Essential Super Reference Guide - CommBank · Reference Guide This product is not accepting...

Essential SuperReference GuideThis product is not accepting applications for new personal members or new standard employer sponsored arrangements. This information is for existing members and existing standard employer sponsored arrangements (including members joined by the employer in this product from 4 July 2018).

Issue 3/2020, dated 19 October 2020Investments in Essential Super (USI FSF1332AU) are offered from Commonwealth Essential Super ABN 56 601 925 435 by Colonial First State Investments Limited ABN 98 002 348 352 AFS Licence 232468 My Super authorisation identifier 56601925435909

MySuper56601925 4 3 5909

MYS

UPER

AUTHORISATION IDENTIFIER

ContentsThe name and contact details of the trusteeColonial First State Investments Limited11 Harbour Street, Sydney NSW 2000Telephone 13 4074Email [email protected] First State Investments Limited ABN 98 002348 352 AFS Licence 232468 (Colonial First State or'we' or 'us' or 'our') is the trustee and administrator ofCommonwealth Essential Super ABN 56 601 925 435(the fund) and the issuer of interests in Essential Super,which is a product of the fund. Colonial First State isa wholly owned subsidiary of Commonwealth Bank ofAustralia ABN 48 123 123 124 AFS Licence 234945 (theBank). The Bank and its subsidiaries do not guaranteethe performance of Essential Super or the repaymentof capital by Essential Super. An investment inEssential Super is through a superannuation trust andis subject to superannuation rules. It is not aninvestment in, deposit with, or other liability of theBank or its subsidiaries. An investment in EssentialSuper is subject to investment risk, including loss ofincome and capital invested. The Bank providesdistribution and administrative services to the trustee.

The information in this document forms part of theEssential Super Product Disclosure Statement (PDS)dated 19 October 2020.A reference to ‘the PDS’ in this Reference Guide is areference to the PDS and all statements andinformation incorporated by reference as described inthe Essential Super PDS.This Reference Guide will be updated from time totime. You should always ensure that you are readingthe most up-to-date version, together with the PDS,before making a decision to invest.The information contained in the PDS is generalinformation only and does not take into account yourindividual objectives, taxation or financial situation orneeds. You should read the PDS carefully and assesswhether the information is appropriate for you.Information contained in this PDS is subject to changefrom time to time. Where a change to this informationis not materially adverse, the information may beupdated via our website and can be found at any timeby visiting commbank.com.au/essentialinfo. A papercopy of any updated information is available free ofcharge on request by contacting us on 13 4074. Wherea change is material, the trustee will notify you inwriting within the timeframes provided for in therelevant legislation.Taxation considerations are general and based onpresent taxation laws, rulings and their interpretationas at the date of issue of the PDS. You shouldseek professional tax advice on your situation beforemaking any decision based on this information.

mailto:[email protected]

www.commbank.com.au/essentialinfo

Colonial First State is also not a registered tax(financial) adviser under the Tax Agent Services Act2009, and you should seek tax advice from a registeredtax agent or a registered tax (financial) adviser if youintend to rely on this information to satisfy theliabilities or obligations or claim entitlements that arise,or could arise, under a taxation law.Insurance for Essential Super is provided by TheColonial Mutual Life Assurance Society Limited(CMLA, ‘CommInsure’ or ‘the insurer’) ABN 12 004 021809 AFS Licence 235035. As at 19 October, 2020 theinsurer is a wholly owned but non-guaranteedsubsidiary of the Bank. It is proposed that life insurancepolicies issued by the insurer will be transferred to AIAAustralia Limited (which is part of the AIA Group). Thistransfer is subject to certain conditions being metincluding court approval which is expected to bereceived in the first half 2021. Pending this transfer theBank and AIA Australia Limited have entered into aJoint Cooperation Agreement, under which AIAAustralia Limited have an appropriate level of directmanagement and oversight of the CMLA business.‘CommInsure’ is a registered business name of CMLA.

1 About this Reference GuideThis Reference Guide is packed with essential information about your super account– how it works, how to invest and how to keep track of your super. Read this guidetogether with the Product Disclosure Statement to get the full picture.

In this guide, you’ll find information on:Using your account: how to manage youraccount and grow your super by makingextra contributions.Tracking your super: how we keep youinformed, so you can make sure yoursuper stays on track.Risks of super: important risks you needto understand before you invest.How we invest your money: essentialinformation about your investmentoptions.Fees and costs: what you may needto pay, depending on the options youchoose.How super is taxed: an overview of thetax rules that could affect your super.Insurance in your super: more about theinsurance cover you’ll have as anEssential Super member.Other things you should know: ourprivacy policy, terms and conditions, andother important information.

Read the Product DisclosureStatementThis guide is intended to be read along with theEssential Super Product Disclosure Statement(PDS) and forms part of the Essential SuperApplication – on its own, it doesn’t covereverything you need to know. To get the fullpicture, you need to read both of thesedocuments.

This Reference Guide will be updated from timeto time, so make sure you have the mostup-to-date version, as well as the most recentPDS, before making a decision to invest.

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2 Using your accountWith easy online access through NetBank, it’s never been easier to makecontributions and keep an eye on your super.

How to use your accountWhether you’re rolling over super from another fund, switching options or making anapplication to withdraw, Essential Super makes it easy, with 24-hour online access throughNetBank. Here’s a quick guide to using your account. For further information on howyour transactions are processed, please refer to page 6.

netbank.com.au via our a secure online system (e-Post)1Online

Telephone and internet banking –

Contact your bank or financial institution to make this payment from yourcheque, savings, debit or transaction account. More info: www.bpay.com.au

EFT or directcredit and

The table below provides you with information on how to transact on your account andthe options available to you.

Things you need to knowHow it worksYour optionsIf you’d like toLog on to Netbank to request areal time super search, and followthe prompts to choose whichfunds to rollover.

NetBankRoll over superfrom anotherfund

When you consolidate your superinto Essential super, any insurancecover you have with other superfunds will end. Any insurance you

(or) have with Essential super will beLog on to NetBank to downloadand complete a Request toTransfer form, then mail us yourcompleted form or upload it viae-Post.

different from the cover youpreviously hold with other superfunds. It is important to understandwhat you may lose, what you mightnot be covered for, including coverfor any illness, injury or condition,and the terms of the new insurancecover before you consolidation. Referto Section 8 on page 53 of thisReference Guide for specific termsthat apply to the new insurancecover.Also consider the potential fees andcosts for withdrawals from othersuper funds, as well as anyinvestment tax implications. Youshould also decide which super fundyou want your employer to pay yourfuture employer contributions to and

1 e-Post is the fast and secure way to submit original forms and requests via NetBank. It is a secure online service, you nolonger need to post the originals, saving you time and effort.

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http://www.netbank.com.au/

http://bpay.com.au/

Things you need to knowHow it worksYour optionsIf you’d like tocomplete a Super choice form ifnecessary.

Log on to NetBank to downloada pre-populated Super Choiceform, and then provide this toyour employer.

NetBankInstruct youremployer to paycontributionsinto yourEssential Superaccount

This form contains all theinformation an employer requires tocontribute to the fund.

Log on to NetBank or contactyour financial institution totransfer your contribution to:

EFT or directcredit

Make acontribution

No minimum amount applies.Please note: If we do not receive anydeposits into your account, after 24months, the account willbe closed.

BSB: 067-979Account number: Your EssentialSuper account numberAccount name: Your first nameand surnameReference codes: Use one of these two-letterreference codes to tell us whatkind of contribution you’remaking:

You’ll need to provide your Tax FileNumber (TFN) to make personalcontributions or for your spouse tomake spouse contributions on yourbehalf. See the PDS for more aboutyour TFN.We’ll accept contributions asdescribed in the current PDS (whichyou can ask us for, free of charge),unless an option is suspended,restricted or unavailable.

Personal contributions: MVSpouse contributions: SP

If you don’t enter a code, or youput it in the wrong place, we’lltreat your payment as aSuperannuation Guaranteecontribution. This means thatcontributions tax will bededucted from your contribution.

Log on to NetBank or contactyour financial institution to makea payment:

In extraordinary circumstances,where an option is suspended,restricted or unavailable, we mightnot be able to process youradditional investments or there maybe a significant delay.We also have the right to put youradditional investment in anotheroption. But, of course, we’ll let youknow if we do this.If you are making a personalcontribution and want to claim aBiller codes:

Personal contributions:989756

personal tax deduction, you mustsend us a Notice of Intent to Claima Tax Deduction form. Download aSpouse contributions: 989772copy from NetBankor www.ato.gov.au

Reference number: Your 15 digitEssential Super account numberstarting with 067979XXXXXXXXX Unfortunately, we’re unable to

accept over-the-counter branch deposits.

® Registered to BPAY Pty Ltd ABN 69 079 137 518.

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https://www.ato.gov.au/

Things you need to knowHow it worksYour optionsIf you’d like toLog on to NetBank or call uson 13 4074 to make a switch.

NetBankPhone

Switch betweenoptions

Please check the current PDS formore information about yourinvestment options before making a switch.There’s no minimum amount thatyou can switch.We’ll process any requests to switchoptions received on a NSW businessday before 3pm (Sydney time)at that day’s unit price.In extraordinary circumstances,where an option is suspended,restricted or unavailable, we mightnot be able to process your switchor there may be a significant delay.We also have the right not to acceptyour request to switch options.But, of course, we’ll let you know ifwe choose a differentinvestment option.

Call us on 13 4074. You may alsoneed to complete a withdrawalform and upload it via e-Post.

PhoneMake awithdrawal

There is no minimum amount, butto take money out of your EssentialSuper account, you must meet acondition of release as outlinedin section 7.We can pay your withdrawals bycheque or to your nominated bank account.We’ll process any requests towithdraw money received on a NSWbusiness day before 3pm (Sydneytime) at that day’s unit price. We’llusually pay them within sevenworking days.If your fully completed transactionrequest is to roll over funds toanother institution, it will generallybe processed within threeworking days.In extraordinary circumstances, wemay suspend withdrawals. Seepage 7 for further details.

Some changes need a signed writtenrequest, and some certified documentssuch as a driver’s licence andbirth certificate.

Log on to NetBank, call13 4074 or visit your nearestCommonwealth Bank branch.

NetBankPhoneIn person

Update yourpersonal details

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Things you need to knowHow it worksYour optionsIf you’d like toWe may need personal identificationfor the person you nominate. In somecircumstances, we may delay or beunable to make a payment to theperson you nominate.

Download a Non-lapsing DeathBenefit Nomination form or callus on 13 4074, then mail us yourcompleted form or upload itvia e-Post.

NetBankMail

Nominate aperson toreceive yourbenefits ifyou die

For further information on super anddeath benefits, please see page 49.We may need a signed writtenconfirmation of the cancellation.

To cancel a contribution,withdrawal or switch request,contact us before the cut-off time

NetBankCancel arequest

shown on page 7 on the daywe receive the request you’d liketo cancel.

A member can only have oneaccount in the FundYou are only permitted to have oneaccount in Essential Super and the insurerwill only pay one benefit, even if you arepaying premiums on more than oneaccount. If we identify that you have morethan one account, we will consolidate youraccounts into one. Generally, we will dothis by transferring the balance of thenewest account into the oldest account. Ifwe merge your accounts, you will benotified in advance and we will confirm thetransaction once complete.

Transactions and unit pricingCalculating unit pricesWhen you invest in super, you receive anumber of units for each option you investin. Each unit represents an equal part ofthe value of the portfolio of the option.Each of these parts has a dollar value, or aunit price.We work out a unit price each day by:

taking the total market value of all theassets of the optionadjusting for any liabilitiesdividing this amount by the total numberof units that members hold that day.

The number of units you have in eachoption will stay the same, unless there’s adeposit to or withdrawal from youraccount. However, the unit price willchange if the market value of theinvestment portfolio, or the total numberof units issued for the option change.We will work out each option’s marketvalue based on the most up-to-dateinformation that we have. We may exercisecertain discretions that could affect theunit price for that option.The difference between entry and exitunit pricesAn option’s entry and exit unit price maydiffer, depending on the option’s buy/sellspread of the option.So that existing members don’t have tocontinually pay transaction costs resultingfrom transactions that you make, allmembers pay a set, average amountwhenever they deposit or withdraw moneyin an option. This is called a buy/sellspread. We calculate this amountdepending on the types of investments theoption holds.

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Not all new investments or withdrawalshave transaction costs – for instance,sometimes a new investment happens atthe same time as someone else makes awithdrawal. However, to be consistent, weusually charge transaction costs to all thenew investments and withdrawals from anoption.

Find out moreYou can find out more about the costs of buy/sellspreads by checking the 'Buy/sell spreads' sectionon page 36.

Unit pricing adjustment policyCalculating unit prices can be complex asthere are many factors involved.These include:

asset valuationsliabilitiesdebtorsthe number of units issuedtransaction costs.

If we find out that any of these factors arewrong, we correct the unit price. Wegenerally use a variance of 0.30% (0.05%for a cash investment option) in the unitprice before correcting it. If a unit pricingerror is greater than or equal to thesevariances, we will:

pay the difference to your accountbalance if you have transacted on anincorrect price, orsend you a payment for a correctionof over $20 (if you have closedyour account).

These levels meet regulatory practiceguidelines and industry standards. In somecases, we may pay you even if the unitpricing error is less than these levels.

Processing your transactionsApplicationsWhen we receive your completedapplication, we’ll divide your investmentamount by the entry unit price for thatdate. If we receive your application before3pm (Sydney time) on a NSW businessday, we’ll use the unit price for that day.Those arriving after that time will beprocessed using the following businessday’s entry unit price.If you send us your money by EFT or directcredit, or as a transfer from anotherfinancial institution, we’ll use the unit pricefor the date that your money arrives in ourbank account.In extraordinary circumstances, we maysuspend or restrict applications. We alsohave the right to reject applications. If wereceive an application for a suspended,restricted or unavailable option, we’ll investyour funds into the Lifestage option andsend you a confirmation notice letting youknow how your money has been invested.If we are unable to proceed with yourapplication because we have not receivedall the required information, or for anyother reason, we will:

attempt to contact you, andhold your application monies in a trustaccount until we receive the requiredinformation. Any interest on thesemonies may be retained by us.

Funds are held for a maximum period of30 days commencing on the day wereceive the funds. After this period, yourapplication monies will be returned to thesource of payment. At the time we processyour application, your original applicationmonies will be divided by the applicableunit price, to determine the number ofunits to be issued to you.

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SwitchesIf you decide to switch options, we’ll treatit as a withdrawal from one option and aninvestment into another. The money willleave one option at the exit unit price andbe invested in the other at the entry unitprice. We’ll complete these twotransactions on the same business day,unless your switch is from or into asuspended, restricted or unavailableoption. In this case, we may not be able toprocess your switch. If we do make a switchlater, the exit price used will be the one atthe time the switch is made.If you wish to switch into a suspended,restricted or unavailable option, we’ll investyour funds into the Lifestage option andsend you a confirmation notice letting youknow how your money has been invested.When switching, make sure you have acopy of the current PDS, which you shouldkeep for future reference.WithdrawalsWithdrawals are complex and can affectyour tax. If you need help understandingany of the terms used in this section,please call us or talk about it with yourfinancial or tax adviser.We’ll only be able to process withdrawalsonce we’ve cleared your application towithdraw, and received all the documentswe need from you.Here’s what will happen if you don’t giveus all the information we need:

If you don’t select a payment method,we’ll send you a cheque.If you don’t choose an investment optionfor withdrawal, we’ll redeem in line withyour existing investment weightings.We can only make payments toAustralian financial institutions. If you areoverseas, we’ll send you a cheque inAustralian dollars instead.

We’ll calculate your amount based on

the exit unit price at the time wereceive your completed withdrawal requestand proof of identity in line with ourtransaction cut-off times below. Inextraordinary circumstances, we maysuspend withdrawals.If an option is suspended, restricted orunavailable, we might not processwithdrawal requests, depending on thebest interests of all our members. If we domake a payment, we’ll use the exit priceat the time we make the payment.Transaction processing, cut-off timesand unit pricesWe calculate unit prices each NSWbusiness day. If we receive your completedinvestment, switch or withdrawal requestin our office by 3pm (Sydney time) on aNSW business day, we’ll process it that dayand use the next determined unit price.If we receive your completed transactionrequest after the cut-off time shown above,we’ll process your transaction on thefollowing NSW business day. Keep in mindthat we work out the next unit price for anyNSW business day at the close of tradingof all markets on that day. This means theprice isn’t actually available until thefollowing business day.If your fully completed transaction requestis to roll over funds to another institution,it will generally be processed within threeworking days.Please note: If you ask us for a unit priceor what your investment is worth, we canonly give you an historical amount, asthese amounts change each day.Even if you complete a valid transactionrequest, there may be reasonablecircumstances which prevent us fromprocessing the request or cause a delayin processing the request. If a transactionis delayed, you will receive the unit pricethat applies on the day your requestis processed.

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3 Tracking your superWith regular updates and 24-hour online access, it’s easy to make sure your superstays on track.

Keeping you up to dateWe’ll make sure you always know whereyour investment stands, by contacting youwith regular updates through NetBank.Simply go to netbank.com.au and log onto your account using your NetBank clientnumber and password. When you do, you’llsee your Essential Super account right nextto your other accounts and your NetBankinbox at the top of the page.

NetBank inboxHere you can see:

when a transaction or change has been madeto your accountwhen you need to take action on your accounttips on how to make the most of your super.

It is important that you check your NetBankinbox regularly.

Annual reportsWe'll publish our annual reportby 31 December each year on commbank.com.au/essentialinfoIt will outline the fund's financialposition and performance over the lastfinancial year.We can also email or post you a copy freeof charge, simply call us on 13 4074.

Getting the latest informationabout your accountOnlineYou can use NetBank to:

check your account balance andtransaction history and any importantnotices or information we have sent youmake additional investmentsmake changes to your investment optionsend us scanned forms or documentsuploaded via e-Postupdate some of your personal detailsview tax information (if applicable)make changes to your insurancesubmit your work test declaration.

