Australian Ethical Super

Australian Ethical Retail Superannuation Fund - Personal Balanced

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No. of members: 53691
Fund size: $3b
Public offer:
Product type: Master Trust-Personal
Target market: All Industries
Year started: 1998

RateCity Says: A competitive superannuation fund for those Aussies who choose to put their nest egg towards ethical investments. Enjoy added features like income protection and insurances.

Past 5-year return
6.74%
Admin fee

$97

Calc fees on 50k

$622

SuperRatings awards
MyChoice GoldSR50 Australian Shares IndexInfinity Recognised
Past 5-year return
6.74%
Admin fee

$97

Calc fees on 50k

$622

SuperRatings awards
MyChoice GoldSR50 Australian Shares IndexInfinity Recognised
Go to site

Pros and Cons

Pros and Cons

  • A full menu of Ethical investments with positive and negative screening
  • Free educational roadshows and seminars
  • Binding, Non-Binding or Reversionary beneficiary nominations
  • Variable insurance options (Death, Death & Total & Permanent Disablement (TPD) and IP).

Summary

Australian Ethical was established in 1986 to promote ethical investments that adhere to the Australian Ethical Charter. Australian Ethical Super is Infinity Recognised, which is a result of its strong commitment to environmental and social principles.Members have access to 7 Diversified and Single Sector investment options across a range of asset classes that align with the Australian Ethical Charter. The fund's Balanced option underperformed the SuperRatings Index over the 10 years to 30 June 2020; however, outperformed over the shorter term. Fees for the Balanced option are lower than the industry average across all assessed account balances. Further discounts may also apply to account balances over $250,000 which are invested in all investment options other than the Balanced option. No switching fees are applicable, although buy-sell spreads may be charged when changing investment options. A full suite of insurance is offered to members, with Default Death & TPD automatically provided to eligible members upon joining the fund. Members can apply for unlimited Death Only cover and up to $5 million of TPD cover. Income Protection (IP) insurance is also available, covering up to 85% of salary, or a maximum of $30,000 per month, with benefit payment periods of 2 years, 5 years or to age 65 and a choice of 30, 60- or 90-day waiting periods.Australian Ethical Super provides members with access to advice services, the free education tool Money101, interactive tools and calculators, as well as the Good Money blog including a range of ethical investing newsletters. The fund’s member online further allows members to view and update their account details and perform transactions.

Features and Fees

Australian Ethical Super Fees and Features

Features

Variety of options

Binding nominations

Account size discount

Online Access

Home loans

Financial planning service

Non-lapsing binding nominations

Employer size discount

Anti-detriment payments

Credit cards

Insurance Cover

Health insurance

Insurance life event increases

Total and permanent disability cover

Long term income protection

Fees

Admin fee

$97

Administration fee (%)

0.29%

Switching fee

$0

Investment fee

0.64%

Indirect cost ratio (%)

0.12%

Exit fee

$0

Pros and Cons

  • A full menu of Ethical investments with positive and negative screening
  • Free educational roadshows and seminars
  • Binding, Non-Binding or Reversionary beneficiary nominations
  • Variable insurance options (Death, Death & Total & Permanent Disablement (TPD) and IP).

Australian Ethical was established in 1986 to promote ethical investments that adhere to the Australian Ethical Charter. Australian Ethical Super is Infinity Recognised, which is a result of its strong commitment to environmental and social principles.Members have access to 7 Diversified and Single Sector investment options across a range of asset classes that align with the Australian Ethical Charter. The fund's Balanced option underperformed the SuperRatings Index over the 10 years to 30 June 2020; however, outperformed over the shorter term. Fees for the Balanced option are lower than the industry average across all assessed account balances. Further discounts may also apply to account balances over $250,000 which are invested in all investment options other than the Balanced option. No switching fees are applicable, although buy-sell spreads may be charged when changing investment options. A full suite of insurance is offered to members, with Default Death & TPD automatically provided to eligible members upon joining the fund. Members can apply for unlimited Death Only cover and up to $5 million of TPD cover. Income Protection (IP) insurance is also available, covering up to 85% of salary, or a maximum of $30,000 per month, with benefit payment periods of 2 years, 5 years or to age 65 and a choice of 30, 60- or 90-day waiting periods.Australian Ethical Super provides members with access to advice services, the free education tool Money101, interactive tools and calculators, as well as the Good Money blog including a range of ethical investing newsletters. The fund’s member online further allows members to view and update their account details and perform transactions.

