Below is a summary of changes which may impact the way you use Super Wrap.
This notice updates information in the product disclosure statement for Super Wrap dated 1 July 2019 (PDS). This notice is to be read in conjunction with the PDS. The PDS is available from the Forms and documents section on our website.
Insurance premiums on transfer from Employer Sponsored Super to Personal Super
If you are a member of Super Wrap Employer Sponsored Super and you transfer from Employer Sponsored Super to Personal Super and, at the time of transfer, you have Employer Group Insurance, your premiums will generally increase in Personal Super.
The premiums will be based on the occupational rating that was applicable to your Employer Plan and on non-smoker rates. To find out the occupational rating and smoker status that apply to you and applicable premiums, please contact us.
Change to the cash account and associated costs
The description of the cost identified as a ‘cash account fee’ has been changed to ‘interest retained on the cash account’ to better describe the nature of this cost to members.There is no change to the way this cost is applied or the way it is calculated. This cost is not deducted from your account.
Changes to the way we charge administration fees
From 1 January 2021 the administration fee will be replaced with a new account fee. You can transfer your account to the new fee scale before 1 January 2021 if you wish. The new account fee will apply based on a percentage of your account balance, plus a fixed amount. The account fee is subject to a minimum daily amount and is calculated as follows:
$0 to $250,000
$250,000 to $500,000
$500,000 to $1,000,000
$1,000,000 to $2,500,000
Balance over $2,500,000
The fixed amount is calculated daily at the rate of $240 per calendar year which applies to each Super Wrap account.
The minimum account fee is calculated daily, at the rate of $550 per calendar year and applies to each Super Wrap account.
If you wish to transfer your account to the new fee scale before 1 January 2021 or obtain more information about the impact of this change on your account, please contact your adviser or Netwealth.
You can find information about your existing account fee rates by logging onto your account and viewing your fee profile, or by contacting us. If you or your adviser have previously negotiated different fees to apply to your Netwealth account, the fees in this table may not apply to you.
Note that Netwealth accounts can only be family linked where the administration or account fee is the same scale or a compatible scale, as determined by us. This means that if an account is transferred to the new fee scale, it can only be linked with another account that also uses the new fee scale. Please see the disclosure documents for more information about family linking accounts.
Changes to the international securities fee
We have changed the way the Administration fee – international securities fee is calculated and introduced a tiered fee structure as set out below. This change results in a reduction in the amount of the fee for members who hold over $1m in international securities. This change is effective from 9 January 2020.
Value of international securities
$0 to $1 million
$1 million to $2 million
$2 million to $3 million
Balance over $3 million
The international securities fee is calculated daily and is deducted monthly in arrears from the cash account, or on full withdrawal from the account.
Upfront member advice fee on future contributions
If you have nominated a financial adviser, you may agree with them to pay an upfront member advice fee on initial contributions or rollovers into your account.
From 1 March 2020 we will not accept a standing instruction from you to pay an upfront member advice fee on any subsequent contributions or rollovers or in relation to a regular contribution plan.
Where you have previously provided an instruction to us to pay an upfront member advice fee on any subsequent contributions or rollovers or in relation to a regular contribution plan, this instruction will continue to apply until further notice, however the fee will not be applied to superannuation guarantee contributions included in the contribution. You can find information about your member advice fees by logging onto your account and viewing your fee profile, or you can contact Netwealth. If you want to change your member advice fees you should contact your adviser or Netwealth.