MySuper Handbook

BUSSQ MYSUPER YOUR SUPER HANDBOOK

ISSUED: 01 JANUARY 2014 The information in this handbook forms part of the BUSSQ MySuper Product Disclosure Statement dated 1 January 2014.

YOUR QLD INDUSTRY

SUPER FUND

BUSSQ.COM.AU

IMPORTANT INFORMATION This handbook describes the main features, benefits and conditions of the BUSSQ MySuper product.

It forms part of the MySuper Product Disclosure Statement (PDS) and it will help you to: Decide whether this product will meet your needs, and Compare this product with others you may be considering

TABLE OF CONTENTS SECTION

1

The offer made in this handbook is only available to persons within Australia. Applications from outside Australia will not be accepted.

Regulated fund BUSSQ (ABN 85 571 332 201) is a regulated fund which is operated to comply with the Superannuation Industry (Supervision) Act 1993.

BUSSQ’s Super Fund Number is 268338.

BUSS(Queensland) Pty Ltd (ABN 15 065 081 281) is a Registrable Superannuation Entity licence number L0002158. BUSSQ’s Registration number is R1055870. BUSS(Queensland) Pty Ltd holds a Financial Services Licence (AFSL 237860) and is licensed to provide financial advice on superannuation products. The administrator of BUSSQ is Australian Administration Services.

Getting advice The advice in this handbook is of a general nature and it has been prepared without taking into account your individual financial needs, circumstances and objectives. It should be read in conjunction with the PDS and the latest Annual Report. You can download a copy of each from the BUSSQ website at bussq.com.au.

Welcome...................................................................... 1 BUSSQ the one for you................................................. 2

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GETTING STARTED Joining.......................................................................... 3 Smart ways to build your super.................................... 6

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INVESTING YOUR SUPER Investment basics......................................................12 Risks to consider........................................................15

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INSURANCE Why insurance?.........................................................18 Cover explained........................................................19 Cost of cover..............................................................21 Types of benefits........................................................23 Definitions..................................................................24

You are encouraged to assess your own financial situation before making an investment decision based on the information contained in this handbook. You may wish to seek the advice of a qualified financial planner to help you with your decision-making (see inside back cover for more information).

Making a claim...........................................................25 Other information......................................................27 Nominating beneficiaries...........................................29

Explanation of super terms used Throughout this handbook we have tried to use simple English to explain your super benefits.

However, there were occasions where some terms could not be simplified. If you would like an explanation of a term that was used in this handbook, then go to our website bussq.com.au where a ‘jargon bussta’ of super terms can be found.

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CONTACTING US

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BUSSQ makes it easy for you to contact us at your convenience.

WELCOME

5

MANAGING YOUR MONEY Your own account.......................................................30 Pension products........................................................32 Accessing your benefits.............................................33

6

TAX AND SUPER Tax ............................................................................35 Fees and other costs...................................................38

bussq.com.au

WEB

PHONE 1800 MY BUSSQ (1800 692 877) EMAIL super@bussq.com.au MAIL GPO Box 2775 Brisbane QLD 4001 VISIT

2

USSQ House B Ground Floor, 52 McDougall Street Milton QLD 4064

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7

OTHER INFORMATION Other information......................................................41 Financial Services Guide...........................................46

WELCOME

THIS HANDBOOK CONTAINS IMPORTANT INFO RMATION ABOUT INVESTING YOUR SUPER IN BUSSQ .

Hi! It’s great that you

are considering BUSSQ as a way of tax effectively saving for your retirement.

When you join us, you can rest assured we will be doing our bit to help you achieve the financial goals you set yourself. In addition, because BUSSQ is an industry fund that returns profits to members, you can be confident in the knowledge that your best interests are, and always will be, our top priority.

In fact, we are constantly looking at our products and services to make sure we continue to offer you the best – low fees, real service, strong returns and most of all, help when you need it.

“I LIKE THE FACT THAT I AM IN A QUEENSLAND FUND FOR QUEENSLANDERS LIKE ME.” STEVE AIMES, BUSSQ MEMBER

1

BUSSQ THE ONE FOR YOU

QLD industry super fund BUSSQ is an industry super fund created for and by Queenslanders in the building, construction, civil and associated industries. Our members always come first.

Profits are returned to members, this means more money for you.

Low fees BUSSQ keeps its fees low to ensure more money goes to members. There are NO establishment or contribution fees and our administration fee is only $1.50 per week.

Industr y-leading arrears process BUSSQ is committed to making sure you receive the super you’re entitled to. Our highly skilled Arrears Department works closely with unions, employers and major contractors to help you get the super you’ve worked hard for. If you have questions or concerns about your super payments, please contact us.

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Strong investment returns BUSSQ is one of Australia’s top performing super funds and has consistently outperformed other super funds over the long term. BUSSQ has also been awarded SuperRatings 5 Year Platinum Rating 2008 - 2013.

Financial planning advice Financial advice at no extra cost - BUSSQ offers members straightforward limited financial advice about their super including choosing insurance and investments and contributions, at no extra cost.

BUSSQ also offers members more complex financial advice about their super on a fee for service basis. Our fees are low, structured purely for cost recovery and they can be deducted from your super account, so you won’t be out of pocket*. *More information about the cost of financial advice is available on pages 46 – 47.

Insurance flexibility

HOW SUPER WORKS

Save on your insurance - if you’ve got insurance with a different insurer you could be paying too much. Ask us for a quote.

To learn more about how super works and how you can get the most out of it go to the Australian Government’s ‘MoneySmart’ website – moneysmart.gov.au – and click on the ‘Super and retirement’ tab.

Our insurance products are designed for the building, construction and civil industries. We can provide you with a simple, low cost alternative when it comes to purchasing insurance protection.

MYSUPER

Cover includes Death only, Death and Total Permanent Disablement (TPD) and Total and Temporary Disablement (TTD).

GETTING STARTED JOINING You can become a member if you work for an employer who has agreed to pay contributions to BUSSQ on your behalf. Membership is open to both on-site and off-site workers, clerical and administration staff, apprentices, professionals and working directors.

UILT FOR “IT'S SUPER B E US” WORKERS LIK Q MEMBER TOM DOOLEY,

BUSS

Want more flexibility and control over your super?

UPGRADE TO BUSSQ PREMIUM CHOICE Comprehensive insurance

Low fees

-- Income Protection -- Death & TPD Investment choice

Financial Advice*

-- 3 Pre-mixed options -- 8 Single asset class options

-- Straightforward financial advice about your super at no extra cost.

-- Plus affordable complex advice about your super on a basic fee for service basis^, that can be deducted from your super account.

Joining BUSSQ Premium Choice is easy as 1, 2, 3. Visit bussq.com.au and click on ‘Join Now’ link on the MEMBERS tile located on the right hand side of the homepage and follow the prompts. *BUSSQ offers members personal limited financial advice about their super including: choosing insurance, choosing investments and contributions, at no extra cost as it is included in the fund’s administration fees. This advice is offered over the phone. BUSSQ also offers members and non-members more complex financial advice on a fee for service basis. This advice can be done in person or over the phone. All advice is delivered by BUSSQ’s in-house financial planners. Non BUSSQ members who receive advice will need to be billed for the advice separately. ^The rate of $150 per hour includes GST.

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GETTING STARTED

PLEASE NOTE

Starting a BUSSQ MySuper account is as easy as 1, 2, 3, all you have to do is: 1. Read the information contained in the PDS and in this handbook.

To safeguard your investment we require proof of your identity with any rollover you make.

Full details of what is required can be found on the back of the Rollover Your Super form.

2. Open your account in one of two ways: - Online at bussq.com.au - click on the ‘Join now’ link on the MEMBERS tile located on the right hand side of the homepage and complete the questions.

If you are already a current member you will not have to complete a new Membership Application form when changing employers. Simply give your BUSSQ Member Number to your new employer.

Your employer may request that you complete a Choice of Fund form. Download a copy from bussq.com.au or give us a call and we’ll send you one.

If you were previously a member and left BUSSQ, you will need to complete a new Membership Application form and you will get a new Member Number. Give us a call on 1800 MY BUSSQ (1800 692 877) if you are uncertain about this.

OR

- Go to the forms section and download, complete and sign the Membership Application form, give it to your employer and ask your employer to send the form to BUSSQ with the first contribution.

3. Roll over your other super accounts – if you have other super accounts you may want to roll them into BUSSQ as well to save on the fees and charges that having multiple accounts will incur. See page 8 for details on how to roll and save.

THE BUSSQ MOBILE SUPER CENTRE, BRINGING YOUR SUPER FUND TO YOU.

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MYSUPER

CONFIRMING YOUR MEMBERSHIP Your BUSSQ membership will commence when an employer contribution has been received and/or you complete your application either online or in paper form and it has been processed.

PLEASE NOTE When making enquiries, you will be asked to quote your member number.

YOU HAVE A CHOICE If you leave your employer and go to work for another employer, your new employer can contribute to BUSSQ on your behalf. If you require assistance in completing the superannuation choice form provided by your employer, give us a call. BUSSQ also has dedicated staff that can assist your employer make contributions to your account.

Ask your employer to call us if they need help.

COOLING OFF PERIOD Employers have a 14 day cooling off period, from when we receive their initial contributions, to cancel their application to become a BUSSQ employer.

If you are not a member of BUSSQ, any contributions made by your employer for you will be adjusted for tax (if payable), for changes to investment values (if any) during the period in which your employer was a BUSSQ employer and for reasonable administration costs. Your balance will then be rolled over to an approved fund of your employer’s choice.

If you apply for membership and your employer does not apply to become a BUSSQ employer you will be advised and given the option to join our Premium Choice product. If you are not a member and your employer does not become a BUSSQ employer, we cannot accept contributions from you or accept rollovers from other funds into our BUSSQ MySuper product.

Please call us on 1800 MY BUSSQ (1800 692 877) if you have any questions.

CHOOSING YOUR BENEFICIARIES If you die while you are a member of BUSSQ, the Death benefit may provide valuable financial assistance to your dependants. Unless you complete and return a Binding Death Benefit Nomination form, the Trustee has the discretion to pay your benefits to your dependants and/or your legal personal representative. Go to page 29 for more information.

FINANCIAL ADVICE FOR MEMBERS Pick up the phone and dial 1800 MY BUSSQ (1800 692 877) and talk to us about the best way to receive advice about your super.

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SMART WAYS TO BUILD YOUR SUPER YOUR EMPLOYER’S CONTRIBUTION

If you are covered by a building site Enterprise Bargaining Agreement (EBA), or Australian Workplace Agreement (AWA), your employer is required to pay the amount stated in the Agreement or the SG amount, whichever one is the greater.

Under the Superannuation Guarantee (SG) legislation, your employer is required to pay 9.25% of your ordinary time earnings – virtually all full-time, part-time and casual workers are covered by this legislation.

If you earn less than $450 in a month, your employer is not compelled to pay the SG amount. However, your employer is required to pay contributions in accordance with any industrial provisions. Under the SG legislation employers are required to make payments at least quarterly.

The SG rate will gradually increase from 9.25% to 12% by the year 2021. Below are the proposed SG rates.

YEAR

RATE (%)

2014-15

9.25

2015-16

9.25

2016-17

9.5

2017-18

10

2018-19

10.5

2019-20

11

2020-21

11.5

2021 onwards

IT’S AMAZING H OW MUCH DIFFERENCE A LITTLE EXTRA EACH W EEK MAKES TO YOUR SUPER.

MAKE CONTRIBUTIONS You work hard. It is important your super works hard too! Factors that can significantly affect how much your super will build are: How early your super contributions start How much is invested during your working life, and The investment performance of the options in which you invest.

