Short form Product Disclosure Statement for The Education Fund

Short form Product Disclosure
Statement for The Education Fund
and the Supplementary
Education Program
Date: 1 February 2015
This Short form Product Disclosure Statement is a summary of the key features, benefits, risk and costs of The Education Fund and the Supplementary
Education Program (the funds). The funds are both issued and managed by the Australian Scholarships Group Friendly Society Limited.
You can request a copy of the Product Disclosure Statement for the funds by:
• speaking with your Australian Scholarships Group Counsellor
• contacting ASG on 03 9276 7777
• visiting our website www.asg.com.au/pds
Australian Scholarships Group Friendly Society Limited
ABN 21 087 648 879
AFSL No. 236665
The Australian Scholarships Group (ASG) offers
a range of products and services to support
you in planning for your child’s education.
Education positively shapes children’s lives. It builds skills for the future, develops resilience for times of hardship
and sets students up for future success. At ASG, we believe that every child should have access to a good education
and the opportunity to explore and nurture their interests and talents.
About ASG
Our approach
ASG is incorporated as an unlisted public company
under the Corporations Act 2001 and registered as a
friendly society under the Life Insurance Act 1995.
Whether you plan to send your child to a private,
government or systemic school, education costs can
add up quickly. However, with some forward planning
and budgeting, you’re giving yourself the best chance
to give your child a good education and a strong future.
ASG was established in 1974 by a group of parents
passionate about giving their children the best start in life.
We are the largest member owned education fund in
Australia and New Zealand. With more than 40 years
experience supporting children’s education, no one
else simplifies the process of planning and supporting
education like we do.
We believe that every child should have access to a
good education. That’s why we offer holistic education
solutions that help children reach their full potential.
ASG’s members enjoy support through a range of
tools and information designed to further their child’s
academic, social and emotional development. From
parenting resources to career planning tools, our
expanding resources provide expert advice for all
ages from early childhood to post-secondary.
Our education funds offer a disciplined approach to
planning, and the peace of mind that your contributions
are invested by fund managers who take a balanced
approach to ensure long term and sustainable growth.
To allow for a lower level of contributions in the early
years, contributions are indexed annually.
As a member owned organisation we deliver all
profits back to members and their families. Since our
inception, more than 515,000 children have been
enrolled with ASG and more than $2 billion
has been returned in the form of education benefits
and scholarship payments.
All of our plans are designed to qualify as scholarship
plans under Australian taxation law. This is a unique
advantage available for friendly societies and it means
that ASG can claim a tax deduction on the benefits that
we pay and can add the value of this deduction to any
Scholarship Benefit your child may qualify for.
Planning for your child’s education is a big responsibility.
At ASG, we’re here to make this important task a
little easier.
3
ASG’s Education Program
Two of the unique products we have to help you plan
and prepare for your child’s education are as follows:
The Education Fund (TEF)
Our entry level TEF has been created to help you to pay
for the basics during your child’s secondary schooling.
TEF can help with aspects such as computers, uniforms,
sports equipment, excursions, and music lessons—the
extras that are easy to underestimate today but will be
an inevitable cost tomorrow.
One of the key benefits of TEF is a post-secondary
Scholarship Benefit that is paid to your child during each
year that they successfully complete an approved postsecondary course (up to a maximum of three years).
This allows them to concentrate on their studies rather
than worrying about how they will support themselves
financially when they go on to further education.
The Scholarship Benefit is explained in more detail
(on page 6 ‘What benefits will I receive?’).
If you have specific education goals in mind, such
as private schooling, you should consider one
of our Supplementary Education Program options.
Supplementary Education Program (SEP)
The SEP lets you put aside additional funds towards your
child’s primary, secondary and post-secondary education.
The SEP options available target particular stages of
your child’s education, which means you can choose
when your benefits are returned to you.
Primary option
To help fund education costs for your child’s
primary school education.
Secondary option
To help fund education costs for your child’s secondary
school education.
Post-secondary option
To help fund education costs for your child’s
post-secondary education.
Depending on the option you choose, once your
child starts post-secondary studies you will receive
payment of your benefit every year to offset their
education expenses.
ASG’s Education Program also includes safeguards to
protect the options you have in place for your children:
The Family Protection Fund
This protects your child’s Scholarship Benefit. In the
event of the death of either the Prime or Joint Member,
no further contributions will be required. The Family
Protection Fund applies to TEF and SEP. (See page 11
‘Family Protection Fund’).
