Fees & charges

The only normal deduction from your account is our administration fee of $1.25 per week.

In addition to the administration fee, other management fees apply in relation to the investments and operation of the Fund.  These costs are deducted from invesment returns prior to the final declared rates being applied to member accounts at the end of each financial year.

 

 

Type of fee or cost	Amount	How and when paid
Establishment fee The fee to open your investment	Nil	Not applicable
Withdrawal fee The fee on each amount you take out of your investment	Nil	Not applicable
Termination fee The fee to close your investment	Nil (see Withdrawal fee above)	Not applicable
Management costs The fees and costs for managing your investment	Management costs consist of: Administration fee $1.25 per week PLUS Management fee (effective 01/01/2009) • Cash Option: 0.20% of your balance • Property Option: 0.39% of your balance • Balanced Option: 0.69% of your balance • Indexed Shares Option: 0.39% of your balance • Australian Shares Option: 0.60% of your balance • International Shares Option: 0.65% of your balance LUCRF Super does not charge buy-sell spreads.	The fixed administration fee of $1.25 per week is deducted from your account every 3 months, or on a pro-rata basis upon closing your investment. Other management costs are deducted by either the Trustee or the investment manager from the investment returns before they are applied to your account.

Service Fees

Investment Switching fee The fee for changing investment options

Nil

Not applicable

You may also be charged other service fees or special request fees for specific services, see below for further information.

Example of annual fees and costs for a balanced investment option

This table gives an example of how the fees and costs in the Balanced investment option for this product can affect your superannuation investment over a one-year period.  You should use this table to compare this product with other superannuation products.

Example – the Balanced investment option		Balance of $50,000
Contribution or entry fees	NIL	For every $50,000 you put in, you will be charged $0.
Plus Management costs	0.69% + $65 ($1.25 per week)	For every $50,000 you have in the fund, you will be charged: $345 + $65 = $410 per year
Equals Cost of Fund		If your balance was $50,000 then for the year you will be charged fees of $410.  What it costs will depend on the investment option you choose and the fees you negotiate with your Fund or financial adviser.

 

Note: This is a standard format example required by Australian law. The term ‘Balanced Investment Option’ refers here to the LUCRF Pensions Balanced Option. LUCRF Super does not pay commissions to advisers. As LUCRF Pensions is run only to profit members, it provides low fees for all members and does not allow negotiation on fees.

 

Additional explanation of fees and costs

Management Costs

The management fee shown above is made up of two components:

1. Those that are deducted directly from members' account balances (either as a percentage or flat dollar amount) eg $1.25 per week
2. Costs that are not deducted from members' account balances, but instead deducted from investment returns, before they are applied to members accounts.  These are called 'other management costs' and include investment management, asset custody, trustee and secretariat, legal and general operational costs.

Family Law Enquiry Fee

If the Fund receives a request for information (Form 6 Declaration) under the Family Law Act from a non-member (eg. the spouse of a member) in relation to splitting a benefit, the Fund will charge a Family Law Enquiry Fee of $50. This fee includes GST and payment will be required prior to the provision of information.

Family Law Act Splitting Account Fee

When a benefit is split between a member and spouse under the Family Law Act on divorce or separation, a fee of $35 will be deducted from both the member’s account and the non-member’s account once the split is completed.

Requests for additional information

If you contact LUCRF Super, you will be provided with all the information you would reasonably need to make an informed assessment of the management and financial condition of the Fund.

Tax

Please refer to pages 35 to 39 of the LUCRF Pension Member Guide (PDS & FSG) for details about tax.

Tax Offset

The Australian taxation system allows for pension payments paid to individuals below age 60 to reduce the tax withheld through a 15% tax offset (rebate).

The Tax Offset of 15% is automatically applied to the taxable component of each draw down payment you receive from LUCRF.  If you do not wish us to apply this tax offset to your payments, then you can instruct us to vary the tax withheld by completing and submitting directly to LUCRF, a 'Withholding Declaration' NAT 3093 which is available from the ATO website at www.ato.gov.au or call them directly on 13 10 20.

The taxable component of regular pension payments is subject to the payment of tax at your personal marginal tax rate plus Medicare levy.  However, we will only deduct tax for the amount applying to your actual pension payments, which may be below your personal marginal tax rate (if you receive other sources of income).