Super Member Guide...1300 130 780 lucrf.com.au [email protected] PO Box 211 North Melbourne VIC...

1300 130 780

lucrf.com.au [email protected]

PO Box 211 North Melbourne VIC 3051

Super Member Guide Additional Information

Super Member Guide Additional Information 1 July 2020

The information in this document forms part of the Super Member Guide – Product Disclosure Statement. Issued 1 July 2020 for the Labour Union Co-operative Retirement Fund (LUCRF Super) USI LUC0001AU ABN 26 382 680 883 by the Trustee of the Fund, L.U.C.R.F Pty Ltd ABN 18 005 502 090 AFSL 258481.

You should read the information in this document as well as the relevant Super Member Guide – Product Disclosure Statement (PDS), the Insurance Guide, the Investments Guide and the Fees and Costs booklet before making a decision to invest. All documents are available at lucrf.com.au or by calling 1300 130 780.

The information in this document is general only and does not take into account your personal financial situation, objectives or needs. It is essential that you read the PDS and consider obtaining financial advice tailored to your own circumstances before making a decision about the Fund.

Ratings (awards) are only one factor to be taken into account when deciding whether to join LUCRF Super. Visit lucrf.com.au or call 1300 130 780 to find out more. The Trustee holds Australian Financial Services Licence No. 258481 which authorises it to provide personal financial advice.

This Super Member Guide – Additional Information, the PDS, the Insurance Guide, the Investments Guide and the Fees and Costs booklet do not take the place of the Trust Deed, which is a legal document governing the operation of the Fund. The Trust Deed is binding on the Trustee, all contributing employers and all members of the Fund. A copy of the Trust Deed and Rules is available at lucrf.com.au.

Information contained in this document and the PDS is current at the date of preparation.

Changes and updatesWhere advance notice is not required or is otherwise impossible, information on changes will be provided as soon as practicable following the change. The most up-to-date copy of this document is available by contacting LUCRF Super on 1300 130 780 or at [email protected], or by visiting lucrf.com.au.

Contact us 1300 130 780

lucrf.com.au

2 | Super Member Guide – Additional Information | 1 July 2020

What’s insideAbout LUCRF Super 4

How super works 5

Contributing to your super 6

Accessing your super 10

Rolling over your super 13

Nominating beneficiaries 14

How super is taxed 16

How to open an account 19

For over forty years, we’ve put our members first. We exist to help them achieve financial dignity, now and in retirement.

Super Member Guide – Additional Information | 1 July 2020 | 3

About LUCRF Super

LUCRF Super (the Labour Union Co-operative Retirement Fund) was established in 1978 as Australia’s first industry superannuation fund. Our creation helped to expand Australia’s superannuation system beyond a privileged few to every worker.

Today, we look after approximately 126,000 members and 23,000 employers. We have more than $6.4 billion in funds under management.

When you join us, you’ll benefit from:

A secure mobile app and online account access

Competitive feesAn award-winning

fund

A friendly, in-house contact centre

Solid long-term investment returns

Flexible insurance cover

A wide range of investment options

Personalised financial advice

Practical information and educational seminars


How super works

Superannuation, or super, is money saved over your working life for your retirement.

The money in your super account includes:

• your employer’s contributions

• your own contributions

• any government contributions you may be eligible for

• any investment earnings that apply.

Your employer is generally required to make Superannuation Guarantee (SG) contributions to your super equal to a percentage of your salary. The current SG rate is 9.5%.

The government also encourages you to add to your super by providing tax savings on contributions, investment earnings, and withdrawals from your account when you’ve reached your preservation age (between 55 and 60, depending on when you were born).

Choice of fundYou’re generally free to choose your super fund, although some workplaces are covered by awards or workplace agreements that specify default funds.

The default account your employer makes payments into must be a MySuper account, like our MySuper Balanced account.

Take LUCRF Super with youLeaving an employer doesn’t mean you have to leave us. Keeping your super in one account throughout your working life means you avoid paying multiple fees to different funds, and helps your super grow faster.

To choose LUCRF Super as your super fund, or to take us with you when you change jobs, complete a Choice of Super Fund Form. You can do this by:

• completing the form online at lucrf.com.au and emailing it to your employer’s pay office

• downloading the form from our website and handing the completed form to your employer’s pay office.

Call us on 1300 130 780 if you need any help.

IMPORTANT

How your super account works

Contributions• Employer and SG contributions• Personal contributions (voluntary)

• Salary sacrifice contributions• Government co-contributions

(if eligible)

• Spouse contributions• Other approved payments• Roll-ins (transfers from other funds)

Net investment returns

Your super balance

Deductions• Fees and other charges• Insurance premiums

(if applicable)

• Government taxes• Withdrawals• Net investment returns

(if negative)

What does LUCRF Super offer? We’re a public offer fund, which means anyone can join. We offer:

• a MySuper Balanced investment option that operates as a default option

• 10 investment choices including single and multiple asset class options

• three pension products:

– a transition to retirement pension – if you wish to ease into retirement

– a retirement pension – if you wish to retire completely – a disability pension – if you’re permanently incapacitated

• flexible insurance

• Personal Plan membership – available if you don’t have a contributing employer, you’re self-employed or you’re the non-working spouse of a LUCRF Super member.


The money your employer puts into your super is a great kick-start to your retirement savings. Making extra contributions while you’re working can lead to a more comfortable retirement.

Contributing to your super

You don’t have to provide us with your tax file number (TFN). However, there are tax implications if you don’t. See the ‘How super is taxed’ section in this guide for more details. We also won’t be able to accept any personal contributions from you without your TFN. This includes contributions made by your spouse on your behalf.

