Joining MARF - Members

MARF is not an industry fund therefore you do not need to be employed in a specific industry to join. To become a Member of MARF you simply complete a Membership Application Form, which is attached to the Product Disclosure Statement (PDS).

Once your Application has been processed you will receive a Membership Certificate and Information Package. This consists of:

Contributions

How to make contributions

Your employer can make contributions by cheque or by direct credit to the MARF operating account.

You can contribute by cheque or by direct credit to the MARF operating account. 

The MARF operating account bank details are available from the Member Service Team.  The Member Service Team will outline the conditions under which payments can be made to the bank account. Cheques should be made payable to the “Managed Australian Retirement Fund’.  

Making Contributions and Eligibility

This table summarises the SIS provisions for acceptance of contributions.  It should be used as a guide only.    Contributions fall into two categories – Concessional Contributions and Non-Concessional Contributions.

Rules for making contributions by member’s age

* Mandated employer contributions are contributions made by an employer for the benefit of the fund member that are:

         i. contributions to reduce the employer’s potential liability to the superannuation guarantee charge

        ii. superannuation guarantee shortfall components – that is, superannuation guarantee charge 

            payments sent to a fund from the Tax Office after the Tax Office has obtained payment of the charge 

            from the employer 

       iii. contributions made in order to satisfy an obligation under an industrial award or agreement.

Where members have an effective arrangement in place with their employer to salary sacrifice to superannuation, all superannuation contributions are considered to be made by the employer. However, only those contributions to the superannuation guarantee level (9%) or the industrial award or agreement level (if higher than the superannuation guarantee level) will be classed as ‘mandated employer contributions’.

Once you turn 65 we will write to you each year to confirm that you continue to meet the requirements to make contributions.

• Any contributions you make if you are self-employed are 100% tax deductible (within the contribution limits for Concessional contributions).
• Self-employed members can claim the Government Co-contribution.   

Self-employed members cannot take advantage of both.  You must either claim a tax deduction or claim the Co-contribution.
 

Member Protection

Commonwealth regulations protect the benefits of members with an account balance under $1,000 in any given reporting period from erosion due to administration charges. These charges generally will not exceed investment earnings credited to members’ accounts (although a small charge may be deducted if the Fund’s total investment earnings are less than total administration costs). However, as MARF is a unitised fund and all expenses are met by the Fund, no administration charges are met by members that are required to be member protected. Administration charges do not include taxation and insurance premiums and these will continue to be deducted from member accounts regardless of investment earnings.
 

Access to your Super

Benefits are payable in a lump sum upon completion of a Request for Benefit Payment application to the Fund (conditions apply) for the following reasons:

Please contact us regarding any conditions.

Taxation

Tax Deductions on Contributions

Employer contributions made on behalf of employees are fully tax deductible.

If you are self-employed any contribution you make are 100% tax deductible (within the contributor limits for concessional contributions).

Taxation of Contributions

Concessional contributions are included in the Fund’s taxable income and subject to a tax rate of up to 15%.

Non-concessional contributions within the prescribed caps are not subject to tax.

Contributions tax that may be payable on contributions made to your account will be deducted upon termination from the Fund or at the end of the financial year.  This has the benefit of ensuring your full contribution is invested in your chosen investment option rather than being deducted at the time the contribution is made.

Superannuation contributions tax (“surcharge”) was payable on contributions made on behalf of high income earners prior to 1 July 2005.  Any outstanding liabilities continue to be assessed by the Australian Taxation Office (ATO).

Taxation of Earnings

Taxable investment earnings of the Fund are taxed at 15%. This means that the net income in the superannuation section of MARF is subject to tax.   Where investment options invest in Australian shares the tax payable may be partly offset by imputation credits which increase the tax effectiveness of the Fund.

Any capital gains are limited to two thirds of the value of the gain or the whole of the gain with an indexed cost base, depending on the date on which the assets were acquired, provided the assets have been held for 12 months.

