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FAQ

Here we have put together a list of some of the common enquiries we receive. 

Managing your account

Accessing your super

  • What are my options when I reach retirement age?

    There are a few options available to you. Refer to the Planning for retirement section for more information.

  • Can I access my super for reasons other than retirement?

    You can apply for early release of your super on compassionate grounds, terminal illness, temporary incapacity, permanent incapacity, if you are experiencing severe financial hardship, if you are a temporary resident about to leave Australia and not planning to live here again, or you have less than $200 in super.

    These are known as Conditions of Release.

  • What is compassionate grounds?

    Compassionate grounds are:

    • Medical – pay for treatment or travel to treatment
    • Mortgage – stop the bank from selling your home
    • Disability – modify your home or car
    • Palliative care – for you or a dependant
    • Funeral – for a dependant

    Who can apply?

    You must:

    • Be an Australian or New Zealand citizen or permanent resident
    • Need the money on compassionate ground
    • Have no other way to pay such as using savings or selling assets

    You will need to apply to the Australian Tax Office ATO (phone 13 10 20) who will then inform us of the need to release your super and how much.

  • What is financial hardship?

    In certain circumstances you may access a portion of your superannuation for reasons of 'severe financial hardship'.  To do so you need to satisfy one of the following two conditions:

      • Receiving Commonwealth support for a continuous period of 26 weeks, and being unable to meet reasonable and immediate family expenses.
      • Reaching preservation age (55 or above depending on your birth date) and receiving Commonwealth support for 39 weeks after reaching preservation age.

    You will need to apply to LGS for early release of your superannuation benefits. To support your application, you may apply to Centrelink for a confirmation letter showing you have received and are still receiving eligible income support payments.

    Any early release of superannuation may be taxed.

    Please call us on 1300 LGSUPER (1300 547 873) between 8.30am and 5.00pm, Monday to Friday, for more information.

Super after you die

  • What happens to my super when I die?

    Superannuation can’t be included in your will unless you’ve specified certain instructions with your super fund first. This is because your super is held for you in a trust by the trustee, and governed by superannuation law, which is why different rules apply and why your super fund must be kept up to date with your instructions.

    If you want to dictate who will receive your super when you die – you can make a binding nomination for your beneficiaries by completing the Binding death benefit nomination form.

  • What is a binding nomination?

    A binding nomination allows you to provide the Trustee of your super fund with specific instructions on how to distribute your super benefit in the event of your death.

    For more information on binding nominations, take a look at our fact sheet on Nominating Beneficiaries.

  • Do I need to make a binding nomination?

    Making a binding nomination is optional. However, making a binding nomination means your wishes are met after your death. If you do not make a binding nomination, the Trustee will, at its discretion, pay the benefit to one or more of your Legal Personal Representatives or dependants. 

  • How do I make a binding nomination?

    To make a binding death benefit nomination, you must complete the Binding Nomination form and return it to us. If you make a valid binding nomination it becomes effective from the date of signing. The Trustee must pay your benefit in accordance with your valid binding nomination to your Legal Personal Representative and/or dependants if all your nominated dependants survive you and are your dependants at the time of your death. 

  • Is a binding nomination permanent?

    A binding nomination will usually expire and cease to have effect three years after being made or last amended. You can confirm the arrangements are still the same by completing the Confirmation of existing binding death benefit nomination form and returning it to us, which extends the term for another three years from the date of signing.

    The Trustee must follow a valid binding nomination, regardless of whether your circumstances have changed, so it is important that you keep it up to date. 

Additional contribution rules

  • What are concessional super contributions?

    Concessional super contributions are contributions which are taken from your before-tax salary and attract the concessional tax rate of 15% rather than your marginal tax rate. These usually include the compulsory Superannuation Guarantee contributions made by your employer on your behalf, and any contributions you make to your super before tax.

    You are only eligible for the concessional tax rate if you have provided us with your Tax File Number (TFN).

  • What is salary sacrificing?

    Salary sacrificing is an arrangement where you receive part of your gross salary as a benefit rather than salary. The benefit is paid from your gross salary, i.e. before tax.

    Salary sacrificing to make super contributions will reduce your take-home pay but because it reduces your taxable salary, you may pay less tax on your income. Your super contribution is taxed at 15% when it is deposited in your fund but for most people this rate will be lower than their marginal tax rate. 

  • What are non-concessional super contributions?

    Non-concessional super contributions are those contributions you make from your after-tax salary and they generally do not attract any tax when they are deposited in your super account. 

  • What are the caps on concessional and non-concessional super contributions?

    The standard concessional cap is $25,000 per annum and applies to all members. If you earn more than $250,000 some or all of your concessional contributions may be taxed at 30%.  