The Contingency Fund
This provides assistance for up to 12 months
to eligible members in the case of financial hardship.
The Contingency Fund applies to TEF only.
(See page 11 ‘Contingency Fund’).
How do I make contributions?
Upon joining either TEF or the SEP, we will establish
a Member Account on your behalf. Any contributions
you make will be allocated to this account, as will any
applicable investment earnings that are generated.
You can contribute to your Member Account in two ways:
• Fixed contributions (TEF) - where the contribution is
set depending on the age of your child at enrolment,
• Flexible contributions (SEP) - where you can increase
or decrease your contributions to suit your budget
during the contribution period.
You can make contributions by direct debit or
cheque. Credit card payments are only accepted
for initial contributions.
You can choose to make monthly, quarterly, half yearly
or yearly contributions when paying by direct debit.
To allow for a lower level of contributions in the early
years, contributions increase at eight per cent per
annum and compound on each anniversary of the
commencement date.
This indexation applies only to the contributions and not
to ongoing fees (membership fee, administration fee,
Family Protection and the Contingency Fund).
4
How are my contributions invested?
Our investment strategy balances risk and reward
to provide moderate returns with no more than a
moderate risk attached. We balance our investment
profile by placing money in a range of investment
funds managed by professional fund managers.
Our investment mix typically includes investment
in different asset types and a combination of
defensive assets (such as fixed interest securities
and cash) with more aggressive growth assets such
as equities and property.
The current approved allocation is 40 per cent
growth assets and 60 per cent defensive assets.
The Education Fund (TEF)
Annual bonus rates (%)
6.6
7
6
5
4
3.6
3.4
3
2
1.0
1
0
ASG reserves the right to change the asset allocation
at any time within the ranges specified by the Benefit
Fund Rules for each of the funds.
Bonus rates
8.0
8
2010
2011
2013
2014
Supplementary Education Program (SEP)
A bonus rate for each fund is determined annually
(or more frequently) by ASG on the advice of our
Actuary. It is calculated by taking into account the gross
investment returns of TEF and the SEP, fund expenses,
taxation and any applicable prudential requirement.
Annual bonus rates (%)
The bonus rate is allocated to your Member Account
and the scholarship pool. You will be advised of the
rate via your Annual Member Statement and it will be
published in ASG’s Scholastic (our member newsletter)
and the Annual Report.
5
Bonus rates fluctuate in line with fund earnings
performance, and a bonus rate in any particular
year may be positive or negative. The performance
of the funds is not guaranteed and is dependent
on economic and investment market conditions.
Past performance is not a reliable indicator of future
performance. Bonus rates for the past five years are
displayed opposite.
2012
7.7
8
7
6.4
6
4
3
2.7
3.4
2
1.0
1
0
2010
2011
2012
2013
2014
Ongoing payments
Both TEF and SEP are subject to ongoing payments, which
are set out in the fees and charges table on page 12.
5
What benefits will I receive?
There are three kinds of benefits you will receive, either individually or in combination, depending on the fund
you contribute to:
Benefit type
Explanation
Member Benefit
(applies to both funds)
The Member Benefit is the lesser of your net contributions or the
balance in your Member Account. The receipt of your Member Benefit is
treated as a tax-free return of your own capital.
(See page 13 ‘Member Benefit’ for further information).
Maturity Benefit
(applies to SEP primary and SEP secondary)
The Maturity Benefit represents the net investment earnings from your
contributions over time. You can opt to take this benefit as instalments or
as a lump sum. The payment of Maturity Benefits may be subject to 10
year insurance bond rules. Generally your Maturity Benefit will be paid
after the 10 year tax period. If so, the amount will be received tax paid in
your hands. (See page 13 ‘Maturity Benefit’ for further information).
Scholarship Benefit
(applies to TEF and SEP post-secondary)
The Scholarship Benefit gives your child a tangible motivation
to pursue a post-secondary qualification.
Investment earnings earned on the investment of your contributions goes
into a pool of funds. This money is distributed evenly among the other
eligible children in the fund who progress to full-time post-secondary
studies.
Scholarship Benefit payments are made at the beginning of each
year as your child progresses through their course. It gives your child
staggered rewards and the motivation to focus on their studies.
The Scholarship Benefit has been designed to reward those children
who go on to further their education. When paid, the investment
component of the Scholarship Benefit is assessable in your child’s
hands. (See page 13 ‘Scholarship Benefit’ for further information).