TelephoneCall us on 13 4074 Monday to Friday,8am to 7pm (Sydney time).EmailContact us [email protected] security and privacy reasons, we willnot send account specific information viaemail or accept changes to your detailsvia email.

Find out moreYou can find out more about our currentinvestment options, their performance andhistorical unit prices by visiting commbank.com.au/essentialunitprices or calling13 4074 for the cost of a local call withinAustralia.

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https://www.my.commbank.com.au/netbank/Logon/Logon.aspx



https://www.commbank.com.au/essentialunitprices

4 Risks of superLike any investment, super has its risks. This section outlines the main risks youshould know about before you invest.

General risks for all optionsNo matter what investment option you’vechosen, they all contain some risks. Theserisks include:Market risk Investment returns are influenced by theperformance of the market as a whole. Thismeans that your investments can beaffected by things like changes in interestrates, investor sentiment and global events,depending on which markets or assetclasses you invest in and the timeframeyou are considering.Security and investment-specific risk Within each asset class and each option,individual securities like mortgages, shares,fixed interest securities or hybrid securitiescan be affected by risks that are specific tothat investment or that security. Forexample, the value of a company’s sharescan be influenced by changes in companymanagement, its business environment orprofitability. These risks can also impacton the company’s ability to repay its debt.Management risk Each option in the PDS has an investmentmanager to manage your investments onyour behalf. There is a risk that theinvestment manager will not perform toexpectation. Management risk may arisefrom the use of financial models by theinvestment manager to simulate theperformance of financial markets. Theperformance of financial markets maydiffer to that anticipated by thefinancial models.

Liquidity risk Liquidity risk refers to the difficulty inselling an asset for cash quickly without anadverse impact on the price received.Assets such as shares in large listedcompanies are generally considered liquid,while ‘real’ assets such as direct propertyand infrastructure are generally consideredilliquid. Under abnormal or difficult marketconditions, some normally liquid assetsmay become illiquid, restricting our abilityto sell them and to make withdrawalpayments or process switches for investorswithout a potentially significant delay.Counterparty risk This is the risk that a party to a transactionsuch as a swap, foreign currency forwardor stock lending fails to meet its obligationssuch as delivering a borrowed security orsettling obligations under a financialcontract.Legal, regulatory and foreign investment risk This is the risk that any change in taxation,corporate or other relevant laws,regulations or rules may adversely affectyour investment. In particular, for fundsinvesting in assets outside Australia, yourinvestment may also be adverselyimpacted by changes in broader economic,social or political factors, regulatory changeand legal risks applicable to where theinvestment is made or regulated.Environmental, social and governance(ESG) and climate risk The value of individual securities may beinfluenced by environmental, social andgovernance factors. These factors includethe potential impact that climate changeand global warming may have on the

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valuation of a security. For example, acompany’s revenue may be reduced dueto weather events, and this may thenreduce the value of the company’s shares.

Option-specific risksHere’s an outline of risks for theinvestment options offered to you byEssential Super. The risk table on page12 shows you the specific risks foreach option.Currency risk Investments in global markets or securitieswhich are denominated in foreigncurrencies give rise to foreign currencyexposure. This means that the Australiandollar value of these investments may varydepending on changes in the exchangerate. Investment options in the PDS which havesignificant currency risks adopt differentcurrency management strategies. Thesestrategies may include currency hedging,which involves reducing or aiming toremove the impact of currency movementson the value of the investment, whereassome investment options remainunhedged.Because different options have differentcurrency management strategies, youshould consult your financial adviser onthe best approach for you.Derivatives risk Derivatives are contracts between twoparties that usually derive their value fromthe price of a physical asset or marketindex. They can be used to manage certainrisks in investment portfolios or as part ofan investment strategy. However, they canalso increase other risks in a portfolio orexpose a portfolio to additional risks. Risksinclude: the possibility that the derivativeposition is difficult or costly to reverse; thatthere is an adverse movement in the asset

or index underlying the derivative; or thatthe parties do not perform their obligationsunder the contract.In general, investment managers may usederivatives to:• protect against changes in the marketvalue of existing investments• achieve a desired investment positionwithout buying or selling the underlyingasset• leverage a portfolio• manage actual or anticipated interest rateand credit risk• alter the risk profile of the portfolio or thevarious investment positions• manage currency risk.Derivatives may be used in an option toprovide leverage and may result in theeffective exposure to a particular asset,asset class or combination of asset classesexceeding the value of the portfolio. Theeffect of using derivatives to provideleverage may result not only in capitallosses but also an increase in the volatilityand magnitude of returns (both positiveand negative) of the option.As financial instruments, derivatives arevalued regularly, and movements in thevalue of the underlying asset or indexshould be reflected in the value of thederivative. Emerging markets risk Due to the nature of the investments inemerging markets, there is an increasedrisk that the political and/ or legalframework may change and adverselyimpact your investments. This couldinclude the ability to sell assets. Optionsthat invest in global markets may haveexposure to emerging markets.

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Credit risk Credit risk refers to the risk that a party toa credit transaction fails to meet itsobligations, such as defaulting under amortgage, a mortgage-backed security, ahybrid security, a fixed interest security ora derivative contract. This creates anexposure to underlying borrowers and thefinancial condition of issuers of thesesecurities

Other risks you shouldknow aboutWhenever you invest, there’s a risk thatyour investment goals will not be met.We’ve already outlined some of the risksthat can affect your investment. You shouldalso look at your investment strategy andmake sure it’s in line with your investmentobjectives. If it isn’t, there’s a risk you maynot meet your investment goals.

Deciding your investmenttimeframeDifferent investments suit differenttimeframes. For example, if you’re nearingretirement and you mainly want to protectthe super you’ve saved, then you might bebest choosing a secure, cash-basedinvestment. But if you want to increaseyour investment’s value over a longer time,you’ll probably include growth assets likeshares and property as part of yourinvestment portfolio.We have suggested minimum investmenttimeframes, and outlined the standard riskmeasures each particular investment couldface. However, this isn’t meant to bepersonal advice. You should regularly checkyour investment decision and thinkabout changing it if your investment needsand market conditions change.

Take noteAll of the investment options in the PDS aresubject to some or all of these risks, which canalso vary from time to time. You should consultyour financial adviser before making a decisionto invest. Your financial adviser is required to bequalified in understanding the risk and returnassociated with the wide range of investmentoptions available to you and can help you makedecisions regarding these options.

Your investmentoption risk profileWe’ve outlined the main risks of ourinvestment options in the general risks ofinvesting section and the PDS, which are:

market risksecurity and investment-specific riskmanagement riskliquidity riskcounterparty risklegal, regulatory and foreigninvestment riskenvironmental, social and governance(ESG) risk and climate risk.

There are also some option-specific risks.Here’s a table listing the Essential Superinvestment options that typically haveexposure to these option-specific risks. Thetable doesn’t include every risk, and shouldonly be used as a guide. Also, the risks maynot always apply to each option, and theimportance of the risk may differ from thetable below and change at times. Optionscan also become exposed to anoption-specific risk at a later date, so thetable may not include them.

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Emergingmarkets risk

Derivativesrisk

Credit riskCurrency riskOption name

Lifestage 1945-49Lifestage 1950-54Lifestage 1955-59Lifestage 1960-64Lifestage 1965-69Lifestage 1970-74Lifestage 1975-79Lifestage 1980-84Lifestage 1985-89Lifestage 1990-94Lifestage 1995-99Lifestage 2000-04BalancedAustralian ShareCash Deposit

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5 How we invest your moneyWhether you’re just starting your career or about to retire, you’ll find an EssentialSuper investment option that’s designed for your age group.Our Lifestage option has been designed to give an investment mix for your age groupand the time left until you retire. Best of all, we do the hard work for you, by automaticallychoosing the option for your age group, then adjusting your investment mix as yougrow older.Or if you prefer, you can choose from three other options: Balanced, AustralianShare and Cash Deposit options or a combination of the Lifestage option and thesethree options.

Understanding our investment optionsThis section has detailed information about each of our investment options. Here’s anexample of how they’re presented, with an explanation of what each section means.

Lifestage option

DescriptionIf you were born in the 1940s, then this option is intended to be suitable for you. As you’re approaching retirement, you want your super to be protected from large short-term losses.The option invests in a high percentage of defensive assets such as cash deposits and fixed interest, but also includes some growth assets such as shares and property to help boost your returns.

ObjectiveTo achieve a return after fees and taxes equal to the Consumer Price Index (CPI) plus 1% pa over rolling five-year periods.

Allocation

30% ■ Cash 30% ■ Fixed interest 8% ■ Global property and

infrastructure securities 16% ■ Australian shares 16% ■ Global shares

Minimum suggested timeframeAt least 3 years

StrategyTo invest in a diverse range of assets expected to generate a mix of income and long-term capital growth with an emphasis on stable returns.The portfolio aims to hedge currency risk, except for part of the allocation to global shares.

Risk

1 2

3 4 5 6 7

LOW

MEDIUM

HIG

H

AllocationThe mix of different investments your money is invested in – for example, shares, property securities, fixed interest and cash. The asset allocation for each option may change from time to time. The benchmark allocation simply means how much of each asset class the fund manager aims to hold.

Risk (Standard Risk Measure)We’ve used the Standard Risk Measure (SRM), based on industry guidance. You can use it to help you compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. The SRM doesn’t completely assess every type of investment risk. For instance, it can’t predict the size of a negative return or whether your positive return will be less than you need to

meet your objectives. It also doesn’t take into account the impact of administration fees and tax on the likelihood of a negative return. So you should make sure you are comfortable with the risks and possible losses that you could have with the investment option you choose. The SRM isn’t meant to be personal advice. More detail on risks which may affect your investment is included in the ‘Risks of super’ section in the PDS.

Minimum suggested timeframeInvestment professionals have different opinions about the minimum amount of time you should hold varying investments. Your own personal circumstances will also affect your decision. So we’ve suggested minimum investment timeframes for each option. However, these suggestions aren’t meant to be personal advice. You should review your investment decision, because your investment needs and market conditions may change over time.

StrategyThe overall strategy of the investment option and how money within the option is invested.

DescriptionThe type of investor that this option is intended to be suitable for.

Investment option nameName of the investment.

ObjectiveThe option’s overall objective and the period in which the manager aims to achieve it.

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How is Essential Superstructured?When contributions are invested inEssential Super, money is combined withother members’ money.Each Essential Super investment option isa separate investment option within thissuperannuation fund. Each investmentoption invests in an underlying ‘pool’ whichis managed according to the investmentoption’s objectives.We are the responsible entity for theunderlying pools, which are managed byeach investment manager through amandate arrangement. The Cash Depositoption and other cash allocations aredeposited with the Commonwealth Bankof Australia.

Risk measure categoriesHere are the risk bands we use to classifyour investment options:

Estimated numberof negative annualreturns over any20-year period

Risk labelRiskband

Less than 0.5Very low10.5 to less than 1Low21 to less than 2Low to

medium3

2 to less than 3Medium43 to less than 4Medium to

high5

4 to less than 6High66 or greaterVery high7

Investment options andborrowingYour option will only borrow money if it ispart of its investment strategy, and then,it will only borrow:

for short-term arrangements forsettlement purposesin an emergencyif there’s an extraordinary situation.

Your investment and labourstandards or environmental,social or ethical considerationsAs the trustee, we don’t specifically takeinto account labour standards orenvironmental, social or ethicalconsiderations for the purpose of selecting,retaining or realising the investmentoptions. We do not directly manage theinvestments however we do have a robustgovernance process for assessing thecapabilities of each investment manager.This process includes consideration of aninvestment manager’s approach toassessing the effect that climate changeand environmental, social, governance(ESG) issues may have on the investmentsof each option. Each investment managermay have its own policy on the extent towhich labour standards or environmental,social or ethical considerations are takeninto account in their investment processand some options do take one or more ofthese factors into account.Due to the labour, environmental andsocial risks associated with the productionof tobacco and controversial weapons,from 1 January 2020, we will no longerallow investment managers to invest insecurities issued by companies whooperate in these industries. There may,from time to time, be a small level ofunintended exposure through indirectinvestment or index derivatives.

14

Types of investmentsOur trust deed gives us a great deal offreedom about the investments that eachoption can hold. You can find out whatinvestments we plan to hold by checkingthe strategy of the option you’re interestedin. If we decide to change any of thoseinvestment strategies, we’ll let you knowas soon as is practical.The Commonwealth Bank of Australia (theBank), our parent company, is listed on theAustralian Securities Exchange. TheAustralian Securities and InvestmentsCommission (ASIC) allows our investmentoptions to hold shares in the Bank as longas:

this holding is not voted forthe total holdings for all entities in theBank are not more than 5% of the Bank'sissued capital.

Any other benefits to theCommonwealth Bank ofAustraliaThe trustee pays the Bank to providebanking and treasury-related services toall the investment options. The trustee mayalso receive financial and administrativebenefits because we hold bank accountswith the Bank and administer some of itsfinancial products.

Outsourcing an option'sinvestment managementSometimes, we may outsource or delegatean investment option to a related entity oran outside company to manage. If we do,we have processes in place to make surewe choose the highest quality managers.

15

The main asset classes

SharesInfrastructure 3Property 2Fixed InterestCash

If you invest inshares, you arebuying part of a

Infrastructure refersto the physical assetsrequired for a

Property generallyinvolves buying aproperty directly or

Fixed interestsecurities, such asbonds, usually

Cash investmentsare generally aninvestment in

company. Shares arebusiness or countryinvesting in propertywork like loans.bank bills orusually bought andto operate, includingsecurities. PropertyYou pay cash forsimilar securities.sold on a stocktransportation,securities do notthe bond. In returnThey usually haveexchange. They arecommunication andinvolve buying ayou receive aa shortgenerally consideredutilities (eg water,property directly.regular interestinvestmentto be more risky thansewage andInstead, they canpayment from thetimeframe. Thethe other assetelectricity). It mayprovide an indirectbond issuer, overgreat thing aboutclasses because theiralso include 'socialexposure to propertyan agreed periodcash investmentsvalue tends to go upinfrastructure' suchand generallyof time. The valueis they usuallyand down more thanas prisons, hospitalsrepresent a partof your bond cangive you a stableother asset classes.and public housing.ownership of ago up or down asreturn. You'reHistorically, over theInfrastructurecompany or aninterest ratesalso less likely tolonger term, sharestypically have; highentitlement to themove. When thelose your capitalhave generallyupfront capitalassets of a trust. Thebond matures,than with a

higher growthinvestment,like shares.

provided a higherreturn than the otherasset classes.

requirements, lowongoing operatingcosts and relatively

company or trustmay hold, manage ordevelop property in

you'll be repaid themoney you loanedto the issuer in

predictable cashsectors such ascash. Historically,flows andoffice, industrial andbonds haveoperational risks.retail. Propertyprovided a more

consistent butlower returnthan shares.

Infrastructuresecurities aresecurities listed on a

securities aregenerally listed on astock exchange andare bought and soldlike shares.

stock exchange thatpredominantly owninfrastructure assets.

2 If an option invests in property or property securities it is detailed in the strategy or allocation of the option.3 If an option invests in infrastructure or infrastructure securities it is detailed in the strategy or allocation of the option.

16

Investment option profilesMySuper product – Lifestage option

Lifestage 1945-49 option

Strategic Asset AllocationObjectiveTo achieve a return ofConsumer Price Index (CPI)plus 1.0% pa over rollingthree-year periods afterfees and taxes.

DescriptionIf you were born between1945 and 1949, then thisoption is intended to besuitable for you. As you'reapproaching retirement,

As we actively manage the assetallocation, the asset allocation of anindividual Lifestage option may varyover time.

you want your super to beStrategyprotected from large

30% ■ Cash and Defensive Alternatives

27% ■ Fixed interest 12% ■ Property, Infrastructure

and Multi-Asset 15% ■ Australian shares 16% ■ Global shares

To invest in a diverse rangeof assets that are expectedto generate a mix ofincome and long-termcapital growth with anemphasis on stable returns.

short-term losses. Thisoption invests in a highpercentage of defensiveassets such as cashdeposits and fixed interest,but also includes some

The option may usegrowth assets such asshares and property toprovide additional return.

derivatives with theobjective of reducingoverall portfolio

Minimum suggestedinvestment timeframe

volatility.The portfolio aimsto hedge currency riskexcept for part of theAt least 3 yearsallocation to global shares(which may includeemerging market shares).

Risk

1 2

3 4 5 6 7

LOW

MEDIUM HIGH

Important information onemerging markets risk isprovided on page 10.

17


Strategic Asset AllocationObjectiveDescriptionAs we actively manage the assetallocation, the asset allocation of anindividual Lifestage option may varyover time.

To achieve a return ofConsumer Price Index (CPI)plus 1.0% pa over rollingthree-year periods afterfees and taxes.

If you were born between1950 and 1954, then thisoption is intended to besuitable for you. As you'reapproaching retirement,you want your super to be

30% ■ Cash and Defensive Alternatives

27% ■ Fixed interest 12% ■ Property, Infrastructure

and Multi-Asset 15% ■ Australian shares 16% ■ Global shares

StrategyTo invest in a diverse rangeof assets that are expectedto generate a mix ofincome and long-termcapital growth with an

protected from largeshort-term losses. Thisoption invests in a highpercentage of defensiveassets such as cashdeposits and fixed interest,

emphasis on stable returns.but also includes someThe option may usegrowth assets such as

shares and property toprovide additional return.

derivatives with theobjective of reducingoverall portfolio volatility.


The portfolio aims to hedgecurrency risk except for partof the allocation to globalAt least 3 yearsshares (which mayinclude emerging marketshares).

Risk

1 2

3 4 5 6 7

LOW

MEDIUM HIGH

Important information onemerging markets riskis provided on page 10.

18



To achieve a return of CPIplus 1.0% per annum overrolling three-year periodsafter fees and taxes.