IMPORTANT

Generally, there are two types of contributions that can be made to your super:

Concessional (before-tax) contributionsThese include salary sacrifice contributions or contributions for which a tax deduction is claimed, such as employer SG contributions.

Non-concessional (after-tax) contributionsThese are contributions made from after-tax income such as your take-home pay or other savings you may have.

Types of contributions

Concessional contributions These include employer contributions and those made under a salary sacrifice arrangement. They’re taxed at a rate of 15%.

Employer or SG contributionsUnder the Superannuation Guarantee (SG) legislation, your employer is required to contribute 9.5% of your wages (calculated on your ordinary time earnings) into the super fund of your choice. Some employers are also bound by awards or workplace agreements to pay more than this. These awards or agreements may also specify default funds.

You’re generally eligible for SG payments if you’re over 18 and earn more than $450 per month (before tax).

Salary sacrificeThis is an arrangement with your employer to pay part of your gross (before-tax) salary directly into your super account.

If you’re considering making salary sacrifice contributions, ask your pay office whether:

• your employer allows you to make this type of contribution

• a salary sacrifice arrangement will affect any of your work entitlements, such as bonuses, allowances, leave, severance benefits and income protection insurance.

Be aware that salary sacrifice contributions count towards your total income when determining your eligibility for Centrelink payments and the government super co-contribution.

Learn more about salary sacrifice at lucrf.com.au. To start salary sacrifice contributions, complete the Request for Payroll Deduction Form, available on our website or by calling 1300 130 780, and hand it to your pay office.

Low income superannuation tax offset (LISTO)If you’re a low-income earner, the government will refund or offset the tax you paid on your before-tax contributions by making a payment back into your super.

To be eligible:

• your adjusted taxable income must be $37,000 or less per year

• concessional (before-tax) contributions must be made into your super account by 30 June

• you must not have been a temporary resident of Australia for any part of the financial year

• you need to make sure we have your TFN. If we don’t have your TFN, we won’t be able to accept a LISTO payment on your behalf.

The maximum payment you can receive in a financial year is $500. Visit ato.gov.au for more information.

Splitting contributions with your spouseConcessional contributions may be split between you and your spouse, as long as you’re both LUCRF Super members. A ‘spouse’ is defined as someone (of any gender) who:

• you’re in a relationship with that has been registered under a prescribed state or territory law, or

• although not legally married to you, lives with you on a genuine domestic basis in a relationship as a couple.



You can split up to 85% of your concessional contributions each financial year, up to the concessional contributions cap (see page 8). You can only make one contribution split per financial year.

Your spouse must either be:

• under their preservation age (whether they’re working or not), or

• between their preservation age and 65, and not retired.

To make a contribution split with your spouse, complete the Contributions Splitting Form available by calling us. You must lodge your application with us either:

• in the financial year immediately after the financial year in which the contributions were made, or

• in the financial year the contributions were made only if you close your account before the end of that financial year.

Non-concessional contributionsThese are generally personal contributions made into your super from after-tax income. Non-concessional contributions aren’t subject to the 15% contributions tax. They’re tax-free when you eventually withdraw them from your super regardless of your age.

The government super co-contribution If you’re a low-income earner, the government will contribute up to 50 cents for every dollar you put into your super, to a maximum of $500 per year. To receive the full co-contribution amount for the 2020/21 financial year, you must earn a total gross income of less than $39,837 in that year. If you earn more than this, the co-contribution gradually reduces and stops altogether if your total gross income exceeds $54,837 for that year.

Eligibility for the government super co-contribution

To receive the government super co-contribution, you must:

• be an Australian permanent resident under 71

• earn 10% or more of your total income from eligible employment, from running a business, or a combination of both

• earn a total gross income of less than $54,837 per year

• have given your TFN to your super fund

• make a personal (after-tax) contribution into your super account by 30 June

• lodge an income tax return.

Contributions to a spouse accountYou can help your spouse build their super by making extra contributions into a LUCRF Super account on their behalf.

If you make a spouse contribution on behalf of a non-working or low-income-earning spouse, you could qualify for an 18% tax rebate. The maximum rebate per financial year is capped at $540 when a spouse contributes $3,000 or more.

To be eligible for a spouse rebate, your spouse must earn an assessable income (plus reportable fringe benefits and reportable employer super contributions) of less than $40,000 for the financial year in which the spouse contribution is made. Other conditions apply. Visit ato.gov.au for more details.

If your spouse already has an account with us, your spouse contribution(s) can be accepted immediately. If not, they’ll need to open an account before any spouse contributions can be accepted.

For the definition of ‘spouse’, see the ‘Splitting contributions with your spouse’ section on page 6.

Downsizing contributions into your superIf you’re 65 or over, you can make a non-concessional (after-tax) contribution into your super account from the sale proceeds of your family home (up to $300,000 for individuals or up to $600,000 for couples). Your downsizer contribution won’t count towards your contributions caps (see page 8) or be affected by the total superannuation balance test in the year you make it. However, there’s still a transfer balance cap of $1.6 million that you can move into retirement phase. Additional eligibility criteria apply – visit ato.gov.au for details.

Contribution limits and conditionsContribution limits apply to both before and after-tax contributions.

Contribution limits are for each person, not each super account. They apply to all of your super accounts, not just those held with us.

The work testIf you’re aged 67 to 74, you must also satisfy a work test before you can make any voluntary super contributions. This means you must work a minimum of 40 hours of paid employment in a consecutive 30-day period within the financial year of payment.

Under the work test exemption (effective from 1 July 2019), you can make voluntary contributions for an additional 12-month period from the end of the financial year in which you last met the work test, as long as:

• your total super balance is below $300,000 at the end of the previous financial year

• you satisfied the work test in the previous financial year

• you have not previously relied on the work test exemption.