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WHO CAN CONTRIBUTE? AGE GROUP

SG EMPLOYER CONTRIBUTIONS

AWARD EMPLOYER CONTRIBUTIONS

VOLUNTARY EMPLOYER CONTRIBUTIONS

MEMBER CONTRIBUTIONS

UP TO 65

YES

YES

YES

YES

65 – 69

YES

YES

Only if you have worked at least 40 hours in not more than 30 consecutive days in the financial year.

Only if you have worked at least 40 hours in not more than 30 consecutive days in the financial year.

Only if you have worked at least 40 hours in a period of not more than 30 consecutive days in the financial year.

Only if you have worked at least 40 hours in a period of not more than 30 consecutive days in the financial year.

70 – 74

NO

YES

75+

YES

YES

NO

Contribution legislation may change, but the information in this table is correct at date of issue of this handbook.

Check current legislation before making any financial decisions.

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NO

FIVE EASY WAYS TO CONTRIBUTE BUSSQ makes it easy for you to build your super by giving you the flexibility to contribute in any of the following ways: Direct Debit – Lets you specify an amount to be regularly taken out of your bank, building society or credit union account and paid into your BUSSQ MySuper account. A Direct Debit Request form can be downloaded from bussq.com.au.

BPAY – Lets you transfer specified amounts direct from your bank, building society or credit union account to your BUSSQ MySuper account. To find out more about this facility give us a call.

Direct payment – Regular or one-off personal contributions into your BUSSQ MySuper account.

Contact us to find out how to make direct payments.

Payroll deduction (if supported by your employer) – You will need to speak to your employer to arrange deductions of personal contributions from your pay.

Salary sacrifice – Salary sacrifice is an arrangement between you and your employer where you agree with your employer that rather than receive part of your income as salary or wages, your employer will make an equivalent super contribution on your behalf. The amount sacrificed is paid directly into your BUSSQ MySuper account before any income tax is deducted, which means your gross salary or wage is reduced for taxation purposes.

Please call us on 1800 MY BUSSQ (1800 692 877) for more details.

GOVERNMENT CO-CONTRIBUTION – A SUPER BOOST If you earn up to $33,516* p.a., meet the eligibility criteria below and make an after-tax personal contribution to your super, you could be entitled to the maximum co-contribution of $500. This amount will reduce for every dollar you earn over $33,516 p.a. up to the maximum income limit of $48,516* p.a.

To be eligible for the co-contribution you must: Make a personal after-tax contribution into your super during the financial year Have a total income (includes assessable income, reportable fringe benefits and reportable employer superannuation contributions) for the financial year of less than $48,516* Be under 71 years of age at the end of the financial year Lodge an Australian tax return for the financial year Have not held a temporary visa at any time during the financial year, and Have earned 10% or more of your total income from running a business, self-employment or from eligible employment or a combination of these.

You will need to follow the directions when completing your tax return to ensure you are paid your co-contribution. The Australian Taxation Office (ATO) will assess your eligibility and automatically calculate and pay your co-contribution.

Want to know more?

For more information about the Government co-contribution you can go to the ATO website ato.gov.au.

*Applies to the 2013/2014 financial year

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ROLL-IN AND SAVE If you have had several jobs during your working life then the chances are you may have some super scattered all over the place. This situation is more common than you think!

If you do have other super accounts then BUSSQ MySuper account may have some great benefits.

It saves time – by simply logging onto bussq.com.au or calling us on 1800 MY BUSSQ (1800 692 877) you will be able to see how your super is working for you.

It saves you money – pay only one set of low administration fees.

It’s effortless – keeping track of several funds can be hard work. Only having one fund means less financial records and there is less chance of losing track of your super.

No entry fees – you will have more money to invest.

If you need help, our Member Services Team can assist you to find and roll over your super.

SUPERMATCH HELPS YOU ROLL’N’SAVE SuperMatch is an ATO service which lets BUSSQ help you find and roll in your other super funds. To do a search for your other funds we need your permission to use your tax file number (TFN), which you can provide by texting your name and date of birth to 0429 558 006 (standard SMS charges apply) or calling us. Or, just tick the box on the application form.

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MYSUPER

An easy way to roll money into BUSSQ is to go to bussq.com.au and click on the ROLL‘N’SAVE title.

You will even be able to find any lost super you may have at the same time!

ROLLING OVER YOUR OTHER SUPER INTO BUSSQ IS EASY, AND IT SAVES YOU MONEY. IF YOU HAVE ANY QUESTIONS GIVE US A CALL ON 1800 MY BUSSQ (1800 692 877).

FIND YOUR SUPER BUSSQ can help you find other super funds to roll in using the ATO’s SuperMatch system. To do this we need your consent to use your tax file number to search the ATO registers. You can give consent by ticking the box on your application form, or calling us on 1800 MY BUSSQ (1800 692 877). We will contact you with the results of the search, and you can choose whether you want to roll your other accounts into BUSSQ. If you’d rather do your own search, you can use the SuperSeeker tool on the ATO’s website or by calling 13 28 65. You will need your tax file number, full name and date of birth.

SPOUSE CONTRIBUTIONS Another excellent feature of being a BUSSQ member is that your spouse can make contributions for you too.

The maximum rebate for a year is $540. The rebate is reduced by $1 for each $1 that the total of your spouse’s assessable income and reportable fringe benefits exceeds $10,800 p.a. and reduces to zero when your spouse’s assessable income and reportable fringe benefits reaches $13,800 p.a. Spouse contributions can only be accepted into your BUSSQ MySuper account if, at the time the contributions are made you are: Under the age of 65, or Aged between 65 and 69 and you have worked at least 40 hours in a period of not more than 30 consecutive days in the current financial year.

If you or your spouse would like to find out more about spouse contributions please call us and talk to one of our friendly staff.

CONTRIBUTION SPLITTING

A spouse, for the purpose of making spouse contributions, is your husband, wife or de-facto partner who lives permanently with you on a bona fide domestic basis as your husband or wife at the time the contributions are made.

BUSSQ allows you to split certain superannuation contributions made to your MySuper account. For more information, give us a call.

Both you and your spouse must be Australian residents at the time the contributions are made.

You can also make contributions on behalf of your spouse, into an account in their name.

Contributions made on behalf of a low-income or non-working spouse may qualify for a tax rebate. You can claim an 18% tax offset on contributions of up to $3,000.

1800 MY BUSSQ (1800 692 877)

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INVESTING YOUR SUPER Your super in MySuper is invested in the Balanced Growth option.

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MYSUPER

WHERE YOUR SUPER IS INVESTED For details of returns over the last five years or details of BUSSQ’s investment managers, refer to the BUSSQ Annual Report at bussq.com.au.

BALANCED GROWTH Overview Designed for medium to long term investors.

Balanced Growth is a diversified option and provides a mix of growth and defensive assets such as shares, property and fixed interest securities. The frequency of a negative return is expected to be once in seven years.

Investment objective For the annual rate credited to members to exceed the change in the Consumer Price Index by +4% per annum.

Remember that investment returns cannot be guaranteed from year to year. Past performance of a particular investment or sector does not necessarily provide an accurate indicator of future performance.

“IT'S SUPER BUILT FOR WORKERS LIKE US” CAMERON CRAIG, BUSSQ MEMB

ER

Target asset allocation 29.0% 23.0% 12.0% 12.0% 10.0% 5.0% 3.0% 2.0% 2.0% 2.0%

Suggested minimum time horizon At least five years

Compound average return over 5 years (2009–2013 Financial Years) 4.20%

Risk factor

Risk Band

4 * The frequency of a negative return is based on the Standard Risk Measure Guidance for trustees recommended by APRA, ASIC, ASFA and FSC and is explained on page 16.

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INVESTMENT BASICS INVESTMENT BASICS BUSSQ invests your savings across four main types of investments or asset classes: Shares (Australian and overseas)

Fixed interest (Australian and overseas)

Property (Australian)

Cash

These asset classes are divided into two types – Growth assets and Defensive assets.

GROWTH ASSETS Growth assets are more risky – but can deliver higher returns over the long-term.

Growth assets include: Shares – Companies listed on a stock exchange issue shares (also known as equities or stocks) to raise capital. You become a shareholder and part owner when you purchase shares in the company and that means you are entitled to any company profits (which are distributed as dividends).

Company performance, industry conditions or movement in the share market can impact share prices - make it rise and fall.

Property – Includes land and buildings that can be bought, sold or leased. Investment in property can be direct (unlisted) or via the share market (listed). Investing in property through a super fund lets you and other members pool money to enable you to part-own properties that would otherwise be too expensive for you to acquire on your own. For example, office buildings and shopping centres.

Like shares, property is influenced by many factors including supply and demand and market conditions.

DEFENSIVE ASSETS Defensive assets are less risky – therefore they can be used to protect your investment against loss.

However, they generally deliver lower returns.

Defensive assets include: Fixed Interest – When an investor lends money to governments, semi-government bodies and corporations, interest is paid at an agreed rate, which is fixed for the term of the loan. These investments are also known as bonds. Fixed Interest investments can be held until they mature or they can be traded at any time before maturity. If they are sold before maturity, the price will depend on the interest rate at the time. Returns from fixed interest investments occur from regular interest payments and any change in value caused by movements, either up or down, in interest rates. Fixed Interest is usually a more stable investment than shares, but can be affected by currency movement.

Cash – Investments in cash includes money invested in term deposits or bank bills and interest is earned on the cash invested. This is similar to having money in a bank account. Over the long term, cash is likely to produce the lowest return of all the main asset classes.

OVERSEAS INVESTMENTS Investments in shares and fixed interest can be made in Australia or overseas. In fact, the Australian share market accounts for less than 2% of the world share markets. When investing overseas, returns can also be affected by changes in the value of the Australian dollar. These changes can enhance overseas returns (when the Australian dollar is falling) or detract from overseas returns (when the Australian dollar is rising).

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MYSUPER

THE MAGIC OF COMPOUND INTEREST Compound interest is, put simply, earning interest on interest.

EXAMPLE If you invest $1,000 and the annual return is 6%, the investment earnings in the first year would be $60 (6% x $1,000). You now have an account balance of $1,060. If in the second year you did not contribute at all and the annual return was again 6%, the investment earnings would be $63.60 (6% of $1,060) and so on.

Consider the impact compounding may have on a larger amount and if you contributed on a regular basis.

BUSSQ’S SKILLED INVESTMENT MANAGERS We are constantly monitoring markets and their impact on BUSSQ’s investment portfolio. Our share portfolios are managed by a range of experienced and skilled investment managers who use a disciplined investment process to identify good quality stocks. We are committed to managing a well-diversified portfolio that is designed to provide good returns over the long term.

INVESTING YOUR MONEY An Investment Committee, appointed by the BUSSQ Trustee Board, makes recommendations to the Board about where BUSSQ’s money should be invested.

The Investment Committee and the Board obtain professional investment advice from its investment consultant, Frontier Investment Consulting.

Assets are allocated within ranges set by the BUSSQ Board after consultation with its investment consultant.

The Board reviews these ranges on a regular basis.

Specialist investment managers are interviewed and selected for each of the asset classes. They are selected on a management and performance basis and they are required to report regularly to the Board. The investment managers are constantly monitored by the Trustee.

Details of where the money is invested can be found in the BUSSQ Annual Report. Download a copy at bussq.com.au or call us for a copy on 1800 MY BUSSQ (1800 692 877).

The MySuper Dashboard at bussq.com.au will also provide key information about the BUSSQ MySuper product and will allow you to make comparisons with other MySuper products.

