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Fees and taxes

For full details about the fees, costs and taxation of IRIS, please read the Product Disclosure Statement.

There are no entry or exit fees for establishing or closing an IRIS account. The following fees apply to your IRIS account.

Type of fee Description Amount
Administration Fee

A total fee reflecting the administration and underlying investment option management fees.

For details of what the administration fee is used for, click here.

Varies depending on your selected investment option/s.

If your account balance exceeds $250,000 then a reduced fee applies to all of your investments.

Buy-sell spread

A transaction cost applicable upon the purchase and redemption of investments.

Varies depending on your selected investment option/s.

Indirect cost ratio

An approximate amount covering the management costs incurred by the Fund in offering each investment option.

Deducted monthly from the assets of the Fund, reducing the return on your investment but not charged directly to you as a fee.

Varies depending on your selected investment option/s.

As Trustee, we will notify all IRIS members of any increase in fees and charges at least 30 days before the change takes effect.

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Administration fee

The total Administration fee can be separated into the following two components:

 Component 1: Administration fees that are deducted directly from your account

The Administration fee includes the ongoing administration and investment management costs of the Fund. It does not include transaction costs. (see Buy-sell spread below)

Administration fees are calculated for each investment option as listed below based on your account balance at the end of each month and deducted from your account. 

If your account balance exceeds $250,000, then a reduced fee applies to all of your investment options.

IRIS Investment Option Management costs deducted directly from members' accounts % p.a. 
Total account balance below $250,000  Total account balance of $250,000 and above 
Defensive 0.90 0.85
Conservative 0.76 0.71
Growth 1.00 0.95
High Growth 1.10 1.05
Cash 0.40 0.35
Diversified Fixed Interest 0.55 0.50
Property 0.90 0.85
Australian Shares 0.80 0.75
Sustainable Australian Shares 1.15 1.10
International Shares 0.92 0.87

The Administration fees above are applicable until 31 December 2016. New fees will apply from 1 January 2017 as detailed in the Significant Event Notice issued 1 September 2016.

 Component 2: Administration fees that are deducted from investment earnings before net earnings are applied to your account

These are based on operational expenses that may be incurred during the year in managing the operations of the the Fund. These expenses include audit fees, government taxes & charges, regulatory fees & charges and direct legal charges incurred by the Fund.

These fees are also referred to as the Indirect Cost Ratio (ICR). The ICR is the ratio of the total of the indirect costs for the investment option, to the total average net assets of the Fund attributed to the investment option. ‘Indirect costs’ include any amount that the trustee knows, or reasonably ought to know, will directly or indirectly reduce the return on investment of a member, where this amount is not charged to the member as a fee. A fee deducted directly from a member’s account is not included in the ICR.

Fund expenses are detailed in the financial statements contained in our Annual Report. If you would like a copy of the full audited financial statements and the auditor’s report or you would like to receive a printed copy of the Annual Report, please email or call our Administration Service Centre on 1300 367 485.

The table below shows the estimated expenses from 30 June 2015 as a percentage of the estimated average size of each investment option for the 2015/2016 year.

IRIS Investment Option Estimated management costs that are deducted
from investment earnings (%) 
Defensive 0.08
Conservative 0.08
Growth 0.08
High Growth 0.08
Cash 0.08
Diversified Fixed Interest 0.08
Property 0.08
Australian Shares 0.08
Sustainable Australian Shares 0.08
International Shares 0.08

Buy-sell spread

 Transaction costs deducted from the investments when you buy or sell assets

Transaction costs are charged to ensure costs associated with buying and selling assets are met by those investors transacting only. They are not a fee paid to the Trustee, however they are paid to the external investment managers to cover costs such as brokerage, government taxes/duties/levies, and bank charges, and are calculated according to the particular assets held in each investment option.

Transaction costs are an additional cost to you that applies when you invest, switch or withdraw (including income payments) all or part of your investment.

Investment Option

Buy costs
When you start investing or switch to a new investment option

(%)

Sell costs
When you withdraw or switch from an investment option to a new one

(%)

Defensive 0.07 0.07
Conservative 0.10 0.10
Growth 0.14 0.11
High Growth 0.16 0.11
Cash 0.00 0.00
Diversified Fixed Interest 0.09 0.10
Property 0.12 0.12
Australian Shares 0.17 0.13
Sustainable Australian Shares 0.15 0.15
International Shares 0.16 0.11

The Transaction Costs above may differ from what is disclosed in the current Product Disclosure Statement (PDS) issued 1 September 2016. The above transaction costs are current as at 5 October 2016. Please note that transaction costs may change at any time without notice.


 Taxation

There is no tax payable on the investment earnings of your IRIS account.

Over 60's

Once you are 60 or over, you do not pay tax on your IRIS account, whether you receive regular income payments, or if you withdraw lump sum amounts. You will not need to include any of your payments in your income tax return.

Under 60's

If you are under age 60, your income payments will be subject to income tax (plus Medicare Levy).

For more information about taxation, please read the Product Disclosure Statement and seek independent professional taxation advice.


 

Last updated on 3rd May 2017