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Make an impact on your superTake control of your financial future

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*Source: ASFA Superannuation account balances by age and gender report, October 2017.† Investment returns are not guaranteed.

Combine your super Do you have more than one super account? Don’t worry, you’re not alone! The good news is that combining multiple super accounts into one is a lot easier than it used to be. See page 3 to learn the benefits of having one fund.

Grow your superThere are plenty of ways to boost your super, like adding a bit extra each week or tracking down your lost super. And the earlier you get started, the better off you may be as your money has more time to earn investment returns and grow†. See pages 4 to 8 to learn more.

Make time for ‘me time’Set aside just one hour a week to concentrate on your finances and you’ll be surprised how much you can achieve. You can start with simple actions and gradually build up to more complex tasks. See page 10 to learn more.

To do:

On average, women retire with almost half the super of men*. But it doesn’t have to be like that.There are little things you can do now which can make a big difference to your financial future. Like combining multiple super accounts, setting up regular extra payments to your account, and sticking with a top-performing fund. And the earlier you get started, the better set up for retirement you’ll be.

A little can go a long wayWe believe it’s possible for women to make an impact on their retirement outcomes by taking control of their finances with some simple actions:

The benefit of having one account

GraceAccounts: 3 Fees: $1,912 Super: $150,000

CherylAccounts: 1 Fees: $1,077 Super: $150,000

$835 more in fees

$835 less in fees

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Combine and saveIf you’ve ever changed your name, address or job, chances are you may have more than one super account.

By consolidating your super, you put all of it in one place and with one super fund. That means only a single set of fees, plus easier account management.

Before you do, get the full picture. Ask your super provider for information about any fees or charges that may apply, or any other information about the effect this transfer may have on your benefits, such as insurance cover, before making a decision.

Source: SuperRatings Fundamentals 31 December 2019. Comparisons are for admin and investment fees over a year for the AustralianSuper Balanced option, the average super fund and the average retail (Master Trust). The AustralianSuper example is based on the investment fee for the Balanced option for FY 2018/19 and the admin fee effective from 1 April 2020. Other fees and costs may apply. Fees differ for Choice Income (our account based pension). See australiansuper.com/fees for full details of all fees and costs.

To learn more about consolidating super visit australiansuper.com/combine

*You should consider your debt levels, contribution caps that may apply and tax issues before adding to your super.

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Grow your superWhether you're self-employed or a wage or salary earner, there are plenty of ways to boost your super, like adding a bit extra each week or tracking down lost super. And the earlier you get started, the better off you may be as your money has more time to earn investment returns and grow*.

Add a little extra before taxIf you can afford to take home a little less salary each week*, you could think about making regular payments from your pre-tax salary into your super account.

This is often referred to as ‘salary sacrificing’ because you’re choosing to ‘sacrifice’ some of your salary in the short term for potential long-term gains.

Salary sacrificing can be worth exploring if you pay more than 15% in income tax. It can help you save money in two ways.

1. Save on taxAny pre-tax money you pay into your super is taxed at 15%, whereas any money you take home will be taxed at your regular income tax rate, which could be as high as 47%.

2. Reduce your taxable income By putting more money into your super and taking home less, you’ll reduce your overall taxable income which could result in even more savings at tax time.

See the difference a little extra each week can makeUse our super projection calculator to work out how much money you could get in retirement and the difference adding a few extra dollars to your super could make to your retirement. Visit australiansuper.com/ProjectionCalculator

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Jenny's tax saving is $702 in the first year, and her take home pay is only reduced by $29 a week

* Tax rates based on 2019/20 financial year and includes Medicare levy. Source: AustralianSuper calculations

No salary sacrifice With salary sacrifice

Salary $100,000 $100,000

Super contributions (before tax) $9,500 $12,100

Income tax* $25,717 $24,625

Contributions tax $1,425 $1,815

Take home pay $74,283 $72,775

Total tax payable $27,142 $26,440

This example is for illustration purposes only. SG contributions at 9.5% increasing to 12% by 2025. Investment returns based on 6.5% p.a. after fees and taxes. $75,000 in assets outside super, for Centrelink purposes. All figures calculated in today’s dollars and rounded to whole numbers. Tax calculations are for the 2019/20 financial year. Administration fee deducted from account balances of $117 per annum Nominal insurance premium of $400 per annum. Performance is not guaranteed. Source: AustralianSuper Super Projections Calculator

Jenny boosted her superBy adding a little extra through salary sacrifice, Jenny can expect about $115,000 more than if she hadn’t. $613,478

lasts until age 87

$659,763lasts until

age 89

$844,904lasts until age 94

Making an impact on your superBy adding a little extra to your super each week, you can make a big difference to your final super balance.