The large asset allocation is sometimes adjusted in line with changes in the market and to meet the stated investment strategy of the option. You will be advised 30 days before any significant change to the asset allocation is undertaken.

MATES IN CONSTRUCTION BUSSQ is proud to be associated with Mates in Construction (MIC), an organisation that provides proactive support to workers in the Queensland construction industry by addressing mental health and wellbeing related issues, including suicide and self-harm.

To find out more give MIC a call on 1300 MIC 111 (1300 642 111).

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A LO R, SUPER IS E B M E M E R ESTMENT… TERM INV

CHANGING YOUR INVESTMENT OPTION If, at some point you would like the ability to choose where your super is invested, you can move to BUSSQ’s Premium Choice product which has 11 investment options: 3 Pre-mixed options, and 8 Single Asset Class options

BUSSQ’s Premium Choice product offers flexible investment options that you can mix and match.

If you would like information on BUSSQ’s Premium Choice product call us on 1800 MY BUSSQ (1800 692 877).

DERIVATIVES The Trustee and BUSSQ’s investment managers has the discretion to invest in derivative financial instruments from time to time. This is generally done to either hedge a particular risk or to immediately rebalance the investment portfolio in a quick and efficient manner.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS Currently BUSSQ does not take environmental, social or governance considerations into account when selecting, retaining or redeeming the investments of BUSSQ. Investments and investment managers are selected purely on their ability to contribute toward the achievement of BUSSQ’s investment objectives.

However, the BUSSQ Board has put in place a long term strategic plan to work towards taking these considerations into account when making investment decisions.

ACCESS YOUR ACCOUN T DETAILS ONLINE, ANYT IME, VIA MEMBERACCESS.

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FLEXIBLE CHOICE

KEEPING YOU UPDATED BUSSQ takes its responsibility to keep you updated seriously. Each month our website is updated with investment returns and investment commentary.

Check out bussq.com.au for the most up-to-date information.

RISKS TO CONSIDER

BUSSQ HAS A TEAM OF EXPERTS LOOKING AFTER YOUR SUPER.

THE RISK There are various types of risk associated with investing in a super fund and the most important are discussed here.

All investments are subject to varying risks and generally all investments change in value over time. Different asset classes perform differently at different times.

THE SIGNIFICANT RISKS THAT RELATE TO INVESTING IN BUSSQ ARE: INFLATION

The risk that inflation may exceed the return on your investment. This means that the purchasing power of your investment will be reduced.

MARKET

The risk that the performance of the market as a whole will affect the investment option’s returns. The market can be affected by economic, technological, political or legislative conditions, world events and even market sentiment. This means that you may get back less than you have contributed.

INDIVIDUAL INVESTMENT

The risk that individual assets falling in value as a result of changes in the internal procedures or management of a fund or entity in which BUSSQ invests.

INTEREST RATE

The risk that changes in interest rates can impact directly or indirectly on investment returns.

CURRENCY

The risk that changes in the value of currencies can affect the return on overseas investments. A rise in the Australian dollar relative to the currency in which the asset is invested may result in a fall in the capital value of your overseas asset.

LIQUIDITY RISK

As super is a long term investment BUSSQ invests in assets such as property, infrastructure and agriculture that cannot be liquidated quickly. All options, except cash are subject to liquidity risk. However, BUSSQ manages this with regular reporting from our investment consultants.

DERIVATIVES

The Trustee and the investment managers included in these investment options may include derivatives as a method of managing risk or gaining exposure to other types of investments. The risks associated with derivatives include the value of the derivative failing to move in line with the underlying asset, potential illiquidity of the derivative, the fund not being able to meet payment obligations as they arise and counterparty risk where the counterparty cannot meet it’s obligations.

REGULATORY

The risk of changes in government policy or legislation which may affect your ability to access your benefits. For example, amendments to the treatment of superannuation interests of members in family law matters means that your super benefit may be split with your spouse in the event of your divorce or permanent separation.

TIMING

The risk that you may try to time the market and buy at the low and sell at the high. This will increase the volatility of your investment and increase the risk. Most people cannot successfully time the market.

The effect of these risks is reduced by diversification, that is, by investing in a wide range of different types of investments, such as those in which BUSSQ invests.

15

Other risks that may have an impact when investing in BUSSQ include: Regulatory risk, taxation risk and insurance risk.

And of course, there is also the risk of your money not being available until you retire.

UNDERSTAND INVESTMENT RISK Because your super is invested in financial markets, you are exposed to investment risk.

Investment risk is the degree to which returns go up and down in value over time. You cannot consider return without risk and generally, the higher the potential return, the higher the risk. In order to achieve higher returns you must be willing to take on more risk. While shares, property and fixed interest securities might offer higher long term returns than cash, they also expose you to higher levels of risk, particularly in the short term.

In financial terms, there is also a risk of not having enough assets or money to provide you with the lifestyle you desire in retirement.

Therefore, if you try to avoid risk altogether you may in fact not save enough to provide you with the lifestyle you want in retirement. In fact, it may not even keep pace with inflation.

THINK ABOUT YOUR INVESTMENT TIMEFRAME Your investment time frame is the period between the day you begin to invest and the day you will need to use your super benefit to live on in retirement.

Remember, your investment time frame may not necessarily end at retirement. After retirement, at say age 60, the average person can expect to live at least another 20 years.

So even if you only have a short time until you retire you should consider the investment option or mix of options that will best meet your particular needs well into retirement.

If you don’t intend to access your money for a long time, you may be willing to accept the ups and downs in values that are associated with a higher risk option or mix of options.

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MYSUPER

This could maximise your expected return over the long term. The longer your investment time frame, the more time you have to ride out the ups and downs. If you have a short time frame then stability in the value of your investment may be more important to you.

UNDERSTAND YOUR TOLERANCE TO RISK Everyone has a different tolerance to risk and you need to be comfortable with the level of risk that is associated with Balanced Growth.

If you are not comfortable with the risk associated with the Balanced Growth option, you can change to a less risky option in BUSSQ’s Premium Choice product.

To find out more, give us a call on 1800 MY BUSSQ (1800 692 877).

DIVERSIFICATION HELPS REDUCE RISK Because you cannot tell how each asset class will perform over a future period, diversifying or spreading your investments across a range of asset classes has the potential, over time, to smooth out any ups and downs associated with the returns on your investment.

MEASURING RISK A standard risk measure for investment options has been developed for super funds to make it easier for you to compare investments options (both within and across super funds). The standard risk measure is based on industry guidance to allow you to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period. There are seven risk bands and they are as follows:

RISK BAND

RISK LABEL

ESTIMATED NUMBER OF NEGATIVE ANNUAL RETURNS OVER ANY 20 YEAR PERIOD

1

Very Low

Less than 0.5

2

Low

0.5 to less than 1

3

Low to medium

1 to less than 2

4

Medium

2 to less than 3

5

Medium to high

3 to less than 4

6

High

4 to less than 6

7

Very high

6 or greater

1800 MY BUSSQ (1800 69 2

877)

The standard risk measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than you may require to meet your objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return.

You should still ensure you are comfortable with the risks and potential losses associated with your chosen investment option(s).

The use of the standard risk measure is endorsed and strongly recommended by the Australian Prudential Regulatory Authority (APRA), Australian Securities and Investments Commission (ASIC), Association of Superannuation Funds of Australia (ASFA) and the Financial Services Council (FSC) for all Australian super funds.

“BUSSQ PUT ME IN CONTACT WITH A FINANCIAL PLANNER WHO HELPED ME WORK OUT MY RISK PROFILE.�

RON QUILL, BUSSQ MEMBER

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INSURANCE FLEXIBILITY WHY INSURANCE? It is important to think about insurance cover as part of your total financial plan.

Imagine for a minute what it would be like if you were off work for an extended period because of sickness or injury. Or worse, how would your family cope with your unexpected death or total and permanent disablement?

How will you or they pay the bills? Will you have enough?

More often than not, these will be times of uncertainty.

That is why it can be such a good idea to insure against the potential risks of death, total and permanent disablement or temporary disablement. After all, you probably already insure assets such as your car, your home or your personal valuables. Why? Because it makes sense as you recognise there is a risk that those assets could be damaged or destroyed.

Therefore, it makes even more sense to protect your most important assets – you and your family.

With BUSSQ’s insurance arrangements, you have a simple, low cost option when it comes to purchasing insurance protection. BUSSQ’s insurance is your safety net.

Having the right level of cover is also an important consideration. The level of cover provided by each unit of cover may reduce as you get older. It is essential you periodically review how much cover you have to ensure it is enough to meet your needs.

IMPORTANT NOTICE BUSSQ’s insurer is OnePath Life Limited (ABN 33 009 657 176) AFSL 238341. The information regarding insurance in this handbook is a guide only. OnePath will, in all circumstances, rely on the terms and conditions of the policy documents issued to BUSSQ in determining liability or in dealing with the operation of the contracts. In the event of any inconsistency between those policies and this handbook, the relevant policy terms will prevail.

If you would like a copy of the policies, contact us on 1800 MY BUSSQ (1800 692 877).

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MYSUPER

COVER EXPLAINED

INSURANCE COVE R – PEACE OF MIND FOR LIFE S UNCERTAINTIES .

YOUR INSURANCE COVER BUSSQ provides flexible insurance cover for Manual and Non-Manual workers, up to $2 million for both Death (including Terminal Illness) and Total and Permanent Disablement (TPD) cover. Cover is also provided for Total and Temporary Disablement (TTD)

AM I ELIGIBLE FOR INSURANCE COVER

WHAT IS A MANUAL AND NON-MANUAL WORKER? If you do not perform physical work in your occupation and you spend at least 50% of your working time in an office environment, you are eligible for Non-Manual insurance cover.

Insurance cover is provided on the basis of a Manual worker unless you advise us otherwise on your Membership Application form.

You are eligible for insurance cover if you are: A member of BUSSQ Employed by an employer who is making ‘on time’ contributions on your behalf into BUSSQ Aged between 15 and 64 for TPD and 15 and 54 for Total and Temporary Disablement (TTD) cover Aged between 15 and 69 for Death only (including Terminal Illness) cover Residing in Australia and are an Australian citizen, a permanent resident or otherwise a person for whom your employer is required to make Superannuation Guarantee contributions on your behalf Not an ‘Excluded-Member’.

An ‘Excluded-Member’ is a member who satisfies one or more of the following:

HOW IS DEFAULT COVER PROVIDED? In order to receive automatic default cover you must: Satisfy the eligibility criteria (see ‘Am I Eligible For Insurance Cover’ on this page) Be ‘at work’ on the day your cover starts Not have been a member of BUSSQ in the previous 12 months A contribution must be made into your account within four months from the end of the month from the date you first join BUSSQ Join BUSSQ within four months of joining your employer, or your employer becomes a registered employer with BUSSQ.

Has declined or elected to discontinue, insurance cover under any BUSSQ Group insurance policy

If you were not ‘at work’ on the day your cover starts, you are only entitled to Death cover.

Has attained the age of 65 for TPD cover or age 70 for Death cover

WHEN DOES COVER COMMENCE?

In relation to TPD cover only, a member who has previously received a lump sum TPD benefit from BUSSQ or from any source.

Cover commences when an ‘on time’ contribution has been received for you from your employer.

WHAT DEFAULT COVER IS AVAILABLE? Generally, eligible members who are aged over 21 will receive four units of Death and TPD cover. Eligible members who are under 21 years usually receive the Budget Under 21 cover, but can elect to receive the default cover. See page 23 for more details.