Limits apply to the amount of concessional contributions you can contribute into your super in a financial year. See ‘Contribution limits and conditions’ in this section for more information.


Concessional (before-tax) contribution limitsThe concessional contributions cap is $25,000 per year, regardless of your age.

A 15% tax is applied to concessional contributions. However, if your total adjusted income, including concessional contributions, is more than $250,000 per year, you’re considered a high-income earner and an additional 15% tax will apply. This is known as the ‘Division 293 tax’.

If you make contributions to your super over the concessional contributions limit, the excess amount will be included in your assessable income for the financial year and taxed at your marginal tax rate. You’ll also be charged interest by the government for the delay in receiving the tax from you.

A tax offset that reduces your tax liability applies to excess contributions. This accounts for the 15% tax on contributions that applied when the contributions were paid to your account.

You can elect to have up to 85% of the excess concessional contributions refunded back to you. The released amount will not count towards your non-concessional contributions cap.

Non-concessional (after-tax) contribution limitsThe non-concessional contributions cap is $100,000 per year. You cannot make non-concessional contributions if you’re over 75, or if your total super balance is $1.6 million or more. If you do, they’ll be treated as excess contributions subject to extra tax.

If you’re under 65

You can contribute up to $300,000 in total over a three-year period, depending on your total super balance (on 30 June of the previous financial year). This is known as the ‘bring-forward’ rule. Visit ato.gov.au for more details.

If you’re 65 to 74

You can contribute up to $100,000 each year, provided you passed the work test (see page 7) in that financial year. There’s no bring-forward option if you’re 65 or over.

What happens if you exceed your contribution limits?Excess contributions made over the contribution limits will be subject to extra tax (see the ‘How super is taxed’ section on page 6 for more information).

The non-concessional contributions cap is calculated at four times the level of the (indexed) concessional contributions cap.


You can ‘carry-forward’ any unused amount of your concessional contributions cap from previous years (on a rolling basis for five years), provided your super account balance at the end of the previous financial year was less than $500,000.

Amounts carried forward that haven’t been used after five years will expire. The first financial year in which you can access unused concessional contributions (accumulated since 1 July 2018) is 2019/20.

Handy tip

For more information about concessional and non-concessional contributions, visit the Australian Taxation Office (ATO) website at ato.gov.au.

Handy tip

Important: As at 1 July 2020, a bill currently before Federal Parliament contains a proposed change to the bring-forward rule to also apply to those aged 65 and 66. If it passes, it’s likely to be backdated to 1 July 2020, and details will be published at lucrf.com.au.



Can you make a contribution?

Contribution typeYour age

Under 65 65-66 67-69 70-74 75+

Concessional (employer SG)

Concessional (salary sacrifice and contributions by self-employed members)

Yes, if you meet the work test#

Yes, if you meet the work test#

Non-concessional*

Yes, if you’re employed and meet

the work test#

Yes, if you’re employed and meet

the work test#

Non-concessional (proceeds of downsizing)

Yes, if you meet additional criteria^




Government co-contributions

Yes, if you’re 70 or under as at

30 June for the financial year of your personal contribution

# To satisfy the work test, you must work a minimum of 40 hours of paid employment in a consecutive 30-day period within the financial year of payment. See page 7 for details.^ Visit our website or ato.gov.au for details of eligibility criteria.

* For a spouse contribution, your spouse must be under 65 years old (or meet the work test or work test exemption if they’re aged 65 to 69). As at 1 July 2020, a bill currently before Federal Parliament contains a proposed change to the maximum age for spouse contributions to increase from 69 to 74. The work test will not apply if a spouse is aged 65 or 66, but it will apply if they’re aged 67 to 74.

You can make personal contributions into your account by:

1. BPAY®BPAY is a quick and easy way to make personal contributions online, or by phone, directly into your account at any time.

When making a contribution by BPAY, enter the biller code and your Customer Reference Number (CRN). Your CRN can be obtained from your online account, your annual statement, or by calling us.

Biller Code: 484 469 BPAY CRN: (contact us if you don’t know your CRN)

2. Payroll deductionComplete the Request for Payroll Deduction Form, available at lucrf.com.au or by calling 1300 130 780, and hand it to your pay office.

How to make personal contributions

Note: There’s a $100,000 maximum BPAY transaction value. Payments may take up to four days’ processing time and will be effective the day the funds are received in our bank account.

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


Accessing your super

As super is money saved for your retirement, there are rules around when you can access it.

What’s your preservation age?From 1 July 1999, all contributions and fund earnings, regardless of their source, are preserved within the super system until you retire. Under government regulations, you can only withdraw your super once you reach a minimum age (called your ‘preservation age’) and you meet a condition of release. Your preservation age depends on your date of birth as outlined below.

Benefit typesYour super is classified as one or more of the following benefit types. These classifications may impact your ability to access your super before you reach your preservation age.

Preserved benefitsPreserved benefits must generally be kept in a super fund until after you’ve reached your preservation age and you’ve retired.

Restricted non-preserved benefits Contributions that went into super before 1 July 1999 may be classified as restricted non-preserved benefits. This means that those benefits can only be paid out to you once you stop working for the organisation that made those contributions, or meet a condition of release.

Unrestricted non-preserved benefitsUnrestricted non-preserved benefits can be paid out to you on request, regardless of your age, employment situation or financial position. These are generally benefits that you’ve already become entitled to receive but have voluntarily decided to keep within the super system.

When can you access your super?You can have your benefit paid directly to you if you meet one or more of the following criteria:

• You’re 65 or over.

• You’re 60 to 64 and have ceased a gainful employment arrangement since turning 60.