If you were born between1955 and 1959, then thisoption is intended to besuitable for you. As you'reapproaching retirement,

Strategyyou want your super to be 30.0% ■ Cash and Defensive

Alternatives 27.0% ■ Fixed interest 12.0% ■ Property, Infrastructure

and Multi-Asset 15.0% ■ Australian shares 16.0% ■ Global shares

To invest in a diverse rangeof assets that are expectedto generate a mix ofincome and long-termcapital growth with anemphasis on stable returns.

protected from largeshort-term losses. Thisoption invests in a highpercentage of defensiveassets such as cashdeposits and fixed interest,

The option may usebut also includes somederivatives with thegrowth assets such as

shares and property toprovide additional return.

objective of reducingoverall portfolio volatility.The portfolio aims to


hedge currency risk exceptfor part of the allocation toglobal shares (which mayinclude emerging marketshares).Important information onemerging markets riskis provided on page 10.

At least 3 years

Risk

1 2

3 4 5 6 7

LOW

MEDIUM HIGH

19



To achieve a return ofConsumer Price Index (CPI)plus 1.5% pa over rollingfive-year periods after feesand taxes.

If you were born between1960 and 1964, then thisoption is intended to besuitable for you. Thisoption aims to grow yoursuper, by investing in a mix

17.4% ■ Cash and Defensive Alternatives

25.0% ■ Fixed interest 13.5% ■ Property, Infrastructure


StrategyTo invest in a diverse rangeof assets that are expectedto generate a mix oflong-term capital growth

of assets including growthassets such as shares andproperty. It also includesmore defensive assets suchas cash and fixed interestinvestments. and income. The strategy

seeks to reduce volatility ofMinimum suggestedinvestment timeframe

returns, and over time theportfolio’s exposure toassets with volatile returnsAt least 5 yearswill be reduced to provide

Risk greater short-term security.

1 2

3 4 5 6 7

LOW

MEDIUM HIGH

The option may usederivatives with theobjective of reducingoverall portfolio volatility.The portfolio aims to hedgecurrency risk except for partof the allocation to globalshares (which mayinclude emerging marketshares). Important information onemerging markets risk isprovided on page 10.

20



To achieve a return of CPIplus 2.5% per annum overrolling seven-year periodsafter fees and taxes.

If you were born between1965 and 1969, then thisoption is intended to besuitable for you. Thisoption aims to grow your

Strategysuper, by investing in a mix 5.8% ■ Cash and Defensive

Alternatives 10.7% ■ Fixed interest 18.6% ■ Property, Infrastructure


To invest in a diverse rangeof assets that are expectedto provide long-term capitalgrowth, but which mayhave a high level ofshort-to-medium term

of assets including growthassets such as shares andproperty. It also includesmore defensive assets suchas cash and fixed interestinvestments.

volatility. Over time, theMinimum suggestedinvestment timeframe

portfolio’s exposure toassets with volatile returnswill be reduced to provideAt least 6 yearsgreater short-term security.

Risk The option may use

1 2

3 4 5 6 7

LOW

MEDIUM HIGH

derivatives with theobjective ofreducing overall portfoliovolatility. The portfolio aimsto hedge currency riskexcept for part of theallocation to global shares(which may includeemerging market shares).Important information onemerging markets risk isprovided on page 10.

21



To achieve a return ofConsumer Price Index (CPI)plus 3.0% pa over rollingseven-year periods afterfees and taxes.

If you were born between1970 and 1974, then thisoption is intended to besuitable for you. As you'rea long way fromretirement, you can stay

4.0% ■ Fixed interest 20.0% ■ Property, Infrastructure


StrategyTo invest in a diverse rangeof assets that are expectedto provide long-term capitalgrowth, but which may

invested through marketdownturns with the goal ofincreasing your investmentreturns over the longerterm. This option aims to

have a high level ofgrow your super, byshort-to-mediuminvesting in a highterm volatility. In the longpercentage of growthterm, the portfolio’sassets such as shares andexposure to assets withproperty. It also includesvolatile returns will besome defensive assets such

as cash and fixed interestinvestments.

reduced to provide greatershort-term security. Theoption may use derivatives


with the objective ofreducing overall portfoliovolatility. The portfolio aimsAt least 7 yearsto hedge currency risk

Risk except for part of the

1 2

3 4 5 6 7

LOW

MEDIUM HIGHallocation to global shares(which may includeemerging market shares). Important information onemerging markets risk isprovided on page 10.

22




If you were born between1975 and 1979, then thisoption is intended to besuitable for you. As you'rea long way from

Strategyretirement, you can stay 4.0% ■ Fixed interest 20.0% ■ Property, Infrastructure



invested through marketdownturns with the goal ofincreasing your investmentreturns over the longerterm. This option aims togrow your super, by

volatility. In the long term,investing in a highthe portfolio’s exposure topercentage of growthassets with volatile returnsassets such as shares andwill be reduced to provideproperty. It also includesgreater short-term security.some defensive assets such

as cash and fixed interestinvestments.

The option may usederivatives with theobjective of reducing


overall portfolio volatility.The portfolio aims to hedgecurrency risk except for partAt least 7 yearsof the allocation to globalshares (which may includeemerging market shares).Important information onemerging markets risk isprovided on page 10.

Risk

1 2

3 4 5 6 7

LOW

MEDIUM HIGH

23









volatility. In the very longinvesting in a highterm, the portfolio’spercentage of growth

assets such as shares andproperty.

exposure to assets withvolatile returns will bereduced to provide greater


short-term security. Theoption may use derivativeswith the objective ofAt least 7 yearsreducing overall portfolio

Risk volatility. The portfolio aims

1 2

3 4 5 6 7

LOW

MEDIUM HIGH

to hedge currency riskexcept for part of theallocation to global shares(which may includeemerging market shares).Important information onemerging markets risk isprovided on page 10.

24









volatility. In the very longinvesting in a highterm, the portfolio’spercentage of growth


exposure to assets withvolatile returns will bereduced to provide greater


short-term security. Theoption may use derivativeswith the objective ofAt least 7 yearsreducing overall portfolio

Risk volatility. The portfolio aims

1 2

3 4 5 6 7

LOW

MEDIUM HIGH

to hedge currency riskexcept for part of theallocation to global shares(which may includeemerging market shares).Important information onemerging markets risk isprovided on page 10.

25




If you were born between1990 and 1994, then thisoption is intended to besuitable for you. Becauseyou've got plenty of time

Strategybefore retirement, you can 4.0% ■ Fixed interest 20.0% ■ Property, Infrastructure



stay invested throughmarket downturns with thegoal of increasing yourinvestment returns overthe longer term. Thisoption aims to grow your

volatility. In the very longsuper, by investing in aterm, the option’s exposurehigh percentage of growth


to assets with volatilereturns will be reduced toprovide greater short-term


security. The option mayuse derivatives with theobjective of reducingAt least 7 yearsoverall portfolio volatility.

Risk The portfolio aims to hedge

1 2

3 4 5 6 7

LOW

MEDIUM HIGH

currency risk except for partof the allocation to globalshares (which may includeemerging market shares).Important information onemerging markets risk isprovided on page 10.

26







To invest in a diverse rangeof assets that are expectedto provide long-term capitalgrowth, but which mayhave a high level ofshort-to-medium-term








1 2

3 4 5 6 7

LOW

MEDIUM HIGH


27







To invest in a diverse rangeof assets that are expectedto provide long-term capitalgrowth, but which mayhave a high level ofshort-to-medium-term








1 2

3 4 5 6 7

LOW

MEDIUM HIGH


28

Balanced option

Strategic Asset AllocationObjectiveDescriptionTo achieve a return ofConsumer Price Index (CPI)plus 1.5% pa over rollingfive-year periods after feesand taxes.

This option is intended tobe suitable for those whoare seeking returns froman investment spreadequally between growthand defensive assets.

18% ■ Australian Shares 11% ■ Global Shares 11% ■ Global Shares – Hedged 5% ■ Global Property Securities 5% ■ Global Infrastructure

Securities 30% ■ Fixed Interest 20% ■ CashStrategy

To invest 50% in adiversified portfolio ofassets expected to

Minimum suggestedinvestment timeframeAt least 4 years

generate long-term capitalRisk growth such as shares,

1 2

3 4 5 6 7

LOW

MEDIUM HIGH

property and infrastructure.50% of the portfolio isallocated to defensiveassets such as fixed interestand cash to provide theportfolio with relatively stable returns.The portfolio aims to hedgecurrency risk, except forpart of the allocation to global shares.

Australian Share option

Strategic Asset AllocationObjectiveDescriptionTo closely track theS&P/ASX 200Accumulation Index with

This option is intended tobe suitable for those whoare seeking higher returnsand have a highertolerance for risk.

Range0% 100% Benchmark 100% Australian shares95–100% 0% Cash0–5%

the aim of generatingreturns (before tax andfees and assuming incomeis reinvested) comparableto the Australiansharemarket as measuredby that benchmark overrolling one-year periods.

StrategyMinimum suggestedinvestment timeframe The option invests in

shares of Australiancompanies. All shares in

At least 7 years

Risk this option are maintainedwithin a very close marginto their weight in theS&P/ASX 200Accumulation Index.

29

Cash Deposit option

Strategic Asset AllocationObjectiveDescriptionTo achieve a positivemonthly return after feesand taxes.

This option is intended tobe suitable for thoselooking to invest in thesecurity of a cash depositwith the CommonwealthBank of Australia.

StrategyMinimum suggestedinvestment timeframe To invest in a

Commonwealth Bank ofAustralia bank depositproduct. Current interestrates are available onour website or bycontacting us.

No minimum

Risk

Changes to the investmentoptionsWe manage and regularly monitor theoptions. To ensure the ongoing quality ofthe options, we are able to make changesincluding:

actively managing the asset allocation,and this may result in the asset allocationof an option differing from theinformation providedchanging the investment objectiveand/or investment strategychanging the allocation or the numberof asset classes within the portfolioadding, suspending, restricting, closingor terminating an investment option(including the MySuper product).

We will notify existing members in affectedportfolios of any material changes as soonas practicable. Any change would beconsidered in light of the potentialnegative or positive impact on members.Updated information on the options thatis not materially adverse can be obtainedby calling us on 13 4074 or by visiting theinvestment options information on ourwebsite, commbank.com.au/essentialinfoA paper copy of the most recent details willbe provided free of charge on request.

30


6 Fees and costsEssential Super has competitive fees, with no hidden costs or added extras. Butwhile we’ve worked hard to keep costs down, there are still some fees you’ll needto pay, depending on the options you choose.This document shows the fees and costs that you may be charged. These fees and othercosts may be deducted from your money, from the returns on your investment or fromthe assets of the superannuation entity as a whole. Other fees, such as activity fees andinsurance fees, may also be charged, but these will depend on the nature of the activityor insurance chosen by you. Entry fees and exit fees cannot be charged.Taxes, insurance fees and other costs relating to insurance are set out in sections 7 and8 of this document.You should read all the information about fees and other costs because it is importantto understand their impact on your investment. Essential Super

How and when paidAmount4Type of feeThe investment fee is reflected inthe daily unit price and is generallydeducted from the assets ofthe investment option on amonthly basis.

0.40% pa 0.14% pa 0.14% pa 0.00% pa

Lifestage optionBalanced optionAustralian Share optionCash Deposit option

Investment fee5

The administration fee of 0.30% pais reflected in the daily unit priceand is deducted from the assetsof the investment option on amonthly basis.The administration fee of $5.88 ispayable each month by deduction ofunits from the investment option.

0.30% pa0.30% pa0.30% pa0.00% pa

Lifestage optionBalanced optionAustralian Share optionCash Deposit option

Plus $70.56 pa ($5.88 permonth)

Administration fee5

Please note: The amount deductedfrom your account will be $5 eachmonth, as we give you the benefit ofthe tax deduction.This fee is payable each time you addto, withdraw from or switch to/froman investment option.

0%–0.10% per transaction, depending on theoption. Please refer to page 36 for the buy/sellspreads of each option.

Buy/sell spread

N/ANilSwitching fee6

4 All figures disclosed include the net effect of GST and any related GST credits.5 If your account balance for a product offered by the superannuation entity is less than $6,000 at the end of the entity’s

income year, the total combined amount of administration fees, investment fees and indirect costs charged to you iscapped at 3% of the account balance. Any amount charged in excess of that cap must be refunded.

6 Even though switching fees are not charged, buy/sell spreads apply to all options, except the Cash Deposit option (referto page 36 for further details).

31

How and when paidAmount4Type of feeN/ANilAdvice fees relating

to all membersinvesting in aparticular MySuperproduct orinvestment option

Deducted monthly in advance fromyour account.

Insurance fee:Refer to page 56 for the insurance premiumsthat will be deducted, if you have insurancecover. Refer to page 38 for more detail on theinsurance administration fee that will apply ifyou have insurance cover.

Other fees and costs

Please note: Insurance fees will applyto all insurance cover automaticallyapproved cover or cover you select).

These costs are deducted from theunderlying assets of the option andare reflected in the daily unit pricefor that option. Depending on thecost, they may be deducted dailyor monthly.

0.15% pa0.14% pa0.12% pa0.11% pa0.11% pa

0.09% pa0.10% pa0.09% pa0.10% pa0.10% pa0.12% pa0.15% pa0.02% pa 0.01% pa0.00% pa

Estimated to be:Lifestage 1945-49Lifestage 1950-54Lifestage 1955-59Lifestage 1960-64Lifestage 1965-69Lifestage 1970-74Lifestage 1975-79Lifestage 1980-84Lifestage 1985-89Lifestage 1990-94Lifestage 1995-99Lifestage 2000-04Balanced optionAustralian Share optionCash Deposit option

Indirect cost ratio7

4 All figures disclosed include the net effect of GST and any related GST credits.7 If your account balance for a product offered by the superannuation entity is less than $6,000 at the end of the entity’s

income year, the total combined amount of administration fees, investment fees and indirect costs charged to you iscapped at 3% of the account balance. Any amount charged in excess of that cap must be refunded.

32

Example of annual fees and costsThis table gives an example of how the fees and costs for the MySuper product (Lifestage1945-49 option) for this superannuation product can affect your superannuationinvestment over a 1 year period. Note: You should use this table to compare this superannuation product with othersuperannuation products.

Balance of $50,000Example – Lifestage 1945-49option

For every $50,000 you have in the superannuationproduct, you will be charged $200 per year.

0.40% paInvestment fees

For every $50,000 you have in the superannuationproduct, you will be charged $150 per year.

0.30% paplus $70.56 pa

PLUS Administration fees

And, you will be charged $70.56 in administration fees,regardless of your balance.

($5.88 per month)

And, indirect costs of $75 each year will be deductedfrom your investment.

0.15% paPLUS Indirect costs for thesuperannuation product

If your balance was $50,000, then for that year you willbe charged fees of $495.56 for the superannuationproduct.

EQUALS Cost of product

Additional fees may apply. And, if you leave the superannuation entity, you may becharged a buy/sell spread which also applies whenever you make a contribution, exit,rollover or investment switch. The buy/sell spread for the Lifestage option is 0.10% (thiswill equal $50 for every $50,000 you withdraw).Please note: Insurance costs will also apply. Refer to page 53 8 'Insurance in yoursuper' for details.

Additional explanation of fees and costsChanges to the feesWe can change the fees set out above at any time at our absolute discretion, withoutyour consent, within the limits prescribed in the trust deed. If the variation is an increasein a fee or charge, we will give you at least 30 days prior written notice. This excludesthe cost components of fees which are estimates, as the actual costs charged may bemore or less than estimated.The law and the trust deed allow us to charge reasonable fees for requests for informationrelating to family law cases and the superannuation splitting provisions. At this time, wehave elected not to charge these fees; however, we reserve the right to charge them ata later date.

Low account balancesFrom 1 July 2019, if your account balance is below $6,000 you will not pay more than3% of your account balance in administration fees, investment fees and indirect costsper financial year. We will assess whether you have paid more than 3% in fees at 30 Juneeach year, or when you cease to hold a product, and any excess will be refunded to you.

33

Defined fees

Does this feeapply?DescriptionType of fee N/AThe fee relates to costs incurred by the trustee of the

superannuation entity that are directly related to an activity of thetrustee (i) that is engaged in at the request, or with the consent,

Activity fee

of a member; or (ii) that relates to a member and is required bylaw; and those costs are not otherwise charged as an administrationfee, an investment fee, a buy/sell spread, a switching fee, an advicefee or an insurance fee.

Yes – 0.30% pa(except for the CashDeposit option) plus$5.88 per month($70.56 pa)8

The fee relates to the administration or operation of thesuperannuation entity and includes costs that relate to thatadministration or operation, other than:a borrowing costs; andb indirect costs that are not paid out of the superannuation entitythat the trustee has elected in writing will be treated as indirectcosts and not fees, incurred by the trustee of the entity or in aninterposed vehicle or derivative financial product; andc costs that are otherwise charged as an investment fee, a buy/sellspread, a switching fee, an activity fee, an advice fee or an insurancefee.

Administrationfee

N/AThe fee relates directly to costs incurred by the trustee of thesuperannuation entity because of the provision of financial productadvice to a member by (i) a trustee of the entity, or (ii) another

Advice fee

person acting as an employee of, or under an arrangement with,the trustee of the entity; and those costs are not otherwise chargedas an administration fee, an investment fee, a switching fee, anactivity fee or an insurance fee.

Yes – refer to page36 for details

A fee to recover transaction costs incurred by the trustee of thesuperannuation entity in relation to the sale and purchase of assetsof the entity.

Buy/sell spread

N/AAn exit fee is a fee, other than a buy-sell spread, that relates to thedisposal of all or part of a member’s interests in a superannuationentity.

Exit fee


The indirect cost ratio for a MySuper product or an investmentoption offered by a superannuation entity, is the ratio of the totalof the indirect costs for the MySuper product or investment option,to the total average net assets of the superannuation entityattributed to the MySuper product or investment option.Please note: A fee deducted from a member’s account or paid outof the superannuation entity is not an indirect cost.

Indirect cost ratio


(a)The fee relates directly to either or both of the following: (i) insurance premiums paid by the trustee of thesuperannuation entity in relation to a member ormembers of the entity,

Insurance fee

8 Please note: The amount deducted from your account will be $5 per month, as we give you the benefit of the tax deduction.