Manual workers who have at least four units of TPD cover are also provided with Total and Temporary Disablement (TTD) cover. TTD cover is funded through the premiums paid for TPD cover and is not a separate benefit.

DEFINITION ‘On time’ means that your employer’s payment has been received as per the ATO SG requirements which is within 28 days of the end of the SG quarter.

The month for which payment was due, e.g. February contributions received by 28 April. If payment is late, TPD and TTD cover will not be provided until a Personal Statement of Health has been accepted

by OnePath or from the date a subsequent ‘on time’ contribution is received.

19

SPECIAL OFFER ON JOINING BUSSQ On joining BUSSQ, you may select up to six units of Death and TPD cover (default is four units) without health evidence, provided: An employer super contribution has been received within four months from the end of the month when you are first eligible to join BUSSQ Your completed Membership Application form is received and accepted by BUSSQ within four months of you first becoming eligible to join BUSSQ.

To maintain TTD cover you must keep at least four units of TPD cover. Should you wish to increase your cover at a later date a Personal Statement of Health will be required.

BUSSQ’s Premium Choice product offers flexible insurance, including Income Protection.

If you would like information on BUSSQ’s Premium Choice product call us on 1800 MY BUSSQ (1800 692 877).

DEFINITION First becoming eligible You must join BUSSQ within four months of being employed by a BUSSQ employer or join BUSSQ within four months of your employer becoming a BUSSQ registered employer.

CAN I CHANGE MY COVER? Yes. Insurance cover is offered on a unitised basis, which means that you can increase or decrease your cover to suit your personal circumstances by simply adjusting the number of units. Medical evidence may be required.

You can apply to increase your cover up to a maximum of $2 million at any time by completing an Application to Increase Insurance Cover available at bussq.com.au or online through MemberAccess. Additional cover only commences on written confirmation from us.

You may apply in writing to reduce or remove your cover by completing an Application to Decrease Insurance form.

SURANCE “I CAN ADJUST MY IN MY IT AT ANY TIME TO SU CIRCUMSTANCES” MEMBER JAN LAYCOCK, BUSSQ

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MYSUPER

COST OF COVER AMOUNT AND COST OF INSURANCE COVER The following tables show the cover per unit based on your age.

If you are a Manual worker, the cost of one unit of Death and TPD cover is $2.45 per week.

MANUAL WORKERS To maintain TTD cover, if you are a Manual worker, you need to ensure you have at least four units of TPD cover in BUSSQ. Insurance cover for Manual workers aged 21 and over is provided on a unitised basis in accordance with this table.

DEFAULT COVER FOUR UNITS OF COVER

ONE UNIT OF COVER AGE

MANUAL WORKER DEATH COVER $1.53 P.W.

MANUAL WORKER TPD COVER $0.92 P.W.

MANUAL WORKER DEATH COVER $6.12 P.W.

MANUAL WORKER TPD COVER $3.68 P.W.

15 – 20

$50,000

$15,000

21 – 50

$50,000

$15,000

$200,000

$60,000

51 – 55

$39,000

$15,000

$156,000

$60,000

56

$35,100

$13,500

$140,400

$54,000

57

$31,200

$12,000

$124,800

$48,000

58

$27,300

$10,500

$109,200

$42,000

59

$23,400

$9,000

$93,600

$36,000

60

$19,500

$7,500

$78,000

$30,000

61

$15,500

$6,000

$62,000

$24,000

62

$11,700

$4,500

$46,800

$18,000

63

$7,800

$3,000

$31,200

$12,000

64

$4,000

$1,500

$16,000

$6,000

65 – 69

$3,000

NIL

$12,000

NIL

70 PLUS

NIL

NIL

NIL

NIL

See Budget Under 21 insurance package (page 23)

21

If you are a Non-Manual worker, the cost of one unit of Death and TPD cover is $1.09 per week.

NON-MANUAL WORKERS If you do not perform physical work in your occupation and you spend at least 50% of your working time in an office environment, you can apply to receive the default level of cover under the Non-manual insurance table when you join BUSSQ. The default level of cover for Non-manual workers aged 21 and over is equal to four units of Death and TPD cover, however, the scale and premiums are different to that of Manual workers. Insurance cover for Non-manual members aged 21 and over, is provided on a unitised basis in accordance with this table.

DEFAULT COVER FOUR UNITS OF COVER

ONE UNIT OF COVER AGE

NON-MANUAL WORKER DEATH COVER $0.75 P.W.

NON-MANUAL WORKER TPD COVER $0.34 P.W.

15 – 20

$50,000

$50,000

21 – 40

$50,000

$50,000

$200,000

$200,000

41 – 44

$40,000

$40,000

$160,000

$160,000

45 – 49

$30,000

$30,000

$120,000

$120,000

50 – 54

$25,000

$25,000

$100,000

$100,000

55 – 59

$12,000

$12,000

$48,000

$48,000

60 – 64

$6,000

$6,000

$24,000

$24,000

65 – 69

$3,000

Nil

$12,000

Nil

70 Plus

NIL

NIL

NIL

NIL

Insurance premiums are calculated on the number of units of insurance you have selected and are deducted from your account at the end of each month. Having account based premiums means that, if you are between jobs or out of the industry, BUSSQ will continue to provide you with insurance by continuing to deduct insurance premiums from your account.

The insurance premiums deducted from members accounts will be less than those shown in the policy document due to an allowance for tax and rounding to two decimal places.

22

MYSUPER

NON-MANUAL WORKER DEATH COVER $3.00 P.W.

NON-MANUAL WORKER TPD COVER $1.36 P.W.

See Budget Under 21 insurance package (page 23)

When you join BUSSQ, as well as at any other time, you have the option to increase or decrease the number of units to suit your needs.

For information on when cover may end please go to page 26.

TYPES OF BENEFITS

BUDGET INSURANCE FOR MEMBERS UNDER 21 YEARS When you turn 21, you will automatically be transferred to the standard default insurance cover, which is four units of Death ($200,000) and TPD ($60,000) cover (manual only).

WHAT WILL MY BENEFIT BE? Death If you die, your beneficiaries will receive your BUSSQ account balance plus any insured benefit. For information as to who you can nominate as your beneficiary, see page 29.

Terminal Illness If you are insured for Death only or Death and TPD cover, you are automatically covered for Terminal Illness. You will qualify for a Terminal Illness benefit if you suffer from an illness or injury which in the opinion of two medical practitioners (one which the Insurer may elect and require to be a specialist physician) is likely to lead to your death within 12 months of the date of written certification, despite reasonable medical treatment.

The Terminal Illness benefit is the lesser of: The Death benefit, and $500,000.

If your Death benefit is greater than $500,000, the balance of the benefit is payable upon your death, as long as: Your death occurs before you reach age 70 Premiums have continued to be paid for the reduced insured benefit, and The policy is in force.

DEFAULT COVER ONE UNIT OF COVER $1.08 P.W. DEATH COVER

TPD COVER

$50,000

$50,000

On payment of a TPD benefit you may choose to remain in BUSSQ and continue cover for any residual Death cover.

A minimum account balance of $5,000 is required. Please call us on 1800 MY BUSSQ (1800 692 877) for full details.

Total and Temporary Disability If you are covered for Total and Temporary Disability (TTD) cover, and satisfy the definition of TTD, you will receive a TTD benefit from BUSSQ which is the lesser of $350 per week or 100% of your weekly income, which is payable monthly in arrears. This is the maximum TTD benefit available.

A TTD benefit is payable after the end of the ‘Waiting Period’ and ends on the earliest of the following events: You cease to be Total and Temporarily Disabled You have received a Total and Temporary Disability benefit for 12 months You die or suffer Total and Permanent Disability, You turn 56 years of age.

PLEASE NOTE The TTD benefit for Manual workers is the lesser of $350.00 per week or 100% of salary, regardless of the number of TPD units granted, but subject to the minimum of four units.

TPD To receive your insured TPD benefit, you must satisfy the definition of Total and Permanent Disability. If a TPD benefit is payable to you, you will receive your insured benefit together with your BUSSQ account balance, subject to you satisfying the ‘permanent incapacity’ condition of release under superannuation law.

23

“IT’S GOOD TO KNOW I’M COVERED FOR LIFE’S LITTLE UNCERTAINTIES.”

CHICKA SCHWARTZ, BUSSQ MEMBER

DEFINITIONS ‘Total and Temporary Disablement’ means you were completely and continuously unable, by reason of illness or injury, to earn remuneration in respect of your own occupation and you are not earning remuneration from any other occupation.

‘Waiting Period’ means the period commencing when you are Total and Temporarily Disabled and have consulted a medical practitioner in respect of that Total and Temporary Disablement and ends on the expiry of six months (during which you are Totally and Temporarily Disabled).

‘At Work’ means you are working with a participating BUSSQ employer and performing any identifiable duties.

For some specific medical conditions the Insurer will waive the six months waiting period. These are: Cardiomyopathy Primary pulmonary hypertension Major head trauma Motor neuron disease Multiple sclerosis Muscular dystrophy Dementia/alzheimer’s disease

Parkinson’s disease Loss of speech Loss of hearing Chronic lung disease Severe rheumatoid arthritis Severe burns.

‘Income’ means the regular annual remuneration paid to you by your employer, the monetary value of fringe benefits (which are costed items of annual remuneration taken in direct substitution of salary) and performance related annual payments which are related to your normal duties averaged over the prior period of three years from the first day of the Waiting Period, as at the date you are TTD.

24

MYSUPER

‘Total and Permanent Disablement, Total and Permanent Disability or TPD’ means: 1. If for 6 months you have not worked in any gainful employment due solely to injury or illness and are:

Gainfully working on the day immediately prior to the event date; and

Worked at least the minimum average hours (an average of 15 hours per week).

Aged less than 60 years;

The definition of TPD will be: Based on medical or other evidence satisfactory to us, solely because of injury or illness, you:

Have ceased working for at least six consecutive months from the event date; and

As at the date of disablement you are unlikely ever to return to any gainful employment for which you are reasonably suited by education, training or experience, or would be suited by reasonable retraining.

2. If you don’t meet one of the above criteria, i.e. are over age 60, not gainfully employed or working for less than the minimum average hours, the following TPD definition would apply: Based on medical or other evidence satisfactory to us, solely because of injury or illness, you:

As at the event date, or such later date as we may agree in writing, are totally and irreversibly unable to perform, without the assistance of another adult person or suitable aids, at least two of the activities of daily living; and

As at the date of disablement you are unlikely ever to return to any gainful employment for which you are reasonably suited by education, training or experience, or would be suited by reasonable retraining.

MAKING A CLAIM WHAT HAPPENS IF YOU, OR YOUR DEPENDANTS, NEED TO MAKE A CLAIM? Before making a claim please check: You are a member of BUSSQ Premiums for your insurance cover are being deducted from your account If you are claiming a disability benefit, that you meet the definition of Total and Permanent or Total and Temporary Disablement as described on the opposite page.

If you have any questions regarding your eligibility, please give us a call on 1800 MY BUSSQ (1800 692 877).

The claims process: When you advise us of your claim BUSSQ will connect you with a One Path claims assessor who will manage your claim.

You may be required to obtain information from your medical practitioner(s) or your employer (if applicable)

The Insurer may decline your claim for any of the following reasons: - You were not an insured member at the time of the claim, - You did not meet the definition of Total and Permanent or Total and Temporary Disablement, or - You do not comply with the duty of disclosure outlined in your Member Application or Insurance Application or Personal Statement of Health.

In the case of a Death Benefit, your dependants will need to contact BUSSQ.