• You’ve reached your preservation age, have permanently retired from the workforce and you don’t intend to work again for 10 or more hours per week.

• The super you’d like to claim is classified as an unrestricted non-preserved benefit.

• You meet the criteria for early release (outlined later in this section).

If you believe you meet one (or more) of the above criteria and would like to make a claim, call us on 1300 130 780.

The First Home Super Saver SchemeIf you’re a first-home buyer, you can apply to withdraw voluntary contributions you’ve made to your super after 1 July 2017 to use as a home deposit. You can withdraw up to $15,000 per year, and $30,000 in total. The contributions must be made within your existing annual concessional and non-concessional contributions caps.

To withdraw these contributions, and their associated earnings, for a first-home deposit, you’ll need to make a request to the tax commissioner. Eligibility criteria apply. Visit ato.gov.au for more information.

Preservation age by year of birth

Date of birth Preservation age

Before 1 July 1960 55

1 July 1960 – 30 June 1961 56

1 July 1961 – 30 June 1962 57

1 July 1962 – 30 June 1963 58

1 July 1963 – 30 June 1964 59

After 30 June 1964 60

If you’ve chosen to invest your super in multiple investment options, you can specify which option your super payments are withdrawn from. Call us on 1300 130 780 for more information.

Handy tip


Accessing your super earlyThere are some exceptional circumstances under which you can apply for the early release of the preserved and restricted non-preserved parts of your benefit. These are outlined here.

You have a small amount of super If you have less than $200 in your super account and you’re no longer employed by the organisation which made those contributions, you can apply to have your benefit paid out.

Severe financial hardship

If you’re under preservation age

You’ll need to have been receiving a qualifying Centrelink income support payment for a period of 26 continuous weeks. You’ll also need to provide sufficient documentary evidence to support your claim that you’re unable to meet reasonable and immediate family living expenses.

If you’re over preservation age

You need to have been receiving a qualifying Centrelink income support payment for a combined period of 39 weeks after reaching your preservation age. In addition, when making your application, you must not be gainfully employed (either full-time or part-time) but not yet fully retired from the workforce.

There are limits to how much and how often you can make a claim due to severe financial hardship. Your benefit payments may also be subject to tax.

Compassionate groundsIn specific circumstances, you can apply to the ATO to have your super benefit, or part of it, released on compassionate grounds. The ATO must be satisfied that your application meets the criteria for early release.

Grounds under which the ATO will consider an application include situations where you or your dependants incur costs for medical treatment, medical transport, funeral assistance, palliative care, modifications to your house or car due to severe disability, or preventing foreclosure on your mortgage or home. Contact the ATO directly on 131 020 if you have any questions.

Terminal medical conditionYour super benefit may be released early where your life expectancy is 24 months or less. To make a claim, you’ll need to provide us with two medical certificates (one from your general practitioner and one from your treating specialist) stating that your life expectancy is 24 months or less.

Permanent incapacity

Your benefit may be released early if you become permanently incapacitated. You’ll need to submit medical certificates from two legally qualified medical practitioners stating that because of ill health (physical or mental), you’ll never again be in gainful employment for which you’re reasonably qualified by education, training or experience. Note that payment under this condition only allows for the release of money from your super account and doesn’t automatically entitle you to an insurance payout.

Temporary early release of super (COVID-19)If you’ve been financially affected by COVID-19, you may be able to access up to $10,000 in the 2020/21 financial year. You’ll need to apply directly with the ATO between 1 July and 24 September 2020. Visit ato.gov.au for details.

If you’re considering making a claim for the early release of your super due to severe financial hardship, call us on 1300 130 780. We’ll help you work out if you’re eligible and guide you through the process.

IMPORTANT

A different rule applies to terminal illness insurance claims. For details read our Insurance Guide, available at lucrf.com.au or by calling 1300 130 780.

IMPORTANT



Temporary residents departing AustraliaIf you’re a temporary resident who has permanently departed Australia, you’re eligible for the early release of your preserved super under specific circumstances. This is known as a departing Australia superannuation payment (DASP).

You’ll be liable to pay withholding tax at 35% (45% without a TFN) on the taxable component when it’s paid to you.

Your DASP will be subject to 65% tax if:

• you hold or have held a 417 (Working Holiday) or 462 (Work and Holiday) visa (or an associated bridging visa), and had super contributed for you while working under either of these visas

• your DASP is paid to you on or after 1 July 2017.

The 65% rate will apply to your total DASP amount, including any super you may have earned while working under a different visa.

Australian and New Zealand citizens, or permanent residents of Australia who depart the country even on a permanent basis, do not qualify under this criteria. If you move to New Zealand on a permanent basis, you may elect to transfer your whole benefit to a New Zealand KiwiSaver account, provided you satisfy certain conditions.

Applying for a DASP

If your benefit is less than $5,000:

The quickest and easiest way to have your benefit paid is by completing the online application at ato.gov.au. You can also complete an ATO ‘Application for departing Australia superannuation payment (DASP) from a super fund or retirement savings account’ form (NAT 7204), and send it, with certified copies of supporting documentation, to us. The form is available at ato.gov.au. If you need help, call the ATO on 131 020 if you’re in Australia, or +61 2 6216 1111 from overseas.

If your benefit is $5,000 or more:

You’ll need to complete a ‘Certification of Immigration Status and/or request to cancel a Temporary Resident visa’ form (Form 1194) and submit it to the Department of Home Affairs (DHA). The form is available at homeaffairs.gov.au or by calling the DHA on 131 881. The DHA will confirm your eligibility for payment and forward your completed application to us.

Please note that we can only pay your DASP via electronic funds transfer to a valid Australian bank account in your name.