For all the specifics and a full explanation of the Scholarship
Benefit, please request a copy of our Long form PDS.
Details of the Scholarship Benefit can be found on page 6 of the
Long form PDS.
Depending on the benefit election type in your nominated fund, ASG will pay your benefits to you when your child
reaches the relevant age for that benefit type.
6
ASG’s TEF
Anyone can become a member of ASG’s TEF—
as long as their nominated child is under 10 years
of age when they join.
Key features
Contributions can be made monthly, quarterly, half
yearly, yearly or as a single lump sum (where payment
to cover the entire period of contributions is made
at the time of enrolment).
• Promotes a disciplined approach to planning through
regular contributions, with contributions indexed
annually to help you keep pace with the rising costs
of education.
There are two TEF options:
• Provides a strong focus on motivating your child
to complete post-secondary studies, through the
payment of an annual Scholarship Benefit.
(a) Receive a Member Benefit from Year 7 to Year 12
(shown in TEF Table A). This option allows you to
make a higher level of contributions.
(b) Receive a Member Benefit in Years 11 and 12
(shown in TEF Table B)—traditionally the most
expensive of the secondary school years. This
option allows you to make smaller contributions
over a longer period.
Both options provide a Scholarship Benefit for each
year of successful completion of an approved postsecondary course, for up to three years. No exit fees
are applicable.
• Regular contributions start from as low as $10.64 per
week for Table A.
• Protection against tragedy and hardship: your
regular contributions include payments into the
Family Protection Fund (used to provide protection
in the case of death of the Prime Member or Joint
Member) and the Contingency Fund (which provides
assistance in the case of financial hardship).
• ASG’s Education Program qualifies as a scholarship
plan under Australian taxation law, which means
ASG can claim a tax deduction on the education
benefits it pays. ASG then passes this deduction
value onto your nominated child when they receive
their Scholarship Benefit.
TEF Table A - contribution period and payment of benefits
How long will I make
contributions for?
What benefit payments
will I receive?
When will I receive
my benefit payments?
Children aged 0 to 7 years at enrolment
Contributions made until the anniversary date*
after your child’s 12th birthday
Member Benefit
Across all years of
secondary school
Scholarship Benefit^
Annual allowance throughout
post-secondary study, up to a
maximum of three years
Children aged 8 years at enrolment
Contributions made until the anniversary date*
after your child’s 13th birthday
Children aged 9 years at enrolment
Contributions made until the anniversary date*
after your child’s 14th birthday
* T he anniversary date marks the date of your first contribution. So, say you start contributing on 1July 2014 when the child is four years old, your last
contribution will be payable on 1 July 2022 in the year of their 12th birthday.
^O
ngoing payment of the Scholarship Benefit is dependent upon successful completion of each year of the post-secondary course and progression
to the next year.
7
TEF Table B - contribution period and payment of benefits
How long will I make
contributions for?
What benefit payments
will I receive?
When will I receive
my benefit payments?
Contributions made until the anniversary
date* after your child’s 16th birthday
Member Benefit
In the final two years of
secondary school
Scholarship Benefit^
Annual allowance throughout
post-secondary study, up to a
maximum of three years
* T he anniversary date marks the date of your first contribution. So, say you start contributing on 1 July 2014 when the child is four years old, your last
contribution will be payable on 1 July 2026 in the year of their 16th birthday.
^O
ngoing payment of the Scholarship Benefit is dependent upon successful completion of each year of the post-secondary course and progression
to the next year.
How much do I contribute?
Eligibility
The minimum initial contribution amount for a regular
contribution is $10.64 per week (Table A), or $6.91 per
week (Table B).
For your child to be eligible for Scholarship Benefits
you need to meet the following conditions;
Your initial regular contribution amount is determined
by the age of your child at the date of enrolment to TEF,
and will increase at eight per cent per annum on each
anniversary of the commencement date.
Ongoing contributions to TEF include: contributions
to your Member Account, annual membership and
administration fees, a contribution to the Family Protection
Fund and Contingency Fund (for regular contributors
only). A separate one off enrolment fee for each option
is charged when any account is established.
• Your contributions are not more than six months
in arrears.
• Your child has attained the year of eligibility. The year
of eligibility is the year in which your child will turn 18
or commence an approved full-time post-secondary
course (whichever is later).
• Your child makes a written request to ASG for the
Scholarship Benefit (within 12 months of receiving
eligibility notification from ASG) by completing
our online questionnaire and providing us with
supporting documentation and confirmation
of post-secondary enrolment.