EXCLUSIONS In the event of war involving Australia, New Zealand or your country of residence, the Insurer may: Increase premium rates Exclude benefit payments if the event giving rise to the claim is caused directly or indirectly from war.

The Insurer will then pay the claim, ask for further information, or decline the claim

WE’VE GOT YOUR IDEAL INSURANCE COVER NAILED Call 1800 MY BUSSQ (1800 692 877) and let our professional team help you choose what’s best for you and your family. There’s no extra cost for limited financial advice about your super, including insurance.

See page 48 for details.

25

WHEN DOES COVER END? Cover ends for each benefit when the earliest of one or more of the following events happens.

Important: You are insured for death OR terminal illness OR TPD. A payment of one benefit will cease cover for other benefits.

Death cover ends on the earliest of: You elect to end cover, or A Terminal Illness or TPD benefit payment which is equal to the amount of the Death benefit is paid or payable, or You die, or If you are not an Australian citizen and no longer live permanently in Australia, the date you are not eligible to work in Australia (either because you cease to hold a visa or for any other reason), or You reach 70 years of age, or Your account balance is insufficient to pay premiums, or You are no longer a member of BUSSQ, or You are transferred to BUSSQ’s eligible rollover fund, or The date you are on leave for a period longer than the Insurer has agreed to provide insurance for, or For non-Australian citizens 12 months from the date you depart Australia unless OnePath and BUSSQ give prior written approval and subject to the terms of that approval and for as long as premiums continue to be paid, or On the date you commence active duty with the armed forces of any country.

TPD cover ends on the earliest of: You elect to end cover, or A benefit payment is payable or paid, or A death benefit or terminal illness benefit has been paid, or You reach 65 years of age, or If you are not an Australian citizen and no longer permanently reside in Australia, the date you are not eligible to work in Australia (either because you cease to hold a visa or for any other reason), or The date you are on leave for a period longer than the Insurer has agreed to provide, or Your account balance is insufficient to pay premiums, or You are no longer a member of BUSSQ, or You are transferred to BUSSQ’s eligible rollover fund, or For non-Australian citizens 12 months from the date you depart Australia unless OnePath and BUSSQ give prior written approval and subject to the terms of that approval and for as long as premiums continue to be paid, or

* Please note: At the time you suffer disablement you need to be employed.

26

MYSUPER

On the date you commence active duty with the armed forces of any country, or When you no longer have Death cover.

TPD payments are reduced when: TTD benefits relating to the same illness or injury have been paid within the previous 12 months.

TTD cover ends when: You elect to end cover, or You cease to be ‘at work’ other than by reason of Total and Temporary Disablement, or A benefit is payable or paid, or You reach the age of 56, or Your account balance is insufficient to pay premiums, or The date you are on leave for a period longer than the Insurer has agreed to provide, or You are no longer a member of BUSSQ, or You are transferred to BUSSQ’s eligible rollover fund, or For non-Australian citizens 12 months from the date you depart Australia unless OnePath and BUSSQ give prior written approval and subject to the terms of the approval and for as long as premiums continue to be paid, or On the date you commence active duty with the armed forces of any country, or Your cover ceases to be based on the Manual worker rates, or You have less than four units of TPD cover based on the Manual worker rates.

TTD payments end when: You turn 56, or You engage in any occupation.

TTD payments reduce when: A TTD benefit has been paid and recurs within 12 months for the same condition, the benefit payment will be reduced by the period already paid, however, there will be no further waiting period.

OTHER INFORMATION WHAT HAPPENS IF I BECOME SELFEMPLOYED OR WORK FOR A NON-BUSSQ EMPLOYER?

COVER DURING OVERSEAS EMPLOYMENT If you are an Australian resident who is temporarily employed overseas you may be provided cover under the insurance policy provided premiums continue to be paid.

You can continue your cover, however, if you are not working, the disablement may not be paid.

Refer to definition on page 24.

INTERIM ACCIDENTAL DEATH COVER

You may also transfer your cover to BUSSQ’s Premium Choice product if BUSSQ is advised of your change in status within the stated times.

When applying for insurance cover, interim accidental death cover is provided. Interim accidental death cover starts:

WILL MY COVER RECOMMENCE IF I GET RE-EMPLOYED? Yes – provided you meet the eligibility conditions (see ‘Am I Eligible For Insurance Cover’ page 19) and meet the conditions for default cover to commence.

COVER DURING PAID AND UNPAID LEAVE Your cover can continue if you are on paid leave, including sick leave, bereavement leave, annual leave or long service leave. If you commence leave without pay to travel, undertake full time study, or for maternity/ paternity or other extended leave, you may continue to be covered under the insurance policy for a period of up to 24 months, subject to the conditions outlined as follows:

From the date an application for cover is received by us (or an earlier date we agree with you in writing).

Where interim accidental death cover applies, OnePath will provide the benefit amount applied for, but only in the event of your accidental death. Interim death cover will continue until the earlier of the following: We notify you that we accept or reject your application for cover, or increase in cover, as the case may be, or Three months after the date interim accidental death cover starts.

Interim cover is only available once during the application process.

Parental leave/unpaid leave/paid leave – This type of leave must be approved by your employer prior to the leave commencing.Your employer must hold an appropriate leave record which includes: – The date leave is to commence, and – The date you are expected to return to work.

Prior notification is not required for parental leave.

27

DEFINITION

The insurance premiums deducted from members accounts will be less than those shown in the policy document due to an allowance for tax and rounding to two decimal places.

Accident Accident means a fortuitous, external event that occurs by chance causing death or disablement. It does not refer to an event which results in sickness, disease, injury or infirmity of the person insured, such that they would qualify for a Death, or TPD benefit (as applicable) to be paid under the policy.

Whether the death or disablement was caused by an unintended and unexpected characteristic or consequence of an intended act (such as the application of unintentionally excessive force, or the creation of unintended excessive pressure or strain) is irrelevant in determining whether death or disablement has arisen as a result of an ‘accident’.

An accident must result in the death or disablement of the person insured for a benefit to be payable where liability is contingent on an event being caused by an accident or by accidental injury.

For the avoidance of doubt, an accident shall specifically exclude death or disablement: Arising out of, or contributed to in any way by, any pre-existing sickness, disease, injury, gradual physical or mental deformity, or infirmity known to the person insured at the effective date their cover commenced under this policy, Arising in circumstances where the person insured deliberately assumed the risk or courted disaster, irrespective of whether he or she intended or contemplated the results of his or her actions.

Where there is doubt as to the cause of death or disablement sustained as a result of an accident, the cause will be characterised as being the result of sickness.

28

MYSUPER

BUSSQ PREMIUM CHOICE INCOME PROTECTION BUSSQ has a Premium Choice product that does offer extensive flexibility when it comes to insurance protection. In particular, it offers flexible income protection insurance. To find out more give us a call on 1800 MYBUSSQ (1800 692 877).

NOMINATING BENEFICIARIES CHOOSE YOUR BENEFICIARIES If you die while you are a member of BUSSQ, the Death benefit may provide valuable financial assistance to your dependants. The Trustee has the discretion to pay your benefits to your dependants and/or your legal personal representative.

You can specify how you wish your Death benefit to be paid by making a nomination which can be either non-binding or binding. You should nominate your preferred beneficiaries when you join BUSSQ and you are encouraged to review your nominations as your circumstances change.

Non-binding nomination When you make a non-binding nomination, your wishes about who should receive your benefits when you die are a guide only and are not binding on the Trustee.

The Trustee will take your nomination(s) into consideration but it is the Trustee who will make the final decision. The Death benefit can be paid to your dependants or the legal personal representative of your estate.

Binding nomination A binding nomination instructs the Trustee to be bound by the nomination(s) you make on your form when paying your Death benefit.

For your binding nomination to be valid, certain conditions must be met, including: Nominations can only be made on a Binding Death Benefit Nomination form. Download a form from bussq.com.au.

The only beneficiaries that can be nominated are your dependants or your legal personal representative (i.e, the executor or administrator of your estate).

Your Binding Death Benefit Nomination form must be signed by you and two witnesses, both of whom must be at least 18 years old and not nominated as beneficiaries.

Your binding nomination will only remain valid for three years. After three years, you will need to re-confirm the nomination or provide a new one. In the event that your nomination becomes invalid, the conditions applying to non-binding nominations will apply.

If you nominate on your form someone other than those people listed as a dependant, your nomination will be invalid.

DEFINITION Your dependants are: Your spouse (legal or de-facto, including same-sex) Your children (including step, adopted or ex-nuptial) Anyone who is in an interdependent relationship with you at the time of your death Any other person who, in the opinion of the Trustee, is or was at the date of your death wholly or partly dependent on you.

The main requirements to establish an interdependent relationship are: To live together To have a close personal relationship For one or each person to be committed to the financial and domestic support of the other.

At time of payment your beneficiaries must also still be dependants. If your circumstances change you should review your binding death nomination.

29

MANAGING YOUR MONEY YOUR OWN ACCOUNT When you join BUSSQ MySuper, an account will be opened in your name. The value of your account balance will change as a result of contributions, withdrawals, investment earnings and fees as follows: What goes in:

What comes out:

Your own contributions

Tax and other government charges

Your employer’s contributions

Administration and investment costs

Any amounts you transfer in from other funds

Insurance premiums (if applicable)

Positive investment earnings

Negative investment returns

Government co-contribution amounts (if applicable)

Any withdrawal or termination fees.

Contributions made by your spouse (if any).

30

MYSUPER

BUSSQ IS AN INDUSTRY SU PER FUND, WHERE PROFITS ARE RE TURNED TO MEMBERS.

HOW EARNINGS ARE APPLIED TO YOUR ACCOUNT

DETERMINING THE UNIT VALUE

When you invest in MySuper, you buy a number of units in the Balanced Growth option. The number of units you receive depends on the value of the units (the unit price) at the date they are bought.

The unit value is determined by taking into account the change in value of investments within the investment option and deducting estimated investment and management charges, reserves and tax. The unit price is currently calculated weekly. However, in future the unit price may be calculated more frequently and you will be advised beforehand. In times of high volatility, the Trustee reserves the right to calculate unit prices more frequently or suspend the calculation of unit prices.

The value of your investment from then on depends on the number of units that you have and the value of those units – much like owning shares.

EXAMPLE If you have $150,000 to invest in the Balanced Growth option on 1 July when units in that option are valued at $1, you will start your BUSSQ account with: Initial investment

$150,000

Value of units at 1 July

$1

Number of units bought

150,000

If on 1 August the unit price increases to $1.01 then you will have: Number of units

150,000

Value of units

$1.01

Value of your investment

$151,500

Withdrawal Number of units withdrawn

$5,000 4950.5 at 1.01 per unit

Number of units remaining

145,049.5

Value of your remaining units

145,049.5 x $1.01 = $146,500

THE VALUE OF UNITS

ONLINE ACCOUNTS AND STATEMENTS Online accounts – You can access your account details at any time and update your address details, investment option and more online via MemberAccess. You can register for MemberAccess by visiting bussq.com.au.

Statements – As a member of BUSSQ you will receive Member Statements showing your account details as at 30 June and 31 December each year.

Record of contributions – if you are an employer sponsored member of BUSSQ you will receive a Record of contributions statement in April and October each year.

You can also elect to receive a statement electronically by opting in online at bussq.com.au or by calling us on 1800 MY BUSSQ (1800 692 877) and we will then email your statement to you.

You can phone, fax or email BUSSQ, or call personally to get information about your account.