What happens if you don’t claim your DASP?If you don’t claim your super benefit from us within six months of the expiry or cancellation of your temporary visa, we may be required to pay your benefit to the ATO as unclaimed money. In this case, you’ll need to claim any benefit directly from the ATO. While we’re not obliged to issue you with an exit statement if your DASP benefit is transferred to the ATO, you can ask us to send you one.

To claim your benefit from the ATO you can:

• call +61 2 6216 1111 from outside Australia

• call 131 020 if you’re within Australia

• email [email protected]

• visit ato.gov.au.

Email us at [email protected] for details or to obtain the relevant claim form.



Rolling over your super

Rolling over your super into a single account is one of the most important things you can do to grow your super.

If you’ve had more than one job, you may have more than one super account. This means you could be paying more than one set of fees, which can reduce your retirement savings.

Combine your super into LUCRF SuperSimply call us on 1300 130 780 to arrange a rollover of your super over the phone.

Alternatively, complete the Transfer Between Funds Form available at lucrf.com.au and return it to us.

We’ll notify you when we’ve received your money from other super funds.

You’ll need to lodge a separate Transfer Between Funds Form for each super account you’d like to transfer into LUCRF Super.

Before you combine your super accounts, check to see if any insurance will be altered or cancelled as a result of rolling out your super.

Super search consentWith your consent, we can use your TFN to search for any lost, unclaimed or active super accounts you may have. If we find any, we can help you combine it into one LUCRF Super account.

You can provide your consent:

• in writing using the Member Application Form or, if you’re already a member, the Super Search Consent Form available on our website or by calling us

• over the phone (your identity must be confirmed)

• by emailing your details and consent to [email protected]

• by logging in to your online account.

Lost superAny super you have with us is deemed to be ‘lost’ if:

• no contributions or rollovers have been received into your account for 12 continuous months and we’ve never had a current address for you, or we’ve been unable to contact you

• you have not contacted us or accessed your account online

• you haven’t advised us that you wish to stay with us

• you transferred to us from another super fund as a lost member and we haven’t found or been advised of a new address.

If your account balance is less than $6,000, it will be transferred to the ATO. Once your funds are transferred to the ATO, any insurance you had with us will be cancelled.

Inactive, low-balance accountsIf you have a super account that is deemed to be an inactive, low-balance account, your super will be transferred to the ATO.

How do you know if you have an inactive, low-balance account?Your account is an inactive, low-balance account if:

• it has a balance of less than $6,000

• it hasn’t received any rollovers or contributions in 16 months

• there’s no insurance with the account

• you haven’t made any changes to your investment options, insurance coverage or binding beneficiary nominations for 16 months

• you haven’t informed the ATO that you do not want your inactive, low-balance account transferred to them.

You can check your account balance and transactions at any time by logging in to your online account, using our mobile app, or calling us on 1300 130 780.

If you’d like to keep your account with us, you can complete an Inactive Low-balance Account Authorisation Form, available on our website, and send it back to us. We’ll notify the ATO on your behalf.

What happens if your account is transferred to the ATO?Where possible, the ATO will combine the balance of your transferred account into an active account you may have with another super fund. If you don’t have an active account with another fund, your account will be managed by the ATO.


Nominating beneficiaries

It’s important to consider where you’d like your super savings to go in the event of your death. The person or people you choose are called nominated beneficiaries.

You can let us know who you’d like to receive your benefit by making either a non-binding or binding nomination.

All forms are available at lucrf.com.au or by calling 1300 130 780.

Non-binding nominationYou nominate who you’d prefer your death benefit to be paid to and the Trustee will use this as a guide when deciding how your benefit will be distributed. However, your nomination is not legally binding and it may not be reflected in the Trustee’s final decision. The Trustee also takes into consideration your circumstances at the time of your death, and other eligible people that you may not have nominated.

To advise us of your preferred non-binding nomination, please complete the relevant section in the Member Application Form. If you’re already a member, you can make or update your non-binding nomination at lucrf.com.au or by completing a Change of Details Form.

Binding nominationUnder a binding nomination, the Trustee must pay your death benefit to the person(s) you have nominated (subject to superannuation law). Binding nominations are valid for three years. You’ll need to confirm your nomination within this period for it to remain valid. You can change or cancel your binding nomination at any time.

If your nomination is invalid, or hasn’t been received by us when you pass away, your death benefit will be paid at the Trustee’s discretion in accordance with our Trust Deed.

To advise us of your binding nomination, please complete the Binding Death Benefit Nomination Form.

Please note that the Trustee may be legally prevented from paying a nomination if a court order stops them from doing so.

Who can you nominate?You can nominate one or more of your dependants, or your legal personal representative (LPR) as a binding nomination. Your LPR is generally the executor of your estate.

Dependants can include:

• your spouse

• your child (including a child from a same or different-sex relationship, a child of your spouse or from a previous association brought into a relationship, or an adopted child, stepchild or ex-nuptial child)

• a person with whom you have an interdependent relationship

• someone who’s financially dependent on you.

To ensure that your nomination continues to reflect your wishes, it’s important that you update it if there’s a significant change in your personal circumstances (e.g. death, marriage, divorce, or the birth or adoption of a child).

What’s an ‘interdependent relationship’?Two people have an interdependent relationship if they have a close personal relationship (whether or not related by family), and

• they live together, and

• one or each of them provides the other with financial support, and

• one or each of them provides the other with domestic support and personal care.

Two people can also have an interdependent relationship if they have a close personal relationship (whether or not related by family) and don’t fulfil the above criteria because one or both of them suffer from a physical, intellectual or psychiatric disability.

What’s a ‘close personal relationship’?A close personal relationship involves one person’s demonstrated and ongoing commitment to the emotional support and wellbeing of another.