Read More

Australian Ethical Super Fees and Features

Features

Variety of options

Binding nominations

Account size discount

Online Access

Home loans

Financial planning service

Non-lapsing binding nominations

Employer size discount

Anti-detriment payments

Credit cards

Insurance Cover

Health insurance

Insurance life event increases

Total and permanent disability cover

Long term income protection

Fees

Admin fee

$97

Administration fee (%)

0.29%

Switching fee

$0

Investment fee

0.64%

Indirect cost ratio (%)

0.12%

Exit fee

$0
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Fund fees vs. Industry average
THIS FUND
INDUSTRY AVERAGE
Fund past-5-year return vs. Industry average
THIS FUND
INDUSTRY AVERAGE
Investment allocation
INTERNATIONAL SHARES
AUSTRALIAN SHARES
PROPERTY
ALTERNATIVES
FIXED INTEREST
CASH
OTHER
Investment option performance
BALANCED
HIGH GROWTH
GROWTH
AUSTRALIAN SHARES
INTERNATIONAL SHARES
CAPITAL STABLE
CASH
+ View additional option performance information
Past 5-year return
6.74%
Admin fee

$97

Company
Australian Ethical Super
Calc fees on 50k

$622

Features
Advisory services
Death insurance
Income protection
Online access
Term deposits
Variety of options
SuperRatings awards
MySuper GoldInfinity Recognised
Go to site
More details
Past 5-year return
6.74%
Admin fee

$97

Company
Australian Ethical Super
Calc fees on 50k

$622

Features
Advisory services
Death insurance
Income protection
Online access
Term deposits
Variety of options
SuperRatings awards
MyChoice GoldSR50 Australian Shares IndexInfinity Recognised
Go to site
More details

FAQs

How do you find lost superannuation funds?

Lost superannuation refers to savings in an account that you’ve forgotten about. This can happen if you’ve opened several different accounts over the years while moving from job to job.

You can use your MyGov account to see details of all your superannuation accounts, including any you might have forgotten. Alternatively, you can fill in a ‘Searching for lost super’ form and send it to the Australian Taxation Office, which will then search on your behalf.

What are the age pension's residence rules?

On the day you claim the age pension, you must be in Australia and you must have been an Australian resident for at least 10 years (with no break in your stay for at least five of those years). The following exceptions apply:

  • You’re exempt from the 10-year rule if you’re a refugee or former refugee
  • You’re exempt from the 10-year rule if you’re getting Partner Allowance, Widow Allowance or Widow B pension
  • You can claim the age pension with only two years of residency if you’re a woman whose partner died while you were both Australian residents
  • You might be able to claim the age pension if you’ve lived or worked in a country that has a social security agreement with Australia

How do you find superannuation?

Lost superannuation refers to savings in an account that you’ve forgotten about. This can happen if you’ve opened several different accounts over the years while moving from job to job.

You can use your MyGov account to see details of all your superannuation accounts, including any you might have forgotten. Alternatively, you can fill in a ‘Searching for lost super’ form and send it to the Australian Taxation Office, which will then search on your behalf.

What happens to my insurance cover if I change superannuation funds?

Some superannuation funds will allow you to transfer your insurance cover, without interruption, if you switch. However, others won’t. So it’s important you check before changing funds.

What are ethical investment superannuation funds?

Ethical investment funds limit themselves to making ‘ethical’ investments (which each fund defines according to its own principles). For example, ethical funds might avoid investing in companies or industries that are linked to human suffering or environmental damage.

How do I set up an SMSF?

Setting up an SMSF takes more work than registering with an ordinary superannuation fund. 

An SMSF is a type of trust, so if you want to create an SMSF, you first have to create a trust.

To create a trust, you will need trustees, who must sign a trustee declaration. You will also need identifiable beneficiaries and assets for the fund – although these can be as little as a few dollars.

You will also need to create a trust deed, which is a document that lays out the rules of your SMSF. The trust deed must be prepared by a qualified professional and signed by all trustees.

To qualify as an Australian superannuation fund, the SMSF must meet these three criteria:

  • The fund must be established in Australia – or at least one of its assets must be located in Australia
  • The central management and control of the fund must ordinarily be in Australia
  • The fund must have active members who are Australian residents and who hold at least 50 per cent of the fund’s assets – or it must have no active members

Once your SMSF is established and all trustees have signed a trustee declaration, you have 60 days to apply for an Australian Business Number (ABN).

When completing the ABN application, you should ask for a tax file number for your fund. You should also ask for the fund to be regulated by the Australian Taxation Office – otherwise it won’t receive tax concessions.

Your next step is to open a bank account in your fund’s name. This account must be kept separated from the accounts held by the trustees and any related employers.

Your SMSF will also need an electronic service address, so it can receive contributions.

Finally, you will need to create an investment strategy, which explains how your fund will invest its money, and an exit strategy, which explains how and why it would ever close.

Please note that you can pay an adviser to set up your SMSF. You might also want to take the Self-Managed Superannuation Fund Trustee Education Program, which is a free program that has been created by CPA Australia and Chartered Accountants Australia & New Zealand.

What are reportable employer superannuation contributions?

Reportable employer superannuation contributions are special contributions that an employer makes on top of the regular compulsory contributions. One example would be contributions made as part of a salary sacrifice arrangement.

What contributions can SMSFs accept?

SMSFs can accept mandated employer contributions from an employer at any time (Funds need an electronic service address to receive the contributions).

However, SMSFs can’t accept contributions from members who don’t have tax file numbers.