Tax Deduction for Insurance Premiums

The Fund receives a tax deduction (currently at 15%) for insurance premiums.  This tax deduction is passed on to you as a reduction to any contributions tax payable on concessional contributions.

Tax Deduction for Management Costs

The management costs quoted in the PDS are shown before any allowance for tax payable.

The Fund receives a tax deduction (currently 15%) for these management costs. This deduction is passed on to members of MARF at the time the management costs are incurred, through the weekly unit price. Therefore, the actual costs charged are net of the tax deduction. 

Excess Contributions Tax

Where you exceed your Concessional or Non-concessional contribution cap additional tax must be paid.

The ATO will issue notices of assessment to members who have exceeded their cap.  Accompanying this assessment notice is called a Release Authority (RA).  This RA allows the member to withdraw money from their superannuation account to pay the excess contributions tax.

Excess Concessional Contributions

You may give the RA to MARF within 90 days of the date of release of the RA.  You may wish to pay the excess contributions tax yourself. If you choose to ask MARF to pay the excess contributions tax send the RA to MARF where we are required to release the amount to meet the excess contributions tax within 30 days of receiving the authority. 

Excess Non-concessional
Contributions

You must give the RA to MARF within 21 days of receiving the notice from the ATO.  MARF must release the amount to meet the excess contributions tax within 30 days of receiving the authority. Please contact the ATO or your financial adviser for further information. 

Taxation of Benefits - Lump Sum

A lump sum withdrawal from the Fund will be treated as a superannuation benefit payment.  A superannuation benefit may be rolled over to another superannuation fund, rollover or pension fund.  There are two components that make up a superannuation benefit, Taxable and Tax Free. The tax rules that apply to these components when you choose to cash out your super depend on your age:

Under Age 55
Taxable Component
- Entire component taxed at 21.5%
Tax Free Component
- Tax Free

Age 55 - 59
Taxable Component
- Tax free up to a low rate threshold of $150,000 [1].
- Benefits over $150,000 will be taxed at 16.5%.
Tax Free Component
- Tax Free

Age 60+
Taxable Component
- Tax Free
Tax Free Component
-Tax Free

 

However tax may apply to the Taxable Component of a death benefit in some circumstances (for example, where the death benefit is paid an adult child).  You should consult with your financial adviser for more information about taxation of death benefits. 

[1] The Low Rate Cap of $150,000 is effective from 1/7/09 and will be indexed annually in increments of $5,000).
 

Eligible Rollover Fund (ERF)

An 'Eligible Rollover Fund' (ERF) receives and invests the entitlements of superannuation fund members in certain circumstances.

 

The ERF currently selected by the Trustee is:

Colonial SuperTrace Eligible Rollover Fund
Locked Bag 5429
Parramatta NSW 2124.

Phone: 1300 788 750

The Trustee of MARF reserves the right to change its ERF at any time. If the Trustee does so, all members will be notified within 30 days.

If your benefit is transferred to Colonial SuperTrace you will need to contact the Colonial SuperTrace Administrator in order to deal with your investment.

Your benefit may be transferred to an ERF in any of the following circumstances:

Lost Member

If two consecutive pieces of written communication have been returned unclaimed (you are then classed as a "lost member"). 

Small balances

If your balance in MARF is less than $500, and no contributions have been received for you over the past 12 months.

Inactive membership

If no contributions have been received for you, regardless of your balance, for a continuous period of two (2) years and you have not told us you wish to remain a member.

It is important that you inform us of any changes to your address details so that you are not transferred to the ERF unnecessarily.

Effect of being transferred to the ERF

It is important for you to understand the effect of having your benefit transferred to the ERF in the circumstances set out above, and following is a list of the major consequences:

You will become a member of the ERF and be subject to its governing rules. You should refer to its Product Disclosure Statement (PDS) for details of its features.