34

Does this feeapply?DescriptionType of fee

(ii) costs incurred by the trustee of the superannuationentity in relation to the provision of insurance for amember or members of the entity; and

(b) the fee does not relate to any part of a premium paid or costincurred in relation to a life policy or a contract of insurance thatrelates to a benefit to the member that is based on the performanceof an investment rather than the realisation of a risk; and(c) the premiums and costs to which the fee relates are nototherwise charged as an administration fee, an investment fee, aswitching fee, an activity fee or an advice fee.

Yes The fee relates to the investment of the assets of a superannuationentity and includes:a fees in payment for the exercise of care and expertise in theinvestment of those assets (including performance fees); andb costs that relate to the investment of assets of the entity,other than:

Investment fee0.40% pa forLifestage option0.14% pa forBalanced andAustralian Shareoptionborrowing costs; and(i)0.00% pa for CashDeposit option

indirect costs that are not paid out of the superannuation entitythat the trustee has elected in writing will be treated as indirectcosts and not fees, incurred by the trustee of the entity or theinterposed vehicle or derivative financial product; and

(ii)

costs that are otherwise charged as an administration fee, abuy/sell spread, a switching fee, an activity fee, an advice feeor an insurance fee.

(iii)

N/AA switching fee for a MySuper product, is a fee to recover the costsof switching all or part of a member’s interest in the superannuationentity from one class of beneficial interest in the entityto another.A switching fee for superannuation products other than a MySuperproduct, is a fee to recover the costs of switching all or part of amember’s interest in the superannuation entity from oneinvestment option or product in the entity to another.

Switching fee9

9 Buy/sell spreads apply to all options, except the Cash Deposit option (refer to above for further details).

35

Transaction costsTransaction costs are the costs of buyingand selling assets directly or indirectly heldby an investment option and may includebrokerage, government taxes/duties/levies, bank charges, custodian charges ontransactions and the buy/sell spread of anyunderlying funds.If the amount payable to acquire aninvestment exceeds the price for which itwould be disposed of at that time, thedifference is also a transaction cost. Transaction costs are an additional cost toyou but no part of a transaction cost(including the buy/sell spread) is paid tous or an investment manager. Transactioncosts are usually paid for from assetsdirectly or indirectly held by an investmentoption at the time of the transaction.Buy/sell spreadsFor most investment options, there is adifference between the unit price used toissue and redeem units and the value ofthe option's assets. This difference is dueto what is called a buy/sell spread. Whenyou (or any person you have authorised)invest, switch or withdraw all or part of yourinvestment in these options, we use thebuy/sell spread to pay for the transactioncosts incurred as a result of the transaction.We use the buy/sell spread to allocatethese transaction costs to the membertransacting rather than other members inthat option.An investment option's buy/sell spread isset to reflect the estimated transactioncosts the investment option will incur as aresult of member transaction. The buy/sellspread that applies to each option is shownin the table opposite.

Buy/sell spread pertransaction (%)

Option name

0.10Lifestage option0.10Balanced option0.10Australian Share optionNilCash Deposit option

If we have to borrow money for short-termsettlement or borrowing for underlyingfunds, the options will need to pay costssuch as interest and legal fees.Please note: The buy/sell spreads are notpaid to us or the investment manager.They are paid to the option and can bealtered at any time and may be alteredwithout prior notice to you.Example: The buy/sell spread for theLifestage 1980-84 option is currently0.10%. If you make a $50,000 investmentin or withdrawal from the Lifestage1980-84 option, you will incur a buy/sellspread of $50.Other transaction costsNot all transaction costs are funded fromthe buy/sell spread. One reason for this isthat an investment option may buy or sellassets even though there have been nomember transactions. Additionaltransaction costs may be incurred eitherin the investment option or in underlyingfunds and these will reduce the returns ofthe investment option. The estimated total transaction costs foreach investment option, for the 12 monthsto 30 June 2020, amount recovered fromthe buy/sell spread and the remainingamount which reduce the returns on theinvestment option are set out on page 37.

36

Estimatedborrowingcost

Estimatedtransactioncosts notincluded inthe Indirectcost ratio(pa) (E) (E= C-D)

Transactioncostsincluded inthe Indirectcost ratio(pa)(D)

Estimatednettransactioncosts (pa)(C)(C=A-B)

Transactioncostsrecoveredby thebuy/sellspread (pa)(B)

Estimatedgrosstransactioncosts (pa)(A)

Option name

0.01% 0.09% 0.11% 0.20% 0.07% 0.27%Lifestage 1945-49option












0.00% 0.00% 0.00% 0.00% 0.07% 0.07%Balanced option

0.00% 0.00% 0.01% 0.01% 0.12% 0.13%Australian Shareoption

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Cash Deposit option

All figures disclosed include the net effect of GST and any related GST credits.Please note: Past costs are not a reliable indicator of future costs. Future costsmay differ.

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Indirect cost ratioIndirect costs are costs which are incurredin underlying investment vehicles in whichan investment option invests. These costsare not charged to you as a fee but doreduce the investment return you receiveon an investment option via the unit price.Indirect costs are not paid to us.Indirect costs may include certaintransaction costs such as brokerage as wellas the costs associated with usingderivative financial products and otherinvestment vehicles.Please note that indirect costs disclosed inthis PDS are estimates only. The actualamounts paid may be greater or less thanthe amounts disclosed.The indirect cost ratio is calculated basedon the indirect costs paid in the previousfinancial year. On 16 March 2019 five of theLifestage age cohorts changed from 10year cohorts to 5 year cohorts and on thebasis of your year of birth you may havebeen transferred into a Lifestage agecohort in the latter half of the decade (e.g.1955-59). For these new cohorts, a fullyear’s indirect costs are not available andso the previous financial year’s indirectcosts for the corresponding 10 year cohorthave been disclosed as an indication only. If the indirect cost ratio is calculated to bematerially higher than the current indirectcost ratio, we will update the PDS butotherwise the information may be updatedvia our website and can be found at anytime by visitingcommbank.com.au/essentialinfo. A papercopy of any updated information isavailable free of charge on request bycontacting us on 13 4074. Where a changeis material, the trustee will notify you inwriting within the timeframes provided forin the relevant legislation.

Other operating expenses andabnormal costsThe trust deed allows for the ongoingoperating expenses (such as registry, audit,regulatory, taxation advice and offerdocuments) to be paid directly from thefund. The trustee may recover custody costs, andsome costs associated with audit,regulatory, production of the offerdocument and particular transactions.There’s no limit on operating expenses thatthe fund can pay.Abnormal costs are for infrequent chargesthat the fund has to pay, such as:

changes to the trust deedrecovery and realisation of assetsdefending legal proceedings.

The trustee currently meets thesecosts out of the investment andadministration fees.Insurance costsInsurance premiumsThe cost of insurance premiums dependson the amount of cover you choose andyour personal circumstances, includingyour gender and age.We take your insurance premiumpayments from your account by deductingunits from your investment options oncea month in advance.For more information about insurance,please see 'Insurance premiums' on page14 of the PDS and on page 56 of thisReference Guide.Insurance administration feesWe charge an insurance administration fee(including the net effect of GST and anyrelated GST credits) of up to 7.5% of Deathonly and Death and Total and PermanentDisablement premiums. Thisadministration fee is included in thepremium rates and isn’t an extra fee.

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For more information about insurance,please see 'Insurance in your super' onpage 53 of this Reference Guide.TaxationPlease refer to section 7 of the PDS andthis Reference Guide for further details.ExpensesAny other tax-deductible expenses besidesthose listed below are already included inthe option’s daily unit price.Claiming investmentand administration feesThe fees quoted in the PDS are shownbefore tax.Under current tax laws, the fund can claima tax deduction (currently at 15%) for thesefees. We pass this deduction on to ourmembers through the unit price or bydeducting less units from your account, soyou can’t claim it in your personaltax return.Claiming insurance premiumsThe insurance premiums quoted in thePDS are also shown before tax.Under current tax law, the fund can claima tax deduction for the insurancepremiums paid through your account.We pass this deduction on to the fund’smembers when we take the premiumfrom your account, so you can’t claim itin your personal tax return.

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7 How super is taxedOne of the great things about super is that you generally pay less tax – both on themoney you put in and on your investment earnings. Here’s some more informationabout how your super is taxed.Because tax laws can be complex and everyone’s situation is different, make sureyou talk to your accountant, tax adviser or financial adviser about your personalsituation or contact the Australian Taxation Office (ATO) for further details –www.ato.gov.au

Tax paid on your super fundSuper is a tax-effective way to save for yourretirement. But there are still some taxesthat you might need to pay on the moneyin your fund. These are:

Up to 15% tax on earnings on yourinvestments in the fund.A contributions tax of 15% on yourconcessional contributions; if you earnover $250,000 (including yourconcessional contributions), an extra 15%tax applies to part or all of yourconcessional contributions.

If you’re an eligible low income earner,the Government will refund up to $500of any tax paid on these contributions.

No-TFN contributions tax (32%) onemployer contributions, if you or youremployer do not quote your TFN to thefund.

If your contributions exceed thecontribution limits (known as thecontributions caps), you’ll also have to pay:

tax at your marginal rate plus an interestcharge on your excess concessionalcontributions (less a 15% tax offset toallow for the tax already paid withinthe fund)47% on your excess non-concessionalcontributions.

If you have exceeded your concessionalcap, you may also elect to have up to 85%of any excess concessional contributionsreleased from super.If you have exceeded yournon-concessional cap, you may insteadelect to withdraw your excessnon-concessional contributions, plus 85%of a deemed earnings amount. Anycontributions withdrawn will not be subjectto 47% tax; however, 100% of the deemedearnings amount will be assessable to youat your marginal tax rate with a 15% taxoffset. The ATO will generally arrange fora withdrawal of your excessnon-concessional contributions anddeemed earnings amount even if you don'tmake an election within the requiredtimeframe. For more information, pleasespeak to your financial adviser or contactthe ATO for details.If you roll over money from one super fundto another, you generally won’t pay tax onit again, unless it's from a public sectorsuper scheme that hasn’t been taxed yet.

The concessional capThe concessional cap for the 2020–21financial year is $25,000 pa.10

10 The concessional cap is subject to indexation and may increase in future years.

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The non-concessional capThe non-concessional contributions capfor 2020–21 is $100,000, or if you are underage 6511 at any time during the financialyear, you can bring forward two years’worth of contributions under thebring-forward rule. Based on the annualnon-concessional cap of $100,000, thiscould allow you to contribute up to$300,000 over a three-year period. Pleasesee your financial adviser for moreinformation on how the bring-forward ruleoperates. If you are age 6511 or over for allof 2020–21, then the cap is $100,000(unless you are in year two or three of anexisting bring forward period).The non-concessional cap that you wouldotherwise have available (including underthe bring-forward rule) is reduced basedon the value of your total super balance(across all super funds) just prior to thestart of the year as follows:

total super balance of$1,400,000–$1,499,999: cap reducedto $200,000 (over two years)total super balance of$1,500,000–$1,599,999: cap reducedto $100,000 (no bring-forward period,general non-concessional contributionscap applies)total super balance of $1,600,000 ormore: cap reduced to nil.

The non-concessional cap is maintained atfour times the concessional cap. Therefore,any increase in the concessional cap dueto indexation will also result in an increasein the non-concessional cap.If you go over the concessionalcontributions cap, the amount of theexcess will count towards yournon-concessional cap. However, anyamounts of excess concessional

contributions that you elect to release fromsuper will not count towards yournon-concessional cap.

Catch-up concessionalcontributionsIf you haven't reached your concessionalcontributions cap during a financial year,you may be able to carry forward unusedcap amounts to use in future years. Accessto these unused cap amounts applies from1 July 2019 and is limited to thoseindividuals with a total superannuationbalance just prior to the start of thefinancial year of less than $500,000 andto unused amounts from the previous fivefinancial years (starting from 1 July 2018).

Low income super tax offsetThe Low Income Superannuation TaxOffset (LISTO) is a superannuationcontribution by the Government thateffectively reduces tax on superannuationcontributions for low income earners. It isbased on the tax paid on concessionalcontributions made on behalf of lowincome earners, up to a cap of $500. TheLISTO applies to members with adjustedtaxable income up to $37,000 that havehad a concessional contribution made ontheir behalf. To qualify for LISTO, at least10% of your total income must be fromemployment or carrying on a business.

Tax offset for spousecontributionsWhen you make an eligible spousecontribution of $3,000 or more for yourspouse, you may be entitled to a tax offsetof $540 if your spouse earns $37,000 paor less.

11 Effective from 1 July 2020, the Government has proposed allowing people aged under 67 any time during a financial yearto access the ‘bring forward rule’. A Bill to implement this proposed change has been introduced into parliament. However,as at 8 October 2020, this proposal had not passed parliament or become law.

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A partial tax offset applies where yourcontribution is less than $3,000 oryour spouse earns above $37,000 but lessthan $40,000.

Tax deductions for personalsuper contributionsAll individuals under age 67 (and thosebetween 67 and 74 who meet thecontribution eligibility requirements) cangenerally claim a tax deduction forpersonal superannuation

contributions. Personal tax-deductiblecontributions are concessionalcontributions and count towards yourconcessional contributions cap.If you wish to claim a tax deduction forpersonal super contributions, you mustsend us a valid Notice of Intent to Claim aTax Deduction form within requiredtimeframes (and have it acknowledged byus in writing). For further informationabout these notice requirements, visitwww.ato.gov.au

Making contributionsThere’s more than one way to put money into your Essential Super account. Here aresome of the types of contributions that can be made:

Which contribution capapplies?

What are they?Contribution types

The concessionalcontributions cap.

Contributions your employer is required to make. Theyinclude:

Compulsoryemployercontributions Superannuation Guarantee (SG) contributions

(currently 9.5% of your salary each year, increasingto 12% by 2025)contributions required under an industrial award oragreement.

The concessionalcontributions cap.

Extra contributions an employer makes for you. Theseinclude salary sacrifice contributions, where youarrange to have some of your pre-tax salary paid intosuper by your employer.

Voluntary employercontributions

Contributions for which you donot claim a tax deduction – thenon-concessional contributionscap.Contributions for which youclaim a tax deduction (whereeligible) – the concessionalcontributions cap.

Contributions you make for yourself. Depending onyour situation, you may be able to claim a taxdeduction12 for personal contributions, or you may beable to receive a Government co-contribution.

Personalcontributions

The receiving spouse’snon-concessionalcontributions cap.

Contributions you make for your spouse (or that theymake for you).

Spousecontributions

12 To find out about the eligibility and administrative requirements to claim a tax deduction for personal superannuationcontributions, speak with your financial adviser.

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You can also roll over money from onesuper fund to another. In some cases, you might also be able toput the proceeds from the sale of a smallbusiness asset and personal injurypayments into your super. Checkat www.ato.gov.au to see if you’re eligibleto do this, and how this could affectyour tax.

Contributions and your ageWhile you are under age 67, a super fundcan accept contributions for you, regardlessof your work status.If you are aged between 67 and 74(includes the period up to 28 days after theend of the month in which you turn 75),you generally need to have worked (forgain or reward) for at least 40 hours within30 consecutive days in a financial year,before a super fund can accept thefollowing types of contributions for you:

voluntary employer contributionspersonal contributionsspouse contributions.

Once you turn 75, a trustee is generallyonly able to accept compulsory employercontributions and downsizer contributionsfor you.If you are aged 13 between 67 to 74 youmay be able to continue making voluntarycontributions for a further 12 months fromthe end of the financial year in which youlast met the required work test, due to thework test exemption.To qualify to make contributions under thework test exemption your totalsuperannuation balance (just prior to thefinancial year of contribution) must be lessthan $300,000. Once you have used thework test exemption for a financial year, itcannot be used again in the future.

Superannuation housingmeasuresFirst Home Super Saver Scheme You can make additional pre-tax or aftertax voluntary contributions14 to super tosave for your first home. As super isconcessionally taxed, saving through supermay allow you to save for your first homemore quickly.You can contribute up to $15,000 pa($30,000 in total) in voluntarycontributions under the scheme. You canthen apply to withdraw the contributedamounts plus a deemed earnings amountto help fund the purchase of your firsthome.You must request and receive a First HomeSuper Saver determination from the ATOprior to entering into a contract topurchase or construct your first home.Once a determination is received, you maythen request to the ATO to withdraw underthe scheme, and you must enter into acontract to purchase or construct your firsthome no earlier than 14 days prior to, andgenerally less than 12 months after, makingyour withdrawal request.Amounts withdrawn (excluding after taxcontributions) form part of your assessableincome but provide you with a 30%non-refundable tax offset.For further information about the FirstHome Super Saver Scheme, please referto www.ato.gov.auDownsizer contributionsIf you are aged 65 or over and sell yourprincipal home, you can make a downsizercontribution of up to $300,000 of the saleproceeds into your superannuationaccount. Downsizer contributions are notsubject to normal contribution eligibility

13 Your age is measured at the time of each contribution. 14 The amount of voluntary pre-tax contribution amounts able to be withdrawn is reduced by 15% to allow for contributions

tax.

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criteria such as having to meet a work testand don’t count towards othercontributions caps. However, once madethey count towards your totalsuperannuation balance which can impactyour eligibility for other superannuationrules (for example, if your totalsuperannuation balance just prior to afinancial year is $1.6 million15 or more, yournon-concessional contributions capreduces to Nil). Downsizer contributionsused to commence retirement phaseincome streams (for example, allocatedpensions) also count towards your $1.6million transfer balance cap.If you are thinking of downsizing yourhome, this new measure allows you tocontribute up to $300,000 ($600,000combined for a couple) of the proceedsinto the concessionally taxedsuperannuation environment. Thecontribution will be tax free when receivedby your fund, although it will be generallyassessable under the social security assetstest and generally deemed under the socialsecurity income test. To be eligible to make a downsizercontribution, your principal home musthave been owned by you and / or yourspouse for at least 10 years, and you musthave not made a downsizer contributionfrom the sale of another home in the past.Please note: you cannot claim a taxdeduction for downsizer contributions. For further information about downsizercontributions, please refer towww.ato.gov.au

Contributions found not to bedownsizer contributions If the ATO notifies us that your contributiondoes not meet the downsizer contributioneligibility requirements16, we will assesswhether your contribution could have beenmade as a personal contribution under thecontributions acceptance rules. If yourcontribution could be accepted, theamount will count towards the relevantcontribution cap. If your contributioncannot be accepted, the contributionamount will be returned to you by yoursuper fund.