• The approved full-time post-secondary course
is commenced before the eligibility year or within
two years from that date. (refer to page 6 of the
Long form PDS for further eligibility conditions).
Cancellation
You may cancel your membership at any time prior to
the formation of the Scholarship Pool and request a
surrender or cash value payment from ASG, which is
equal to your contributions less fees or the balance
in your Member Account, whichever is the lesser.
8
ASG’s SEP
Anyone can become a member of ASG’s SEP, as long
as their nominated child is:
• under two years old for the primary option
• under eight years old for the secondary option
• under ten years old for the post-secondary option
at the time of application.
Contributions can be made:
• as regular monthly, quarterly, half yearly
or annual payments, or
• Choose from a range of payment frequencies
convenient to you, including lump sum payments.
• Choose when you want your contributions and
Scholarship Benefits returned to you to assist
with education costs during primary, secondary
and/or post-secondary education.
• Protection from uncertainty: your regular contributions
include payments into the Family Protection Fund,
used to provide protection in the case of death
of the Prime or Joint Member.
• A strong focus on post-secondary education
to motivate your child and provide them with
financial independence and the freedom to focus
on their studies.
• as an initial lump sum, which you can add
to with contributions along the way, or
• as a combination of regular and lump
sum contributions.
Key features
• Regular contributions start from as low as $15.62 per
week and can be tailored to meet your financial goals.
• ASG’s Education Program qualifies as a scholarship
plan under Australian taxation law, which means ASG
can claim a tax deduction on the education benefits
it pays. ASG then passes this deduction value
onto your nominated child when they receive their
scholarship benefit.
SEP benefit election options - contribution period and payment of benefits
Benefit
election
option
How long will I make
contributions for?
What benefit
payments will
I receive?
When will I receive
my benefit payments?
Cut off for
enrolment
Primary
benefit election
Minimum of five years,
ceasing in the year prior
to payment of your
Member Benefit
Member Benefit
Between two and six years of
primary school
Before child
turns two
Maturity Benefit
Final two years of primary school
in equal instalments or as one
lump sum in the final year
Minimum of five years,
ceasing on the anniversary
of joining after your
child’s 12th birthday
Member Benefit
Across all years of secondary
school or as one lump sum
in the final year
Maturity Benefit
Final two years of secondary
school in equal instalments, or
as one lump sum in the final year
Member Benefit
Up to a maximum of six years
post-secondary study
Scholarship
Benefit*
Annual allowance throughout
post-secondary study, up to
a maximum of six years
Secondary
benefit election
Post-secondary
benefit election
Minimum of five years,
ceasing on the anniversary
of joining after 15th birthday
Before child
turns eight
Before child
turns 10
* O ngoing payment of the Scholarship Benefit is dependent upon successful completion of each year of the post-secondary course and progression
to the next year.
9
How much do I contribute?
Secondary option
The minimum contribution amount for a regular
contribution is $15.62 per week. Contribution amounts
can be increased or decreased to suit your needs.
Member Benefit + Maturity Benefit
You can choose to receive your Member Benefit
starting in:
If you are paying via lump sum, an initial lump sum
payment of $1026 is required. Additional payments
of $500 or more can be paid at any time.
• the year of your child’s 13th birthday (for a child
undertaking six years of secondary school),
When making contributions to the SEP, you are able
to increase your contribution amount. A total minimum
contribution of $5130 must be paid during the first five
years of membership.
• as a lump sum at the end of secondary school.
The period for which you make contributions to the SEP
will depend on the option you have selected
(as per the table on page 9).
Total contributions to the SEP include the annual
membership and administration fees, and a
contribution to the Family Protection Fund
(for regular contributors only). A one-off enrolment
fee is charged when any account is established
and an initial management fee is deducted from
your Member Account over the first 24 months.
Benefits
See the definition of each type of benefit payable under
each option on page 6.
Primary option
Member Benefit + Maturity Benefit
You can choose to receive your Member Benefit over
the last two, three, four, five or six years of your child’s
primary schooling.
The final benefit will be paid in the calendar year
of your child’s 12th birthday.
The Maturity Benefit may be claimed as a lump sum, or in
instalments over the final two years of primary school.
The primary option may be switched to a secondary
or post-secondary option after your child’s fourth
birthday, but not after payment of the Member Benefit
commences.
10
• the year of your child’s 14th birthday (for a child
undertaking five years of secondary school), or
Let us know before your child’s 13th birthday whether
they’re completing five or six years of schooling.
