the Fund is less than $6,000 at the end of the financial year, certain fees and costs charged to you in relation to administration and investment are capped at 3% of the account balance for the year (or the period until your account is closed). Any amount charged in excess of that cap must be refunded.
b. The dollar-based administration fee will be indexed at 1 July 2025, and each 1 July after that, for changes in the Average Weekly Ordinary Time Earnings (AWOTE) index. Any increase due to changes in the AWOTE index will be published at www.smartmonday.com.au. We recommend that you regularly check www.smartmonday.com.au for updated fees and cost information.
c. You may be eligible for a reduction in the asset administration fee deducted directly from your account depending on the size of your employer's plan. See the Additional explanation of fees and costs section below for more information. The asset administration fee applicable to your account will be shown in your Welcome Pack.
d. Estimates are based on the 2023/24 financial year and may vary in future years.
e. Estimated investment fees and costs include an amount up to 0.06% p.a. for performance fees. The calculation basis for this amount is set out in the Additional explanation of fees and costs section below. Investment fees and costs are indicative only and may change in subsequent years depending on (for example) the investment performance and indirect costs incurred in underlying investments.
f. Disclosed transaction costs are an estimate of net transaction costs incurred in the 2023/24 financial year (based on information available at the date of preparation of this PDS), and are before the introduction of buy-sell spreads. As a result, these figures are indicative only and may change in subsequent years.
g. The buy-sell spread is a mechanism to recover transaction costs incurred by the trustee in relation to the purchase or sale of assets when money moves into, or out of an investment option. The buy-sell spread may change without notice to meet changes in the transaction costs, including in circumstances of adverse market conditions. If there is a change to the buy-sell spread, we will let you know within 3 months of the change taking place.
h. Other fees and costs may apply, including activity fees, advice fees (for personal advice) and insurance fees (where applicable). See the Additional explanation of fees and costs section below.
Example of annual fees and costs for a superannuation product
This table gives an example of how the ongoing annual fees and costs for the smartMonday LifeCycle (MySuper) option for this superannuation product can affect your super investment over a one-year period. You should use this table when you want to compare this superannuation product with other superannuation products.
It applies the maximum asset administration fee, investment fees and costs and transaction costs (in the range of estimated investment fees and costs and transaction costs that may apply to smartMonday Lifecycle, depending on your age). The annual fees and costs may be reduced if discounted asset administration fees apply.
EXAMPLE smartMonday LifeCycle (MySuper) option
Balance of $50,000
Administration fees and costs
0.485% Plus $72
For every $50,000 you have in the superannuation product, you will be charged or have deducted from your investment $242.50a in administration fees and costs, plus $72 regardless of your balance.
PLUS Investment fees and costs
0.29%
And, you will be charged or have deducted from your investment $145 in investment fees and costs.
PLUS Transaction costs
0.04%
And, you will be charged or have deducted from your investment $20 in transaction costs.
EQUALS Cost of product
If your balance was $50,000 at the beginning of the year, then for that year you will be charged fees and costs of $479.50b for the superannuation product.
a. This figure includes an amount of $15 paid from the Fund's reserves based on the 2023/24 financial year. b. Note: Additional fees may apply.
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Cost of product for 1 year
The cost of product gives a summary calculation about how ongoing annual fees and costs can affect your superannuation investment over a 1-year period, for all superannuation products and investment options. It is calculated in the manner shown in the Example of annual fees and costs. The cost of product information assumes a balance of $50,000 at the beginning of the year. Additional fees such as buy-sell spreads may apply: Further information about the additional fees that may apply (as applicable to smartMonday PRIME) can be found in the Additional explanation of fees and costs below. You should use this figure to help compare superannuation products and investment options. The cost of product for 1 year may be reduced if discounted asset administration fees apply.
Name of Investment Option (Pre-mixed)
Cost of product Name of Investment Option ($ estimated)a (Sector)
Cost of product ($ estimated)a
smartMonday LifeCycle (MySuper)b
480 Australian Shares
560
High Growth
585 International Shares
595
Growth
580 Cash
385c
Balanced Growth
580
Moderate
540
Defensive
505
a. Cost includes $15 paid out of the Fund's reserves, based on the 2023/24 financial year.
b. Investment fees and costs and transaction costs for the smartMonday Lifecycle (MySuper) investment option may vary slightly depending on the proportion you have invested in the High Growth and Defensive portfolios, which depends on your age. The cost of product for 1 year for the smartMonday Lifecycle investment option can range from $465 - $480 (ignoring any discounted asset administration fee which, if applicable, will be shown in your Welcome Pack. The cost of product for 1-year will be lower where the discounted asset administration fees apply.
c. This reflects a lower percentage-based administration fee (0.055%) used in the calculation of unit prices for the Cash investment option.
Note: Additional fees may apply. Please refer to the Additional explanation of fees and costs and Defined fees sections below for more information.
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Additional explanation of fees and costs
Administration fees and costs
These are the fees and costs relating to the administration and operation of this product, including administering your super account and operating the Fund more generally, payable by you, or (in some cases) from Fund's reserves. These fees and costs may include the cost of maintaining the Fund's Operational Risk Reserve (ORR). See further below for more information about the ORR and other Fund reserves. Your employer may make additional contributions to your account to cover the cost of some or all administration fees and costs (while you remain in their employment) - see the Employer-paid fees and costs section below for more information. Asset-based administration fee
This is a percentage-based fee split into three components:
Amount deducted monthly in arrears from your account: If you are a member of a large employer plan, you may be eligible for a reduction in the percentage-based fee (excluding any amount deducted from the Fund's reserves) depending on the size of the plan (see Fee reductions available on employer plans). Amount which is deducted from the assets of the investment options: This is included in the calculation (each business day) of unit prices of the options, and Amount paid from Fund's reserves, as and when required: The additional percentage-based fee that may be deducted from the Fund's reserves is to cover additional costs (such as regulatory change expenses) incurred in a financial year. This will be included as Administration fees and costs where the amount deducted from the reserve is in excess of the administration fees and costs recovered from member's account balances or through unit prices. The amount shown in the Fees and costs summary as payable from the Fund's reserves is an estimate based on additional administration costs paid from the reserves for the 2023/24 financial year. The amount payable from the reserves in the current or future financial years may be different. Dollar-based administration fee
This is a dollar-based fee that is deducted monthly in arrears from your account. It will be indexed at 1 July 2025, and each 1 July after that, in line with inflation as measured by the change in the Average Weekly Ordinary Time Earnings (AWOTE) index. Any increase due to changes in the AWOTE index will be published at www.smartmonday.com.au. We recommend that you regularly check the www.smartmonday.com.au for updated fees and costs information. Fee reductions available on employer plans
Larger employer plans in smartMonday PRIME may be eligible for reduced asset administration fees depending on the size of their employer plan (as measured by funds under management with us in respect of the employer's employees). Any discount on the asset administration fee in smartMonday PRIME will cease if you leave your employer (where we will transfer your membership to the retained category of the Fund 60 days after the date we are notified that you have left your employer). In the retained category the asset administration fee that is deducted from your account will revert to the maximum rate of 0.36% p.a.. The other components administration fees and costs will remain the same.
