QSuper’s philosophy is to always look at new ways to give back to our members and improve their retirement outcomes. We are pleased to introduce the QSuper Income Account Transfer Bonus which is available to eligible members from the 6th of June 2016, when they roll their QSuper Accumulation account into a QSuper Income account.
It is a potential payment that eligible members may be able to receive when they transfer their QSuper Accumulation account into a QSuper Income account. The amount reflects a tax saving, from money which has been set aside by the fund to pay capital gains tax on assets when they are sold at a profit in the Accumulation account but is not required to be paid when the assets are sold in the Income account.
Only QSuper members who transfer from an Accumulation Account to an Income Account and hold one of the eligible investment options may be eligible to receive a Transfer Bonus which will be automatically calculated at the time of commencing an Income Account. Everyone’s transfer bonus will be different and it’s important to understand that sometimes the amount could be zero.
Eligible investment options are:
On behalf of members invested in the Accumulation account, QSuper puts aside money which is an estimation of the capital gains tax required to be paid upon the sale of assets - it’s called tax provisioning. This is because as a complying superannuation fund we have to pay tax on investment earnings within an Accumulation phase up to a maximum rate of 15%. Typically, QSuper taxation provisions for around 10% tax overall, before declaring daily unit prices.
In fact, all investment earnings whether income or capital gains are exempt from paying tax in the pension phase.
This means, when a member transfers money from their Accumulation account into an Income account, their investment assets are being transferred into a tax-free environment. As a result, no capital gains tax is paid when these investment assets are sold.
So what do we do with the tax provision that is no longer payable?
The money that was previously set aside as a tax provision can be paid back to the eligible member but only when they transfer from Accumulation account to Income account. The amount paid back to the member is known as the member Transfer Bonus.
The Transfer Bonus for each eligible member will vary, the amount will be zero for any members invested in Cash, Diversified Bonds or QSuper Self Invest options; and the transfer bonus will be automatically added and included in money transferred to open an Income account. The methodology is system based and extremely complex as it tracks all of a member’s account transactions and investment history. There are many variables included in the calculation of the Transfer Bonus such as:
The Significant Event Notice (SEN) were distributed via email for members who had a valid email address and hadn't opted out of receiving prescribed mail from the 1st of March 2016. Others received Super Scoop which includes the Significant Event Notice between the 7th of March to the 30th of March 2016.
1 March 2016
SEN was sent via email
7 March 2016 to 30 March 2016
SEN distribution Super Scoop Mail-out.
11 April 2016
PDS released and made available on the website
6 June 2016
Transfer Bonus payments goes live – amount will be visible through Member Online and via quotes.
If you require further information, please contact us.