HESTA Superannuation Fund

HESTA - Industry Super Plan

Past 5-year return
6.58%
Admin fee

$65

Calc fees on 50k

$515

SuperRatings awards
MyChoice Platinum15 Year Platinum PerformanceCareer Fund of the Year FinalistMomentum FinalistNet BenefitInfinity Recognised
Past 5-year return
6.58%
Admin fee

$65

Calc fees on 50k

$515

SuperRatings awards
MyChoice Platinum15 Year Platinum PerformanceCareer Fund of the Year FinalistMomentum FinalistNet BenefitInfinity Recognised

Based on your details, you can compare and save on the following superannuation

Pros and Cons

Pros and Cons

  • Portability - more employer sponsors than any other fund in our market.
  • Low weekly administration fee and no entry, exit or switching fees.
  • Provision of free limited personal financial advice to members using fund resources (rather than a third party).
  • Strong long-term returns.
  • No commissions to agents.
  • Ability to transfer into a HESTA Income Stream.
  • Free insurance cover for up to 12 months when a member is on parental leave (subject to conditions).

Summary

Joint winner of the 2021 Net Benefit Award, HESTA was established in 1987 to provide for the retirement needs of members employed within the Health and Community Services. The fund is a public offer fund and allows members from all industries to apply for membership. The fund was nominated as a finalist for the 2021 Momentum, the 2021 MySuper of the Year and the 2021 Career Fund of the Year awards, and is also Infinity Recognised, which is a result of its strong commitment to environmental and social principles.HESTA offers an investment menu of 5 Diversified options and 5 Single Sector options. The default Balanced Growth option outperformed the relevant SuperRatings Index over each time period assessed to 30 June 2020.Fees are lower than the industry average across all account balances assessed. The fund does not charge a switching fee or a buy-sell spread.HESTA's insurance offering provides eligible members with automatic Standard Insurance Cover, including 2 units of Death cover and 2 units of Income Protection cover (IP). Members may apply for up to $5m of Death cover and up to $3m of TPD cover. Standard IP covers up to 85% of salary until age 67 with a 90-day waiting period; however, benefit periods of 2 years or to age 60 are available, as well as 30- and 60-day waiting periods. A great range of additional benefits are provided to members including free scaled advice and low-cost banking services through ME.

Features and Fees

HESTA 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

$65

Administration fee (%)

0.08%

Switching fee

$0

Investment fee

0.73%

Indirect cost ratio (%)

0.09%

Exit fee

$0

Pros and Cons

  • Portability - more employer sponsors than any other fund in our market.
  • Low weekly administration fee and no entry, exit or switching fees.
  • Provision of free limited personal financial advice to members using fund resources (rather than a third party).
  • Strong long-term returns.
  • No commissions to agents.
  • Ability to transfer into a HESTA Income Stream.
  • Free insurance cover for up to 12 months when a member is on parental leave (subject to conditions).

Joint winner of the 2021 Net Benefit Award, HESTA was established in 1987 to provide for the retirement needs of members employed within the Health and Community Services. The fund is a public offer fund and allows members from all industries to apply for membership. The fund was nominated as a finalist for the 2021 Momentum, the 2021 MySuper of the Year and the 2021 Career Fund of the Year awards, and is also Infinity Recognised, which is a result of its strong commitment to environmental and social principles.HESTA offers an investment menu of 5 Diversified options and 5 Single Sector options. The default Balanced Growth option outperformed the relevant SuperRatings Index over each time period assessed to 30 June 2020.Fees are lower than the industry average across all account balances assessed. The fund does not charge a switching fee or a buy-sell spread.HESTA's insurance offering provides eligible members with automatic Standard Insurance Cover, including 2 units of Death cover and 2 units of Income Protection cover (IP). Members may apply for up to $5m of Death cover and up to $3m of TPD cover. Standard IP covers up to 85% of salary until age 67 with a 90-day waiting period; however, benefit periods of 2 years or to age 60 are available, as well as 30- and 60-day waiting periods. A great range of additional benefits are provided to members including free scaled advice and low-cost banking services through ME.

Read More

HESTA 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

$65

Administration fee (%)

0.08%

Switching fee

$0

Investment fee

0.73%

Indirect cost ratio (%)

0.09%

Exit fee

$0
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
DIVERSIFIED FIXED INTEREST
GROWTH
AUSTRALIAN SHARES
INTERNATIONAL SHARES
CAPITAL STABLE
PROPERTY
CASH
+ View additional option performance information
Past 5-year return
6.58%
Admin fee

$65

Company
HESTA Superannuation Fund
Calc fees on 50k

$515

Features
Advisory services
Death insurance
Income protection
Online access
Term deposits
Variety of options
SuperRatings awards
MyChoice Platinum15 Year Platinum PerformanceCareer Fund of the Year FinalistMomentum FinalistNet BenefitInfinity Recognised
Go to site
More details
Past 5-year return
6.58%
Admin fee

$65

Company
HESTA Superannuation Fund
Calc fees on 50k

$515

Features
Advisory services
Death insurance
Income protection
Online access
Term deposits
Variety of options
SuperRatings awards
MySuper Platinum7 Year Platinum PerformanceCareer Fund of the Year FinalistMomentum FinalistNet BenefitInfinity RecognisedMySuper of the Year Finalist
Go to site
More details
Past 5-year return
6.58%
Admin fee

$65

Company
HESTA Superannuation Fund
Calc fees on 50k

$515

Features
Advisory services
Death insurance
Income protection
Online access
Term deposits
Variety of options
SuperRatings awards
MyChoice Platinum15 Year Platinum PerformanceCareer Fund of the Year FinalistMomentum FinalistNet BenefitInfinity Recognised
Go to site
More details

FAQs

What are the risks and challenges of an SMSF?