Investment fees and costs
Investment fees and costs are deducted from the Fund's assets before unit prices are determined. Investment fees and costs are expressed as an annual percentage of the net assets. The investment fees and costs comprise of an investment fee charged by the underlying investment managers of the Fund and indirect investment costs which are incurred in the underlying investments. These costs are based on estimated and actual information for the 2023/24 financial year, available to us at the date of preparation of this document. To the extent practicable, this information was obtained from investment managers of the underlying investments and may be higher or lower and may change without prior notice. The investment fees and costs for each of smartMonday Lifecycle and our other investment options are shown below.
Investment Option
Investment Fees and Costsa (estimated % p.a.)
smartMonday Lifecycle b
0.28-0.29
High Growth
0.49
Growth
0.48
Balanced
0.48
Moderate
0.41
Defensive
0.35
Australian Shares
0.42
International Shares
0.52
Cash
0.18
a. Investment fees and costs may include performance fees, which may vary from year to year.
b. Investment fees and costs for the smartMonday Lifecycle (MySuper) investment option may vary slightly depending on the proportion you have invested in the High Growth and Defensive portfolios, which depends on your age.
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Performance fees
Performance fees are an amount paid or payable, calculated by reference to the performance of an investment. The manager of an underlying investment may be entitled to a performance fee if the investment outperforms a set target. If a performance fee is payable, it is accrued in the unit price and this cost is passed on to members through the investment fees and costs. Performance fees do not affect the administration fees and costs of this product. Performance fees are generally calculated as an agreed percentage of any investment performance above an agreed hurdle rate, multiplied by the average portfolio balance. The performance fee set out below is a historical average which is included in the Investment fees and costs shown for each investment option, below. Future performance fees will depend on the investment return achieved from year to year and, accordingly, the amount of the performance fees, and their impact on the investment fees and costs you pay, will vary. Updated 5-year average performance fees may be published at www.smartmonday.com.au. We recommend that you regularly check www.smartmonday.com.au for updated fees and costs information.
Investment Option
5 Year Average up to 30 June 2024a(% p.a)
Pre-mixed
High Growth
0.03
Growth
0.02
Balanced Growth
0.02
Moderate
0.01
Defensive
0.00
Sector b
International Shares
0.06
a. The figure required to be shown is the average of the performance fees attributable to each investment option for the last 5 financial years to 30 June 2024 or, if the investment option has not existed or did not provision for performance fees for the last 5 financial years, the average for the period since the option has existed and provided for performance fees. These are estimates only based on information available as at the date of preparation of this document.
b. Performance fees do not apply to the Australian Shares or Cash investment options.
Transaction costs
Transaction costs are costs associated with the sale and purchase of assets of the super entity, other than costs that are recovered by the super entity charging buy-sell spreads. These costs include costs relating to the underlying investment managers buying and selling of investments and may include costs such as brokerage, buy-sell spreads of the underlying investments (where applicable), settlement costs (including settlement related custody costs), stamp duty on investment transaction costs and clearing costs. These costs are influenced by numerous factors including the complexity of investments involved in transactions, the different asset classes and investment managers that make up the investments involved in the transaction and the time and costs of services provided in relation to the processing of investment transactions. Transaction costs shown in the Fees and costs summary above are an estimate only, based on information available to us (at the date of preparation of this document) about the costs incurred in the 2023/24 financial year. These are the gross transaction costs, before the introduction of buy-sell spreads. Net transaction costs payable from the date of preparation of this document (after amounts recovered through charging a buy-sell spread) may be lower. Any net transaction costs are an additional cost to you, deducted from the Fund's assets before unit prices are determined. These costs are influenced by numerous factors including the complexity of investments involved in transactions, the different asset classes and investment managers that make up the investments involved in the transaction and the time and costs of services provided in relation to the processing of investment transactions. Net transaction costs shown in the Fees and costs summary above are an estimate only, based on information available to us (at the date of preparation of this document) about the costs incurred in the 2023/24 financial year. Net transaction costs payable may be higher or lower. Any net transaction costs are an additional cost to you, deducted from the Fund's assets before unit prices are determined. The estimated transaction costs applicable to each investment option (based on the 2023/24 financial year), are set out in the table below.
Investment Option
Transaction Costsa (% p.a.)
SmartMonday LifeCycleb
0.02-0.04
High Growth
0.05
Growth
0.05
Balanced
0.05
Moderate
0.04
Defensive
0.03
Australian Shares
0.07
International Shares
0.04
Cash
0.00
a. Transaction costs are estimates and may vary from year to year.
b. Transaction costs for the smartMonday Lifecycle (MySuper) investment option may vary slightly depending on the proportion you have invested in the High Growth and Defensive portfolios, which depends on your age.