Also, they generally can’t accept assets as contributions from members and they generally can’t accept non-mandated contributions for members who are 75 or older.

What is superannuation?

Superannuation is money set aside for your retirement. This money is automatically paid into your superannuation fund by your employer.

How do I choose the right superannuation fund?

Different superannuation funds charge different fees, offer different insurances, offer different investment options and have different performance histories.

So you need to ask yourself these four questions when comparing superannuation funds:

  • How many fees would I have to pay and what would they cost?
  • What insurances are available and how much would they cost?
  • What investment options does it offer? How would they match my risk profile and financial needs?
  • How have these investment options performed historically?

How do you calculate superannuation?

Superannuation is calculated at the rate of 9.5 per cent of your gross salary and wages. So if you had a salary of $50,000, your superannuation would be 9.5 per cent of that, or $4,750. This would be paid on top of your salary.

The ‘superannuation guarantee’, as it is known, has been at 9.5 per cent since the 2014-15 financial year. It is scheduled to rise to 10.0 per cent in 2021-22, 10.5 per cent in 2022-23, 11.0 per cent in 2023-24, 11.5 per cent in 2024-25 and 12.0 per cent in 2025-26.

How much is superannuation in Australia?

Superannuation in Australia is currently 9.5 per cent – which means that your employer must pay you superannuation equivalent to 9.5 per cent of your salary.

The ‘superannuation guarantee’, as it is known, has been at 9.5 per cent since the 2014-15 financial year. It is scheduled to rise to 10.0 per cent in 2021-22, 10.5 per cent in 2022-23, 11.0 per cent in 2023-24, 11.5 per cent in 2024-25 and 12.0 per cent in 2025-26.

Can I carry on a business in an SMSF?

SMSFs are allowed to carry on a business under two conditions.

First, this must be permitted under the trust deed.

Second, the sole purpose of the business must be to earn retirement benefits.

How many superannuation funds are there?

There are more than 200 different superannuation funds.

How does superannuation work?

Superannuation is paid by employers to employees, at least once every three months. The ‘superannuation guarantee’ is currently 9.5 per cent – which means that your employer must pay you superannuation equivalent to 9.5 per cent of your salary. The guarantee is scheduled to rise to 10.0 per cent in 2021-22, 10.5 per cent in 2022-23, 11.0 per cent in 2023-24, 11.5 per cent in 2024-25 and 12.0 per cent in 2025-26.

Superannuation is generally taxed at 15 per cent. However, if you earn less than $37,000, you will be automatically reimbursed up to $500 of the tax you paid. Also, if your income plus concessional superannuation contributions exceed $250,000, you will also be charged Division 293 tax. This is an extra 15 per cent tax on your concessional contributions or the amount above $250,000 – whichever is lesser.

You can withdraw your superannuation when you meet the ‘conditions of release’. The conditions of release say you can claim your super when you reach:

  • Age 65
  • Your ‘preservation age’ and retire
  • Your preservation age and begin a ‘transition to retirement’ while still working

 

Am I entitled to superannuation if I'm not an Australian citizen?

Yes, permanent and temporary residents are entitled to superannuation.

How much extra superannuation can I add to my fund?

There is an annual limit of $25,000 for concessional contributions – that is, money paid by your employer and extra money you pay into your account through salary sacrificing. There is also a limit on non-concessional contributions. Australians aged between 65 and 74 have a limit of $100,000 per year. Australians aged under 65 have a limit of $300,000 every three years.

What is salary sacrificing?

A salary sacrifice is where your employer takes part of your pre-tax salary and pays it directly into your superannuation account. Salary sacrifices come out of your pre-tax income, whereas personal contributions come out of your after-tax income.

How do you calculate superannuation from a total package?

Superannuation is calculated at the rate of 9.5 per cent of your ‘ordinary-time earnings’. (For most people, ordinary-time earnings are their gross annual salary or wages.) So if you had a salary of $50,000, your superannuation would be 9.5 per cent of that, or $4,750. This would be paid on top of your salary.

As the Australian Taxation Office explains, some items are excluded from ordinary-time earnings. They include:

  • Overtime work paid at overtime rates
  • Expense allowances that are fully expended
  • Expenses that are reimbursed
  • Unfair dismissal payments
  • Workers’ compensation payments
  • Parental leave
  • Jury duty
  • Defence reserve service
  • Unused annual leave when employment is terminated
  • Unused long service leave when employment is terminated
  • Unused sick leave when employment is terminated

Although the superannuation guarantee is currently at 9.5 per cent, it is scheduled to rise to 10.0 per cent in 2021-22, 10.5 per cent in 2022-23, 11.0 per cent in 2023-24, 11.5 per cent in 2024-25 and 12.0 per cent in 2025-26.

How do you get superannuation?

You’re automatically entitled to superannuation if:

  • You’re over 18 and earn more than $450 before tax in a calendar month
  • You’re under 18, you work more than 30 hours per week and you earn more than $450 before tax in a calendar month