RESERVING POLICY As required by legislation, the Trustee maintains an Operational financial risk reserve of 0.25%. The Trustee also maintains an administrative reserve with its optimum level around 0.5% of assets. The purpose of the reserve is to fund contingency expenses, such as taxation adjustments and other calculation variances. As a result, the administrative reserve can vary from the optimum level.

The nature of investment markets means that the value of your units can rise or fall. The unit price reflects the performance of the investment option after estimated investment charges and tax have been deducted.

31

PENSION PRODUCTS We are committed to helping you achieve a comfortable lifestyle in retirement, and we offer you a range of pensions to assist you as you near retirement.

in BUSSQ, then it’s important you transfer those accounts directly to BUSSQ, before your super is transferred to the pension section.

Because BUSSQ pays no commissions to sales people, the fees for our pension products are set to meet the operating costs of the product only, which means more money for you in retirement.

Pension payments can be made monthly, quarterly or yearly and are deposited directly into your bank, building society or credit union account.

The minimum amount needed to commence a BUSSQ pension is $10,000. If you have money in other super funds that you want to use, as well as the money you have

RETIREMENT PENSION The BUSSQ Retirement pension is a tax-effective way to arrange a flexible, regular income during your retirement.

With a Retirement pension you: Can adjust the income you receive, subject to a minimum amount, to suit your circumstances May use it to top up the Centrelink aged pension

If you are under age 55 and wish to purchase a pension, please contact BUSSQ for further information.

If you are nearing retirement, give us a call to obtain more information about a BUSSQ pension.

TRANSITION TO RETIREMENT PENSION The Transition to Retirement Pension allows you to ease into retirement by working hours that suit you without sacrificing your standard of living. You can use your super savings to purchase an income stream that will supplement your income from your employment.

You can join the Transition to Retirement pension if you are a member of BUSSQ and you are:

May receive tax benefits, and

Over 55 years of age and have reached your preservation age (see table on page 33), and

Can make lump sum withdrawals from time to time.

Still in the workforce.

You can join the Retirement pension plan if you are: A member of BUSSQ Over 55 years and have retired from the workforce At least 60 years of age and have ceased employment At least 65 years of age Assessed by BUSSQ’s Trustee as being totally and permanently disabled, or Rolling over money from another Retirement pension.

A BUSSQ PENSION CAN BE REALLY TAX EFFECTIVE .

32

MYSUPER

With a Transition to Retirement pension you: Can supplement your income subject to a maximum and minimum amount, and May receive tax benefits.

ACCESSING YOUR BENEFITS YOUR BENEFIT Your benefit in BUSSQ is the balance of your MySuper account at the time your benefit is paid.

It consists of:

All contributions, rollovers and transfers credited to your account

Severe financial hardship (subject to specified conditions and Trustee approval) Compassionate grounds (on application and approval by the Australian Prudential Regulatory Authority (APRA)) On permanent departure from Australia if you are an eligible temporary resident.

LESS

Deductions for tax, administration reserves, investment fees and insurance premiums PLUS or MINUS* Investment earnings

Your benefits in BUSSQ are classified as: Preserved Restricted non-preserved, and

PLUS Any insured benefit to which you may be entitled.

See pages 18 to 28 for details.

* PLEASE

PRESERVATION REQUIREMENTS

NOTE

Investment earnings will vary and may be negative at times. If investment earnings are negative, then the rate will be debited from your account.

CLAIMING YOUR BENEFIT Your superannuation is meant to help provide for your retirement. That is why the Government has placed restrictions on when you or your beneficiaries can access it.

Subject to the governing rules of BUSSQ and applicable law, you will become eligible to receive your benefit when one of the following events happens:

Unrestricted non-preserved.

The following is a summary of what benefits are covered by each classification.

Preserved From 1 July 1999 all contributions paid into a super fund are classified as preserved, including the investment earnings credited to your MySuper account on those contributions. You can access preserved benefits, subject to specific cashing restrictions, in certain cases as outlined below.

All preserved benefits transferred between BUSSQ and other super funds will continue to be preserved. Eligible spouse contributions are also preserved.

PRESERVATION AGE IF YOU WERE BORN

YOU CAN ACCESS YOUR SUPER AT AGE

Before 1 July 1960

55

From 1 July 1960 to 30 June 1961

56

Reaching age 65 years

From 1 July 1961 to 30 June 1962

57

Reaching age 60 years and leave employment

From 1 July 1962 to 30 June 1963

58

Become totally and permanently disabled (if insured) or permanently incapacitated if not insured

From 1 July 1963 to 30 June 1964

59

1 July 1964 or after

60

Permanent retirement from the workforce on or after your preservation age (see table opposite)

If you die (benefits are paid to your dependants or your legal personal representative)

33

IF YOU DO NOT WANT TO ACCESS YOUR SUPER AS SOON AS YOU RETIRE OR TURN 65,YOU CAN LEAVE YOUR MONEY IN YOUR BUSSQ FLEXIBLE CHOICE ACCOUNT UNTIL YOU NEED IT.

Restricted non-preserved

FINANCIAL HARDSHIP

Access to these benefits is restricted in the same way as preserved benefits. However, if you or your employer made a contribution on your behalf prior to 1 July 1999 and you cease working for that employer, then these benefits may become unrestricted non-preserved benefits and be able to be accessed.

If you have been receiving Centrelink benefits for a period of more than 26 continuous weeks and you are eligible for a Q230 form from Centrelink, you may be able to access some of your MySuper account.

Unrestricted non-preserved These benefits may be accessed at any time without a change in employment status.

However, a withdrawal fee will apply for every withdrawal that is not a retirement benefit.

Once you have reached your preservation age you may: Leave your money in your MySuper account Take draw-downs from your account when you need them Transfer to a BUSSQ pension account, and Take a lump sum.

TEMPORARY RESIDENTS DEPARTING AUSTRALIA From 1 July 2002, if you entered Australia on an eligible temporary resident’s visa and have subsequently permanently departed Australia, you are able to claim payment of any superannuation you may have accumulated. You are unable to apply for the payment of your benefit until after you have permanently departed Australia. Tax will be deducted before payment of your benefit is made.

You will be required to provide proof of debt including any personal loans. BUSSQ is unable to pay on a statutory declaration along.

Remember that we are flexible with claims and allow you to take part payments. This means that you will still have some money invested with BUSSQ for your retirement.

CLAIMING SUPER ON COMPASSIONATE GROUNDS If the Department of Human Services (DHS) and the Trustee agree, a benefit may be paid to offset expenses you have incurred (on behalf of either yourself or a dependant) due to severe ill health, palliative care, death or burial. A benefit may also be paid to enable you to make loan repayments on your principal place of residence when failure to make the payments would result in foreclosure of the loan.

For more information give us a call or, in the case of claiming super on compassionate grounds, contact DHS on 1300 131 060.

If you do not claim your super within six months of leaving Australia or expiry of your visa, we are required to transfer the monies to the Australian Taxation Office.

The Australian Taxation Office will not pay interest on it.

Australian citizens who permanently depart Australia are not eligible to claim their benefits under this condition.

Members are eligible to transfer their benefits between BUSSQ and NZ Kiwi Saver funds. BUSSQ is, however unable to accept transfers from NZ Kiwi Saver accounts.

Contact us for more information.

BUSSQ’S LOW FEES MEANS MORE DOLLARS WO RKING FOR Y OU.

34

MYSUPER

TAX AND SUPER TAX ON CONTRIBUTIONS All employer contributions to your account, and contributions for which a tax deduction is claimed, are subject to 15% Federal Government contributions tax.

Personal and spouse contributions that are not claimed as a tax deduction and spouse contributions, are not taxed.

If you roll over super into BUSSQ that has an untaxed component, 15% tax is payable on the untaxed component.

Tax on contributions is deducted from your account monthly (where contributions are made monthly).

The deductions and rebates available on the different types of contributions that can be made to BUSSQ are discussed in the following pages.

Concessional (before tax) contributions – employer and salary sacrifice contributions Employer and salary sacrifice contributions are taxed at 15%. All employer contributions, including salary sacrifice contributions, are fully tax-deductible by an employer.

From 1 July 2012, the concessional contributions limit is $25,000 per financial year for everyone regardless of age.

While there is no limit on the amount of contributions you can make to your super, additional tax may be applicable to any contributions above this limit. Any contributions you make above $25,000 in a financial year will be taxed at the highest marginal tax rate of 46.5%. If you were not eligible to make this type of contribution it will instead count towards your non-concessional (after-tax) contribution limit.

Contributions limits for those age 50 and over From 1 July 2013, if you are 60 years of age or more the concessional contributions limit will be set at $35,000. If you are aged between 50 and 60, this limit will increase to $35,000 from 1 July 2014. The Government will not proceed with its previous proposal to restrict the higher concessional contribution limit to individuals with a balance below $500,000.

Additional contributions tax for high income earners If your income exceeds $300,000 you will pay an additional tax of 15% (30%) on concessional contributions from 1 July 2012. Concessional super contributions will also count towards the amount of income for this purpose.

Despite the additional tax, from a tax perspective super remains an attractive investment vehicle for all taxpayers due to the tax concessions provided on contributions, the 15% tax rate on investment earnings and the typically tax-free status of investment earnings and pension withdrawals in retirement (or transition to retirement).

Non-concessional contributions – personal contributions Generally, you cannot claim a tax deduction for personal contributions if your employer makes super contributions on your behalf. Personal contributions from your after tax income will not be taxed when contributed. These contributions are limited to $150,000 per annum. If you are under 65 you will be able to bring forward up to two years contributions and contribute up to $450,000 (to be indexed).

Self-employed contributions If you are self-employed or substantially self-employed, you may be able to claim a tax deduction in respect of your super contributions.

Concessional contribution limits apply to self-employed contributors where a tax deduction has been claimed.

If you intend to claim a personal tax deduction, BUSSQ will ask you to complete a Notice of intent to claim a tax deduction form indicating the amount you intend to claim. BUSSQ will acknowledge receipt of this notice in writing so that you can claim your deduction. It is your responsibility to ensure you are eligible to claim the personal tax deduction.

It is important that you advise BUSSQ of your intention to claim a tax deduction before you submit your tax return, and that you submit your tax return in the year following the year contributions were made.

Once you reach age 75 you are unable to contribute to your super at all.

35

TAX ON INVESTMENT EARNINGS

TAXATION OF DEATH AND TPD BENEFITS

Superannuation investment earnings are taxed at a lower rate than most other forms of savings. The maximum rate is 15%. This tax may be offset by deductions available to BUSSQ such as franking credits.

Death and TPD cover is treated as a benefit through BUSSQ and so, for taxation purposes, any insurance benefits payable are treated as superannuation Death or TPD benefits.

TAX ON BENEFITS ROLLED IN AND OUT

As such, Death benefits paid to your financial dependants or spouse will be tax free.

There is no tax payable if you roll over benefits from one super fund to another, unless the amount rolled over contains an untaxed component. An untaxed component attracts 15% tax on rolling over.

TAXATION OF LUMP SUM WITHDRAWALS You can request the withdrawal of a lump sum from your MySuper account once you have reached your preservation age (see page 33).

The lump sum benefit will comprise of: A tax free component, and A taxable component.

The benefit will be made pro-rata and will include both tax free and taxable components in the same proportion, as these components make up the total value of the account.

If a Death benefit is paid to someone other than a financial dependant or spouse, the entire benefit will be concessionally taxed. (Taxable components is taxed at 15% plus Medicare levy.)

The tax payable on TPD benefits will vary due to a number of factors such as age, length of service and the amount of the benefit.

PLEASE NOTE These statements in relation to taxation are based on interpretation of present Australian tax law, which may change at any time. Contact a professional tax adviser for a full explanation and advice on individual circumstances.

