FREQUENTLY ASKED QUESTIONS
How do I know if I am a white collar, light blue or heavy blue for insurance?
The premium you pay for your insurance depends on whether you are classified as being a ‘white collar’, ‘light blue collar’ or a ‘heavy blue collar’ worker, the amount of cover you choose, your age and whether you are male or female.
The premiums are deducted from your member account on a monthly basis. The definition of each classification is:
- White Collar – you spend at least 80% of your time in an office or similar environment performing administrative, clerical or sedentary type duties
- Light Blue Collar – you have a recognised trade qualification relating to your occupation, your occupation requires you to perform light manual work or you are a supervisor of blue collar workers and your duties include up to 10% of manual work
- Heavy Blue Collar – you are a skilled or semi-skilled worker whose duties include heavy manual work, or you are required to operate heavy machinery
Can I claim on financial hardship?
If you have been receiving Centrelink benefits for a period of more than 26 continuous weeks, and you have a Q230 form from Centrelink, you may be able to access some of your account. Contact BUSSQ on 1800 692 877 for more information.
If you do not meet these conditions and are not able to claim your super under financial hardship grounds then other conditions of release may be available to you.
You are encouraged to review your nominated beneficiaries if your circumstances have changed. Nominating beneficiaries (and keeping your choice up to date) can assist you to have your assets distributed to your loved ones the way you want. Set up your beneficiaries.
Can I split my contribution with my spouse?
BUSSQ allows you to split certain superannuation contributions made to your account, to your spouses account. For more information, call BUSSQ on 1800 692 877.
Can I withdraw extra money from my Term Allocated Pension (TAP)?
Generally, lump sum withdrawals cannot be made from a TAP.
The exceptions are that withdrawals can be made:
- Within the first six months of the commencement of the TAP
- To purchase another complying pension
- To pay a superannuation contribution surcharge, or
- To make a payment split under family law.
Can I withdraw extra money from the Income account or Transition to Retirement Income account?
Your Income account offers you income flexibility.
You can, if necessary, withdraw extra as lump sum amounts in addition to your regular Income account payments. Lump sum withdrawals may be taxed. The minimum withdrawal amount is $1,000. However, generally you are not able to withdraw lump sum amounts from a Transition to Retirement Income account. If your Income account contains benefits of less than $2,000 you will be asked to withdraw the balance as a lump sum withdrawal. You will be notified in writing if this occurs.
Does BUSSQ offer Binding Death Benefit Nominations?
Yes. Binding Death Benefit Nominations mean the Trustee is bound by the nomination you make on your form when they are paying out your death benefit.
Provided that your nomination is a valid one, the Trustee will be obliged to pay any death benefit entitlement to the person or people you have nominated on your form.
With BUSSQ you can also nominate for your death benefit to be paid into one or more Child Income accounts for your dependent children using a Binding Death Benefit Nomination to Child Income form. Learn more about a nominating a Child Income account as your beneficiary and choosing to protect your child’s financial future.
For your binding nomination to be valid, certain conditions must be met – please contact BUSSQ on 1800 692 877 for further information.
How do I nominate a beneficiary for my Death benefit?
If you die while you are a member of BUSSQ, the Death Benefit may provide valuable financial assistance to your dependants.
The Trustee allows you to specify how you wish your Death Benefit to be paid by making a nomination which can be either non-binding or binding. You should nominate your preferred beneficiaries when you join BUSSQ and you are encouraged to review your nominations as your circumstances change.
Non-binding nomination – When you make a non-binding nomination, your wishes about who should receive your benefits when you die are a guide only and are not binding on the Trustee. The Trustee will take your nomination into consideration but it is the Trustee who makes the final decision. The Death Benefit can be paid to your dependants or your legal personal representative of your estate.
Your dependants are:
- Your spouse (including de-facto)
- Your children (including step, adopted or ex-nuptial child or child of your spouse, or child
within the meaning of the Family Law Act, 1975 )
- Anyone who is in an interdependent relationship with you,
- Any person who, in the opinion of the Trustee, is or was at the date of your death wholly or partly dependent on you.
The main requirements to establish an interdependent relationship are:
- To live together
- To have a close personal relationship
- For one or each of them to provide the other with financial support, and
- One or each of them provides the other with domestic support and personal care. An interdependent relationship also exists if
two people have a close personal relationship, but the other requirements are not satisfied because either or both of them suffer from a physical, intellectual or psychiatric disability.
Binding Nomination – A binding nomination means the Trustee is bound by the nomination(s) you make, when paying your Death Benefit. For your binding nomination form to be valid, certain conditions must be met, including:
- Nominations can only be made on a Binding Death Benefit Nomination form
- Your Binding Death Benefit Nomination form must be signed by you and two witnesses, both of whom must be at least 18 years old and not nominated as beneficiaries.