When you choose the secondary option, you also
receive your net investment earnings as either a
Maturity Benefit paid over your child’s Year 11 and Year
12 or as a lump sum Maturity Benefit after their 17th
birthday when they’re in Year 12.
Post-secondary option
Member Benefit + Scholarship Benefit
It’s also possible to choose to receive your Member
Benefit in conjunction with a post-secondary
Scholarship Benefit for up to six years of postsecondary education. This option must be elected by
notifying ASG before your child turns 10. The ongoing
payment of yearly post-secondary Scholarship Benefits
requires your child to successfully complete the
previous year’s course and progress to the next year.
If your child stops post-secondary study before they’ve
completed their qualification, you will still receive
your Member Benefit, but the Scholarship Benefit
component will be distributed among the other eligible
children in the fund.
Your child can change course, defer or repeat a year. But
each of these options may only be used once without
affecting your eligibility for the Scholarship Benefit.
Eligibility
For your child to be eligible for Scholarship Benefits ,
in addition to the conditions listed under ‘Eligibility’ on
page 8 of this PDS;
Family Protection ceases when contributions to the
fund cease or when the member turns 70, whichever
is sooner.
• you must have contributed for at least five years
To access Family Protection benefits, please contact ASG.
• you must have contributed at least $5130
during the first five years of your membership.
Contingency Fund (TEF only)
Cancellation
You may cancel your membership at any time prior
to maturity, and request a surrender or cash value
payment from ASG. Different surrender values apply
to each of the three available options depending
on the timing of the cancellation request. Please
refer to page 13, under ‘What happens if you cancel
your membership?’ in the Long form PDS for more
information regarding cancellation and surrender
values that may apply to your benefit.
Family Protection and Contingency Funds
Family Protection Fund (TEF and SEP)
When members make regular contributions, part
of their contribution is paid into the Family Protection
Fund in order to protect your nominated child’s
benefit in the event of a death.
In the unfortunate event of the death of a Prime or Joint
Member, the Family Protection Fund contributes to the
Member Account to cover the payment of the Member
Benefit + Scholarship Benefit or Member Benefit +
Maturity Benefit. The return of your Member Benefit
will equate only to the level of contributions made by
you up to the date Family Protection is applied.
Part of the regular contributions from TEF members
is paid into the Contingency Fund. In the event
of financial hardship, a member of TEF may be eligible
for temporary assistance from our Contingency Fund.
This fund has been created to assist you if you
are unable to make contributions because of
unemployment, redundancy, natural disaster, personal
or family health issues not of your own making.
You may apply to the Contingency Fund if you have
been a member for at least 12 months and have
made a minimum of 12 months worth of contributions.
If approved, the Contingency Fund will pay your
outstanding contributions for a period of up to 12
months in total. If the Contingency Fund is activated,
this will not form part of your Member Benefit, but will
ensure a Scholarship Benefit is available for your child.
The Contingency Fund can be accessed more than
once during the life of your membership however it
is limited to payments of not more than 12 months of
contributions in total..
11
Fees and charges for TEF and SEP
All ongoing fees and charges will be deducted from your Member Account (except where otherwise indicated).
See table below.
Type of fee or cost
TEF
SEP
Fees when members’ money moves in or out of the fund
Enrolment fee
(The fee to open a Member Account in the fund)
$149 (Table A)
$89 (Table B)
Primary benefit
$89 (existing ASG members)
$149 (non ASG members)
Secondary/Post-secondary
benefit
$89
Membership fee
(To maintain your membership)
$2 per annum
$2 per annum
Management costs: The fees and costs for managing your account
Initial management cost
(To cover the initial set up costs)
Nil
$240
(deducted at $10 per month over
the first 24 months. The entire
amount is refunded at maturity).
Administration fee
(The fee for administering the Member Account)
$36 per annum
$24 per annum
Ongoing management cost
(This is the cost of investing the assets
and the general operation of ASG)
1.25% per annum
1.5% per annum
Calculated on the average balance
of the net assets of TEF in each
quarter. Deducted from the
investment earnings of the fund
prior to determining the bonus rate.
Calculated on the average balance
of the net assets of the SEP in
each quarter. Deducted from the
investment earnings of the fund
prior to determining the bonus rate.