It excludes those who provide domestic support and personal care under an employment contract or a contract for services, or on behalf of another person or organisation such as a government agency, a body corporate, or a benevolent or charitable organisation.

What happens if you don’t make a nomination?Your death benefit will be distributed at the Trustee’s discretion. The Trustee will gather information about your family situation, any dependants, and the provisions in your will, amongst other things, before making a decision.

You can now request for your spouse or child to receive your death benefit as an income stream. The income stream can either be commenced with us or rolled over to another super fund. To be eligible to receive a benefit as an income stream, your dependant must be:

• your spouse

• your child who is under 18

• your child who is between 18 and 25 and financially dependent on you

• your child who has a permanent disability, or

• in an interdependent relationship with you.

IMPORTANT


Nominating beneficiaries

Nominating beneficiaries – a summary

Non-binding nomination Binding nomination

What’s the difference between each type of nomination?

This nomination is only used as a guide for the Trustee when deciding how your death benefit will be distributed. It’s not legally binding.

The Trustee is required to follow your instructions on how you want your death benefit to be distributed.It’s important to ensure that your nomination is valid and those nominated are your dependants or LPR.The nomination form must be signed in the presence of two witnesses who are over 18 and aren’t nominated as beneficiaries. If your binding nomination has not been received by us when you pass away, your death benefit will be paid at the Trustee’s discretion.

How many beneficiaries can you choose?

No limit. No limit, but they must be your dependant(s) or LPR.

Who can you nominate as beneficiaries?

A death benefit can generally only be paid directly to your dependant(s) or LPR.You can nominate someone else (e.g. a friend), but the Trustee must be satisfied that all of your possible dependants are considered.

You can only nominate your dependant(s) or LPR.

How long does your nomination last?

For as long as you’re a member of LUCRF Super, or until you lodge a new nomination.

For three years from the date of your signature, provided your form has been received and accepted by us. We’ll write to you when your nomination is about to expire. If left to expire, your nomination will no longer be binding and will only be used as a guide for the Trustee when distributing your death benefit.

Can you change your choice or nomination?

Yes, at any time. Go to Members Online at lucrf.com.au or complete a Change of Details Form to change your non-binding nominations.

Yes, at any time.You must complete a Binding Death Benefit Nomination Form.


How super is taxed

The impact of tax on your super depends on your individual circumstances. This section provides a general guide to tax rules that currently apply.

It’s important to note that tax law is complex and may change in the future.

To help you make good choices regarding your super, it’s recommended that you seek advice from a professionally qualified and independent financial planner before making any decisions.

When is tax taken out of your super?Under Australian law, tax may be deducted:

• from before-tax contributions received into your account, including:

– super contributions from your employer – any salary sacrifice payments you’ve arranged out of

your before-tax salary – contributions where a tax deduction has been claimed – rollovers from an untaxed fund

• from any investment earnings (if tax is due, it will be deducted prior to declared returns being applied to member accounts)

• when you withdraw a benefit from your super account.

How much tax do you pay on investment earnings?We pay a maximum of 15% tax on our investment earnings. This is deducted from our gross investment earnings and not directly from your super account.

Tax on contributionsSuper contributions fall into two categories:

1. concessional contributions made with before-tax income

2. non-concessional contributions made with after-tax income.

What happens if you exceed your contributions caps?Limits apply to the amount of concessional and non-concessional contributions you can make without having to pay extra tax. See the table on the following page for more information.

Claiming a personal contribution as a tax deductionIf you’re under 75, you may be able to claim a tax deduction for personal super contributions (including if you’re between 67 and 74 and you meet the work test on page 7). You can claim a deduction for personal super contributions made on or after 1 July 2017 if:

• you made the contribution to a complying super fund (like LUCRF Super)

• you meet the age restrictions

• you notify us in writing of the amount you intend to claim as a deduction, and

• we then give you written acknowledgement of your notice of intent to claim a deduction.

The contributions that you claim as a deduction will count towards your concessional contributions cap. If you exceed your cap, you’ll have to pay extra tax on the excess amount.

Any excess concessional contributions will count towards your non-concessional contributions cap.

Notice of intent You’ll need to advise us each year of the amount you’re claiming as a tax deduction by submitting a notice to us in accordance with the Income Tax Assessment Act. Please complete a ‘Notice of intent to claim or vary a deduction for personal super contributions’ form (NAT 71121) available at ato.gov.au.

Your intent must be made to us at whichever is the earlier of:

• the day you lodge your personal tax return for the financial year in which you made the contribution

• the end of the financial year following the financial year in which the contributions were made

• the day you commence a retirement pension or transition to retirement pension with us

• the day you withdraw funds from your LUCRF Super account

• the day you rollover your balance to another super fund.

We’ll then send you a letter acknowledging your intention to claim your personal contribution as a tax deduction.

If you’re thinking about making extra contributions into your super, it’s always best to talk to a qualified financial adviser. To speak with one of our financial advisers call us on 1300 130 780.

Handy tip


Contributions – a summary

Concessional (before-tax) contributions Non-concessional (after-tax) contributions

Contribution type and description

• All employer contributions including the Superannuation Guarantee (SG)

• Salary sacrifices• Contributions where a tax deduction is claimed

• Voluntary member contributions• Government co-contributions• Spouse contributions

Tax entering super 15%^ 0%

Caps (contribution limits) for 2020/21

• $25,000 per year# • Up to $100,000 per year, or• $300,000 (over a three-year period using the

‘bring-forward’ rule)*

Tax on amounts over the caps

Included in assessable income and taxed at marginal rates (less a 15% tax offset)

You’re able to release your excess contributions and include earnings in assessable income. If you don’t withdraw earnings or excess contributions, you’ll be taxed at 47%

^Those earning over $250,000 in total adjusted income per annum will be liable for an extra 15% tax (known as the ‘Division 293 tax’) on top of the 15% tax that applies to concessional contributions when they enter the Fund. #Excess concessional contributions may be refunded. If your total super balance is less than $500,000 on 30 June of the previous financial year, you may be able to carry forward your unused cap amounts for up to five years. Visit ato.gov.au for details.*Available if you’re under 65 at 1 July in the relevant year. Please see page 8 for proposed changes to the ‘bring-forward’ rule for those aged 65 and 66.