  • SMSFs have high set-up and running costs
  • They come with complicated compliance obligations
  • It takes a lot of time to research investment options
  • It can be difficult to make such big financial decisions

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.

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 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 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.

What are my superannuation obligations if I'm an employer?

Employers are required to pay superannuation to all their staff if the staff are:

  • Over 18 and earn more than $450 before tax in a calendar month
  • Under 18, work more than 30 hours per week and earn more than $450 before tax in a calendar month

This applies even if the staff are casual employees, part-time employees, contractors (provided the contract is mainly for their labour) or temporary residents.

How long after divorce can you claim superannuation?

You or your partner could be forced to surrender part of your superannuation if you divorce, just like with other assets.

You can file a claim for division of property – including superannuation – as soon as you divorce. However, the claim has to be filed within one year of the divorce.

Your superannuation could be affected even if you’re in a de facto relationship – that is, living together as a couple without being officially married.

In that case, the claim has to be filed within two years of the date of separation.

Either way, the first thing to consider is whether you’re a member of a standard, APRA-regulated superannuation fund or if you’re a member of a self-managed superannuation fund (SMSF), because different rules apply.

Standard superannuation funds

If your relationship breaks down, your superannuation savings might be divided by court order or by agreement.

The rules of the superannuation fund will dictate whether this transfer happens immediately, or in the future when the person who has to make the transfer is allowed to access the rest of their superannuation (i.e. at or near retirement).

Click here for more information.

SMSFs

If your relationship breaks down, you must continue to observe the trust deed of your SMSF.

So if you and your partner are both members of the same SMSF, neither party is allowed to use the fund to inflict ‘punishment’ – such as by excluding the other party from the decision-making process or refusing their request to roll their money into another superannuation fund.

This no-punishment rule applies even if the two parties are involved in legal proceedings.

Click here for more information.

Financial consequences

Superannuation funds often charge a fee for splitting accounts after a relationship breakdown.

Splitting superannuation can also impact the size of your total super balance and how your super is taxed.

Click here for more information.

What are personal contributions?

A personal contribution is when you make an extra payment into your superannuation account. The difference between personal contributions and salary sacrifices is that the former comes out of your after-tax income, while the latter comes out of your pre-tax income.

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 is the difference between accumulation and defined benefit funds?

A majority of Australians are in accumulation funds. These funds grow according to the amount of money invested and the return on that money.

A minority of Australians are in defined benefit funds – many of which are now closed to new members. These funds give payouts according to specific rules, such as how long the worker has been with their employer and their final salary before they retired.

What is the superannuation rate?

The superannuation rate, or guarantee rate, is the percentage of your salary that your employer must pay into your superannuation fund. The superannuation guarantee has been set 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.

Who can open a superannuation account?

Superannuation accounts can be opened by Australians, permanent residents and temporary residents. 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

What is a superannuation fund?

A superannuation fund is an institution that is legally allowed to hold and invest your superannuation. There are more than 200 different superannuation funds in Australia. They come in five different types:

  • Retail funds
  • Industry funds
  • Public sector funds
  • Corporate funds
  • Self-managed super funds

Retail funds are usually run by banks or investment companies.

Industry funds were originally designed for workers from a particular industry, but are now open to anyone.

Public sector funds were originally designed for people working for federal or state government departments. Most are still reserved for government employees.

Corporate funds are arranged by employers for their employees.

Self-managed super funds are private superannuation funds that allow people to directly invest their money.

What superannuation details do I give to my employer?

When you start a job, your employer will give you what’s called a ‘superannuation standard choice form’. Here’s what you need to complete the form:

  • The name of your preferred superannuation fund
  • The fund’s address
  • The fund’s Australian business number (ABN)
  • The fund’s superannuation product identification number (SPIN)
  • The fund’s phone number
  • A letter from the fund trustee confirming that the fund is a complying fund; or written evidence from the fund stating it will accept contributions from your new employer; or details about how your employer can make contributions to the fund

You should also provide your tax file number – while it’s not a legal obligation, it will ensure your contributions will be taxed at the (lower) superannuation rate.

How do I combine several superannuation accounts into one account?

The process used to consolidate several superannuation accounts into one is the same process used to change superannuation funds. This can be done through your MyGov account or by filling out a rollover form and sending it to your chosen fund.

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.

Can I buy a house with my superannuation?

First home buyers are the only people who can use their superannuation to buy a property. The federal government has created the First Home Super Saver Scheme to help first home buyers save for a deposit. First home buyers can make voluntary contributions of up to $15,000 per year, and $30,000 in total, to their superannuation account. These contributions are taxed at 15 per cent, along with deemed earnings. Withdrawals are taxed at marginal tax rates minus a tax offset of 30 percentage points.

Voluntary contributions to the First Home Super Saver Scheme are not exempt from the $25,000 annual limit on concessional contributions. So if you pay $15,000 per year into the First Home Super Saver Scheme, you have to make sure that you don’t receive more than $10,000 in superannuation payments from your employer and any salary sacrificing.

Is superannuation compulsory?

Superannuation is compulsory. Generally speaking, it can’t be touched until you’re at least 55 years old.

What happens if my employer goes out of business while still owing me superannuation?

If your employer collapses, a trustee or administrator or liquidator will be appointed to manage the company. That trustee/administrator/liquidator will be required to pay your superannuation out of company funds.

If the company doesn’t have enough funds, in some cases company directors will be required to pay your superannuation. If the directors still don’t pay, the Australian Securities & Investment Commission (ASIC) might take legal action on your behalf. However, ASIC might decline to take legal action or might be unsuccessful.

So there might be some circumstances when you don’t receive all the superannuation you’re owed.

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.