Jenny’s storyJenny is 35 years old, has an annual income of $100,000 and has $48,874 in super. She plans to retire at age 67 so she decides to add an extra $2,600 a year ($50 a week) to super via salary sacrifice.

The following table shows how salary sacrifice changes how she's taxed and her take home pay.

$729,191lasts until

age 91

No extra contributions

Salary sacrifice of $20 pw

Salary sacrifice of $50 pw

Salary sacrifice of $100 pw

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Track down your lost superIf you’re an AustralianSuper member, you can combine multiple accounts in your online account or the mobile app. Visit australiansuper.com/LostSuper to learn how.

Government co-contributions Depending on how much you earn, and if you make after-tax contributions to your super account, the government also makes a contribution (called a co-contribution) up to a maximum amount of $500. The co-contribution is tax free and isn't taxed when it's deposited into, or withdrawn, from your super account. Visit australiansuper.com/CoContribution to learn more.

Low Income Superannuation Tax OffsetIf you earn less than $37,000 a year, you’ll receive a Low Income Superannuation Tax Offset from the government of up to $500. This is designed to offset the 15% tax you pay on your before-tax contributions. This can help boost your super balance if you decrease your working hours or take parental leave during the year for instance.

Adding extra to super after tax Another way to add to your super is from your take-home pay. You can make regular or once-off after-tax payments up to $25,000 a year. You can also make additional contributions up to $100,000 a year but this isn’t tax-deductible. Visit australiansuper.com/contribute to learn more.

Catching up on after-tax contributions If you don’t use up the full $25,000 after-tax contributions limit, you can carry forward any unused portion of the cap into the next financial year (for up to five years). However, you can only do this if your super balance is less than $500,000 at the end of the previous financial year.

Share and saveIf you earn less than $40,000 a year and have a spouse, your spouse could receive a tax deduction if they make after-tax payments into your super account. It’s a great way to build your savings together, while saving tax at the same time. Your spouse can contribute up to $3,000 a year and receive a tax offset of up to $540, depending on your income.

$ %$ %

SUPER

June

Other ways to add more

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Case study: Catching up on after-tax contributionsFiona is self-employed and wants to boost her super by making after-tax contributions and claiming a tax deduction.

In the first two years of business, Fiona had uneven cashflow. In the 2018/19 financial year she was able to make a $10,000 contribution to super. This meant she was able to carry forward $15,000 into this financial year (2019/20), bringing her total limit to $40,000.

Fiona has already contributed another $10,000 this financial year (2019/20) and can claim a tax deduction for that amount. But as her business is currently going through a difficult period, she isn’t prepared to add any more to super for the meantime.

Fiona can still carry forward the remaining $30,000 of the cap through to the next financial year. This means that she’ll be able to contribute up to $55,000 in the 2020/2021 financial year if things improve.

The bottom line Super is invested in a range of different things such as shares and property

and uses the power of compounding to help it grow over your working life.

Even modest contributions to super early on in your career can make a big difference to money you end up with in retirement.

Super might be the biggest investment you have in your lifetime after a house. So it makes sense to be interested in how it’s tracking.

Visit australiansuper.com/grow

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Super for the self-employedWhen you’re starting and growing a small business, contributing to your own super can easily slip behind a host of other priorities. Afterall, retirement is years away, right?

But adding to your super now could make a big difference to your financial future – and even small amounts help. Plus, super can be a tax-friendly form of saving.

Claiming tax deductions for adding money to superIf you were working for someone else, your super contributions would be paid by your employer. When you’re running your own business, it's up to you whether you add to your super.

If you're under 65, or between 65-74 and meet the Government’s work test, you can choose to make after-tax contributions to your super directly from your bank account. For any after-tax contributions you can claim a tax deduction on up to $25,000 per year. Just make sure you notify your super fund that you plan to claim a tax deduction before you lodge your income tax return. It's in your tax return that you’ll make the claim for a tax deduction for any after-tax contributions to your super.