Note: If your super balance is more than $1.6 million, you cannot make non-concessional contributions. Visit ato.gov.au for more details.

How super is taxed


Make sure you give us your TFNYou don’t have to provide your TFN. However, if you don’t:

• you’ll pay higher tax. Funds are required to pay the highest rate of tax to the ATO at the end of the income year for super accounts without a valid TFN (tax of 35% is payable in addition to the 15% contributions tax). The additional tax will be refunded if you provide a valid TFN to us within a three-year period

• we won’t be able to accept personal (after-tax) payments from you. This means you could miss out on receiving the government co-contribution through us (if you’re eligible)

• you may have difficulties tracking any lost super you may have.

We are authorised to seek your TFN under the Superannuation Industry (Supervision) Act 1993. We will use your TFN in confidence and only for legal purposes including finding or identifying superannuation benefits where there is insufficient information, calculating tax on benefit payments and providing information to the tax commissioner.

We may also provide it to the trustee of any other superannuation fund to which benefits may be transferred. We will not pass your TFN on to any other fund if you advise us in writing not to. Where an employee provides a TFN for employment purposes, it is also approved to be quoted for superannuation purposes and your employer must pass the TFN on to us within 14 days. These purposes may change in the future as a result of changes to legislation.

IMPORTANTTax on benefit paymentsThe amount of tax deducted from a benefit payment will depend on your circumstances (including your age), the type of benefit you receive and the components of your benefit.

If you’re under 60Tax may be deducted when your benefit is paid out of the super system as outlined in the following table:

If you’re 60 or over

No tax is payable for benefit payments to members aged 60 or over. When you receive a benefit payment from us, we’ll give you a statement showing the breakdown of your benefit and any tax applied to the various tax components.

Terminal medical condition, death and permanent incapacity benefitsThese are taxed at different rates depending on your age, when you become disabled and to whom the benefit is payable (for death benefits). The calculation of the actual level of tax is complex. Contact the ATO on 131 020 or call us on 1300 130 780 for more information.

How super is taxed

Tax component

Maximum tax applied if you’re under 60*

Tax-free 0%

Taxable for 2020/21

Under preservation age• 20% tax (plus the Medicare levy)

Preservation age to 59 • The first $215,000* is tax-free• Amounts over $215,000 are taxed at

15% (plus the Medicare levy)

*Departing Australia superannuation payment (DASP) benefits attract different tax rates to those in the above table (see page 12).


If you’re joining us through an employer

How to open an account

Option 1.Complete the Member Application Form. Once you’ve completed this form, send it to us, or hand it to your employer.

If you’d like to apply for insurance other than the default cover, please read our Insurance Guide and complete the Insurance Election Form or Income Protection Form (if you’re eligible). Please send your insurance forms to us only (do not hand them to your employer).

Option 2.Complete the Choice of Super Fund Form (online or printed). Once you’ve completed this form, hand it to your employer if you completed a printed copy, or email it to them if you completed the form online. The form includes a Notice of Compliance that your employer may need.

After you’ve completed one of the steps above, we’ll send you a welcome letter that includes your account details and other information.

If you’re joining us without a contributing employer (known as a Personal Plan membership)You can still enjoy the benefits of a LUCRF Super membership if you don’t have an employer who pays SG contributions into your account. This could be the case if you’re self-employed, the spouse of a LUCRF Super member, or your employer pays super into another default fund at your workplace.

Step 1.Complete the Member Application Form. Send your completed form to us.

You must also include your first payment or roll-in form, along with certified proof of identification.

We’ll open your accounts when your first payment or rollover is received. You can make your first payment a number of ways – see page 9 for payment options.

Note: If you’d like to apply for insurance cover please read our Insurance Guide and complete the relevant form(s).

Make sure you’ve also read our Super Member Guide (Product Disclosure Statement), Fees and Costs booklet, Insurance Guide and Investments Guide. All forms and publications are available at lucrf.com.au or by calling 1300 130 780.

IMPORTANT



Cooling-off period If you have a contributing employerNo cooling-off period applies.

If you don’t have a contributing employer (Personal Plan members only)If you change your mind about joining us after submitting your application, you can cancel your membership within:

• 19 days of us receiving your application, or

• 14 days of the date of your welcome letter.

To cancel your membership, you’ll need to send your request in writing to:

LUCRF Super PO Box 211 North Melbourne VIC 3051

If you cancel your membership during this period, any preserved and restricted non-preserved benefits will have to be transferred to another complying Australian super fund or retirement savings account. You won’t be entitled to receive any investment returns, and your initial contribution may be reduced by any tax deductions made.

Proof of identification (ID)When you become a Personal Plan or LUCRF Pension member, and you’re rolling in other super benefits, or you’re requesting a payout or transfer-out of your super or pension, you may need to provide a certified copy of your proof of ID. The following are legally accepted documents:

1. One of these government-issued photographic ID documents:

• current Australian driver licence

• Australian passport (current or that hasn’t been expired for more than two years)

• current foreign passport, or

• other current Australian government-issued photographic ID (such as a proof-of-age card or Australian tertiary institution student card).