Accessing your superMost people access their super as a benefitwhen they retire but there are other typesof super benefits you can get, too, asexplained in the table on page 45.If a particular investment option issuspended, restricted or unavailable, wemay not process withdrawal requests for asuper benefit (including a rollover) fromthat option until further notice. We’ll makethis decision based on the best interestsof all our members. However, sometimeswe may decide to continue to pay a superbenefit from a suspended, restricted orunavailable investment option.If you’re a temporary resident, you can onlyaccess your super benefit in specialcircumstances. Note, too, that if you leaveAustralia and your visa expires, we mayhave to pay your super to the ATO.

15 This threshold is based on the transfer balance cap, which started at $1.6 million in 2017 -18 and will be indexed periodicallyin $100,000 increments in line with CPI. It remains $1.6 million in 2020-21.

16 The ATO may apply false and misleading penalties if they identify that your downsizer contribution was not eligible andyou had incorrectly declared that you were eligible to make such a contribution.

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Your account balanceYour super account balance is divided intoyour:

preserved amount – money that youcan only access when you satisfy certainconditions, such as retirementrestricted non-preserved amount –money contributed before 1 July 1999that you can access in specialcircumstances, andunrestricted non-preserved amount –money you are allowed to access at anytime.

Your preserved and restrictednon-preserved amounts can be convertedinto unrestricted non-preserved amounts,when you tell us that you have met acondition of release, including:

when you retire (if you have reached yourpreservation age)when you reach age 65if you become totally and permanentlydisabledif you become terminally illif you die.

See the table on page 45 for moreinformation on when you can receivethese benefits.

Find out moreYou can find out more about the tax componentsof your super savings by checking your half-yearlystatements, logging on to NetBank or calling uson 13 4074.

How much you’ll receive (before tax)When you can receive itThe types of superbenefits

Your account balance.When you have retired, which means:A retirement benefityou have reached your preservationage (age 55 if you were bornbefore 1 July 1960; if you were bornlater, between ages 56 and 60depending on your date of birth) andhave ceased a gainful employmentarrangement and don’t plan to workfor 10 or more hours per week everagain, oryou have ceased a gainful employmentarrangement on or after age 60, oryou are aged 65 or over.

Your account balance.We will send your super benefit as arollover to your nominated super fundwithin three business days of us receivinga properly completed withdrawal form,available by calling us on 13 4074. See page 7 for more informationabout withdrawals.

A rollover

The non-preserved money inyour account.

You can take out your unrestrictednon-preserved amounts whenever youwant to.

A non-preserved cashbenefit

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How much you’ll receive (before tax)When you can receive itThe types of superbenefits

You can take out restrictednon-preserved amounts whenyou stop working for the employerwho has contributed to this fund.

Your account balance, plus assessedinsurance moneyif you have TPD insurance cover (see'Insurance in your super' on page 53 formore information).

You are assessed as being totally andpermanently disabled. This means thatyou’re unlikely to work again becauseof injury or illness. See TPD coverdefinitions on page 58 for eligibility. Ifyou have TPD cover, the insurer mustapprove your claim.

A Total and PermanentDisablement (TPD)benefit

Your account balance plus assessedinsurance proceeds (see 'Insurance inyour super' on page 53 for moreinformation).

Two doctors, including one doctor whospecialises in the illness you suffer, musthave certified that you suffer froman illness or injury that, despitereasonable medical treatment, is likelyto result in your death within 24 months.The certification must be current.

A terminal illnessbenefit

If you have death insurance cover (whichincludes cover for terminal illness),the insurer must have also approvedyour claim.

Your account balance plus assessedinsurance proceeds (see 'Insurance inyour super' on page 53 for moreinformation).

When you die. If you have deathinsurance cover, the insurer must havealso approved the claim.

A death benefit

As prescribed by legislation.When you meet the specific eligibilitycriteria prescribed by legislation.

Other withdrawalbenefits:

Please contact us for further informationabout claiming these types of benefits.

a financial hardshipbenefita compassionategrounds benefit

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Types of super benefitsyou can receiveThe table on the previous page and aboveshows the types of super benefits you’reeligible to receive if you:

are an Australian or New Zealand citizenare a permanent resident in Australiahold a 405 or 410 retirement visa, orhave never held a temporary visafor Australia.

If you are a temporary resident of Australia,please see 'Temporary residents' on page50 for more information.For insurance cover, further eligibilityconditions apply. Refer to the insurancesection, on page 53.Early access to superannuation due toCoronavirus PandemicMembers financially impacted by thecoronavirus pandemic could apply to makeone withdrawal of up to $10,000 of theirpreserved/restricted non-preservedbenefits from mid-April 2020 to 30 June2020. Impacted members can also applyto make one further withdrawal of up to$10,000 from 1 July 2020 until 31December 2020.Applications must be made to the ATO viaMyGov between mid-April and 31December 2020.

To be eligible17 to make this withdrawal, amember must:

be unemployed, orbe eligible to receive Jobseeker Payment,Youth Allowance for Jobseekers,Parenting Payment, Special Benefit orFarm Household Allowance, oron or after 1 January 2020, have beenmade redundant, had their working hoursreduced by 20% or more, or (if a soletrader) had their business suspended orsuffered a reduction in turnover of 20%or more.

Eligible withdrawals under this temporarymeasure are tax-free and won’t count asincome for social security or Veterans’Affairs payment purposes.

Paying tax on yoursuper benefitYour account balance is divided intotwo parts:1. The tax-free part, which includes your:

non-concessional contributionstax-free part of your rolloverseligible small business CGTcontributionspersonal injury payments, anddownsizer contributions.

2. The taxable part – the rest of youraccount balance, including your:

concessional contributionstaxable part of your rolloversincreased parts of your account balancefrom positive investment returns or anyinsurance proceeds you’ve received.

If you have any questions about the taxableparts of your super benefit, please call uson 13 4074.

17 Applies to Australian and New Zealand citizens and permanent residents. Eligible temporary residents were able to applybetween mid-April 2020 and 30 June 2020 to make one withdrawal of up to $10,000 under this temporary measure,although different eligibility rules applied. However, temporary residents are not eligible to apply for a further withdrawalfrom 1 July 2020 to 31 December 2020 under this temporary measure. Refer to www.ato.gov.au for further information.

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You won’t pay any tax on:your whole super benefit if you’re 60or overthe tax-free part of your super benefitmoney you roll over to a new super fundor producta terminal illness benefit paid as a lumpsum, ora death benefit paid as a lump sum toone or more of your dependants18

(either directly or through yourlegal personal representative).

If you’re under 60, some tax may bepayable on your super benefit,depending on:

whether you’ve reached yourpreservation age (age 55 if you were bornbefore 1 July 1960; if you were born later,between ages 56 and 60 depending onyour date of birth)the amount of taxable componentincluded in the payment.

Some tax may also be payable on a deathbenefit paid as a lump sum to someonewho isn't one of your dependants (eitherdirectly or through your legal personalrepresentative).Where tax is payable, we will generallywithhold an estimate of your tax liability.However, in the case of a death benefitpaid to your legal personal representative,we will not withhold any tax, regardless ofwhether the benefit will be tax free orsubject to tax.You can’t choose to be paid only thetax-free component. Any super benefit paidto you will be paid in the same proportionas the tax components of your totalaccount balance. For example, if half ofyour super balance is tax free, then half ofany super benefit will also be tax free.

If we take tax from your super benefit, we’llsend you a Payment Summary for you toinclude in your personal income tax return. Further details on superannuation andtaxation can be foundat www.ato.gov.au/super

18 For tax purposes, a dependant includes your spouse, former spouse, child under age 18, financial dependant orinterdependent relation.

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Super and death benefitsIf you die, the money left in your super willbe paid as a death benefit to:

your dependants19 or your legal personalrepresentative that you chose when youfilled out a non-lapsing death benefitnomination form, orin all other cases to your legal personalrepresentative to be distributed as peryour Will or the laws of intestacy, if youdon’t leave a Will.

What is a non-lapsing death benefitnomination?A non-lapsing death benefit nomination isa request by you to the trustee to pay yourdeath benefit to the person or personsnominated on your non-lapsing deathbenefit nomination form.The trustee may consent to yournomination if your nomination satisfies therequirements described on the form.We are required to follow your nominationif, prior to your death, you complete andwe receive your valid non-lapsing deathbenefit nomination, and we consent to thatnomination. The nomination remains validuntil you revoke it or make a newnomination. This can provide you withgreater certainty on who will receive yourdeath benefit when you die.Who can I nominate?A valid non-lapsing death benefitnomination can only nominate your legalpersonal representative and/or yourdependants. Your legal personalrepresentative is the person appointed onyour death as the executor or administratorof your estate.

Your dependants are:Your current spouse:This includes the person at your deathto whom you are married or with whomyou are in a de facto relationship(whether of the same sex or a differentsex) or in a relationship that is registeredunder a law of a State or Territory.Your child:This includes any person who at yourdeath is your natural, step, adopted,ex-nuptial or current spouse’s child,including a child who was born throughartificial conception procedures or undersurrogacy arrangements with yourcurrent or then spouse.Any person financially dependent on you:This includes any person who at yourdeath is wholly or partially financiallydependent on you. Generally, this is thecase if the person receives financialassistance or maintenance from you ona regular basis that the person relies onor is dependent on you to maintain theirstandard of living at the time ofyour death.Any person with whom you have aninterdependency relationship:This includes any person where atyour death:

you have a close personal relationshipwith this personyou live together with this personyou or this person provides the otherwith financial support, andyou or this person provides the otherwith domestic support andpersonal care.

Find out more You can find out more about death benefits byreading our Non-lapsing Death BenefitNomination format commbank.com.au/essentialinfo

19 A dependant includes your spouse, child, financial dependant or interdependent relation.

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Temporary residentsYou can receive a Departing AustraliaSuperannuation Payment (DASP)benefit equal to your account balance (lesstax), if:

you are not an Australian or New Zealandcitizen, are not a permanent residentin Australia or do not hold a 405 or 410retirement visayou leave Australiayour temporary visa is no longervalid, andwhere required, we get written evidencefrom the Department of Immigration toconfirm these facts.

If you need written confirmation, contactthe Department of Home Affairs and applyfor a Certification of Immigration Status.Its contact details are:

Department of Home AffairsSuperannuation Certification andCancellation TeamGPO Box 1496, Hobart TAS 7001Fax: + 61 3 6281 9453Phone: 13 18 81 if in Australia.Email :[email protected]: www.homeaffairs.gov.au

You can apply for a DASP by using the'Departing Australia SuperannuationPayment (DASP)' online application systemat www.ato.gov.au, or alternatively bysubmitting a paper application form (whichis available at www.ato.gov.au) to us.The only other benefits that you canreceive from Essential Super as atemporary resident are:

a death benefita total and permanentdisablement benefita terminal illness benefit, ora release authority

We’ll withhold tax on the taxable part ofyour DASP benefit. Speak to a tax adviseror contact the ATO to find out what taxrates apply to your DASP benefit.It’s important to ask for your DASP benefitto be paid to you within six months of theday when your temporary visa expires andyou leave the country (whichever happenslatest). If you don’t, we may have to payyour account balance to the ATO. Inaddition, you will no longer be an EssentialSuper member, your money will no longerbe invested in your chosen investmentoptions, and you’ll lose any insurance coveryou had with the fund.According to ASIC Class Order 09/437, wedon’t have to let you know that we’retransferring your benefit to the ATO or giveyou an exit statement.You can still claim your account balanceafter we’ve transferred it to theATO by using the 'Departing AustraliaSuperannuation Payment (DASP)' onlineapplication system at www.ato.gov.au

Eligible Rollover Fund (ERF)If we lose touch with you, or you are nolonger eligible to be a member of our fund,we may transfer your super to anotherfund, called an ERF. We will give you 30days advance written notice if we need todo this, so you have the chance to tell uswhich fund you’d like us to transfer yourbenefits to.If we don’t hear from you, we’ll transferyour funds to the ERF and let you know ina letter that we’ll send to your last knownaddress. The ERF that we have selected is:

SuperTrace Eligible Rollover Fund(SuperTrace)ABN 73 703 878 235Locked Bag 5429Parramatta NSW 2124Phone number: 1300 788 750

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Equity Trustees Superannuation LimitedABN 50 055 641 757 AFSL 229757 is thetrustee of SuperTrace which isadministered by The Colonial Mutual LifeAssurance Society LimitedABN 12 004 021 809 AFSL 235035.If we transfer your super to an ERF, youshould contact the ERF and ask for a copyof its PDS to find out more about theproduct. In particular, you shouldunderstand:

the governing rulesthe different fee structurethe investment option, which will affectyour investment’s risks and returns.

Remember that if your super is transferredto an ERF, you will lose any insurance coveryou have with us. The ERF does not offerinsurance cover to its members.You should check your super regularly todecide whether the ERF meets yourpersonal circumstances.It is intended that superannuation law willchange in 2021 which will result in all ERFsbeing closed. Once this occurs we will nolonger transfer any funds to the ERF.

When your account may betransferred to the ATOUnclaimed money and lost membersSometimes, we have to pay your accountbalance to the ATO. We’ll do this if:

you are 65 years or older, we haven’treceived a contribution from you in twoyears and have been unable to contactyou for five yearsyour account is subject to a family lawpayment split, but we are unable toidentify your ex-spouse entitled to thesuper benefityou are deceased, we have not receiveda contribution or rollover for

you in the past two years and we can’t(after reasonable attempts and areasonable period of time) identifya person entitled to your super benefityou are a lost member and either:

your account balance is less than$6,000, orwe have not received an amount inrespect of you in the last 12 months,and we do not have enoughinformation to identify you and wouldnot be able to pay an amount to you.

You will be a lost member where:at least one written communication hasbeen sent back to us undelivered and webelieve you can no longer be contacted,or we've never had an address for you,and we have not received a contributionor rollover for you within the last 12months and you have not contacted thefund or accessed information about youraccount electronically within the last 12months, oryou joined the fund as a result of anagreement between your employer andthe trustee of the fund and you havebeen a member of the fund for longerthan two years and the fund has notreceived a contribution or rollover inrespect of you in five years.

When you become a lost member, we mayrequest your latest contact informationfrom the ATO. If the address the ATOprovides us is more recent than theaddress we hold on file, we may updateyour address with the address provided bythe ATO, and you will no longer beclassified as a lost member.

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Inactive accounts with a low balanceWe are generally required by law to reportand transfer your account to the ATO if:

your account has no insurance cover,your account balance is below $6,000,andwe have not received a contribution orrollover to your account for a continuousperiod of 16 months (inactive low balanceaccount).

We will not do this, if for example, duringthe 16 month period you have changedyour investment options, changed yourinsurance cover or made or altered abinding beneficiary nomination or youhave instructed us not to transfer yourinactive low balance account to the ATO. We will report on and transfer inactive lowbalance accounts to the ATO twice a year,in accordance with legislated timeframes.The ATO will transfer your balance to youractive super account, where possible.

Take noteIf we transfer your account balance to the ATO,you won’t be a member of Essential Super anymore or be invested in your chosen investmentoptions, and you’ll lose any insurance cover youhad with the fund.Interest will accrue on your account balance onceit’s paid to the ATO.You can claim your benefit bycontacting the ATO on 13 10 20 ordownloading a form from www.ato.gov.au

About your super trust deedLike most super funds, Essential Super isgoverned by a trust deed. Along withsuperannuation laws and the PDS, the trustdeed sets out the rules for our relationshipwith you and your rights as a member.By law, we’re allowed to change the trustdeed. If we make any changes that wethink might have a negative effect on therights of our members, we’ll let you knowfirst.You’re free to check a copy of our trustdeed, at any time. Simply call uson 13 4074, ask us for a copy and we’llsend you one, free of charge.

Find out more To find out more about tax rules and super, seethe ATO’s website www.ato.gov.au/super or callus on 13 4074.

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https://www.ato.gov.au/super/

8 Insurance in your superEssential Super provides Death and Total and Permanent Disablement cover, helpingkeep you and your family financially secure should something unexpected happento you.

Take noteThis section includes important information aboutinsurance cover. Some words and expressionsused in this section have a particular meaning, asdefined at the end of this section.

Am I eligible for cover?When you or your employer sets up yourEssential Super account you mayautomatically be provided with a defaultlevel of Death and Total and PermanentDisablement (TPD) insurance cover, aslong as:

you are less than age 60you are an Australian resident, livingin Australia; andmoney is put into your account.

Cover for eligible members will onlyautomatically start once you reach age 25and have an account balance of $6,000.If you are under the age of 25 or have abalance of less than $6,000, we will issueyou a notice to give you the opportunityto get cover. You can instruct us in writingwithin 120 days of receiving this notice thatyou want cover.

Take noteYou can only receive insurance benefits from oneEssential Super account. If we identify that youhave more than one account, we will consolidateyour accounts into one so that you are not payingextra premiums for cover you cannot claim on.You can find out more on 'one account in theFund' section on page 5. Also, once you’ve beenpaid a benefit, all other cover will end and you’llnever again be paid a benefit under the policy.

What type of cover is available?Death cover: a benefit is paid in the eventof your death or if you are diagnosed witha terminal illness, which is defined onpage 65.TPD cover: a benefit is paid if you becometotally and permanently disabled, whichis defined on page 58. TPD cover is onlyavailable with death cover.Insurance in Essential Super has exclusionswhich may limit your ability to claim. Pleasesee the exclusions section on page 60 formore information.

What level of cover is available?There are three levels of cover available inEssential Super:

defaulthalf the default amountdouble the default amount.

If you are eligible for cover, you areautomatically provided with death and TPDcover at the default cover level but you canchange your level of cover (see ‘Changingyour cover’ opposite) at any time after yourcover has commenced.