- The only beneficiaries that can be nominated are your spouse, dependants or your legal personal representative (that is the executor of your will or administrator of your estate).
If you nominate someone other than your spouse, dependants or legal personal representative, your nomination will be invalid. Your binding nomination is valid for three years and is shown on your Annual Statement and in MemberAccess. After three years, you will need to re-confirm the nomination or provide a new one. In the event that your nomination becomes invalid, the conditions applying to non-binding nominations will apply.
BUSSQ also allows you to nominate for your death benefit to be paid into one or more Child Income accounts for your dependent children using a Binding Death Benefit Nomination to Child Income form. Learn more about a nominating a Child Income account as your beneficiary and choosing to protect your child’s financial future.
Please note, a non-binding death nomination can be done through MemberAccess. To make a binding Death Benefit nomination you must download, complete and return a Binding Death Benefit Nomination form.
How do I pay my contributions to BUSSQ?
You have numerous options for paying your super contributions to BUSSQ.
- Paying online - you can register for our online system EmployerAccess. This allows you to submit your contribution return information electronically. When submitting your contribution return online, you have the following payment options:
- BPAY® - log onto your Internet banking site or call your phone banking service. Select the BPAY® option and follow the simple instructions. Record your receipt number.
- Electronic Funds Transfer (EFT) - where you transfer funds directly from your bank account into BUSSQ bank account.
- Authorised Bank Transfer - each time you send through your contribution information online will trigger a payment to be transferred from your bank account to BUSSQ. Please note, if you do not confirm your details online, then nothing will happen.
How long will it take for my TPD claim to be paid?
Assessing your TPD claim has no set time limit.
It is best to expect a few months. However to assist in the process, any additional information you can send in will potentially help, e.g. reports from scans, copies of specialist reports or other medical evidence you may wish to send.
How does Total and Temporary Disablement (TTD) work?
Total and Temporary Disablement cover is part of default TPD cover for BUSSQ MySuper and Premium Choice members who are 'manual' workers and have at least four units of TPD cover. It provides a payment up to a maximum of $350 a week for a maximum of twelve (12) months for members who could potentially return to work again in the future.
You must have ceased work due to an injury or illness, be unable to earn remuneration in respect of your own occupation and not be earning remuneration from any other occupation. Your TTD benefit will commence, subject to approval, once six months have passed since you left work (the waiting period). To receive TTD benefit you must also be under the age of 56 once the 6 month waiting period has lapsed. If you are claiming TPD, the TTD benefit can be paid monthly while your claim for TPD is assessed.There is no cost for this cover as it is included as part of your TPD insurance, if you have at least four units of default TPD cover. Any amount paid will reduce your TPD benefit amount if a TPD claim is approved for the same condition.
What happens to my Income account if I die?
You have three options as to how your BUSSQ Income account will be paid if you die before your account balance runs out:
Option 1 – As a lump sum or Income account to your nominated beneficiaries
You may nominate a reversionary beneficiary who will automatically receive your Income account if you die. A reversionary income will be paid from your Income account to your spouse or other named reversionary beneficiary following your death. A reversionary beneficiary must be a dependant.
You can only nominate a reversionary beneficiary when you open your BUSSQ Income account. If you want to change your nominated reversionary beneficiary at a later date, you have to cancel the Income account related to your nominated reversionary beneficiary and open a new Income account.
If you do not nominate a reversionary beneficiary when opening your BUSSQ Income account, in the event of your death, the remaining money in your account will be paid to one or more of your dependants or your legal personal representative as determined by BUSSQ.
A reversionary beneficiary can commute their Income account and be paid a lump sum benefit. If the reversionary beneficiary dies before the money in their BUSSQ Income account runs out, the balance of the account will be paid to the reversionary beneficiary’s preferred beneficiaries or legal personal representative.
Option 2 – As a lump sum or Income account to your binding beneficiaries
If your nomination is binding and valid, the Trustee of the Fund must pay any Death benefit to your nominee/s providing they are your dependant at the time of your death. This could include your spouse, children (including adult children) or someone you have an interdependent relationship with. You can also nominate your legal personal representative/estate.
Your binding nomination remains valid for three years. If you do not renew your binding nomination the trustee will no longer be obligated to follow your nominations. Your legal personal representative is the executor of your will or the administrator of your estate. There are certain conditions that must be met to make sure your binding nomination is valid, call 1800 69 2877 to find out more information.
