Insurance premiums, fees, the contributions tax surcharge (if any) and tax will be deducted from your account in CONNECT

Fees / charges / taxes

Insurance Premiums

As a member of CONNECT you automatically receive default insurance cover. The amount of insurance you're entitled to, insurance charges and details of additional cover are explained in the Member Product Disclosure Statement(PDS). The charges for insurance cover are deducted from your account in CONNECT.

Administration Fees

There is an administration fee of $1.35 per week deducted from your active account: If these fees change you will be advised via your CONNECT annual report or newsletter, or this website.

Benefit Payment Fee

When you withdraw from CONNECT, a fee is deducted from your account to cover the cost of processing the claim. Currently this fee is $37.50. If your benefit is less than $1,000, the fee will usually not exceed the interest amount credited to your account. In some instances the administration fee may absorb the positive return that has been credited to member accounts, then a difference of up to $10.00 will be charged. Fees change from time to time so please call the CONNECT otline on 1800 025 464 for the latest.

Contributions Tax

Tax is deducted from your account and paid to the Australian Tax Office (ATO). The amount of tax deducted is 15% of your net contributions.

Net contributions are your employer contributions, and (any salary sacrifice/before tax) member contributions, less the cost of insurance cover and all the fees that are debited to your account. 15% of this amount is paid to the government as tax.

Surcharge Tax

The superannuation contributions surcharge used to affect the contributions of higher-income employees (whose adjustable taxable income exceeds a certain level). It applies to certain superannuation contributions made after 20 August 1996 and before 1 July 2005. The contributions surcharge tax was abolished effective 1 July 2005 and the current rate of tax is 0%.

Adjusted Taxable Income

For surcharge purposes this is your taxable income, i.e. your total salary, reportable fringe benefits total, earnings and interest from investments plus employer superannuation contributions, including salary sacrifice contributions.