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Buy-sell spread
Each time you make a contribution to, or withdrawal from, your account, or switch investment options,you are effectively buying or selling units which may require the trustee to trade underlying assets. This trading generates transaction costs which the trustee recovers by charging a buy-sell spread that is taken into account in the calculation of unit prices. The buy-sell spread is the difference between the entry price and the exit price of units and is an additional cost incurred by you each time money is added (including via rollovers from other funds) or money is withdrawn (including when fees are deducted) from your account or chosen investment option. The proceeds of the buy-sell spread are retained within the Fund and offsets the transaction costs associated with the Fund buying or selling assets in relation to investment transactions initiated by members or relating to the administration of member accounts. The spread ensures that those members opening or closing an account, or switching investment options contribute towards these transaction costs, and other members who are not engaged in these member-related activities at that particular time, are not disadvantaged. You should note that the buy-sell spread also applies when we automatically adjust portfolio weightings quarterly for the smartMonday Lifecycle (MySuper) option. The buy-sell spread for each investment option (from the date of preparation of this PDS) is:
Investment Option
Buy
Sell
smartMonday Lifecycle Defensive portfolio
0.03%
0.03%
smartMonday Lifecycle - High 0.01% Growth portfolio
0.01%
High Growth
0.01%
0.01%
Growth
0.01%
0.01%
Balanced Growth
0.02%
0.02%
Moderate
0.02%
0.02%
Defensive
0.03%
0.03%
Australian Shares
0.01%
0.01%
International Shares
0.01%
0.01%
Cash
0.00%
0.00%
As an example, if you invest $50,000 in the Balanced Growth investment option you will incur a buy cost of 0.02% of the transaction amount, being $10, at the time you invest. The buy cost is added (+) to the net asset value price (NAV) of the underlying assets per unit to determine an entry price (`Buy Price'). The sell cost is subtracted (-) from the NAV to determine an exit price (`Sell Price'). As the imposition of a buy-sell spread is built into the unit price, it does not appear on statements to members as a separate fee. For further information about unit prices, refer to the How we invest your money section of this document. Other transaction costs (i.e., other than transaction costs met through the buy-sell spread) may apply. More information about transaction costs is provided above.
Insurance fees
The total cost of your insurance is referred to as `Insurance fees' and includes the insurance premium and any associated costs (including an insurance administration fee). Insurance fees are deducted monthly in arrears from your account, or when you close your account in the product. Your insurance premium is usually dependent on a number of factors including the type of cover you have, your age, the amount of cover, your occupation factor, and if you have any additional loadings. Your employer may make additional contributions to your account to cover the cost of some or all insurance fees (while you remain in employment). Insurance fees paid for by your employer will count towards your concessional contribution cap. Breaching this cap may have tax implications for you. See the Employer-paid fees and costs section below for more information. Refer to the Insurance Guide available at www.smartmonday.com.au or call 1300 614 644 for information about the insurance fees applicable to insurance cover.
Taxation
Goods and Services Tax (GST) may apply to fees and charges. All fees and costs shown in this document and in the PDS are inclusive of GST where applicable and net of reduced input tax credits (RITCs), other than RITCs specified below. RITCs received by the Fund in relation to any GST applied to the dollar-based administration fee and the asset administration fees deducted directly to a member's account are passed on to members. RITCs received by the Fund in relation to any GST applied to fees and charges deducted when calculating unit prices are retained within the Fund's reserves. Tax rebates The Fund may be eligible to claim a tax deduction for certain administration fees and costs incurred and for insurance fees paid for insurance cover for eligible members. Where we are eligible to claim a tax deduction for administration or insurance fees charged to your account, the benefits of these tax deductions are passed on to you in the form of a tax rebate, which is made to your account at the end of each month when these fees and costs are deducted from your account, or when you close your account , in arrears. Where we are eligible to claim a tax deduction for fees and costs deducted from the unit price of your investment, the benefits of these tax deductions are passed on to you in the unit price of the investment. For more information about tax relevant to super, refer to the How super is taxed section of this document.
Activity fees (Family Law fees)
The following Family Law fees may be payable:
Type of Fee
Amount How and When Paid
Request for information $0.00 by member
Not applicable.
Request for information $0.00 by non-member
Not applicable.
Implementation of an order to split or flag an interest
$160.00 ($80 each)
Deducted equally from the member and non-member's account when the split is completed.
Pay out of a Family Law $0.00 benefit
Not applicable.
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In addition, where the trustee incurs legal expenses in responding to matters arising from flagging or splitting your benefits, these expenses may be deducted from your account. You will be advised about these expenses before they are incurred.
Intra-fund Advice and Advice fees
As a member, you have access to smartCoaches who can provide you with intra-fund advice about your investment mix, contributions, insurance, and other aspects of your membership in the Fund. Any intra-fund advice is provided by or on behalf of Future Group Financial Services Pty Ltd ABN 90 167 800 580 AFSL 482684 (not the trustee). The cost of this intra-fund advice is included in the administration fees and costs. For further information about the intra-fund advice services consider the Financial Services Guide (FSG) issued by . For more comprehensive personal advice that takes into consideration your desired lifestyle now and into the future as well as your other financial circumstances, objectives and needs, you may wish to obtain advice from an appropriately authorised financial adviser. You can arrange to pay your financial adviser for advice about super via a deduction from your smartMonday account. You can negotiate the amount of the fee with the adviser and they will provide you with a document (such as a Statement of Advice) detailing the services provided and the fee charged for those services. The different ways to deduct an advice fee, also negotiable with your adviser, are shown in the table below.
Type of Advice fees
Amounta
How and when paid
The advice fee can be:
Asset-based feeb, or Fixed-dollar fee, and/or Ad-hoc (one-off) fixed-dollar fee
Up to 2.20% p.a. Up to $11,000 p.a. Up to $11,000 p.a.
Asset-based fee and Fixed-dollar fee are calculated based on your account balance and deducted at the end of each month, for no more than a 12-month period (for each percentage-based fee agreed to). Ad-hoc (one-off) fixed dollar fee is deducted from your account balance at the end of the month that the Authority to advise form was received.
To authorise payment of the advice fee by way of a deduction from your smartMonday account, you and your adviser need to complete and return an Authority to advise form, available at www.smartmonday.com.au or by calling us. You can only authorise payment to your adviser for advice directly related to your smartMonday account. Your adviser should provide you with a document setting out the services the adviser will provide and the fees you have agreed to pay. The trustee has discretion to refuse to deduct an advice fee.
Example of Asset-based fee: Let's say you have a total account balance of $100,000 and that you've agreed an asset-based advice fee deduction of 1% for the year. The amount deducted from your account each month will be $83 (i.e. 1% x $100,000/12).
a. The sum of all advice fees paid (with your authorisation) to an adviser from your smartMonday account in relation to advice received about your smartMonday account is capped at the greater of $10,000 p.a. or 2% p.a. (excluding GST) of the total assets under advice across your super and pension products in the Fund. After allowing for GST, this corresponds to $11,000 p.a. or 2.20% p.a. deducted from your account balance.
b. The Asset-based and Fixed-dollar fee can only be deducted from your account for a maximum of 12 months from the date you agree to it. It will be turned off at the end of 12 months (or the end date indicated on the Authority to advise form). If agreed with your adviser, a new fee authority can be put in place by completing a new Authority to advise form.