The tax free component is made up of components that were previously shown as undeducted contributions, GST exempt components, pre 30 June 1983 component and a post 30 June 1983 invalidity component.

To obtain current limits contact us on 1800 MY BUSSQ (1800 692 877), visit bussq.com.au or see the latest Annual Report.

COMPONENT

AGE AT DATE OF LUMP SUM BENEFIT UNDER 55 YEARS

55 YEARS TO 59 YEARS

60 YEARS AND OVER

TAX FREE

TAX FREE

TAX FREE

TAX FREE

TAXABLE

20% tax + Medicare Levy

Up to $180,000* is 0% tax, balance taxed at 15% + Medicare levy**

TAX FREE

* The $180,000 is for the 2013/14 year of income. These figures are indexed by the ATO. ** Medicare levy is currently 1.5%

36

MYSUPER

TAX FILE NUMBERS BUSSQ is authorised to collect your Tax File Number (TFN) by law. Advising BUSSQ of your TFN is voluntary and it is not an offence if you choose not to provide it.

BUSSQ is required to take the necessary steps to properly safeguard your TFN and it is BUSSQ’s intention to only use your TFN for approved purposes.

Your employer is required by law to advise your TFN to your super fund.

Approved purposes include: To assist in searching for and amalgamating super benefits in BUSSQ To allow your TFN to be passed on to another regulated fund or retirement savings account if your benefit is transferred or rolled over unless BUSSQ receives written notification stating otherwise To advise the ATO for the purposes of the Lost Member Register in the event of you becoming ‘lost’, and To advise the relevant State Authority if we are paying unclaimed money.

WHAT HAPPENS IF YOU CHOOSE NOT TO PROVIDE YOUR TFN TO BUSSQ? All deductible contributions for which a tax deduction is claimed, will be taxed at the top marginal tax rate if you have not provided your TFN to BUSSQ. Should you have multiple benefits in super, BUSSQ may not be able to locate and amalgamate them Benefits paid to you will be subject to PAYG tax at the top marginal tax rate, plus the Medicare Levy (currently 46.5%). Note: this may be recovered after lodgement of your tax return Contributions received from your employer (concessional contributions) will also be subject to tax at the top marginal rate, and BUSSQ will be unable to accept non-concessional (personal after-tax) contributions.

“I SAVED TAX BY PROVIDING MY TFN TO BUSSQ.”

REAGAN HEATON , BUSSQ MEMBER

37

FEES AND OTHER COSTS CONSUMER ADVICE WARNING Did you know?

Small differences in both investment performance and fees and costs can have a substantial impact on your long-term results. For example, total annual fees and costs of 2% of your account balance rather than 1% could reduce your final return by up to 20% over a 30-year period (for example, reduce it from $100,000 to $80,000).

You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs.

You may be able to pay lower contribution fees and management costs where applicable. Ask the fund or your financial planner.

To find out more

During the financial year 2012/2013 this fee was between 0.00% and 0.14% depending on your chosen option. This fee is included in the management costs shown in the table on page 44 and is not an extra cost to members.

Information regarding tax can be found on pages 35 to 37.

The Trustee of BUSSQ reserves the right to increase fees, however, you will be given 30 days’ notice.

As BUSSQ returns all profits to members, any fee increase will only be required to cover the costs of running the fund.

BUSSQ MANAGEMENT COSTS BUSSQ does not charge its members contribution fees.

Management costs are incurred on BUSSQ by its service providers (such as administrators and investment managers) and cannot be negotiated individually by BUSSQ members.

If you would like to find out more, or see the impact of the fees based on your own circumstances, the Government website (moneysmart.gov.au) has a superannuation investment fee calculator to help you check out different fee options.

The fees and charges may change due to changes in:

BUSSQ’S FEES AND OTHER COSTS

The fees and charges include GST payable by BUSSQ and GST attributable to investment costs.

This document shows fees and other costs that you may be charged by BUSSQ. These fees and costs may be deducted from your money, from the returns on your investment or from the fund assets as a whole.

Management costs shown have been calculated using the figures first quarter unaudited accounts.

Taxes and insurance costs are set out in another part of this document. You should read all the information about fees and costs because it is important to understand their impact on your investment.

ADDITIONAL EXPLANATION OF FEES AND COSTS BUSSQ may be charged a performance fee by underlying investment managers. A performance fee is payable when an investment manager achieves investment performance in excess of pre-agreed benchmarks. This means the better the investment performance, the more chance BUSSQ may be charged a performance fee. This fee will vary depending on the investment option chosen and will change year to year.

38

MYSUPER

The underlying investment managers, or Legislation, or Management expenses.

BUSSQ’S LOW FEES MEANS MORE WORK ING FOR YOU.

FEES TABLE TYPE OF FEE

AMOUNT

HOW AND WHEN PAID

Investment fee

Nil

BUSSQ does not charge an investment fee.

Advice fee*

Nil

BUSSQ does not charge for intra-fund advice.

Buy - sell spread

Nil

BUSSQ does not charge a buy - sell fee.

Exit fee

$100

Deducted from your account when your entire super account balance (benefit) is paid. $30 is charged for partial withdrawals.

Administration fee

$1.50 pw

Deducted from your account monthly

Indirect Cost Ratio - indirect investment and administration costs gross of tax. Estimation based on most recent financial reports.Year end actual costs may vary. Includes an estimated performance fee to investment managers of 0.12%

0.98% pa

Deducted from BUSSQ’s earnings before BUSSQ declares a unit price.

Nil

BUSSQ does not charge an investment switching fee.

Varies

Refer to additional explanation of fees and costs in the Your super handbook.

Investment switching fee Other fees and costs FAMILY LAW FEES Valuation fee – this fee is for providing information as required under the Family Law Act.

$70

This fee is deducted from each account at the time of valuation.

Splitting an account fee – this fee is for processing the split of accounts.

$100

This fee is divided equally between you and your spouse and deducted from each account.

Lost member search fee

$20

This fee will be deducted from your account if you do not provide us with your address and we are required to do a search to locate a new address.

Contribution splitting fee Split to a BUSSQ account.

Split to a non-BUSSQ account.

$30 $100

This fee is deducted from your account at the time of the split.

Contribution refund fee This fee is payable when BUSSQ has to refund a contribution due to NO TFN being provided.

$35

This fee will be deducted when a contribution is refunded.

OTHER FEES

* Fees may be charged for other personal advice provided by a BUSSQ Financial Planner.

Refer to financial services guide on page 46.

39

E PAID TO NO COMMISSIONS AR WHO RECOMMEND FINANCIAL PLANNERS Q PRODUCT. THE USE OF ANY BUSS

COMMISSIONS No commissions are paid to financial planners who recommend the use of any BUSSQ product.

ADDITIONS OR ALTERATIONS TO FEES AND CHANGES The Trustee has the power to alter, increase or introduce new charges at its discretion. You will be advised of the charges before they are introduced. BUSSQ is unable to negotiate lower fees and management costs as described on page 38.

IT’S IMPORTANT TO COMPARE FEES When shopping around for a super fund, many people compare investment returns, but it is just as important to compare all the fees and charges of the different funds in which you are interested. This exercise can be difficult, especially when fees are charged in different ways and particularly when they are not clear or explained properly or are misleading. A difference of a few cents a week can have a substantial impact on your account balance when you eventually retire.

Some funds charge members entry fees, fees for processing contributions and even withdrawal fees based on a percentage of the account balance. So, be discerning and choose carefully.

EXAMPLE OF ANNUAL FEES AND COSTS This table gives an example of how the fees and costs in the Balanced Growth option can affect your superannuation over a one-year period. You should use this table to compare this product with other superannuation products.

BUSSQ MYSUPER BALANCED GROWTH (DEFAULT OPTION) TYPE OF FEE Investment fee

AMOUNT

BALANCE OF $50,000

Nil

For every $50,000 you have in BUSSQ MySuper, you will be charged nil.

$78 pa ($1.50 pw)

And you will be charged $78 in administration fees regardless of your balance.

PLUS Administration fee PLUS Indirect costs

0.98%

And indirect costs of $490 each year will be deducted from your earnings before a unit price is declared.

EQUALS Cost of fund

40

MYSUPER

If you had a balance of $50,000 throughout the year, you would be charged a total of $568 per year.

OTHER INFORMATION PURPOSE OF BUSSQ BUSSQ was established in 1985 to provide benefits for all people working in the Queensland building, construction and allied industries.

MANAGING BUSSQ BUSS(Queensland) Pty Ltd, is the Trustee of BUSSQ and the issuer of this PDS. Its Board is made up of an equal number of employer and member representative directors who are nominated by our sponsoring employer and member organisations:

The Trustee is responsible for ensuring BUSSQ is managed in the best interests of all members and their dependants. The Trustee also appoints various professional organisations to assist it with running BUSSQ. A Trust Deed governs the operation of BUSSQ and if there are any inconsistencies between the terms of BUSSQ’s Trust Deed and this PDS, the terms of the Trust Deed will prevail. From time to time the Trust Deed may need to be amended. If it is, you will be notified of any changes that may adversely affect your benefits.

You may inspect a copy of the Trust Deed on request.

Master Builder Association Queensland (MBAQ) Builders Labourers Federation (BLF) Construction Forestry Mining Energy Union (CFMEU).

41

PARTNERSHIPS BUSSQ has a partnership relationship with the following organisations: Civil Contractors Federation (CCF) Communications Electrical and Plumbers Union (CEPU) Master Plumbers Association Queensland (MPAQ), Building Services Association (BSA).

ADVISERS AND SERVICE PROVIDERS Many of the matters associated with running BUSSQ are complex. Therefore, the following service providers have been appointed to assist with the various operations of BUSSQ. Administrator: Australian Administration Services (AAS) Auditor: Crowe Horwath Tax advice: Ernst and Young Insurer: OnePath Investment adviser: Frontier Advisors Pty Ltd Lawyer: Corrs Chambers Westgarth Financial advice for members: BUSSQ Financial Planning Custodian: BNP Paribas Securities Services

COLIN BEVAN, BU

SSQ MEMBER

42

FLEXIBLE CHOICE

ENQUIRES AND COMPLAINTS If you are not happy with any aspect of your contact with BUSSQ and wish to make a formal complaint, you should write to: The Enquiries and Complaints Officer BUSSQ GPO Box 2775 Brisbane QLD 4001 The Enquiries and Complaints Officer will investigate your complaint on your behalf and write to inform you of the results of that investigation within 90 days.

If you are not satisfied with BUSSQ’s handling of your complaint or its resolution, you may contact the Superannuation Complaints Tribunal (the Tribunal).

The Tribunal is an independent body set up by the Federal Government to assist members or their beneficiaries to resolve certain superannuation complaints. It is a free service. The Tribunal may be able to help resolve your complaint, but only after you have taken the step of writing to the BUSSQ Enquiries and Complaints Officer.

BUSSQ PRIVACY POLICY STATEMENT BUSSQ respects your privacy. Protecting your personal information is important to us, but now the law requires your personal information to be protected. The Commonwealth Privacy Act, in accordance with National Privacy Principles, determines how we must handle personal information.

BUSSQ also has obligations under Australian Government Anti-Money Laundering and Counter-Terrorism Financing provisions and may be required to provide information about your account to AUSTRAC. Should this be the case, we are unable, by law, to advise you that this has occurred.

To obtain a copy of BUSSQ’s Privacy Statement go to bussq.com.au or call 1800 MY BUSSQ (1800 692 877).