OR

2. One of these government-issued, non-photographic ID documents:

• birth certificate or birth extract

• citizenship certificate

• current foreign driver licence, or

• current Centrelink pension card.

And one of these documents showing your address:

• utility bill (less than 3 months old)

• local government rates notice (less than 3 months old)

• government benefits notice (less than 12 months old), or

• tax assessment notice (less than 12 months old).

Change of nameWhen advising us of a name change, you must provide us with certified proof. The following documents are accepted as proof of a formal change of name:

• marriage certificate

• deed poll name change certificate

• new birth certificate

• a decree nisi (divorce papers).

Signing on behalf of another personIf you’re signing something on behalf of another person, you’ll need to provide certified proof of the link between you and the other person. You can use one of the documents below, as well as your other certified ID (such as your driver licence or passport):

• guardianship papers

• Power of Attorney.

Certification of personal documentsAll copied pages of original proof of identification (including all linking documents) need to be certified as true copies of the original document by a person authorised to do so. The person who is authorised to certify the documents must sight the original and the copy to make sure that both are identical. They then must ensure that all pages are certified as true copies by writing or stamping “This is a true and correct copy of the original” on the copy, followed by their signature, printed name, qualifications and the date.

In accordance with Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No.1), people that can certify copies of the originals as true and correct for these purposes include:

• a pharmacist

• a registered medical practitioner

• a police officer

• a registrar or deputy registrar of a court

• a Justice of the Peace

• a permanent employee of Australia Post with two or more years of continuous service

• an officer with, or authorised representative of, a holder of an Australian Financial Services Licence (AFSL) with two or more years of continuous service.

If you’re currently outside Australia, you’ll need to have copies of your original documents certified by consular staff at an Australian embassy, high commission or consulate. If you’re unable to reach one of these places, your documents can be certified by a:

• notary public

• Justice of the Peace

• judge of the court

• registrar or deputy registrar of a court.


Document verification service (DVS)Alternatively, if you’ve signed the declaration on the Member Application Form, you can send us a scanned photo of your Australian driver licence, Australian passport or Medicare card and we’ll verify your identification with the relevant government agency. Visit dvs.gov.au for more information on how this works.

How we communicate with youFrom time to time we may be required to send you important communications such as annual reports, member and exit statements, notices of material changes or significant events, other member publications and/or marketing and research materials that are permitted by law. We’ll do this by:

• sending them to you by email or a link to a website for download where you or your employer or other associates have provided your email address on your behalf

• sending you an SMS where you’ve provided your mobile number

• enabling you to download them from a website

• subscribing you to The New Daily news subscription for free (you can unsubscribe at any time).

You can change your communication preferences, or, in instances, opt-out, by contacting us or logging in to Members Online. By opting out of marketing communications, you’ll no longer receive marketing offers from our partners, but you’ll still receive important information about your account, including annual statements, newsletters and other important notices, as well as opportunities to participate in research.

Protecting your privacyWe respect the importance of your privacy. The Privacy Act 1988 (Cth) sets out Australian privacy law requirements and establishes the Australian Privacy Principles. Under these principles, we must document our practices and procedures for handling personal information in a Privacy Policy.

Our Privacy Policy outlines how we collect, store, use and disclose your personal information to provide you with superannuation products and services. It’s available at lucrf.com.au/privacy or by calling us on 1300 130 780.

If you believe your privacy has been breached, you can make a complaint by contacting us using the details provided here. If you’re not satisfied with our response, you can raise the matter with the Office of the Australian Information Commissioner (OAIC). To find out how to make a complaint to the OAIC, please visit oaic.gov.au.

Complaints processWe have a formal process for handling any enquiries you or your beneficiaries may have in relation to a LUCRF Super account.

How do you lodge a complaint?Complaints can be made by calling 1300 130 780 or writing to:

The Complaints Officer LUCRF Pty Ltd PO Box 211 North Melbourne VIC 3051

[email protected]

Please provide your full name, member number and current address in your letter or email, together with a summary of your complaint. Although we’re legally required to deal with your complaint within 90 days, we’ll make every effort to respond earlier. All complaints are formally recorded and reported to the Trustee.

What if you’re not satisfied with the handling of your complaint?If you’re not satisfied with the way your complaint is handled or with our reponse, you can refer the matter to the Australian Financial Complaints Authority (AFCA).

AFCA is an independent body set up by the federal government to assist members, or their beneficiaries, resolve certain complaints. AFCA may be able to assist you in resolving your complaint, but will only become involved after your complaint has been considered under the Trustee’s internal dispute resolution process.

To find out how to lodge your complaint with AFCA, or if it can be handled by them, contact them at:

Australian Financial Complaints Authority GPO Box 3 Melbourne VIC 3001 Phone: 1800 931 678 (free call) Email: [email protected] Website: afca.org.au

Anti-money laundering and counter-terrorism financingUnder the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), we’re required to identify, mitigate and monitor the money-laundering and counter- terrorism financing risks that we may face and have measures in place to reduce these risks.

We’ve developed an Anti-Money Laundering and Counter-Terrorism Financing Program to fulfil our compliance obligations. You should be aware that as part of our compliance with these laws:

• we’re required to verify your identity when you withdraw your benefit or commence an income stream

• we reserve the right to request further information to verify identity

• we may have to disclose information about suspicious transactions to the regulator, the Australian Transaction Reports and Analysis Centre. The legislation prevents us from informing you when any such reporting has taken place.

Read the ‘Proof of identification (ID)’ section on the previous page to know more about the documents we can accept and how to get them certified.


Super Member Guide – Additional Information | 1 July 2020 | 21Super Member Guide – Additional Information | 1 July 2020 | 21

1300 130 780

lucrf.com.au

[email protected]

PO Box 211 North Melbourne VIC 3051

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