    If your total superannuation balance is less that $500,000, you may be entitled to contribute more that the general concessional cap on a rolling 5 year basis. Unused carry forward amounts will expire after five years.

    Non-concessional contributions are capped at $100,000 per year, or $300,000 over three years. Maximum one-off contribution amounts are capped at $300,000 for members under 65.

    For more information on contributions, refer to the applicable Product Disclosure Statement for your Scheme.

Leaving Australia

  • Can I access my super if I am leaving the country?

    If you are planning to move overseas, you may be able to take your super with you.

    If you were a permanent resident of Australia who has moved to another country, you are unable to access your super until you retire, no matter where you are living. The only exceptions are if you satisfy another Condition of Release. In this case please contact LGS on 1300 LGSUPER (1300 547 873) to discuss your specific concerns.

    If you were a temporary resident of Australia and have departed Australia, you are entitled to receive your super benefits through a Departing Australia Superannuation Payment. You can apply for this payment online through the Australian Taxation Office.

Tax file numbers

  • Why do I need to provide my Tax File Number?

    It is not compulsory to provide us with your Tax File Number (TFN) but if you do not provide us with your TFN:

      • you may be liable for extra income tax on your concessional or pre-tax contributions and this will be deducted from your super account
      • we may not be able to accept your non-concessional or after-tax super contributions
      • you may not be paid the Federal Government's super co-contribution (if you are eligible).

    Also if you do not provide us with a TFN, you may find it difficult to locate your super benefits in the future and consolidate them into one account.

    For more information on TFNs, you can call our Member Services team. 

  • How do I advise you of my TFN?

    You will need to complete the Notification of Tax File Number form and send it to us, or you can call our Member Services team on 1300 LGSUPER (1300 547 873) between 8.30am and 5.00pm, Monday to Friday, and quote your TFN.

    Will you use my TFN for any other purposes?

    We will only use your TFN for purposes permitted by law, such as to:

    • find and identify your super benefits when other information is insufficient.
    • calculate the tax on your superannuation benefits
    • provide information to the Australian Tax Office (ATO) so they can assess any tax payable on your contributions.

    For more information on TFNs, take a look at the ATO website or you can call our Member Services team.

Certified proof of identity

  • Why do I have to provide proof of my identity?

    Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 if you are a member of a super fund you must provide proof of your identity and your date of birth when you apply for the payment of a benefit and this also includes any application for release, transfer, deferral, or an insurance claim.

    These measures are to protect you against fraud and enable us to be reasonably satisfied that we have identified the person making the application is who they claim to be. 

  • What documents do I need to provide?

    For more benefit payments electronic identification is available for members. You can provide two of the following documents for verification;

    • Medicare number
    • Australian Drivers license
    • Australian Passport

    If you don't wish to use electronic verification you can provide a certified copy of your current Australian driver's license or an Australian passport which is current or has not expired for more than two years.

    Other acceptable documents may include certified copies of Citizenship Certificates, Birth Certificates, Local Government rate notices, and account notices from utilities such as electricity, gas, water or telephone which are no more than three months old.

    If you have changed your name, you must provide a certified copy of a document which shows the link between your old and new names such as a Marriage Certificate, Deed Poll, Change of Name Certificate or a Decree Nisi. 

    Our Proof of Identity fact sheet provides more information. 

  • What do I have to do to get the copies of my documents certified?

    You will need to arrange for an authorised person to certify your documents. Our Proof of Identity Fact Sheet lists the authorised persons that can certify, which include but not limited to a Justice of the Peace, a solicitor, an accountant with more than two years’ continuous membership of a professional body, a police officer or a permanent employee of Australia Post with more than two years’ continuous service.

    The authorised person must sight the original and the copy of the document to make sure they are identical. They must certify all the pages of the document and provide particular details and the date they certified the document.

    This person who certifies the documents must also be both independent and impartial and not related to the member such as a spouse or a family member.

    We may reject the documents if there is any actual or perceived conflict of interest. 

Our ABN/ASFL/RSE numbers

 

We hope you have been able to find the answer to your question here. If not, our Member Services team are here to help. Call us on 1300 LGSUPER (1300 547 873) between 8.30am and 5.00pm, Monday to Friday, Live Chat via our website or send us an email.

If you'd like to ask us a question in person, appointments are also available between 8.30am and 5.00pm, Monday to Friday. Please see our Contact us page for further details.

The information on this website is of a general nature only and does not take into account your personal objectives, situation or needs. You should consider obtaining professional financial, taxation and or legal advice tailored to your personal circumstances prior to making any financial decision.

©2020 Local Government Super ABN 68078003497 All rights reserved
©2020 Local Government Super ABN 68078003497 All rights reserved