HESTA Superannuation Fund

HESTA - MySuper

Past 5-year return
6.58%
Admin fee

$65

Calc fees on 50k

$515

SuperRatings awards
MySuper Platinum7 Year Platinum PerformanceCareer Fund of the Year FinalistMomentum FinalistNet BenefitInfinity RecognisedMySuper of the Year Finalist
Past 5-year return
6.58%
Admin fee

$65

Calc fees on 50k

$515

SuperRatings awards
MySuper Platinum7 Year Platinum PerformanceCareer Fund of the Year FinalistMomentum FinalistNet BenefitInfinity RecognisedMySuper of the Year Finalist

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).
  • 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.The Balanced Growth option is the fund's default investment option, whilst choice members may also select from a range of Diversified and Single Sector investment options. The 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).
  • 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.The Balanced Growth option is the fund's default investment option, whilst choice members may also select from a range of Diversified and Single Sector investment options. The 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
+ 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

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

Yes, permanent and temporary residents are entitled to superannuation.

Is superannuation compulsory?

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

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.

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.

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.

What are reportable superannuation contributions?

For employees, there are two types of reportable superannuation contributions:

  • Reportable employer super contributions your employer makes for you
  • Personal deductible contributions you make for yourself

How do I change my superannuation fund?

Changing superannuation funds is a common and straightforward process. You can do it through your MyGov account or by filling out a rollover form and sending it to your new fund. You’ll also have to provide proof of identity.

When is superannuation payable?

Employers must pay superannuation at least four times per year. The due dates are 28 January, 28 April, 28 July and 28 October.

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

Can my employer use money from my superannuation account?

No, your employer can’t touch the money that is paid into your superannuation account.

What is lost 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.

Am I entitled to superannuation if I'm a part-time employee?

As a part-time employee, you’re 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

How can I withdraw my superannuation?

There are three different ways you can withdraw your superannuation:

  • Lump sum
  • Account-based pension
  • Part lump sum and part account-based pension

Two rules apply if you choose to receive an account-based pension (also known as an income stream):

  • You must receive payments at least once per year
  • You must withdraw a minimum amount per year
    • Age 55-64 = 4%
    • Age 65-74 = 5%
    • Age 75-79 = 6%
    • Age 80-84 = 7%
    • Age 85-89 = 9%
    • Age 90-94 = 11%
    • Age 95+ = 14%

If you want to work out how long your account-based pension might last, click here to access ASIC’s account-based pension calculator.

When can I access my superannuation?

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

The preservation age – which is different to the pension age – is based on date of birth. Here are the six different categories:

Date of birth Preservation age
Before 1 July 1960 55
1 July 1960 – 30 June 1961 56
1 July 1961 – 30 June 1962 57
1 July 1962 – 30 June 1963 58
1 July 1963 – 30 June 1964 59
From 1 July 1964 60

A transition to retirement allows you to continue working while accessing up to 10 per cent of the money in your superannuation account at the start of each financial year.

There are also seven special circumstances under which you can claim your superannuation:

  • Compassionate grounds
  • Severe financial hardship
  • Temporary incapacity
  • Permanent incapacity
  • Superannuation inheritance
  • Superannuation balance under $200
  • Temporary resident departing Australia

 

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.

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 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 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.

Am I entitled to superannuation if I'm a contractor?

As a contractor, you’re entitled to superannuation if:

  • The contract is mainly for your labour
  • 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

Please note that you’re entitled to superannuation even if you have an Australian business number (ABN).

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