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Employer-paid fees and costs
Your employer may make extra contributions to your account to cover some or all of the administration fees and costs and/or insurance fees deducted from your account while you remain employed by that employer and the employer agrees to do so. If they choose to do so, you'll see this as an additional contribution to your account. Any additional contributions by your employer will count towards your annual concessional contributions cap (limit). Breaching this cap may have tax implications for you. See the How super is taxed section of this document for more information. If you are an insurance-only member, your employer will pay contributions to your account to cover the insurance fees and administration fees and costs until you cease employment with that employer and/or the employer no longer agrees to do so. These arrangements are subject to change, as determined by your employer. For more info about employer benefits, speak to your employer.
Fund reserves
Operational risk reserve As a result of legislative requirements, we maintain an Operational Risk Reserve (ORR) in the Fund to cover potential losses to members arising from an operational risk event, being an event where the Fund suffers loss due to inadequate or failed internal processes, people and systems, or because of an external event. The ORR may be drawn upon to assist in compensating members of the Fund in the event of an operational risk having materialised. The ORR target is currently set at 0.25% of funds under management. The ORR is maintained in line with the trustee's ORR strategy for the Fund, however if there are insufficient funds to maintain the ORR, additional funds may be allocated from the Fund's other reserves or (subject to any required notifications) from additional one-off fee deductions from members' accounts. General reserve The trustee maintains a General reserve to pay for trustee expenses. The General reserve is invested in the fund's operating bank account. On an annual basis, the General reserve is funded via a deduction of up to 0.15% per annum that is taken into account in the calculation of unit prices for the Fund's investment options, and interest earned on this reserve. The level of the General reserve is reviewed by the trustee each year.
Changes to fees and costs
We can change the amount or level of fees or charges without your consent. A material increase in fees or charges must be notified to you at least 30 days in advance of the increase taking effect. Estimated fees and costs are subject to change from time to time and changes to estimates may be published at www.smartmonday.com.au. We recommend that you regularly check the website for updated fees and costs information. The cost of your insurance cover may change, and any reduction in the asset administration fee will cease, if you leave your employer and you are transferred to the retained category of the Fund (where the maximum asset administration fee of 0.36% p.a. will apply). Any additional employer contributions to your account to meet the cost of cover (or administration fees and costs, where applicable) will stop from the date employment ceases, which means you should ensure there is sufficient money in your account in the retained category if you do not wish cover to cease. Note: insurance-only members who cease employment with their contributing employer will have their membership terminated (and will not be transferred to the retained category).
Additional expenses
The trustee has the right to be reimbursed out of the assets of the Fund for all expenses it incurs on behalf of the Fund (unless precluded by law). The trustee will pay the routine expenses of the Fund (including, but not limited to custody, accounting and audit) from the administration fees and costs charged to members. However, if the trustee should incur additional expenses in a financial year which have not been anticipated by the trustee when disclosing the administration or other fees and costs (including unexpected costs arising from any disputes or litigation or costs changes in law) those expenses may be paid out of the Fund's reserves or other Fund assets, including member accounts. For example, from time to time, the Government makes changes to super rules and infrastructure which result in additional implementation costs for the Fund. The Government may also apply additional levies on super funds. We may deduct an appropriate amount from your account to recover some or all of these costs, but we'll notify you at least 30 days before we make any deduction.
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Defined Fees
These definitions are prescribed by law. Activity Fees
A fee is an activity fee if:
a. the fee relates to costs incurred by the trustee of the superannuation entity that are directly related to an activity of the trustee: i. that is engaged in at the request, or with the consent, of a member; or ii. that relates to a member and is required by law; and
b. those costs are not otherwise charged as administration fees and costs, investment fees and costs, transaction costs, a buy-sell spread, a switching fee, an advice fee or an insurance fee.
Administration Fees and Costs
Administration fees and costs are fees and costs that relate to the administration or operation of the superannuation entity and includes costs incurred by the trustee of the entity that:
a. relate to the administration or operation of the entity; and b. are not otherwise charged as investment fees and costs, a buy-sell
spread, a switching fee, an activity fee, an advice fee or an insurance fee. Advice Fees
A fee is an advice fee if:
a. the fee relates directly to costs incurred by the trustee of the superannuation entity because of the provision of financial product advice to a member by: i. a trustee of the entity; or ii. another person acting as an employee of, or under an arrangement with, the trustee of the entity; and
b. those costs are not otherwise charged as administration fees and costs, investment fees and costs, a switching fee, an activity fee or an insurance fee.
Buy-sell Spreads
A buy-sell spread is a fee to recover costs incurred by the trustee of the superannuation entity in relation to the sale and purchase of assets of the entity. Exit Fees
An exit fee is a fee, other than a buy-sell spread, that relates to the disposal of all or part of a member's interests in a superannuation entity.
Insurance Fee
A fee is an insurance fee for a superannuation product if:
a. the fee relates directly to either or both of the following: i. insurance premiums paid by the trustee of a superannuation entity in relation to a member or members of the entity; ii. costs incurred by the trustee of a superannuation entity in relation to the provision of insurance for a member or members of the entity; and
b. the fee does not relate to any part of a premium paid or cost incurred in relation to a life policy or a contract of insurance that relates to a benefit to the member that is based on the performance of an investment rather than the realisation of a risk; and
c. the premiums and costs to which the fee relates are not otherwise charged as administration fees and costs, investment fees and costs, transaction costs, a switching fee, an activity fee or an advice fee.
Investment Fees and Costs
Investment fees and costs are fees and costs that relate to the investment of the assets of a superannuation entity and includes:
a. fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and
b. costs incurred by the trustee of the entity that: i. relate to the investment of assets of the entity; and ii. are not otherwise charged as administration fees and costs, a buy-sell spread, a switching fee, an activity fee, an advice fee or an insurance fee.
Switching Fees
A switching fee for a MySuper product is a fee to recover the costs of switching all or part of a member's interest in a superannuation entity from one class of beneficial interest in a superannuation entity to another. A switching fee for a superannuation product other than a MySuper product is a fee to recover the costs of switching all or part of a member's interest in the superannuation entity from one investment option or product in the entity to another. Transaction Costs
Transaction costs are costs associated with the sale and purchase of assets of the superannuation entity, other than costs that are recovered by the superannuation entity charging buy-sell spreads.
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6. How super is taxed
This section provides a general guide to the way activities in relation to your super account may be taxed. Your super account may be taxed at three distinct phases:
When contributions are made to your account; When earnings are generated for investment; and When withdrawals are made from your account.