Small business Capital Gains Tax (CGT) capRather than saving for retirement during their working lives, many small business owners instead use surplus funds to grow their business. The CGT cap exists to allow small business owners to make large contributions into super once business assets have been sold so they may be eligible for tax concessions on capital gains.

Investing the proceeds of the sale of your business into super could help your savings to grow faster and help meet your retirement goals. This is because the rate of return on investing in super may be higher after-tax than outside of super. Investment earnings in super are taxed at 15%, whereas earnings from non-super investments are generally taxed at your marginal tax rate (plus Medicare levy) which could be up to 47%.

To be eligible to use the CGT cap, you must first be eligible for a small business CGT tax concession. The eligibility rules are complex and specialist advice from a registered tax agent should be obtained to understand the rules to your situation.

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Check your insuranceProtecting your income and the future of those who matter to you is important.

Money when it mattersMost super funds offer automatic insurance to help you protect your future income and the future of the people who matter to you. But how do you know if the type and level of cover you have is right for you?

Your cover choicesYou can choose the types of cover you need:› Death cover (also known as life insurance) provides your beneficiaries with

a lump sum payout if you pass away.› Total & Permanent Disablement (TPD) cover can provide you with a lump

sum payout to help out if you become totally and permanently disabled and can no longer work.

› Income Protection can provide you with access to a monthly income if you become ill or injured and are temporarily unable to work.

To learn more visit australiansuper.com/insurance

How much cover do you need?As your life changes, your insurance needs change, so you might find yourself with too much, too little or the wrong type of cover. Your cover might need to change if:› you get married or divorced› you add to your family (including stepchildren) or your adult children move out› you start or end a de-facto relationship› you take out a mortgage to purchase or build your main home in Australia› you change jobs or get a pay rise.

To learn more, read our Insurance in your super guide at australiansuper.com/InsuranceGuide

Calculate how much you needTo work out how much cover you need, visit australiansuper.com/InsuranceCalculator

Set a budget and track your spending If you’re not sure where your hard-earned cash is going each week, track your spending. The MoneySmart Budget Planner calculator is a great place to start and can help you get a clear picture of your finances. Go to moneysmart.gov.au

My budget

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* You should ask your super provider for information about any fees or charges that may apply, or any other information about the effect this transfer may have on your benefits, such as insurance cover, before making a decision.

Search for lost superIf you’re an AustralianSuper member, you can combine multiple accounts.* Visit australiansuper.com/LostSuper to learn how.

Review your insurance coverFinding the right level of insurance is important. It’s all about making sure you have the right amount of cover for your needs – and not paying for cover you don’t need. The type of work you do can also make a difference. Our insurance calculator can help you work out how much cover you need. Visit australiansuper.com/InsuranceCalculator

Make sure your details are up to dateCheck if your super fund has your Tax File Number (TFN) and that your personal details are up to date. Providing your TFN and ensuring your details are up to date ensures your super won’t get lost if you change jobs and that you’re not paying too much tax.

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Make time for ‘me time’If most of your week is spent looking after others, it’s time to think about looking after yourself.

Setting aside just one hour a week to concentrate on your finances can make all the difference. Make a start with simple actions and gradually build up to more complex tasks. You’ll be surprised how much you can achieve.

Here are a few ideas to get you started:

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* The financial advice you receive will be provided under the Australian Financial Services Licence held by a third party and is therefore not the responsibility of AustralianSuper. With your approval a fee may be charged if a Statement of Advice is produced. Please refer to the Important information at the end of this document for further details.

† Some conditions apply.

Here to helpWe have a mix of advice options to help you every step of the way.

Information at your fingertipsFor a range of resources to help you make the most of your super, including fact sheets, brochures and forms, visit australiansuper.com

CalculatorsOur online calculators are a good first step to help your financial decision-making and planning for a better future.

Go to australiansuper.com/calculators

WebinarsOur free educational webinars are conducted all year round. Hear from our experts with the latest valuable information to help you make informed decisions about your super.

Go to australiansuper.com/webinars

Comprehensive*For broader personal advice, meeting face-to-face with an adviser can help when you want a detailed financial plan and have a number of financial matters to think about. And where available, you may have the option to meet with an adviser using a secure video link from the comfort of your own home.

How much it costsIn most instances, there is no cost for your first consultation. If necessary, a detailed financial plan called a Statement of Advice (SOA), can be provided on a no-commission, once off fee basis. A fee is negotiated between you and your financial adviser, but you can choose to pay for advice from your AustralianSuper account†.