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The amount of cover you receive dependson your age and changes automatically asyou move into each new age bracket, asshown in the table below.

DoubledDeath orDeathand TPDcover

HalvedDeath orDeathand TPDcover

DefaultDeath andTPD orDeathonly cover

Your age

$100,000$25,000$50,00014 – 1920

$150,000$37,500$75,00020 – 2420

$300,000$75,000$150,00025 – 29$400,000$100,000$200,00030 – 39$300,000$75,000$150,00040 – 44$200,000$50,000$100,00045 – 49$160,000$40,000$80,00050 – 54$120,000$30,000$60,00055 – 59$80,000$20,000$40,00060 – 64

$50,000$12,500$25,00065 – 6921

Take noteEssential Super premiums and terms apply whichwill differ from any existing cover you maycurrently have. Before you cancel any existingcover, you should compare the terms and readthe Essential Super PDS and Reference Guideto decide whether cover under Essential Super isright for you.

Changing your coverDoubling coverYou can double your default cover at anytime after your cover has commencedthrough NetBank or by calling the EssentialSuper contact centre on 13 4074. You willneed to apply for the increased coverunder the age of 60, provide responses tothe health and lifestyle questions and haveenough money in your account to pay for

any insurance premiums that will bededucted. Your cover will also need to beapproved by the insurer.If you do not meet the age and othereligibility criteria, the insurer does notaccept your application or there aren’tenough funds in your account to cover thepremiums, your cover will stay at its currentlevel. We will confirm the date on whichthe cover doubles if your request isaccepted.You can only double your cover once.Halving or cancelling coverYou can request to halve your defaultcover, cancel only your TPD cover or cancelall your cover at any time after your coverhas commenced through NetBank or bycalling us on 13 4074.We will halve or cancel your cover from theday you contact us.

When your cover endsYour cover ends on the earliest of thefollowing:

the end of the month after you reach age70the day we receive a request from you tocancel your coverthe date you stop being a fund member(eg you withdraw your full super accountbalance)the date you die90 days after the premium due date andthe full premium hasn’t been paidthe date you receive your benefitthe date a benefit becomes payablethe date the law requires your cover tobe cancelled the date the policy ends.

20 Default cover is available on an opt-in basis subject to eligibility21 TPD will be assessed under 'Activities of daily living' – see page 59 for details.

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Take noteOnce you’ve been paid a benefit, all other coverwill end and you’ll never again be paid a benefitunder the policy.

Inactive accounts with insuranceIf we don’t receive a contribution orrollover to your super account for acontinuous period of 16 months (inactiveaccount), we are required by law to cancelyour insurance cover before your nextpremium is due, unless you instruct us inwriting that you would like to keep yourcover in these circumstances. You can electto keep your insurance cover on an inactiveaccount via NetBank or by completing theInsurance Election Form which can belocated atcommbank.com.au/essentialsuper-documents.

After your insurance cover endsApplying for coverIf you cancel your cover, or your cover endsdue to non-payment of premiums and yousubsequently decide you want to take outcover, you will need to apply via NetBankor by calling us on 13 4074. You can onlyapply for new or increased cover if you areunder the age of 60, and you will need toanswer health and lifestyle questions andbe approved by the insurer. Insurancecover will only start if your new applicationis accepted by the insurer and all premiumsare paid.When cover automatically restartsIf your cover was cancelled due to inactivityand your account receives a contributionor rollover after your insurance has beencancelled, by law you’ll again be providedwith insurance cover automatically as longas you’re under age 70.

If this happens, the amount of cover you’llbe provided with is the ‘default’ level ofcover for your age at the time money isreceived in your account (but you will notreceive more cover than you had whenyour cover was cancelled). Default Coveris displayed on page 54; this cover willcommence on the date the contributionor rollover is received. This cover will be subject to a pre-existingcondition exclusion, and other policyexclusions. Please refer to page 60 formore information on the exclusions thatmay apply.Reinstating cover that was cancelleddue to inactivityIf you want to keep your insurance thatwas cancelled due to inactivity, you canrequest to have your insurance coverreinstated (within 90 days) withoutanswering health and lifestyle questionsby completing the InsuranceReinstatement Form which can be locatedat commbank.com.au/essentialsuper-documentsThis request must be received by us within90 days of the cancellation date. If yourinsurance cover is reinstated, yourpremiums will be deducted to cover theperiod from the date your cover wascancelled (to ensure there is no gap incover) and your cover will continue withthe same policy terms. You’ll need to makesure there is enough money in youraccount to cover this amount.

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https://commbank.com.au/essentialsuper-documents

Insurance premiumsYour insurance premiums depend on the level and type of cover provided to you onopening an Essential Super account, any increased cover you subsequently apply forand your age and gender. See the premium table below to determine your monthlypremium. If you elect to halve or double your cover, simply halve or double themonthly cost.

Death and TPD – Monthly costDeath only – Monthly costDefault Death andTPD cover or Death

only coverYour age FemaleMaleFemaleMale

$1.71$2.37$1.17$1.83$50,00014$1.71$2.37$1.17$1.83$50,00015$1.71$2.71$1.17$2.08$50,00016$1.79$3.00$1.21$2.33$50,00017$1.83$3.17$1.29$2.54$50,00018$1.92$3.17$1.42$2.63$50,00019$3.00$5.13$2.00$4.00$75,00020$3.00$5.50$1.81$4.06$75,00021$3.13$5.62$1.75$4.06$75,00022$3.07$5.69$1.69$4.00$75,00023$3.01$5.63$1.63$3.88$75,00024$5.88$10.88$3.25$7.38$150,00025$6.00$10.75$3.25$7.25$150,00026$6.50$10.88$3.50$7.25$150,00027$6.63$11.38$3.63$7.63$150,00028$7.00$11.75$4.25$8.00$150,00029$9.50$16.66$6.00$11.33$200,00030$9.84$17.66$6.67$12.33$200,00031$10.16$19.34$7.33$13.67$200,00032$11.67$19.50$8.50$13.50$200,00033$13.34$19.83$9.17$13.50$200,00034$16.34$21.00$10.67$14.00$200,00035$18.50$23.33$11.67$15.33$200,00036

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Death and TPD – Monthly costDeath only – Monthly costDefault Death andTPD cover or Death

only coverYourage FemaleMaleFemaleMale

$21.16$25.00$12.83$16.00$200,00037$23.84$27.33$14.17$17.00$200,00038$27.17$29.50$15.67$17.67$200,00039$22.88$23.75$12.88$13.75$150,00040$25.00$25.38$14.00$14.38$150,00041$26.13$29.75$15.13$16.25$150,00042$28.38$32.25$16.50$17.00$150,00043$31.13$35.88$17.88$18.25$150,00044$22.66$26.59$12.83$13.17$100,00045$24.84$29.58$13.67$14.25$100,00046$27.67$33.00$14.75$15.50$100,00047$30.50$36.75$15.75$16.75$100,00048$33.75$41.08$16.75$18.25$100,00049$29.87$36.73$14.20$16.00$80,00050$33.07$39.80$15.40$17.07$80,00051$37.53$42.20$16.33$17.53$80,00052$42.60$44.20$17.47$17.73$80,00053$48.40$49.87$18.67$19.47$80,00054$41.45$42.45$15.20$15.95$60,00055$47.25$48.20$16.55$17.40$60,00056$53.70$55.10$18.00$19.20$60,00057$61.00$63.15$19.75$21.10$60,00058$69.10$72.35$21.60$23.30$60,00059$51.47$54.23$15.67$17.00$40,00060$57.94$60.93$17.17$18.70$40,00061$65.77$71.00$18.77$20.83$40,00062$74.90$82.47$20.57$23.20$40,00063$85.24$95.77$22.57$25.87$40,00064$60.79$67.04$15.48$17.81$25,00065$69.71$76.62$17.00$19.77$25,00066$80.48$86.75$18.73$21.92$25,00067$93.17$100.21$20.71$24.44$25,00068$107.78$115.58$22.88$27.27$25,00069

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Premiums generally increase with your age.The insurer can change the premium rates,but we will let you know in advance ifthey do.Your insurance premiums are deductedfrom your Essential Super account eachmonth in advance. The exact amountdeducted may differ due to a taxconcession that the trustee is able to applyfor on your behalf. Premiums will beinitially drawn down from the Lifestageoption, which is the default investment

option for Essential Super. If there areinsufficient funds in this investment option,we will follow a drawdown sequence fromother investment options you may hold,taking the premiums from the CashDeposit option first , followed by Balancedoption and Australian Shares option.You need to make sure there is enoughmoney in your account to cover premiumsat all times. If your premium is not paidwithin 90 days of its due date, your coverwill end.

What does Total and Permanent Disablement (TPD) mean?Depending on your circumstances at the date of disablement, different TPDdefinitions apply.

You are totally and permanently disabled if all of the following applyto you:

Anyoccupation

on the date of disablement you are aged at least 14 years and lessthan 65when you suffered the disability, you were regularly employedas a result of illness or injury, you have been absent from all work for three consecutive monthsfrom the date of disablementthe insurer considers, on the basis of medical and other evidence satisfactory to it, that as aresult of the illness or injury you are unlikely ever again to be able to engage in any occupationfor which you are suited by education, training or experience, whether or not for reward.


Day 1 TPD

on the date of disablement you are aged at least 14 years and lessthan 65when you suffered the disability, you were regularly employedyou are absent from all work as a result of suffering an insuredserious illness;the insurer considers, on the basis of medical and other evidence satisfactory to it, that as aresult of the insured serious illness you are unlikely ever again to be able to engage in anyoccupation for which you are suited by education, training or experience, whether or notfor reward.

The insured serious illnesses are: blindness, cardiomyopathy, chronic lung disease, dementiaand Alzheimer’s disease, loss of hearing in both ears, loss of speech, major head trauma withpermanent neurological deficit, motor neurone disease, multiple sclerosis with impairment,muscular dystrophy, paraplegia, quadriplegia, hemiplegia, diplegia, Parkinson’s disease withimpairment, primary pulmonary hypertension and severe rheumatoid arthritis.These insured serious illnesses are defined in the Policy Document.You can ask us for a copy of the Policy Document.

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Homeduties

on the date of disablement you are at least 14 but less than 65when you suffered the disability, you were engaged in full-time domestic duties or childrearingthe insurer is satisfied, on the basis of medical or other evidence satisfactory to it, that as aresult of illness or injury you:

have been unable to perform domestic duties or child rearing and have been confined tothe home for a period of six monthsare under the regular treatment, and following the advice, of a doctorcontinue to be incapacitated to the extent that you are unable to engage in any occupationfor which you are suited by education, training or experience, whether or not for reward;and will be so disabled for life.


Permanentloss

on the date of disablement you are aged at least 14 and less than 65as a result of an injury or illness, you suffer:

the permanent loss of use of two limbs, orblindness in both eyes, orthe permanent loss of the use of one limb and blindness in one eye,

and the insurer considers, on the basis of medical and other evidence satisfactory to it, you areunlikely ever to be able to engage in any occupation for which you are suited by education,training or experience, whether or not for reward, where:‘blindness’ means – the permanent loss of sight due to illness or injury to the extent that:

visual acuity is 6/60 or less; orthe visual field is reduced to 20 degrees or less of arc whether aided or unaided and all ascertified by a medical specialist‘limb’ means – the whole hand below the wrist or the whole foot below the ankle.


Activitiesof dailyliving on the date of disablement you are aged at least 14 and less than 70

as a result of injury or illness, you are totally, permanently and irreversibly for life unable toperform, without the physical assistance of another person, any two of the following activitiesof daily living:

Dressing – the ability to put on and take off clothingToileting – the ability to use the toilet, including getting on and offMobility – the ability to get in and out of bed and a chairBathing – the ability to wash or showerMaintaining continence – having good control of bowel andbladder functionFeeding – the ability to get food from a plate into the mouth,

and the insurer is satisfied that you are incapacitated to such an extent as to render you unlikelyto ever engage in any gainful profession, trade or occupation for which you are reasonablyqualified by education, training and experience.

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ExclusionsInsurance cover offered in Essential Superis subject to certain exclusions which maylimit your ability to claim. It is importantthat you understand the followingexclusions when considering whetherEssential Super is appropriate for yourcircumstances. If unsure, you should seekadvice from a financial adviser.If you were transferred by the trustee fromFirstChoice Personal Super or ColonialSuper Retirement Fund to Essential Supersome of the following exclusions may notapply or may be different to the exclusionsthat apply to you. For more information,call the Essential Super contact centre.Pre-existing conditionsThe insurer will not pay a death, terminalillness or TPD benefit which is due to apre-existing condition. A pre-existing condition is an illnessor injury:

of which you first became aware or areasonable person in your circumstances(including symptoms, if any) would havefirst become aware, orfor which you sought or intend to seek:

medical advice, including a referral toa specialist, ormedical treatment, including prescribedand non-prescribed medications, ormedical care or services including testsand other diagnostic measures, or

for which a reasonable person in yourcircumstances (including symptoms, ifany) would have sought medical advice,treatment, care or services,

at any time in the three years immediatelybefore your cover commenced,recommenced or increased.

The pre-existing condition exclusion doesnot apply if your death, terminal illnesscertification or, for TPD, date ofdisablement first occurs after both of thefollowing are met:

your cover has been in place for fivecontinuous years (5 year period), and you have been capable of working fortwo continuous months (2 monthperiod), being a period which startedat any time after the end of the 5year period.

“Capable of working” means you are notprevented by illness or injury fromperforming all of the duties of your usualoccupation for 35 hours a week (even ifyou are not working or are working lessthan 35 hours a week). If, however, youhave not been employed or self-employedat any time in the 12 months before thestart of the 2 month period, capable ofworking means you are not prevented byillness or injury from performing full-timedomestic duties or child rearing.“Duties of your usual occupation” meansthe duties of your usual occupation at thestart of the 2 month period, which includesthe duties of any occupation youperformed at any time in the 12 monthsbefore the start of the 2 month period.Suicide and self-inflicted injuryThe insurer will not pay a death benefit ifyour death is due to suicide or intentionalself-inflicted injury and your deathoccurs within 12 months of your covercommencing, recommencingor increasing.The insurer will not pay a benefit forterminal illness or TPD if your illness orinjury is a direct or indirect result ofintentional self-inflicted injury or attemptedsuicide and your terminal illness or TPDoccurs within 12 months of your covercommencing, recommencing or increasing.

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Illegal activityThe insurer will not pay a death, terminalillness or TPD benefit if your illness orinjury arises directly or indirectly as a resultof your participation, or intent toparticipate in, illegal activity. Professional misconductThe insurer will not pay a TPD benefitif your condition arises directly or indirectlyas a result of your permanent or temporarybanning, de-registration or disqualification,which:

occurred solely due to disciplinaryaction, andprevents you from pursuing, practisingor engaging in your occupationor profession.

WarIf a war causes your death, directly orindirectly, the insurer will not pay a benefitunless you die on war service. If war causesyour TPD or terminal illness, directly orindirectly, the insurer will not pay a benefit.War includes any act of war, whetherdeclared or not.Pandemic/epidemic illnessA pandemic/epidemic illness is an illnessfor which the World Health Organisationor a department, authority, minister or other officer of the AustralianGovernment has issued apandemic/epidemic alert, advisory,notification, declaration or similarpublication.The insurer won’t pay a benefit if:

you die or become terminally ill, directlyor indirectly, because of apandemic/epidemic illness or any othercondition caused by, or related to, thepandemic/illness in any way, andyour death or terminal illness is within30 days of your cover starting, restartingor increasing.

This exclusion only applies from thedate we either advise you directly ormake a public notification that thisexclusion applies.

Making a claimWhen you need to make a claim, let usknow as soon as you can. If you delay andit affects the insurer’s ability to assess yourclaim, the insurer may reduce the benefit.A waiting period may apply to yourTPD claim.The insurer will ask for specific informationand documents that it needs to properlyassess the claim. This may include amedical or other examination. The insurermay request you to see a doctor of itschoice and will pay the doctor’s fees andthe costs of any test or procedureit requests.The insurer will not pay for your travelexpenses or costs associated withnon-attendance at an appointment. If youare overseas, in order to properly assess aclaim for terminal illness or TPD, theinsurer can require you to return toAustralia at your expense for assessment.If your claim is accepted, the benefit willbe paid into your Essential Super account.You must meet a condition of release setout in superannuation law to be paid theTPD or terminal illness benefit.To notify us of a claim, contact uson 13 4074.

Cooling-off periodYou have a 28-day cooling-off period whereyou can choose to cancel your insurancecover in writing, and any premiums paidwill be refunded.The 28 days will apply from the date onwhich we provide confirmation of yourcover. If you applied for additional cover,the cooling-off period applies to theincreased portion of insurance cover only.

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Preserved’ or ‘restricted non-preserved’amounts cannot be refunded directly toyou if you take advantage of the 28-daycooling-off period (unless you satisfy acondition of release). We will roll over ortransfer these amounts to thesuperannuation fund, Retirement SavingsAccount or Approved Deposit Fund younominate.

Insurance policyInsurance cover in Essential Super isprovided through a group policy issued tothe trustee of the fund by The ColonialMutual Life Assurance Society Limited ABN12 004 021 809 (CMLA), also known asCommInsure or the insurer. As at 19October, 2020 the insurer is a whollyowned but non-guaranteed subsidiary ofthe Bank. It is proposed that life insurancepolicies issued by the insurer will betransferred to AIA Australia Limited (whichis part of the AIA Group) This transfer issubject to certain conditions being metincluding court approval which is expectedto be received in the first half 2021.Pending this transfer the Bank and AIAAustralia Limited have entered into a JointCooperation Agreement, under which AIAAustralia Limited have an appropriate levelof direct management and oversight of theCMLA business. ‘CommInsure’ is aregistered business name of CMLA.The information about insurance in thisguide is general in nature, and thepayment of a benefit is subject to theterms of the life insurance policy betweenthe trustee and the insurer. We will notmake any payment greater than theamount actually received from the insurer.If a benefit is payable by the insurer undera policy, the benefit will be paid to thetrustee and then paid in accordance withpreservation rules and the trust deed.