IMPORTANT: This is a general summary as at the date of preparation of this document. The impact of tax laws will depend on your personal circumstances. For this reason, we strongly recommend that you consult a professional adviser before acting on the basis of this information. For further general information, including updates to caps or thresholds, go to the ATO's website.
Tax on contributions
The tax treatment of contributions depends on whether they are defined as concessional contributions or non-concessional contributions. Concessional contributions are before-tax contributions This means that usually they are paid from your pre-tax salary. Concessional contributions include employer contributions (such as SG contributions and salary sacrifice contributions), and any personal contributions you make for which a tax deduction has been claimed. The money is subject to tax when contributed to your super account. Non-concessional contributions are after-tax contributions This means they are paid from your take home salary or money in your bank account. This money is not usually subject to tax when contributed to your super account as you have already paid tax on it at your nominal rate. Non-concessional contributions include personal contributions (for which a tax deduction is not obtained). Concessional contributions that have exceeded the concessional contributions cap also count as non-concessional contributions. Contribution limits apply for taxation purposes (see below). If you split concessional or non-concessional contributions with your spouse, they still count towards your contribution limits. For more information about concessional and non-concessional contribution limits, including amounts included within these limits, and the treatment of excess contributions, go to ATO's website. Concessional contributions cap
A concessional tax rate of 15% will ordinarily apply to concessional contributions up to $30,0004 per person per annum. We generally deduct this tax from your account when concessional contributions are processed to your account, and remit it to the Australian Taxation Office (ATO) when required. However a refund of this tax is available if you are a low-income earner, subject to certain limits (see Low Income Tax Offset below).
Increase to contribution tax for high income earners If your combined5 income and concessional contributions exceeds $250,000 in a financial year, you are classified by the Government as a 'high income earner' and may be required to pay an extra tax, known as a 'Division 293 tax'. As a high-income earner, your marginal tax rate is higher than an average income earner, which means that when you make concessional contributions to your super account, you receive a larger tax concession. Division 293 tax imposes an additional tax of 15% on some of these contributions to bring the concession back to an amount in line with the average. If this additional tax applies, you'll receive an Additional tax on concessional contributions (Division 293) notice from the ATO. For more general information about Division 293 tax, visit the ATO's website. Concessional contribution cap breaches Concessional contributions in excess of the concessional contributions cap means that:
the excess concessional contribution is included in your assessable income, it will count towards your non-concessional contribution caps, and the amount will incur additional tax at your top marginal tax rate. You will be required to pay this additional tax personally. You can choose to withdraw the excess concessional contributions (and up to 85% of any associated investment earnings) from your super account to help pay your tax liability. If you do, this amount will be sent directly to the ATO by us on your behalf. Otherwise, you can leave the excess concessional contributions in your super account where they will count towards your non-concessional contributions cap and pay the additional income tax from your personal cash flow. The amount of excess concessional contributions that count towards your non-concessional contributions cap will be reduced by the amount of excess concessional contributions you release from your account `grossed-up' by 15%.
IMPORTANT: The contribution caps are applied per person, not per Fund. If you have more than one super account, the concessional contributions made to all of your super accounts in a single financial year are added together by the ATO and counted towards your concessional contributions cap.
Unused concessional cap carry forward If your Total Superannuation Balance is less than $500,000 on 30 June of the previous financial year, you may be entitled to make concessional contributions above the standard concessional contributions cap for a year by using some or all of the unused portion of your concessional contributions cap from previous years (up to 5 years' worth), without having to pay extra tax. See further below for an explanation of Total Superannuation Balance. The 2018/2019 financial year was the first financial year that you could accrue unused cap amounts. Unused amounts are available on a rolling basis for a maximum of five years, and after this period will expire. For more general information about the carry-forward of unused concessional contributions, see the ATO's website.
4. For the 2024/25 financial year. Subject to indexation in future years. Your concessional contributions cap may be higher if you have unused concessional cap amounts from previous years that you can 'carry forward' (use) - see above.
5. The calculation of income for this purpose is complex and includes your taxable income plus concessional super contributions, adjusted fringe benefits, net investment earnings, target foreign income and tax-free Government pensions and benefits, less certain prescribed amounts.
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Low income superannuation tax offset (LISTO)
Under the LISTO scheme, if you earn less than $37,000 per annum, you will receive a refund from the Government of up to $500 of the 15% contributions tax you paid on concessional (before-tax) contributions paid into your super account.
You don't need to apply to be eligible for the LISTO. At the end of each financial year, the ATO will receive your Tax Return and a statement from the Fund listing all of the concessional contributions that have been made to your super account. The ATO will then determine if you are eligible to receive the tax offset, and the amount of the offset (based on your income and contribution history) and will make a payment directly into your super account.
For more general information about the LISTO scheme, see the ATO's website.
Non-concessional contributions cap
Non-concessional contributions are limited to $120,0006 per person per annum, unless you are eligible to exercise the 'bring-forward arrangements' (see below).
There are many types of non-concessional contributions, including:
Personal contributions you make, or your employer makes on your request, from your after-tax income (that you have not claimed as a tax deduction); Contributions your spouse makes to your super fund (excluding when your spouse is your employer); Excess concessional (before-tax) contributions which you have not released from your super fund; Amounts you withdraw from a super fund and 're-contribute' to super and which you have not claimed as an income tax deduction (unless withdrawn under the COVID-19 early release of super program, previously made available by the Government, and the re-contribution occurs between 1 July 2021 to 30 June 2030. See the How super works section of this document for more information about COVID-19 re-contributions); and Contributions made for you by someone else if you are under 18 and the contributor is not your employer.
Provided you meet the relevant conditions, downsizer contributions (see further below), personal injury payments (referred to as structured settlement contributions) and contributions from the sale of small business related assets (that you have chosen to count towards your capital gains tax cap that have not exceeded your lifetime limit), do not count towards your non-concessional contributions cap (for further information about structured settlement contributions and contributions relating to CGT exemptions, refer to the ATO's website or speak to a professional tax adviser, as the applicable arrangements are complex).
Your non-concessional contributions cap is impacted by your Total Superannuation Balance and is nil for a financial year if your Total Superannuation Balance is equal or greater than the General Transfer Balance Cap at the end of the previous financial year (see further below for an explanation of the Total Superannuation Balance and General Transfer Balance Cap).