Option 3 – As a lump sum or Income account to your non-binding beneficiaries
If your nomination is non-binding, the Trustee will use your nominee/s as a guide but is not legally bound by your nomination choices.
What happens when I make withdrawals from my account?
When payments are made from your Income account, you are really withdrawing a number of units.
For example, let's assume you started an Income account with $150,000. At that time the unit price was $1.00 each, so you now have 150,000 units in that investment option. Shortly after, the unit price increases to $1.01 each. If a payment of $5,000 is made to you from your Income account when the unit price is $1.01, then you will have:
- Withdrawal: $5,000
- Number of Units Withdrawn: 4,950.5 at $1.01 per unit
- Number of Units Remaining: 145,049.5
- Value of your remaining units: 145,049.5 x $1.01 = $146,500
What is the tax on death and TPD benefits
Tax on death and TPD cover is complex to determine. For more information contact BUSSQ to speak to a Skylight Financial Planner on 1800 692 877.
What tax will I pay on contributions?
All employer contributions to your account, and contributions for which a tax deduction is claimed, are subject to 15% Federal Government contributions tax.
Personal Contributions - Personal contributions from your after-tax income will not be taxed when contributed. These contributions are limited to $110,000. If you are under 67 you will be able to bring forward two years contributions and contribute up to $330,000. Contact BUSSQ on 1800 692 877 if you wish to contribute amounts in excess of the above.
Tax deductibility for contributions - You may be able to claim a tax deduction in respect of your super contributions. Concessional contribution limits apply to contributors where a tax deduction has been claimed. If you intend to claim a personal tax deduction, BUSSQ will ask you to complete a Notice of intent to claim a tax deduction form indicating the amount you intend to claim. It is important that you advise BUSSQ of your intention to claim a tax deduction before you submit your tax return and receive written confirmation of your request from BUSSQ, and that you submit your tax return in the year following the year contributions were made.
When does my cover cease?
• If you choose to cancel your insurance cover
• If you are no longer a member of BUSSQ MySuper or Premium Choice
• If you transfer the balance of your BUSSQ account into another super fund, closing your account
• If a TPD benefit payment is payable or paid which is equal to the amount of your Death benefit
• If a Terminal Illness benefit is payable or paid which is equal to the amount of your Death benefit
• On your death
• If you commence active duty with the armed services of any country or are subject to a call out order under the Defence Act 1903 (Cth) if you are a member of the defence force reserve
• When you reach:
o age 70 for Death cover for MySuper and Premium Choice members
o age 70 for TPD cover for Premium Choice members
o age 65 for unitised TPD cover for Premium Choice members
o age 65 for TPD cover for MySuper members; age 56 for TTD cover for members in 'manual' occupations; and
o age 65 for income protection members.
• If your account balance is insufficient to pay premiums
• If you are not an Australian or New Zealand citizen or permanent resident and are no longer permanently living in Australia or eligible to work in Australia
• If your account has been inactive for 16 consecutive months, no funds have been received and you have not elected to keep your insurance cover even if your account is inactive.
Why do I have to wait 6 months before I can put in a TPD claim?
From 1 March 2017, BUSSQ has three definitions of TPD with different eligibility conditions, which are set out in the Insurance Handbook.
If you are being assessed under TPD Definition 1, you will have a six month waiting period before you can make a TPD claim. In the initial 6 months of an illness/injury, you will be undergoing treatment for your condition and may not have a final diagnosis.
After the 6 month waiting period is over, our insurance team can have a better picture of what your diagnosis is, what treatment you have undertaken, what potential treatment may still occur, and whether there is enough potential improvement still to come that will allow you to re-enter the workforce.
If your illness or injury occurred prior to 1 March 2017 please call us on 1800 692 877 for more information about the waiting periods that may apply to you.
Why don’t you back pay the first 6 months I was off work for Total and Temporary Disablement (TTD) claims?
The Insurance Policy does not allow this.
The TTD benefit is linked to your Total and Permanent Disablement (TPD) benefit, so it acts as one benefit and therefore the TPD benefit’s waiting period is also enforced here. Any claim for TTD is also assessed for TPD at the same time.
Is there a partial disablement benefit payable on Income Protection?
Yes. You will be paid a proportion of the monthly benefit when you are partially disabled at the expiry of the waiting period (30 to 60 days as selected by you when you apply for cover).
The Partial Disability Benefit will be paid so long as you:
- Have been totally disabled for at least seven days out of the first 12 consecutive days of the waiting period
- are totally or partially disabled for the balance of the waiting period, and
- since the expiry of the waiting period, you remain partially disabled.
The Partial Disability Benefit may also be paid if you return to work in a limited capacity after a Total Disability Benefit has been paid.