We can by agreement with the insurer varythe terms of the life insurance policy at anytime. You will be notified of any variationwhich affects you.The Insurance in Superannuation VoluntaryCode of Practice (the Code) applies tosuperannuation trustees. Colonial FirstState Investments Limited supports theCode and its objectives and intends toadopt the Code.The transition plan for adoption of theCode is published on the trustee's website at: www3.colonialfirststate.com.au/insurancecodeCode Explanatory StatementThe Insurance in Superannuation VoluntaryCode of Practice (the Code) is a voluntarycode of practice for superannuationtrustees. The Code was produced by across-industry working group and sets outthe superannuation industry’s commitmentto high standards when providinginsurance to members of superannuationfunds. It does this by creating standardpractices particularly in relation toinsurance offered on an automatic basis(subject to eligibility criteria detailed referto page 53), insurance communicationsand claims processes.

Duty of disclosureIf you apply for cover, a duty of disclosureapplies, as set out below:Before a person enters into a life insurancecontract in respect of their life or the lifeof another person, they have a duty to tellthe insurer anything that they know, orcould reasonably be expected to know,may affect the insurer’s decision to providethe insurance and on what terms.The person entering into the contract hasthis duty of disclosure until the insuranceis provided.

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https://www3.colonialfirststate.com.au/insurancecode

The person who has entered into thecontract has the same duty before theyextend, vary or reinstate the contract.

The person entering into the contract doesnot need to tell the insurer anything that:

reduces the risk of the insurance, oris common knowledge, orthe insurer knows of should know as aninsurer, orthe insurer waives the duty to tell theinsurer about.

If the insurance is for the life of anotherperson and that person does not tell theinsurer something that they know or couldreasonably be expected to know, mayaffect the insurer’s decision to provide theinsurance and what terms, this may betreated as a failure by the person enteringinto the contract to comply with their dutyof disclosure.If the person entering into thecontract does not tell the insurersomethingIn exercising the following rights, theinsurer may consider whether differenttypes of cover can constitute separatecontracts of life insurance. If the insurerdoes, it may apply the following rightsseparately to each type of cover.If the person entering into the contractdoes not tell the insurer anything they arerequired to, and the insurer would not haveprovided the insurance if they had beentold, the insurer may avoid the contractwithin three years of entering into it.If the insurer chooses not to avoid thecontract, it may, at any time, reduce theamount of insurance provided. This wouldbe worked out using a formula that takesinto account the premium that would havebeen payable if the person entering intothe contract had told the insurer everythingthey should have. However, if the contract provides coveron death, the insurer may only exercisethis right within three years of entering intothe contract.

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If the insurer chooses not to avoid thecontract or reduce the amount of insuranceprovided, it may at any time, vary thecontract in a way that places the insurer inthe same position it would have been in ifthe person entering the contract had toldthe insurer everything they should have.

However, this right does not apply if thecontract has a surrender value or providescover on death.If the failure to comply with the duty ofdisclosure is fraudulent, the insurer mayrefuse to pay a claim and treat the contractas if it never existed.

Insurance definitions

DefinitionTerma person who:Australian resident

is an Australian citizen, orlives permanently in Australia, orhas come to Australia to live and is eligible, in accordance with any visa theywould be required to have, to be able to live permanently or work in Australia.

a person who is an employee of an employer but who is not a permanent employee.

casual employee

means the later of:date of disablementthe date you cease all workthe date on which a doctor examines you and certifies in writing that you sufferfrom the disability.

For the activities of daily living, permanent loss and home duties definition of totaland permanent disablement, the date of disablement is the latter of the abovetwo dates.The date of disablement must occur while you are insured for TPD underthis policy.a person acceptable to the insurer, who is registered and practising as a medicalpractitioner in Australia, other than you, your spouse, partner, parent, child orsibling, or your business partner, associate or employee.

doctor

an occupation the person can perform on a full-time orpart-time basis.

occupation

a person who is an employee of an employer under a single and ongoing contractof employment for personal services that:

permanent employee

is of indefinite duration or for a fixed term of at least six monthsrequires the person to perform identifiable duties, andrequires the person to work a regular number of hourseach week.

a person who is a:regularly employedpermanent employee who on average had worked more than 15 hours per weekover the previous six months, orcasual employee who on average had worked more than 15 hours per weekover the previous 13 months, orself-employed person who on average had worked more than 15 hours per weekover the previous 13 months.

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DefinitionTerma person who:self-employed

is neither a casual employee or a permanent employeeis working in a business or enterprise for at least 15 hours per weekhas substantial power or control over the business or enterprise, andis working for payment or reward which is generated directly due to the person’spersonal exertion or activities.

means:terminal illnesstwo doctors have certified, jointly or separately in writing, that you suffer froman illness, or have incurred an injury, that is likely to result in your death withina period (the ‘certification period’) that ends not more than 24 months afterthe date of certificationat least one of the doctors is a specialist practicing in an area related to theillness or injurythe insurer is satisfied, on medical or other evidence, that despite reasonablemedical treatment, your illness or injury is likely to result in your death withinthe certification periodthe date of certification occurs while you are covered under this policy, andthe certification period has not ended for each of the certificates.

See page 58total and permanentdisablement (TPD)

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9 Important information for employersThe following section contains important information for employers using EssentialSuper as their default super fund.

Who can participate?You can only set up an account in the fundfor a person for whom you have anobligation to make superannuationcontributions under SuperannuationGuarantee legislation.You cannot set up an account in the fundfor a person whom you do not have anobligation to make superannuationcontributions. For example, you cannot setup an account for a partner (excluding anemployed partner), a non-remunerateddirector, a sole trader or a contractor wherethe contract is with someone other thanthe person who’ll actually provide thelabour (eg a company or trust), unlessagreed with the trustee.

How to administer your superNetBank is the Bank’s secure online portalthat allows you to easily administer yoursuper obligations from your office.We offer a free clearing house throughNetBank. It processes all your employees’super contributions in the one place. Allyou need to do is send us a singlepayment, and we’ll forward thecontributions to your employees’ chosensuper funds.The contributions you pay for employeesnot in Essential Super won’t be consideredpaid until they reach the relevantsuperannuation fund for the employee.Therefore, you must pay your contributionswell in advance of the SuperannuationGuarantee (SG) due dates and before theend of the financial year. If you don’t allowenough time for this processing, yourcontributions may not reach therelevant superannuation fund in time andmay impact:

whether you will be considered to havecomplied with your SG obligations.in which financial year the contributionis made for the purposes of taxdeductibility.in which financial year a contribution willcount against an employee’s contributioncaps.

Please note that any interest earned onthe bank account used for providing theclearing house service may be retained byColonial First State. Note: If you make a contribution to a thirdparty super account and the payment isrejected, the payment will be put back intoyour bank account and you will have 10days to get the correct payment detailsand resubmit the contribution. It's still upto you to meet your super guaranteeobligations by the due dates.

How super worksSuper is a long-term form ofconcessionally-taxed savings which isdesigned to be paid to your employeeswhen they retire. As an employer, you aregenerally required to contribute apercentage of your employees’ salary orwages to a superannuation fund for them.You may also agree to increase thecontributions you make for an employeewhere they agree to forgo part of theirpre-tax salary or wages in return foradditional employer contributions – thesecontributions are known as salarysacrifice contributions.To encourage people to save forretirement, the Federal Governmentprovides a number of super taxconcessions. These include generally

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applying a 15% tax rate to employercontributions, which includes salarysacrifice contributions, taxingsuperannuation investment earningsconcessionally at a maximum rate of 15%and allowing super benefits to be paid taxfree after age 60. These concessions canmake superannuation one of the mosttax-effective ways for your employees tosave for their retirement.

How Essential Super worksEssential Super is an accumulation superfund. This means that each member hasan account balance with money flowing inand out of the account.When a contribution is made to amember’s account, the contribution is usedto purchase units in their choseninvestment option. For example, if theymake a contribution of $100 and the entryunit price for their chosen investmentoption is $1.00, then they will receive100 units.The value of the member’s units mayfluctuate due to the receipt of investmentincome and/or changes in the value of theunderlying assets held in each investmentoption. The unit price may also be affectedby other factors such as the payment oftax and other fund costs from the assetsof the fund. Other costs that relatespecifically to each member, such as thepayment of insurance premiums or themonthly administration fee, may also bededucted from their account via thewithdrawal of units. This means that theiraccount balance can fluctuate on a dailybasis depending on market movements,the costs of running the fund and anyexpenses that relate specifically totheir account.

What you must doYou must:

provide us with accurate employeedetails, including date of birth, which willbe used to determine the Lifestageinvestment option their contributions arepaid to and the level and cost of anyinsurance coverobtain and keep records of employees’details as required under industrialrelations legislation and employees’Choice of Fund nominations includingevidence of funds’ complying statuspay contributions well before the SG duedates (refer below for further details)provide your employees’ TFNs (referbelow for further details).

Passing on your employees' TaxFile Numbers (TFNs)When your employee completes aTFN declaration, you must pass their TFNon to us if you make contributions for themto Essential Super.

Superannuation Guarantee (SG)obligationsAs an employer, you are generally requiredto pay SG contributions (currently 9.5%)22

for your employees based on their ordinarytime earnings (what they earn for theirordinary hours of work) and any of thoseearnings that are salary sacrificed tosuperannuation.For SG purposes, employees can includepeople you would not generally treat asemployees, including some contractorsengaged principally for their labour,directors and officers, artists, musiciansand sports persons.

22 SG contribution rates will gradually increase to 12%.

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What are the penalties?If you fail to make sufficient contributionson behalf of your employees, you mayincur the SG charge, which is equal to:

(currently) 9.5%23 of the employees’salary and wages (less any eligiblecontributions made), plus10% nominal interest, plusthe administration charge.

The SG charge is not tax deductible, andyou may also be subject to further Choiceof Fund penalties and other penalties ofup to 200% of the SG charge if you fail tolodge the SG statement on time. Thegeneral interest charge is also payable onlate payment of the SG charge.Also, directors of the company maybecome personally liable where an SGcharge remains unpaid.A breach of an industrial award oragreement may result in industrial action.Claims for compensation may also bemade against you for breach of theseinstruments or your othercontractual obligations.

How often should youcontribute?You should contribute regularly on behalfof your employees to ensure thatan employee’s account will cover anyinsurance premiums payable – otherwiseyour employee's insurance may lapse.If you have withheld any amounts fromyour employee's earnings (egnon-concessional contributions), thenthose amounts must be contributed toyour employee's superannuation fundwithin 28 days of the end of the month inwhich those amounts were withheld.

The SG legislation requires that you paySG contributions at least quarterly to avoidpaying the SG charge. If you fail to paythese contributions by the due date, youare required to lodge an SG statement withthe Australian Taxation Office (ATO) andpay the SG charge.

Quarter due date for paymentof SG

Due date payable* Quarter28 OctoberJuly-September28 JanuaryOctober-December28 AprilJanuary-March28 JulyApril-June

*Where the due date would fall on aweekend or public holiday, it is moved tothe next business day.Certain contributions paid after the duedate for payment may be offset againstthe SG charge payable. However,you cannot claim a tax deduction forthose contributions.The ATO has no discretion to extend thesedue dates. Please note: Contributions paidvia a clearing house such as NetBankdo not count for SG purposes until theyare received in your employee’ssuperannuation account of theirchosen fund.If contributions are not received in time,they may not be tax deductible, and youwill incur the SG charge. Therefore, to besure, you should make yoursuperannuation payments well in advanceof the due dates.

23 SG contribution rates will gradually increase to 12%.

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To which superannuation fundmust you contribute?Some or all of your employees are entitledto exercise their own choice ofsuperannuation fund. Changes to industrialrelations legislation have extended thecoverage of Choice of Fund, so you shouldcheck which employees are eligibleto choose their own fund.Whenever a new eligible employee starts,you must offer the employee a choicewithin 28 days. Thereafter, you only haveto offer a new choice (within 28 days):

to existing eligible employees if theyrequest a form from you in writing (andthey have not made such a request in theprevious 12 months)if you become aware that you areunable to contribute to that employee’schosen fundif you change the default fund to whichyou contribute on behalf of employeeswho have not made a choice.

Some exceptions do exist, in particular ifemployees are covered by particular typesof industrial agreements that deal with theissue of Choice24. However, you shouldseek legal advice before relying on any ofthese exceptions – they can be complex.Penalties may be imposed by the ATO ifyou fail to follow the correct Choiceprocedures. It is therefore essential thatyou keep adequate records.If an eligible employee validly exercisestheir own choice of superannuation fund,you must make contributions to that fund.If an employee does not exercise their ownchoice of superannuation fund, youmust make contributions toa ‘default fund’.

What is a default super fund?For SG purposes, a default super fund mustgenerally:

be a complying superannuation fundoffer a MySuper productoffer certain default levels of lifeinsurance.

Essential Super satisfies the requirementsto be a default super fund for SG purposes.

Default super funds andmodern awards/enterpriseagreementsIn addition to meeting SG default fundrequirements, you must comply with anydefault super fund requirements that applyto any modern awards or enterpriseagreements that apply to your employees. If you're unsure what modern awards oragreements (including their default fundrequirements) apply to your employees, itis important to seek legal advice.

How do you offer choice?You must give each employee entitled tochoose their own fund a Choice of Fundform nominating the default fund to whichcontributions will be paid.If any of your employees select their ownchosen fund, then you must comply withthat choice within two months. Pleasenote: If any of your employees fail to selecttheir own chosen fund, you must onlycontribute to a valid default fundnominated on the Choice of Fund formgiven to that employee. You should keeprecords of the Choice of Fund formprovided to your employees. If you changeyour default fund, you must give youremployees a new Choice of Fund form.

24 A recent legislative change has extended Choice of Fund to employees covered by workplace determinations and enterpriseagreements made on or after 1 January 2021

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How do I add an employee?You can add a new employee at any timevia NetBank, or by calling us on 13 4074 orvia any other means approved bythe trustee.

Take note Incorrect or incomplete information mayadversely impact the insurance cover for youremployees.

You should ensure that your employees’personal details, including date of birth,gender, residential address and email, arecurrent and accurate before setting themup.Cover for eligible members will start oncethey reach age 25 and have an accountbalance of $6,000. If they are under theage of 25 or have a balance of less than$6,000, we will issue them a notice to givethem the opportunity to get cover. Theycan instruct us in writing within 120 daysof receiving this notice from us that theywant cover.

How do I advise that anemployee has ceasedemployment?You can advise us of an employee ceasingemployment at any time via NetBank.The employee’s account will be delinkedfrom your business and will continue as apersonal account in Essential Super.

SuperStream dataand payment standardsUnder the regulatory reform known asSuperStream, the Government introducedsuperannuation data and paymentstandards that will affect how you makecontributions. All employers are requiredto make contributions in the payment anddata standards.

The goal of these new standards is tointroduce electronic contributions andstandardise the way data is sentand received.Automating this process will have a directimpact on the quality and timeliness ofcontribution payments, and should reducethe amount of lost accounts andunclaimed monies.NetBank, including the clearing houseservice, has been upgraded to meetSuperStream requirements, and we cansend your employees’ data and paymentsto super funds at no cost. However, if youwant to pass their contribution data toexternal funds directly, we’ve nominatedeVision as an alternative provider. Therewill be lead time, set-up costs and ongoingcosts to use the eVision service. Theseneed to be confirmed with eVision directlyby calling it on 1300 769 414.

SuperStream terms andconditionsThese Terms and Conditions summariseimportant information with reference tothe SuperStream Data and PaymentStandard (SuperStream) compliantEssential Super.In this section, ‘you’ refers to an entity thathas entered into an Employer Arrangementwith Essential Super.Where we say ‘we’ or ‘us’, this refers tothe trustee, Colonial First StateInvestments Limited.These terms and conditions are to beagreed by you (or by your delegate on yourbehalf) prior to the first log on to NetBankand Essential Super. Please ensure thatyou keep a copy of these terms andconditions for your records, or request thata copy be provided to you at any time inthe future by contacting 13 4074.

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These terms and conditions are to be readalongside the NetBank operational termsand conditions, which you have agreed toas a user of NetBank previously. If you wishto obtain a copy of those terms andconditions, they can be found atnetbank.com.au or by calling 13 2221. Youshould also consider the Essential SuperProduct Disclosure Statement (PDS). ThePDS is designed for individuals who wantto set up a super account and foremployers who want to open a superaccount for their employees.Together, these documents make up ourTerms of Agreement of Essential Super forbusiness (Terms of Agreement) with youand the employees for whom youundertake transactions in Essential Superwithin NetBank.Terms and conditions

1. You have read the Essential SuperProduct Disclosure Statement (PDS)and agree to abide by its terms.

2. You recognise an investment inEssential Super is:

subject to risk and possible lossnot a deposit or a liability of orguaranteed by the Bank or itsrelated companies.

3. You’re aware that Essential Superwithin NetBank provides aSuperStream compliant clearinghouse that meets the ATO’ssuperannuation data and paymentstandards (data standards) forprocessing all contributionstransactions by you.

4. Where you don’t provide therequired information for theprocessing of a transaction inaccordance with the data standards,or don’t meet our Terms ofAgreement, you understand that thetransaction will not be processed

by us.5. You understand that we’ll aim to

process all contributions you actionand which are accepted by us, withinthree business days. Where we’reunable to process a contribution forEssential Super we’ll notify youwithin five business days of receivingthe contribution. You’ll then have 10business days to respond with anyinformation that may enable us tocomplete the transaction. Wherewe’re unable to processcontributions for Essential Super,we’ll reject and refund thecontribution amount.

6. Your Australian Business Number(ABN) is required to comply with thedata standards and for us to sendyour employee contributions toother super funds.

7. You understand that, where weon-forward contributions to otherfunds for employees who havenominated their fund of choice, allprocessing of contributions is thatfund’s responsibility. Therefore, errorhandling or rejections are managedby the other fund. We’ll contact youabout these errors where we receiveany notification from the other fund.