IMPORTANT: If you have more than one super account, the non-concessional concessional contributions made to all of your super accounts in a single financial year are added together by the ATO and counted towards your non-concessional contributions cap.
Bring forward contribution arrangements
If you make contributions above the standard annual non-concessional contributions cap, you may be eligible to automatically gain access to future year caps. This is known as 'bring-forward arrangements'. It allows you to make extra non-concessional contributions without having to pay extra tax.
For the 2024/25 financial year and later years, to access the non-concessional bring-forward arrangement you must meet all these conditions. You:
a. Are under 75 years of age for at least one day during the triggering year (the first year); and
b. Contribute more than the annual non-concessional contributions cap; and
c. Are not already in an active bring-forward period7; and d. Have a Total Superannuation Balance at the end of 30 June of the
previous financial year that is below the General Transfer Balance Cap (see below for an explanation of Total Superannuation Balance and the General Transfer Balance Cap).
The amount of non-concessional contributions you can bring forward depends on the amount of your Total Superannuation Balance. The amount of the non-concessional contributions cap you can bring forward if you commence a bring forward arrangement in the 2024/25 financial year is as follows:
a. Three times the annual non-concessional contributions cap over three years (that is, $360,000) if your Total Superannuation Balance on 30 June of the previous financial year is less than $1.66 million;
b. Two times the annual non-concessional contributions cap over two years (that is, $240,000) if your Total Superannuation Balance on 30 June of the previous financial year is $1.66 million or above but less than $1.78 million;
c. One times the annual non-concessional contributions cap over two years (that is, $120,000) if your Total Superannuation Balance on 30 June of the previous financial year is $1.78 million or above but less than the General Transfer Balance Cap; or
d. Nil ($0) if your Total Superannuation Balance is equal to or above the General Transfer Balance Cap.
Once a bring-forward arrangement is triggered in a financial year, your non-concessional contributions made over the next one or two years cannot be more than the sum of your increased bring-forward non-concessional contributions cap amount minus the non-concessional contributions made in the year the bring-forward was triggered. For example, if you used your total increased bring-forward cap in the first year, you would have a nil cap for the next two years.
For more general information about the bring forward contribution arrangements, see the ATO's website. Spouse contribution tax offset
If you are classified by the ATO as a low-income or non-working spouse, and your spouse makes contributions to your super account, your spouse may qualify for a tax offset of up to 18% on up to $3,000 in contributions per annum. The maximum offset for a year of income is $540.
The tax offset available to your spouse decreases as your income exceeds $37,000 per annum and cuts off when your income reaches $40,000 per annum or more. This doesn't mean that your spouse can no longer contribute to your super account, it just means they won't receive a tax offset for doing so.
Spouse contributions are not usually subject to the 15% contributions tax rate and they are tax-free on withdrawal. Spouse contributions are non-concessional contributions and count towards the receiving spouse's non-concessional contribution limit - not the spouse making the contribution.
For more general information about the tax offset for spouse contributions, see the ATO's website.
6. For the 2024/25 financial year. The cap will be indexed in future years so that it is always four times the cap on concessional contributions. 7. Different conditions apply if you started to access the bring forward arrangement in previous financial years. See the ATO's website for details.
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Downsizer contributions The downsizer contribution is considered to be a one-off non-concessional (after-tax) contribution, but it will not count towards your non-concessional contributions cap. The downsizer contribution can also still be made even if you have a Total Superannuation Balance of more than the General Transfer Balance Cap however it will affect your Total Superannuation Balance when it is re-calculated at the end of the financial year in which the downsizer contribution is made (see the How super works section of this document for information about eligibility requirements for Downsizer contributions). The downsizer contribution is not tax deductible and will be taken into account when determining your eligibility for the Age Pension (See further below for an explanation of the Total Superannuation Balance and General Transfer Balance Cap). Non-concessional contribution cap breaches Non-concessional contributions in excess of the non-concessional contributions cap will incur additional tax, payable directly by you, if you choose to leave them in your super account. The ATO will determine if you have exceeded the non-concessional contributions cap by assessing the information reported by your super fund and in your personal tax return and considering your date of birth. They will send you a determination letter and ask you to select your option for paying the additional tax. In summary, you have two options for paying the additional tax: a. You can withdraw the entire excess non-concessional contribution
amount, plus 85% of any associated investment earnings. The ATO will add the full amount of associated earnings to your assessable income and give you a non-refundable tax offset of 15% on those earnings. The ATO will issue a release authority to your super fund(s) and an amended notice of assessment to you. The released amount will be used to pay your additional tax (and any other Federal Government debts owing e.g. HECS), with any balance refunded to you. b. You can choose to leave the entire excess non-concessional contributions and associated investment earnings in your super account. The ATO will send you a Notice of Assessment taxing you on your entire excess non-concessional contributions at the highest marginal tax rate plus Medicare Levy. This tax must be paid from your super account. The ATO will send a release authority to your fund to release the tax amount to the ATO. For more general information on non-concessional contributions cap breaches, see the ATO's website. No TFN tax If you have not supplied your TFN to the Fund, concessional contributions will be taxed at the top marginal tax rate plus Medicare levy, referred to as `No TFN tax'. You can supply your TFN by completing the relevant form, using the member online account, or contacting us. Once your TFN has been recorded, a refund of No TFN tax (if applicable) may be credited back to your account. The ATO only allows this refund to be made for up to a maximum of three previous financial years where it had previously been deducted. Additional No TFN tax paid in years prior to the last three financial years cannot be refunded.