Arrange an appointment at australiansuper.com/find-an-adviser

This brochure was issued in May 2020 by AustralianSuper Pty Ltd ABN 94 006 457 987 AFSL 233788, the Trustee of AustralianSuper ABN 65 714 394 898. The information may be general financial advice which doesn’t take into account your personal objectives, situation or needs. Investment returns are not guaranteed. The case study is provided for illustration purposes only and isn’t a representation of the actual benefits that may be received or fees and costs that may be incurred. Past performance is not a reliable indicator of future returns. Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement available at australiansuper.com/pds or by calling 1300 300 273.

OUTSTANDING VALUE

NOITAUNNAREPUS

20192019

Joining is easyNot a member? Joining online takes less than 15 minutes. Become a member and start saving for a brighter future today. Go to australiansuper.com/member-join

Readers Digest Most Trusted Brands – Superannuation category winner for eight years running 2013–2020, according to research conducted by independent research agency Catalyst Research.

Take control of your financial future

There are things you can do now, which could make a big difference to your financial future. And the earlier you get started, the better set up for retirement you'll be.

Let’s make a plan

Budget & cashflow 1 Point 3 Points Score

1 Do you know your full financial situation? No Yes

2 Do you have a budget that you stick to? No Yes

3 Do you know your spending habits, spend wisely and know what your triggers are? No Yes

4 Do you avoid lifestyle debt at all costs? No Yes

Super 1 Point 3 Points Score

5 Do you have multiple super funds? Yes No

6 Do you know the benefits of consolidating your super into one fund? No Yes

7 Do you know what your super is invested in? No Yes

8 Do you know you can purchase tax-effective insurance through super? No Yes

This questionnaire can help you identify some actions to take that could improve your financial future.It will take just a few minutes to complete and will help you evaluate where you are at and where you might need some help.

page 1 of 2page 1 of 2

This document was issued in May 2020 by AustralianSuper Pty Ltd ABN 94 006 457 987 AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898 and may contain information that is general in nature and that does not take into account your personal objectives, situation or needs. Before making a decision about AustralianSuper, consider your financial requirements and read the Product Disclosure Statement, available at australiansuper.com/pds or by calling 1300 300 273.

*The financial advice you receive will be provided under the Australian Financial Services licence held by a third party and not by AustralianSuper Pty Ltd and therefore is not the responsibility of AustralianSuper Pty Ltd. Some personal advice may attract a fee, which would be outlined before any work is completed and is subject to your agreement. With your approval, the fee for advice relating to your AustralianSuper account(s) can be deducted from your AustralianSuper account.

page 2 of 2

Act nowScore 13–17It sounds like you have a few questions you’d like answered, so it could be a great time to review your financial strategy. AustralianSuper’s online resources can help with a range of topics like contributing to super, investing your super, sorting out your insurances and working towards your retirement goals. A professional adviser* can also help when you want a tailored, comprehensive financial plan and have several financial matters to think about.

Score 18–25You seem to have many aspects of your financial health in good shape but could still benefit from a review. A professional adviser* can help when you want a tailored, comprehensive financial plan. They can highlight new opportunities and strategies you may not have considered, to help put you in a better financial position through all market conditions.

Score 26+You may well be on track to a secure financial future as you seem to have a broad understanding of financial strategies and confidence about your financial plans. But, if you’d like to ensure your plan will help you achieve your long-term goals, a professional adviser* can help make sure you’re on the right path.

Insurance 1 Point 3 Points Score

9Would your family be able to maintain its lifestyle and pay off debts if you were to die or suffer a serious disability?

No Yes

10Do you have money set aside for a rainy day, or in case you or your partner is made redundant?

No Yes

11If you were unable to work for three months or longer because of an accident or illness, could you meet your living expenses without a regular income?

No Yes

Planning ahead 1 Point 3 Points Score

12 When it comes to retirement which statement best describes you?

I haven’t given much thought to retirement or how I’ll fund it.

I’m looking forward to retiring; I know I’ll be able to afford an enjoyable lifestyle.

13 Do you know how much you’ll need to have invested to enjoy the same lifestyle in retirement as you do now? No Yes

Total score

Make an impact on your superTo find an adviser,* go to australiansuper.com/find-an-adviser To discover some simple steps to help you take control of your super, go to australiansuper.com/BusinessChicks