If the Tribunal accepts your complaint it will try to resolve the matter through conciliation by helping bring both sides to a mutual agreement. If this is unsuccessful, the complaint will be formally referred to the Tribunal for a determination.

For the cost of a local call you can contact the Tribunal on 1300 884 114 to find out if it can handle your complaint.

The address for correspondence is: Superannuation Complaints Tribunal Locked Mail Bag 3060 GPO Melbourne VIC 3001

43

ANTI-MONEY LAUNDERING AND COUNTER TERRORISM FINANCING (AML/CTF) ACT REQUIREMENTS

FAMILY LAW

We are required to comply with the Anti-Money Laundering and Counter Terrorism Financing Act (AML/CTF Law). This means that we may need to obtain additional identification when processing transactions in relation to your BUSSQ superannuation. We do this in order to minimise the risk that the fund may be used for the laundering of money or the financing of terrorism.

The benefit to you is that it reduces the chance that an unauthorised person may access your account, hence it provides you with peace of mind.

Note, the law is not retrospective, which means if you finalised your property settlement prior to 28 December 2002, your superannuation account cannot be split.

We may need to identify: You – if we are missing any information about you we may need to ask you for more information to verify your identity and may not process a transaction or rollover any or all of your existing account balance, until this information has been received.

Your estate and/or your beneficiaries – if you die while you are a member of BUSSQ before we pay your death benefit, we may need to identify your legal personal representative and/or your beneficiaries.

Anyone acting on your behalf, including a person exercising your power of attorney.

In some circumstances, we may need to re-verify this information. If we have concerns that a transaction may breach any obligation of, or cause us to commit or participate in, an offence under the AML/CTF Law, we may have to delay or refuse a request or transaction and we will incur no liability to you if we do so.

We also have reporting requirements under the AML/ CTF Law, and we are strictly prevented by the legislation from informing members that any such reporting has occurred. Where we are obliged to do so, we may disclose any information gathered to regulatory and/ or law enforcement agencies, including the Australian Transaction Reports and Analysis Centre (AUSTRAC).

44

MYSUPER

Under Family Law legislation, if your marriage breaks down, your BUSSQ super account can be subject to splitting between you and your spouse or de facto.

Family Law affects superannuation in three key areas: Request for information – You, your spouse or your fiancé entering into a pre-nuptial agreement are able to request certain information about your super account.

Payment ‘flag’ – A non-member spouse, by agreement with you or through a Court Order, is able to have a ‘Payment Flag’ applied to your account, which will generally prevent you from being paid a benefit until the ‘flag’ is lifted or the account is split (with some limited exceptions), and Splitting super – The parties are able to split your superannuation account through an agreement or Court Order.

TRUST DEED This handbook contains a summary of the rules of BUSSQ. It is not a substitute for the Trust Deed. The Trust Deed is a legal document that sets out the rights and obligations of members, employers and the Trustee. You will be advised of any significant changes to the Trust Deed.

You can obtain a copy of the Trust Deed by contacting BUSSQ on 1800 MY BUSSQ (1800 692 877).

DO YOU WANT TO FIND OUT MORE?

WHO IS RESPONSIBLE FOR THE ADVICE GIVEN TO ME?

Information contained within this handbook may change from time to time. BUSSQ will advise you of material changes or significant events within timeframes prescribed by the legislation via direct communication or the Annual Report to members, BUSSQ News and bussq.com.au. Unless the changed information is materially adverse to members, we may not always update or replace this document to reflect the changed information.

BUSS(Queensland) Pty Ltd is responsible for the advice given to you. The representative assisting you is a salaried employee who is authorised to give you general or personal advice regarding BUSSQ and superannuation in general. The representative will inform you under which category they operate in terms of their advice status.

Any updated information may be published on BUSSQ’s website at bussq.com.au. Paper copies of any updated material (and any other existing documentation) are also available without charge on request by contacting BUSSQ on:

Anyone can join BUSSQ. This includes on site and off site workers, clerical workers, apprentices, professionals, spouses, family and friends, and working directors. You don’t have to be connected to the building industry to join the fund.

PHONE 1800 MY BUSSQ (1800 692 877) EMAIL

super@bussq.com.au

MAIL BUSSQ, GPO Box 2775, Brisbane QLD 4001

MAKE SURE WE CAN FIND YOU TOO! If you have changed your address, or if you are about to, don’t forget to let us know. This way, you will be sure to continue to receive your important superannuation statements and other valuable information.

WHO CAN JOIN BUSSQ?

WHAT IF I NEED MORE INFORMATION? Should you require information that takes into account your personal circumstances, contact the BUSSQ office.

If personal advice is given, you will receive an updated Financial Services Guide, together with a Statement of Advice (SOA) setting out that advice and the reasons leading to that advice.

Before or on joining the Fund you will be provided with a Product Disclosure Statement (PDS) which will outline the product and the relevant fees.

WHO IS BUSSQ?

HOW DO I CONTACT BUSSQ?

BUSS(Queensland) is a profit for members industry superannuation fund.

Web bussq.com.au

The Fund is a regulated fund under Commonwealth legislation. As a result, the Fund is able to obtain taxation advantages and can accept Superannuation Guarantee (SG) Contributions.

The Fund holds an Australian Financial Services License which allows the Fund to provide superannuation advice to retail clients.

BUSS(Queensland) offers these products:

A superannuation accumulation fund for employees

A superannuation accumulation fund for the selfemployed.

Phone 1800 MY BUSSQ (1800 692 877) Email super@bussq.com.au Fax

(07) 3217 5212

Mail

BUSSQ PO Box 1526 Milton QLD 4064

Visit

BUSSQ Ground Floor 52 McDougall Street Milton QLD 4064

BUSS(Queensland) Pty Ltd ABN 15 065 081 281; BUSSQ ABN 85 571 332 201; AFS Licence 237860 Content correct as at 1st January 2014

A Transition to Retirement pension

An account based pension for retirees, and

A Term Allocated pension.

45

FINANCIAL SERVICES GUIDE WHAT YOU SHOULD KNOW ABOUT THIS GUIDE This Financial Services Guide (FSG) provides you with information about BUSS(Queensland) Pty Ltd, BUSSQ and its representatives, so that you can decide whether to use the financial services we provide.

The financial services provided by BUSSQ may include personal or general advice on: Rolling over superannuation benefits Salary sacrifice Voluntary contributions Member investment choice Insurance benefits

WHAT IS PERSONAL ADVICE? Personal advice is advice that does take into account your individual objectives, financial situation and future needs.

We will provide you with a Statement of Advice (SOA), also known as a financial plan.

We will always tell you about:

Any fees that will be paid in dollar amounts, in relation to a product or strategy we recommend.

Any limitations on the advice we can give you.

When we recommend a particular financial product, we will always provide a PDS to allow you to make an informed decision.

We refer to this type of advice as Complex Advice.

Account based pension

WHAT IS THE COST?

Spouse contributions

BUSSQ provides a fee for service approach when providing financial advice. This ensures you only pay for the advice that you need.

Superannuation legislation Tax on superannuation, and Other superannuation issues.

Before making any decisions to acquire a BUSSQ product, you should read the Product Disclosure Statement (PDS) and/or obtain professional financial advice. The PDS provides information about the benefits, including fees and risks, associated with that product.

WHAT IS GENERAL ADVICE? General advice is advice that does not take into account your individual objectives, financial situation or needs.

You should assess your own financial needs and/or obtain advice from a properly qualified professional before acting on general advice.

General advice, along with advice on the following, is provided as part of your BUSSQ membership, at no additional cost to you: Insurance Contributions Investment Choice We refer to this type of advice as Straightforward Advice.

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The cost of providing general advice is included in the BUSSQ administration fees. There are no additional fees or charges. As BUSSQ is an industry super fund, all profits go to the members and not to shareholders.

The cost of Complex Advice has to be paid by the member as, by law, it cannot be spread across the whole member base. Where advice other than general advice is provided, the cost of this advice will be at an hourly rate of $150 including GST. The range for advice we provide will be between $150 and $750 including GST. Our representatives are salaried employees and are not paid any commissions for providing services to you. This means that we are able to maintain low fees.

BUSSQ directors and our representatives do not receive hard or soft dollar bonuses as a direct result of providing advice to you.

BUSSQ directors do not receive commissions or bonuses as a result of the services offered to you by our representatives. Any surplus generated from fees or charges are retained by the Fund to be used for the benefit of members.

BUSSQ does not pay any commissions to any third party who may refer you to BUSSQ.

MEMBER COMPENSATION ARRANGEMENTS

WHAT IF I AM NOT HAPPY WITH THE ADVICE GIVEN?

BUSSQ has in place adequate arrangements, including professional indemnity (PI) insurance, to compensate fund members or their beneficiaries for loss or damage suffered because of breaches of any relevant legislative obligations by BUSSQ or its representatives.

Should you have a complaint about BUSSQ or one of its representatives, please contact the BUSSQ complaints office in writing.

HOW IS MY INFORMATION PROTECTED? The Fund respects the privacy of its members. BUSSQ only collects information that is necessary to manage your account, meet any legislative requirements and to provide you with opportunities available to you as a member. The BUSSQ Privacy Policy is available at bussq.com.au.

If you are not satisfied with our response, you can contact the Superannuation Complaints Tribunal on 1300 884 114 or write to: Mail

Superannuation Complaints Tribunal Locked Bag 3060 Melbourne VIC 3001

Email info@sct.gov.au, or Website www.sct.gov.au

WHAT RELATIONSHIPS OR ASSOCIATIONS MAY INFLUENCE THE ADVICE GIVEN TO ME? BUSSQ directors and representatives may be members of the BUSSQ Fund. The BUSSQ Fund is an investor in Members Equity.

Master Builders Queensland Insurance Services, which is owned by Master Builders Queensland, arrange certain insurances on behalf of BUSSQ. BUSSQ uses OnePath (a company of ANZ) for the provision of Group Life Cover.

BUSSQ has no association or relationship with any other product issuer and receives no benefit from any relationship that could influence the providing of advice.

BUSSQ Directors may hold Directorships in funds in which BUSSQ invests.

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VALUABLE SERVICE FOR BUSSQ MEMBERS FINANCIAL ADVICE AT NO EXTRA COST BUSSQ offers members personal limited financial advice about your super including choosing insurance, choosing investments and contributions, at no extra cost as it is included in the fund’s administration fees. This advice is offered over the phone.

BUSSQ also offers members and non-members more complex advice on a fee for service basis. This advice can be done in person or over the phone. Non BUSSQ members who receive advice will need to be billed for the advice separately.

All advice is delivered by BUSSQ’s in-house financial planners.

Our fees for financial advice are low, structured purely for cost recovery and they can be deducted from your super account, so you won’t be out of pocket. The rate of $150 per hours includes GST. To find out more go to bussq.com.au or call us.

, AS SMART W T O G I ICE W.” “THE ADV TO FOLLO Y S A E D N SIMPLE A MEMBER SSQ

TER, BU EION WOL

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Call 1800 MY BUSSQ (1800 692 87 and ask to speak to a financial 7) planner about your super over th e phone or in person.

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WEB

bussq.com.au

PHONE 1800 MY BUSSQ (1800 692 877) EMAIL super@bussq.com.au MAIL

PO BOX 1526 Milton QLD 4064

VISIT

BUSSQ HOUSE Ground Floor, 52 McDougall Street Milton QLD 4064

ABN 15 065 081 281 AFS Licence 237860 RSE L0002158 Registration number R1055870 BUSSQ SPIN CODE BUS0001AU

BUSSQ.COM.AU

BQ/MYSUP 899.1 12/13 1SS4

CONTACTING US