Tax deductibility of contributions An employer is generally entitled to a full deduction for all contributions to super on behalf of employees under age 75. Certain criteria must be met including that the employee is engaged in producing the employer's assessable income. Contributions made within 28 days of the end of the month in which an employee turns 75 or that are required to be made under an industrial award or other prescribed arrangements (after age 75) may also be deductible. All individuals under the age of 67, and those aged 67 to 75 who meet the work test (working 40 hours within a 30-day period in a financial year) or are able to rely on a work test exemption, may claim a tax deduction for personal non-concessional contributions to eligible super funds, up to the concessional contributions cap. To apply, you must complete the ATO's Notice of Intent to Claim a Tax Deduction on Personal Contributions form and provide it to us. For more information refer to the How super works section of this document or go to ATO's website for more information. Time limits apply for claiming a deduction. We recommend you seek professional tax advice if you are considering making tax-deductible personal super contributions. Transfer Balance Cap The General Transfer Balance Cap is $1.9 million for the 2024/25 financial year. This cap may affect the amount of super contributions that can be made to your super account (see Total Superannuation Balance below). It may also be relevant to determining the total amount of your accumulated super that can be transferred into the tax-free retirement phase. This amount will be indexed periodically in $100,000 increments in line with CPI. While the General Transfer Balance Cap is a specified amount, this cap amount does not apply to all individuals when commencing a retirement phase income stream. Every individual has their own Personal Transfer Balance Cap of between $1.6 million and $1.9 million, depending on their circumstances. Subsequent earnings on balances in the retirement phase will not be capped or restricted. Your Personal Transfer Balance Cap will depend in the financial year you started your first retirement phase income stream. You can view your Personal Transfer Balance cap information in ATO online (using your myGov account). For more general information on the Transfer Balance Cap, see the ATO's website. Total Superannuation Balance Your Total Superannuation Balance is the total amount that you hold in super in the Australian superannuation system (across multiple accounts in multiple funds if applicable). If your Total Superannuation Balance on the 30 June of the previous financial year is more than the General Transfer Balance Cap, you will not be able to make any further non-concessional contributions. In addition, if your Total Superannuation Balance is close to the General Transfer Balance Cap, you will only be able to access the number of years of bring forward required to take your balance up to that cap. For more general information on the Total Superannuation Balance, see the ATO's website.
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Tax on rollovers and transfers
No tax is payable by you if you elect to rollover or transfer some or all of your account balance in the Fund to another complying Australian super fund, approved deposit fund, retirement savings account or other approved super institution (or, usually, vice versa). Payment of tax by you is ordinarily deferred until such time as your super benefit is paid to you in cash.
An exception to this is where the rollover or transfer is from an untaxed source, such as an unfunded super scheme (for example, some public sector super schemes). In this case, the rollover or transfer will be taxed at 15% plus the Medicare levy. A higher rate of tax (the top marginal rate plus the Medicare levy) also applies to transfers over $1,780,000 (for the 2024/25 financial year) from an untaxed scheme to a taxed scheme.
If you elect to transfer your accumulation account into a pension account, the regular payments you receive from the pension account are taxed as income, but the tax-free proportion of your benefit is not subject to tax and a 15% tax offset (rebate) will also generally apply. No tax is payable on any pension payments made to you on or after age 60 and such payments do not count towards your assessable income.
Tax on investment earnings
All income and capital gains are taxed at a rate of up to 15%. This tax is calculated and deducted before investment returns are applied to your account. Fund expenses are an allowable deduction for the purpose of calculating taxable income. Any franking credits and foreign tax credits we receive are used to reduce the effective tax rate to below 15%.
Tax on benefit payments
The rate at which your super benefits will be taxed depends on several factors, including:
a. Your preservation age and the age you will be when you receive the payment;
b. Whether the money in your super account is taxable or tax-free; and, c. Whether you will receive the payment as a lump sum or an income
stream.
Lump sum withdrawals Depending on your age, tax may be payable on a lump sum benefit paid to you from your super account. In general, lump sum benefits paid to persons aged under 60 will be taxed, whilst benefits paid to persons aged 60 or over do not incur tax (if paid from a taxed source). When you claim a benefit prior to age 60, we will give you a statement showing the breakdown of your account balance into tax-free and taxable components. The tax-free component includes, for example, your personal after-tax contributions and an allowance for super benefits arising from employment under old tax rules in place before July 1983. The taxable component forms the balance of your benefit and includes employer contributions and investment earnings. The tax-free component is always paid tax-free. If you under preservation age (age 60 for members born 1 July 1964 and after) the entire taxable component will be taxed at 20% plus the Medicare levy. The tax treatment for benefit withdrawals paid to you is summarised below:
Age
Component and tax treatment for
withdrawals
Age 60 or over
No tax incurred on withdrawals
Less than age 60
Tax free componenta does not incur tax Taxable componentb taxed at your marginal tax rate or 20% (plus Medicare levy), whichever is lower (assuming there is no untaxed element in your taxable component).
a. The tax-free component consists of amounts such as the accumulation of non-concessional contributions, pre July 1983 components and invalidity components. If you would like more information about these components contact us on 1300 614 644.
b. The taxable component is the benefit less the tax-free component. If you would like more information about these components contact us on 1300 614 644.
When any benefit is paid from an accumulation account, it must comprise both tax-free and taxable components, in the same proportions as the total amount. You cannot nominate to withdraw specific components of your account before others.
If we do not have your TFN at the time a benefit is paid to you, higher tax applies.
For more general information on the tax payable on lump-sum withdrawals, see the ATO's website.
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Death benefits - lump sum The tax treatment of a lump sum death benefit payment from a deceased member's account depends on who the benefit is paid to. The definition of a dependant is different for who can receive a super death benefit (defined in super law) and how the death benefit will be taxed (defined in taxation law). Under super law, a death benefit dependant can be the deceased's spouse (including de facto spouse) or child of the deceased or the deceased's spouse (of any age), or a person who was either financially dependent on, or in an interdependency relationship with, the deceased. Under taxation law, a death benefit dependant can be the deceased's spouse (including de facto spouse), or former spouse, or child of the deceased or deceased's spouse under 18 years of age, or a person who was either financially dependent on, or in an interdependency relationship with, the deceased. Whilst a lump sum death benefit can be paid by the trustee to any person who meets the death benefit dependant definition under super law, the lump sum death benefit payment will only be tax free for those persons who meet the taxation law definition of a death benefit dependant. For super law death benefit dependants who are not also taxation law death benefit dependants, the tax-free and taxable components of the benefit will need to be calculated and tax paid on the taxable component (generally 15% plus the Medicare levy). Where a death benefit is received by the legal personal representative of a deceased estate, tax payable will be determined according to who is intended to benefit from the estate. For more general information on super death benefits, see the ATO's website. The tax treatment of death benefits paid in the form of an income stream is different, summarised below. Death benefits - income stream Death benefits can be paid as an income stream to a dependant if you die before commencing an income stream. Death benefits can be paid as an income stream to a dependent child, although when the child turns 25, the balance in the account must be paid to the child as a lump sum (tax-free), unless the child is permanently disabled. An income stream cannot revert to or be paid to a non-dependent upon your death. These income streams will be paid out to the non-dependant as a lump sum. Please seek professional advice or contact us on 1300 614 644 for further details. Terminal Illness benefits Tax does not apply to lump sums paid to individuals diagnosed with a terminal medical condition (as defined in Government legislation), regardless of the individual's age.
