Perpetual Small APRA Fund

The following changes in relation to cheques will be made.

From 17 May 2024, you can no longer make additional investments by cheques.

From 1 December 2023 there are changes to the Dollar Cost Averaging (DCA).

When setting up the DCA, the restriction of "at least six monthly or four quarterly investments must be made" is removed. You or your advisors can set up DCA for any chosen period.

From 1 January 2023, the age of eligibility for downsizer contributions will change from 60 to 55 years.
Members aged 55 or over may make additional contributions of up to $300,000 from the proceeds of the sale of their principal residence, subject to eligibility criteria. Please refer to page 20 of the Perpetual Small APRA Fund Service Features Book dated 1 September 2022.

There are legislative changes applying to complaints handling effective from 5 October 2021. The information in the PDS in relation to inquiries and complaints is now updated as set out in the flyer.

See attached flyer

The Commonwealth Government announced that it has extended the temporary reduction in superannuation minimum drawdown requirements by 50 per cent for the 2021/22 financial year.

The Commonwealth Government has released the second stage of its plan to cushion the economic impact of COVID-19 and help build a bridge to recovery.

The Government is temporarily reducing superannuation minimum drawdown requirements for account based pensions and similar products by 50 per cent for 2019-20 and 2020-21. This measure will benefit retirees by providing them with more flexibility as to how they manage their superannuation assets.

New Perpetual Small APRA Fund Service PDS

The previous continuous disclosure and important information updates and other changes have now been incorporated into the new PDS. Some key changes includes:

• Contribution, exit and switching fees will no longer apply.
• Trading of ASX securities will continue using platform brokers available.  The Trust Company (UTCCL) Limited has been appointed to arrange securities trading by these brokers.  The trading fee of up to 0.33% has not changed.
  
  The Trust Company (UTCCL) Limited is part of Perpetual Group.
• The Trustee Asset Diversification Limits table has been removed from the PDS and included as incorporation by reference. The details in the table remain the same.   

Further information in respect of the above and other changes are set out in this summary.

Broker fee

The broker fee included in the Fees and other costs section on page 27 of the PDS is replaced with the following:

Brokerage on Listed Security Transactions

The section on Brokerage on listed Security Transaction on page 28 of the PDS is replaced with the following:

When you open your account, a broker from our current approved panel is assigned by The Trust Company (UTCCL) Limited ABN 35 008 426 784, AFSL 235170 (UTCCL) as the platform broker authorised to purchase and sell ASX listed securities on your account. You authorise your adviser to request these trades on your behalf. Whenever your adviser requests a trade for you, UTCCL will arrange for its execution by your assigned platform broker. UTCCL will charge a trading fee of up to 0.33% of the value of the trade to cover all costs associated with arranging and executing the trade, including UTCCL’s administration costs and the platform broker’s brokerage charges.

From 1 November 2018 there will be a change to the EDR scheme which unresolved complaints can be referred to. Please refer to this transitional disclosure for more information.

Important note – this section provides information about the rules currently applying to superannuation and the changes applicable from 1 July 2017, which were passed into law in November 2016. Refer to the flyer for further information.
You should consider the potential impact of these changes before investing and seek professional advice, as appropriate.

Information on ‘Concessional Contributions’ is now inserted to the ‘Accumulation Accounts’ section of the PDS on page 19.

REDUCTION TO THE ANNUAL CONCESSIONAL CONTRIBUTIONS CAP

The current general concessional contributions cap ($30,000 for the 2016/2017 financial year) and the transitional cap ($35,000 for individuals aged 49 years or over on the preceding 30 June) will be reduced to $25,000 from 1 July 2017. This amount will be indexed in line with Average Weekly Ordinary Time Earnings (AWOTE) once the increase in the indexed amount is greater than $2,500.

NEW PROVISION TO MAKE ‘CATCH-UP’ CONCESSIONAL CONTRIBUTIONS

Members with a total superannuation balance1 of $500,000 or less on 30 June of the previous financial year who have not fully utilised their concessional contributions cap in the 2018/2019 or subsequent financial years will be able to carry forward the unused cap amounts on a rolling five consecutive year basis to make additional concessional contributions. The 2019/2020 financial year will be the first time that additional concessional contributions will be able to be made.

1                     Your total superannuation balance is generally the withdrawal value of all of your superannuation, including any accumulation, transition to retirement and pension accounts

Information on ‘Non-Concessional Contributions’ is now inserted to the ‘Accumulation Accounts’ section of the PDS on page 19.

REDUCTION TO THE NON-CONCESSIONAL CONTRIBUTIONS CAP

A lower non-concessional contributions cap of $100,000 (that is, four times the new concessional contributions cap) will apply from 1 July 2017. Where a member has a total superannuation balance of $1.6 million or more on 30 June of the previous financial year, they will not be eligible to make non-concessional contributions in that financial year. Members under age 65 will be eligible to bring forward two or three years of non-concessional contributions depending on their total superannuation balance. Transitional arrangements will apply to ‘bring forward’ amounts triggered in the 2015/2016 or 2016/2017 financial years that are not fully utilised by 30 June 2017 such that your cap will be reassessed on 1 July 2017 to reflect the new annual cap.

Information on ‘Government Co-Contribution’ is now inserted to the ‘Tax’ section of the PDS on page 33.