8. All refunds for rejected contributionswill be returned to the bank accountfrom which they were originally paidin NetBank. You’ll be responsible foridentifying returned money for anycontributions that were unable tobe processed.

9. If you delegate a third party to belinked to your Essential Super forbusiness account through NetBankand to transact on your behalf, youagree that they take fullresponsibility in acting as your agent,and they have the duty to informyou of all communication from us.Any communication by us to your

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https://www.my.commbank.com.au/netbank/Logon/Logon.aspx

https://www.commbank.com.au/content/dam/commbank/personal/apply-online/download-printed-forms/EssentialSuper_PDS.pdf

https://www.commbank.com.au/content/dam/commbank/personal/apply-online/download-printed-forms/EssentialSuper_PDS.pdf

delegates will be deemed to havebeen received by you. You mustensure that your delegates are awareof and comply with these terms andconditions and you’ll be bound byand liable for any actions that yourdelegates take.

10. If you’re a third party with delegatedpower to transact on behalf of theemployer, you agree that you takefull responsibility in acting as theagent of the employer, and you’llinform the employer of allcommunication from us.

11. You’ll provide mandatory details forall employees who have nominatedChoice of Fund (choice members);and be responsible for updating anydefault employee details (defaultmembers).

12. Where you update default memberdetails, you understand that themember must accept these changesbefore they’re processed.

13. We accept most types of supercontributions except childcontribution amounts and third partycontributions.

14. When you register an employee asa default member, we’ll check theirTFN with the ATO. If we receive aninvalid response, we’ll notify youwithin five business days. You’ll have10 business days to action aresponse where appropriate.

15. You’re aware that any changes youmake to the details of employeeswho are choice members will be senton to other super funds. However,we won’t request that the othersuper fund updates these details.Employees who select another superfund may need to update theiraddress or contact informationdirectly with their chosen super fund.

16. You are generally responsible formeeting your SuperannuationGuarantee payment obligations.Where your employees havearrangements with other funds, youaccept responsibility to process yourcontributions in NetBank withadequate time for the contributioninformation and payment to bepassed on and processed by thereceiving fund. It’s recommendedthat you leave up to 10 days prior tothe end of the SuperannuationGuarantee quarter (theSuperannuation Guarantee paymentcut-off date).

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10 Other things you should knowOur privacy policy, terms and conditions, and other important information.

How is your personalinformation dealt with?The privacy of your personal informationis important to us.We form part of the Commonwealth BankGroup of companies (‘the Group’), awell-known financial services organisation.The Group offers a broad range of productsand services.Collecting information‘Customer information’ is informationabout a customer.It includes personal information suchas name, age, gender and contactdetails, as well as your health andfinancial information.How we collect itWe can collect and verify customerinformation in different ways, and we willadvise you of the most acceptable ways todo this.The law may require us to identify ourcustomers. We do this by collectingand verifying information about you. Wemay also collect and verify informationabout persons who act on your behalf.Collecting and verifying information helpsto protect against identity theft,money-laundering and other illegalactivities. We may disclose your customerinformation in carrying out verification, egwe may refer to public records to verifyinformation and documentation, or we mayverify with an employer that theinformation you have given us is accurate.What we collectDepending on whether you are anindividual or an organisation, theinformation we collect will vary. For

instance, if you are an individual, the typeof information we may collect and verifyincludes your full name, date of birth andresidential address. If you are commonlyknown by two or more different names,you must give us full details of your othername or names.AccuracyYou must provide us with accurate andcomplete information.If you don't, you may be in breach of thelaw and also we may not be able to provideyou with products and services that bestsuit your needs.How do we use your personalinformation?We collect, use and exchange yourpersonal information so that we can:

establish your identity and assessapplications for our products and servicesprice and design our productsand servicesadminister our products and servicesmanage our relationship with youmanage our risks and help identify andinvestigate illegal activity, such as fraudcontact you, for example, if we need totell you something importantupdate your contact information, forexample, if we receive a more recentaddress from the ATO we may updateyour addressconduct and improve our businessesand improve the customer experiencecomply with our legal obligations andassist governmentand law enforcement agencies ordomestic and foreign regulators, oridentify and tell you about other productsor services that we think may beof interest to you.

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We may also collect, use and exchangeyour information in other ways wherepermitted by law.Electronic communicationIf we have your email or mobile phonedetails, we may contact you electronically,including by SMS. You may also receivecommunications from Colonial First Stateand information on the Group’s productsand services electronically.Direct marketingIf you don’t want to receive directmarketing from us, you can tell us bycalling us on 13 4074 or sending us anemail [email protected] and combiningdata to get insightsImprovements in technology enableorganisations, like us, to collect and useinformation to get a more integrated viewof customers and provide better productsand services.The Group may combine customerinformation it has with informationavailable from a wide variety of externalsources (for example, censusor Australian Bureau of Statistics data).Group members are able to analyse thedata in order to gain useful insightswhich can be used for any of the purposesmentioned above.In addition, Group members may providedata insights or related reports to others;for example, to help them understand theircustomers better. These are based onaggregated information and do not containany information that identifies you.Protecting your personal informationWe comply with the Australian PrivacyPrinciples as incorporated into the PrivacyAct 1988 (Cth).

The Privacy Act protects your sensitiveinformation, such as health information.When we need to obtain this type ofinformation, we will ask for your consent,except where otherwise permitted by law.Who do we exchange your personalinformation with?We exchange your personal informationwith other members of the Group, so thatthe Group may adopt an integratedapproach to its customers. This appliesalso where your products and services areheld through a Commonwealth FinancialPlanner.Group members may use this informationfor any of the purposes mentionedunder ‘How do we use your personalinformation?’ on the previous page.Third partiesWe may exchange your information withthird parties where this is permitted by lawor for any of the purposes mentionedunder ‘How do we use your personalinformation?’ on the previous page.These third parties include:

service providers or those to whom weoutsource certain functions; for example,direct marketing, statement production,debt recovery and informationtechnology supportyour employerbrokers and agents who refer yourbusiness to usany person acting on your behalf,including your financial adviser, solicitor,accountant, executor, administrator,trustee, guardian or attorneythe insurer, to enable it to assess yourinsurance application and to provide andadminister covermedical practitioners (to verify or clarify,if necessary, any health information youmay provide)

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claims-related providers, such asassessors and investigators, who help uswith claimsauditorsgovernment and law enforcementagencies or domestic and foreignregulators, orentities established to help identify illegalactivities and prevent fraud.

In all circumstances where our contractorsand outsourced service providers becomeaware of customer information,confidentiality arrangements apply.If you request us not to share yourinformation with one of our third partysuppliers, this may lead to us not beingable to provide you with a productor service.We may be required to disclose customerinformation by law, eg under Court Ordersor Statutory Notices pursuant to taxationor social security laws or under lawsrelating to sanctions, money laundering orterrorism financing.Sending information overseasFrom time to time, we may send yourpersonal information overseas, includingto overseas Group members and to serviceproviders or other third parties whooperate or hold data outside Australia.Where we do this, we make sure thatappropriate data handling and securityarrangements are in place. Please notethat Australian law may not apply to someof these entities.We may also send information overseas tocomplete a particular transaction or wherethis is required by laws and regulationsof Australia or another country.For more information about whichcountries your information may be sent to,see the Commonwealth Bank GroupPrivacy Policy, available atcommbank.com.au

Additional obligationsThe Commonwealth Bank Group may besubject to laws or regulations in Australiaor another country that affect yourrelationship with the Group (eg laws thataddress tax evasion).So that we may comply with ourobligations under these laws orregulations, we may:

require you to provide information aboutyou or your productif required to do so, withhold an amountfrom a payment to you, and if we do, wewill not reimburse you for the amountwithheld, and/ortake such other action as is reasonablyrequired, including, for example, closingyour account.

Viewing your informationYou can (subject to permitted exceptions)request access to your personalinformation by contacting us on 13 4074.We may charge you for providing access.For more information about our privacyand information handling practices, pleaserefer to the Commonwealth Bank GroupPrivacy Policy, which is available throughcommbank.com.au or on request fromany Commonwealth Bank branch.Where you hold an account with one ormore individuals, we will allow eachindividual access to their own personalinformation and to the joint informationof the account, such as account balancesand transaction details, but not to personalinformation of the other individual(s).Making a privacy complaintWe accept that sometimes we can getthings wrong. If you have a concern aboutyour privacy, you have a right to make acomplaint, and we’ll do everything we canto put matters right. For further

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https://www.commbank.com.au/

https://www.commbank.com.au/

information on how to make a complaintand how we deal with your complaint,please refer to the PDS.

Related party remunerationAll the entities referred to below aresubsidiaries of Commonwealth Bank ofAustralia ABN 48 123 123 124 AFS Licence234945 (the Bank) and related bodiescorporate of the responsible entity andtrustee.The Colonial Mutual Life Assurance SocietyLimited ABN 12 004 021 809 (CMLA,‘CommInsure’ or ‘the insurer’) receivesinsurance premiums for the insurancebenefits it provides. As at 19 October, 2020the insurer is a wholly owned butnon-guaranteed subsidiary of the Bank. Itis proposed that life insurance policiesissued by the insurer will be transferred toAIA Australia Limited (which is part of theAIA Group) This transfer is subject tocertain conditions being met includingcourt approval which is expected to bereceived in the first half 2021. Pending thistransfer the Bank and AIA Australia Limitedhave entered into a Joint CooperationAgreement, under which AIA AustraliaLimited have an appropriate level of directmanagement and oversight of the CMLAbusiness. ‘CommInsure’ is a registeredbusiness name of CMLA.Colonial First State Investments LimitedABN 98 002 348 352 (Colonial First State)is the responsible entity for most of theinvestment options. Colonial First Statereceives and retains fees in connection withthose investment options, as disclosed inthis document and the relevant disclosuredocument. The Bank may charge annualmaintenance levies to us as an issuer ofunderlying investments. These are notadditional charges to you. The only feespayable in respect of those investmentoptions are the charges disclosed in therelevant disclosure documents.

The Bank may provide products that areavailable through Essential Super. TheBank receives and retains fees inconnection with these products.On 13 May 2020, the Bank entered into anagreement to sell a 55% interest in acompany holding 100% of the shares inColonial First State to an affiliateof Kohlberg Kravis Roberts & Co. L.P.(together with its affiliates, KKR). Subjectto regulatory approvals, the sale isexpected to be completed in mid-calendaryear 2021 (Completion). FromCompletion, Colonial First State, the issuerof this PDS, will no longer be a subsidiaryof the Bank or a related body corporate ofthe Bank or its subsidiaries and anyreferences in this PDS to the relationshipbetween Colonial First State (on the onehand) and the Bank and its subsidiaries(on the other hand) is modified by thisdisclosure. Following Completion the Bankwill retain an indirect 45% interest inColonial First State.Your adviser may belong to a related partyof the Bank, responsible entity or trustee,such as Commonwealth Financial PlanningABN 65 003 900 169 AFS Licence 231139.Details of these relationships should bedisclosed by your adviser in documentssuch as the Financial Services Guide whichyour adviser must give you. SuperTraceEligible Rollover Fund (SuperTrace) ABN73 703 878 235 is the nominated eligiblerollover fund of Essential Super.SuperTrace receives and retains fees inconnection with those services.For more information on related partytransactions, refer to ‘Managing conflictsof interest’ on page 76.

Managing conflicts of interestColonial First State is a subsidiary of theBank.

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All related party transactions are conductedon arm’s length terms. Accordingly,Colonial First State believes that relatedparties are receiving reasonableremuneration. Any conflict of interest orpotential conflict of interest is managed inaccordance with the Bank’s Conflicts ofInterest Policy.Colonial First State is the trustee andmakes its investment decisions inaccordance with its systems and processesseparately from other members of theBank. The available investments mayinclude securities or other financialproducts issued by members of the Bank.As a result, the Bank’s activities may havean effect on the investments.Colonial First State makes norepresentation as to the futureperformance of any underlyinginvestments held in Essential Super,including those issued by members ofthe Bank.Colonial First State, other members of theBank and their directors and employeesmay hold, buy or sell shares or otherfinancial products included in the optionsin Essential Super. Members of the Bankmay have business relationships (includingjoint ventures) with related parties or anyof the entities included in Essential Super.In addition, members of the Bank mayfrom time to time advise Colonial FirstState in relation to activities unconnectedwith Essential Super.Such relationships and advisory roles mayinclude acting as general financial adviserin respect of, without limitation, corporateadvice, financing, funds management,property and other services.The directors and employees of ColonialFirst State and other members of the Bankmay hold directorships in the companiesheld by the options included in EssentialSuper. Any confidential informationreceived by the Bank and its directors and

employees as a result of the businessrelationships, advisory roles anddirectorships discussed above will not bemade available to Colonial First State.

Interests of the directors ofthe trusteeExecutive directors may receiveremuneration as employees of the Bankor one of its related entities. Non-executivedirectors are also remunerated for theirservices. From time to time, directors mayhold interests in shares or other securitiesissued by the Bank or hold investments inone or more of the funds offered byColonial First State. This Reference guideand it's corresponding PDS has beenauthorised under delegation by ourdirectors.

Policy committeesIf your employer set up your EssentialSuper account on your behalf and you arereceiving SG contributions from thatemployer, you may want to considerestablishing a policy committee.A policy committee provides a way foremployees to enquire about their superfund and for Colonial First State to providefeedback. The policy committee mayconsider:

the investment strategy and performanceof the fundthe operation of the fundemployees’ information requirementsenquiries and complaints.

Does your workplace need a policycommittee?The Superannuation Industry (Supervision)Act 1993 (SIS) requires Colonial First Stateto take all reasonable steps to ensure thata policy committee is established if:

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the employer’s super plan consists of 50or more employees, orthe plan has between five and 49employees and a written request isreceived from at least five employees.Such requests should be forwarded [email protected]

A policy committee must consist of anequal number of employee and employerrepresentatives.Employee representativeAn employee representative under SIS isnominated by:

the employees of the plan, ora trade union, or other organisation,representing the interests of thoseemployees of the plan.

Employer representativeAn employer representative under SIS isnominated by:

the employer or employers of theemployees in the plan, oran organisation representing theinterests of the employeror those employers.

For further information, contact us on13 4074.

Anti-Money Laundering andCounter-Terrorism FinancinglawsWe are required to comply with these laws,including the need to establish youridentity (and, if relevant, the identity ofother persons associated with youraccount). Instructions for completing theidentification process are included with theapplication forms.Additionally, from time to time, we mayrequire additional information to assist withthis process. We may be required to reportinformation about you to the relevant

authorities. We may not be able to tell youwhen this occurs. We may not be able totransact with you or other persons.This may include delaying, blocking,freezing or refusing to process atransaction or ceasing to provide you witha product or service. This may impact onyour investment and could result in a lossof income and principal invested.

Terms and conditionsThe NetBank terms and conditions willapply when you open an account with us.You can find them online atcommbank.com.au/netbank

When you give us instructions by phoneor electronically or when you accessNetBank, the following terms andconditions will also apply.It’s important you read them carefullybefore you give us instructions, so youunderstand how they will affectyour transactions.Limitation of liability

All other representations and warrantiesrelating to these services are excludedexcept for any term that is implied bylaw, which is included in these terms andconditions. If we breach a term, we’reonly responsible for resupplying theservice or paying the reasonable cost ofhaving the service provided again, unlesswe’re negligent or fraudulent. However,our responsibility may be lessened if youwere also partly responsible for the loss.We’re not responsible for any money youlose when you send informationelectronically, by phone or NetBank.You agree that we won’t be responsiblefor any loss if we can’t transact with youor other people for legal or other reasonsat our discretion. This may includedelaying, blocking, freezing or refusingto process a transaction, or no longerproviding you with a product or service.

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mailto:[email protected].

https://www.commbank.com.au/personal/online-banking/netbank.html

You agree to use these services in linewith the terms and conditions and yourother legal obligations.You agree that we are not responsiblefor liabilities, claims, losses or costs thathappen if we act on any communicationwe get from you or someone using yourclient number and password, that we getby phone or electronically or on NetBankabout your account or investments.

Using phone and electroniccommunicationsSecurity of phone andelectronic requests

We have systems to reduce the risk offraud. However, if someoneimpersonating you contacts us andchanges your account details or makesa withdrawal, we may argue that we’renot liable for your losses, as we actedon instructions that you seemedto authorise.All our customers can communicate withus by phone and electronically. If youdon’t want us to accept any futureinstructions over the phone orelectronically, let us know by sending usan original signed request.After we’ve received your request, we’llblock access to your account for phoneand electronic instructions by the secondbusiness day. Until then, these terms andconditions for phone, and electroniccommunications will still apply toyour account.

Information received by phoneor electronically

If we receive information over the phoneor electronically that doesn't matchdetails we have for your account, wewon’t go ahead with the request.We won’t process a request if theinstructions we receive are incompleteor illegible or appear to contain errors.

We can change or cancel these terms forphone and electronic communicationsas long as we tell you in writing 14 daysbefore we change them.Apart from these terms and conditions,we may occasionally have otherconditions for receiving instructions.We’ll let you know if they affect you or your request.If you don’t accept changes to theseterms, you can stop instructing us byphone or electronically by providing uswith an original signed request.

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Call us on 13 4074

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Visit commbank.com.au/super

Things you should know: Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFS) is the issuer of interests in Commonwealth Essential Super ABN 56 601 925 435 (Essential Super) and is a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 (Bank). This document may include general financial product advice but does not consider your individual objectives, financial circumstances or needs. You should read the Product Disclosure Statement (PDS) and the Reference Guide for Essential Super carefully and consider whether the information is appropriate for you before making any decision regarding this product. Download the PDS and Reference Guide at commbank.com.au/essentialsuper-documents or call us on 13 4074 for a copy. The Bank and its subsidiaries do not guarantee the performance of Essential Super and an investment in this product is subject to risk, loss of income and capital invested. An investment in Essential Super is via a superannuation trust and is therefore not an investment in, deposit with or other liability of the Bank or its subsidiaries. Where we mention `we’, `us’ or `our’, we mean CFS. 26929/FS5342/1020

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