Total and Permanent Disablement benefits Total and Permanent Disablement benefits are taxed at different rates, depending on the member's age at the date they were disabled. For more information, please contact us on 1300 614 644. Income Protection benefits Income Protection insurance benefits are paid as taxable income and, like salary and wages, attract Pay-As-You-Go (PAYG) tax at your marginal tax rate. The tax is deducted and remitted to the ATO before the benefit is paid. Higher tax applies if we do not hold your TFN. Departing Australia superannuation payments If you enter Australia on a temporary visa you are entitled to receive your super benefit once your visa has expired and you have permanently departed Australia. This type of payment is known as a Departing Australia Superannuation Payment (DASP). The tax rates payable in respect of a DASP are as follows:
Tax free component Nil Taxable component 35% (taxed element) and 45% (untaxed element). A tax rate of 65% may be applied to your DASP if it includes amounts attributable to super contributions made whilst you were a working holiday maker under the 417 (working holiday) or 462 (working holiday subclass) visa. For more general information about DASP tax rates, see the ATO's website.
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7. Other important information
You should be aware of the following information when joining smartMonday PRIME.
Privacy
The trustee is subject to a Privacy Statement to protect your personal information. Your right to privacy
When you provide instructions to us, we will be collecting personal information about you. This information is needed to admit you as a member of the Fund, administer your benefits and identify when you may become entitled to your benefits and to comply with Australian taxation laws and other applicable laws and regulations. If the information requested is not provided, we may be unable to process your application or administer your benefits, or your benefits may be restricted. Privacy policies
The Privacy Statement applicable to the trustee can be found at www.eqt.com.au/global/privacystatement.
If you have any queries or complaints about your privacy, please contact:
Privacy Officer, Equity Trustees c/o smartMonday PRIME Call: 1300 614 644 Email: enquiry@smartmonday.com.au Use and disclosure
The information that you provide may be disclosed to certain organisations to which we have outsourced functions, or which provide advice to us and/or to Government bodies, including but not limited to:
Organisations involved in providing administration and custody services for the Fund, the Fund's insurers, accountants, auditors, legal advisers, and/or those that provide mailing and/or printing services. In the event that you make a claim for a disablement benefit, the insurer may be required to disclose information about you to doctors and other experts for the purpose of assessing your claim. Relevant service providers to verify your identity by electronic verification. The ATO, APRA, ASIC, AUSTRAC, Centrelink and/or other government or regulatory bodies. Those where you have consented to the disclosure and/or as required by law.
In some cases, these organisations may be situated in Australia or offshore.
Collection of Tax File Number (`TFN') The Superannuation Industry (Supervision) Act 1993 authorises us to collect, use and disclose your TFN for lawful purposes including to establish and administer your account with the Fund and to provide information relating to your super to the ATO. These purposes may change in the future as a result of legislative change. We may disclose your TFN to another super provider when your benefits are being transferred, unless you request in writing that your TFN not be disclosed to any other super provider. It is not an offence not to quote your TFN. However, giving your TFN to us will have the following advantages (which may not otherwise apply):
We will be able to accept all permitted types of contributions for you; Other than the tax that may ordinarily apply, you will not pay more tax than you need to this affects both contributions to your super and when you start drawing down your super benefits; and It will make it much easier to trace different super accounts in your name so that you receive all your super benefits when you retire. Additional information
We may from time to time provide you with direct marketing and/or educational material about products and services we believe may be of interest to you. Should you not wish to receive this information (including by email or electronic communication), you have the right to 'opt out' by contacting us: Privacy Officer, Equity Trustees Superannuation Limited c/o smartMonday PRIME Call: 1300 614 644 Email: enquiry@smartmonday.com.au The Fund's service providers have their own privacy policies. The Sponsor's Privacy Policy can be found at www.smartmonday.com.au Note: The Sponsor may from time to time provide you with direct marketing and/or educational material about products and services they believe may be of interest to you. Should you not wish to receive this information (including by email or electronic communication), you have the right to 'opt out' by contacting the Sponsor: Call: 1300 614 644 Email: enquiry@smartmonday.com.au
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Enquiries and complaints
The Fund has an established procedure for dealing with your enquiries and complaints, which you can find in our Enquiries and Complaints Policy. Enquiries
Enquiries can be made by telephone to 1300 614 644 or in writing to enquiry@smartmonday.com.au If the enquiry has not been dealt with to your satisfaction, then you can make a complaint about this. Complaints
Superannuation legislation requires us to have arrangements in place for you to make complaints. A complaint can be made verbally or in writing:
By telephone: By mail:
By email:
1300 614 644 The Complaints Officer, smartMonday PRIME GPO Box 1202, Brisbane QLD 4001 enquiry@smartmonday.com.au
If you need additional assistance to lodge a complaint, we can support you. Please contact us to discuss how we may be able to assist you. An acknowledgement will be issued to you at the time of receipt of your complaint, either by phone, email or post. Our team will investigate and respond on all aspects of the matters raised in your complaint. We will provide you with a response no later than 45 calendar days after receiving your complaint, unless another timeframe is allowed or required under the relevant legislation. If you make a complaint and we resolve it within 5 business days from receipt to your satisfaction we are not required to send you a formal complaint response, unless you request one; or your complaint relates to hardship, a declined insurance claim, the value of an insurance claim or for any decision of the trustee (or failure by the trustee to make a decision) relating to a complaint. For death benefit objections, the trustee must provide a complaint response no later than 90 calendar days after the expiry of the 28-calendar day period for objecting. We will do our best to resolve your complaint as soon as possible. However, if we are unable to provide you with a response within the required timeframe, we will provide you with progress updates including reasons for the delay. You may also lodge a complaint with the Australian Financial Complaints Authority (AFCA), although AFCA will not normally deal with a complaint until it has been through our internal complaints handling process. AFCA provides fair and independent financial services complaint resolution that is free to consumers. Time limits may apply to complaints to AFCA and so you should act promptly or otherwise consult the AFCA website to find out if or when the time limit relevant to your circumstances expires. Other limits may also apply. AFCA's contact details are:
By telephone: By mail:
By email: Website:
1800 931 678 Australian Financial Complaints Authority, GPO Box 3, Melbourne, VIC 3001 info@afca.org.au www.afca.org.au
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