For the 2017/2018 financial year, the lower income threshold is $36,813 with a higher income threshold of $51,813.

ADDITIONAL ELIGIBILITY REQUIREMENTS

Members will not be eligible for Government co-contributions if they exceed their non-concessional contributions cap for that year or where the member has a total superannuation balance of $1.6 million or more on 30 June of the previous financial year.

Information on ‘Low-Income Superannuation Contribution’ is now inserted to the ‘Tax’ section of the PDS on page 33.

LISC REPLACED BY LOW INCOME SUPERANNUATION TAX OFFSET (LISTO)

From 1 July 2017, the LISC will be replaced by the LISTO. The LISTO retains the same limits and rates as the LISC and will generally operate in the same way.

Information on ‘Concessional Contributions Tax Deductions’ is now inserted to the ‘Tax’ section of the PDS on page 32.

EXTENSION OF TAX DEDUCTIONS FOR PERSONAL CONTRIBUTIONS

From 1 July 2017, tax deductions for personal contributions up to the concessional contributions cap, currently available only to the self-employed, will be extended to all individuals under the age of 75 (subject to meeting the work test if you are aged 65 or over).

Information on ‘Additional Contributions Tax’ is now inserted to the ‘Tax’ section of the PDS on page 32.

DECREASE IN INCOME THRESHOLD FOR ADDITIONAL CONTRIBUTIONS TAX TO APPLY

The income threshold (including concessional contributions) from which tax of 30% will apply instead to concessional contributions (within the concessional contributions cap) will be reduced from $300,000 to $250,000 from 1 July 2017.

Information on ‘Spouse Contributions’ is now inserted to the ‘Tax’ section of the PDS on page 33.

INCREASE TO INCOME THRESHOLD FOR SPOUSE CONTRIBUTIONS

From 1 July 2017, access to the low income spouse superannuation tax offset will be expanded by increasing the income threshold for the low income spouse from $10,800 to $37,000. The offset will remain at 18% of the amount of eligible spouse contributions up to a maximum of $3,000, therefore remaining capped at $540 per year.

Information on ‘Tax on Death Benefits’ is now inserted to the ‘Tax’ section of the PDS on page 33.

REMOVAL OF ANTI-DETRIMENT PAYMENTS ON DEATH BENEFITS

The anti-detriment provisions for death benefits paid as a lump sum to certain eligible beneficiaries will be removed for members who died on or after 1 July 2017 and for all members where the death benefit is paid after 30 June 2019.

Information on ‘Overview’ is now inserted to the ‘Pension Accounts’ section of the PDS on page 23.

NEW INCOME STREAM TOTAL ACCOUNT BALANCE LIMIT

From 1 July 2017, a transfer balance cap of $1.6 million will apply to the total amount of accumulated superannuation that a member can transfer into the retirement (income stream) phase. Subsequent earnings on balances in the retirement phase will not be capped or restricted. The general transfer balance cap will be indexed in line with the Consumer Price Index (CPI) in $100,000 increments.

Where a member accumulates amounts in excess of $1.6 million in their superannuation account, they will be able to maintain the excess amount in their superannuation accumulation account where earnings will continue to be taxed at the concessional rate of 15%.

Members already in the retirement phase with total account balances above $1.6 million will have to reduce their retirement phase balance to $1.6 million by 1 July 2017 by either transferring the excess back into a superannuation accumulation account or withdrawing the excess amount. Transition to retirement (TTR) pensions do not count towards your transfer balance cap since these amounts are not considered to be in the retirement phase.

Members who breach the transfer balance cap will be subject to penalty arrangements and the Australian Taxation Office (ATO) can issue a commutation authority to the Fund which requires us to transfer the amount determined by the ATO (the reduction amount) back into a superannuation accumulation account. Transitional arrangements, generally with reduced penalties, will apply for the six months from 1 July 2017 to 31 December 2017.

Information on ‘Tax on Investment Earnings’ is now inserted to the ‘Tax’ section of the PDS on page 33.

EARNINGS ON TTR PENSIONS TO BE TAXED

The earnings on assets supporting TTR pensions are currently not subject to tax. From 1 July 2017, these earnings will be taxed at the maximum rate of 15%, which is the same as the concessional tax rate applying to fund earnings on superannuation accumulation accounts.

Information on ‘Tax on Benefit Payments’ is now inserted to the ‘Tax’ section of the PDS on page 33.

TAX TREATMENT OF INCOME PAYMENTS

Members are currently able to elect that TTR pension amounts paid from the taxable component be treated as lump sums for tax purposes. These payments are then received tax-free to the extent that they are within the member’s low rate cap up to age 59 (currently $195,000). Members will no longer be able to make this election from 1 July 2017, which means that members under age 60 who had not previously fully utilised their low rate cap will incur tax at their marginal tax rate (less a 15% tax offset if aged 58-59) on all TTR pension income amounts paid from the taxable component.

TAX ON LUMP SUM BENEFITS –
2017/2018 FINANCIAL YEAR

TAX ON PENSION BENEFITS –
2017/2018 FINANCIAL YEAR

Members received enhanced services from 2 April 2013 including:

• Secure online access
• Enhanced online reporting
• Consolidated single view of all of your accounts
• Simplified corporate actions
• New portfolio statement design