Other costs: Included in your total contribution schedule
Family Protection Fund contribution
(The contribution to the Family Protection Fund)
Table A
• $6 per annum for
regular contributions
Table B
• $4 per annum for
regular contributions
Contingency Fund contribution
(The contribution to the Contingency Fund)
Table A
• $
4 per annum for
regular contributions
• $
4 for every year until age 19
next birthday (as a lump sum) for
the single contribution option
Table B
• $
2 per annum for regular
contributions
• $
2 for every year until age 19
next birthday (as a lump sum) for
the single contribution option
12
$8 per $1000 of insured
contributions, subject
to a maximum of $2600
of insured contributions.
N/A
What tax advantages do ASG funds provide?
Our TEF and SEP funds have been established with
the sole purpose of providing benefits for the education
of nominated children.
They are designed to qualify as scholarship plans
under the Income Tax Assessment Act 1997.
All income received by the TEF and SEP is subject
to tax at the current rate of 30 per cent.
ASG is entitled to claim a tax deduction for any education
benefits it pays. ASG then passes this deduction value onto
your nominated child when Scholarship Benefits are paid.
This means that if all earnings are paid out as education
benefits, no tax will be payable on earnings in the fund.
Can I use my interest in the TEF or SEP as
security to borrow or raise money?
No. This prohibition is one of the conditions for the tax
concessional status of your TEF or SEP.
What are the investment risks?
Are my returns guaranteed?
When considering these products, it is important
to understand that:
• investment returns can go up and down
• future returns may differ from past returns
• returns and capital are not guaranteed,
will vary and you may incur a negative return.
The payment of your Member Benefit is treated as a
tax-free return of capital.
ASG actively manages these risks, however, all
investments have some level of risk. In particular,
the risks which may affect your investment in these
products include the following:
Scholarship Benefit
Market risk
Scholarship Benefits will be treated as assessable
income of your child in the year of payment. Therefore,
any personal tax liability will depend on your child’s
total taxable income, their marginal tax rate, the tax-free
threshold and any entitlement to tax offsets or rebates,
in the year of payment.
Certain events may have a negative effect on the value
of all types of investments within a particular market.
These events may include changes in economic,
social, technological or political conditions, as well
as market sentiment.
Maturity Benefit (SEP only)
The issuer or party to a transaction may not repay the
principal, make interest payments or fulfil other financial
obligations in full and/or on time. The market value of an
investment can also fall significantly when the perceived
risk of this investment increases or its credit rating declines.
Member Benefit
Generally, your Maturity Benefit will be paid after the
10 year tax period. If so, the amount will be a received
tax paid in your hands.
The 10 year tax period is taken to commence from the
date of your first contribution, and is unaffected by any
further contributions you make, so long as the total
amount of contributions made in a subsequent program
year does not exceed 125 per cent of the total amount of
contributions made in the immediate prior program year.
TEF contributions increase by eight per cent each year,
and will therefore not cause an excess contribution to be
made. However, SEP contributions can be varied.
If you increase contributions to more than 125 per cent of
the previous year’s contributions, or do not contribute in any
one year and make contributions in future years, the 10 year
tax period is taken to recommence from the start of the
program year in which an excess contribution is made.
Do I need to provide my tax file number?
No, neither you nor your child is required to provide
a tax file number.
What happens if ASG’s taxation
treatment changes?
Tax benefits obtained by the fund operating as
a scholarship plan may be affected by any future
changes to tax legislation.
Credit risk
Liquidity risk
From time to time, some investments may not be easily
converted to cash due to market conditions.
Currency risk
For investments in international assets which have currency
exposure, there is the potential that adverse movements
in exchange rates will reduce their Australian dollar value.
Manager risk
The funds we invest in may not achieve their investment
objectives in the short or long term. This could be
caused by a number of reasons, for example, the loss
of key personnel or economic conditions which do not
favour a particular style of investing.
Legal and regulatory risk
Changes in legislation and other rules in domestic and
foreign markets—including those dealing with taxation,
accounting and investments—may adversely impact
your investment.
13
Frequently Asked Questions
What happens if I stop making contributions?
Your membership will lapse if your contributions fall
more than six months behind.
TEF • If you can’t keep contributing because of
serious financial hardship, you may be eligible
for temporary assistance from our Contingency
Fund. Alternatively, you may request to
surrender the value of your contributions
at any time prior to maturity.
• D
epending on the period and amount of
contributions you have made, you may request
a partial benefit payment or equity adjustment
to still be eligible for claiming a Scholarship
Benefit. Please refer to page 7, under ‘What if
you can’t keep up contributions?’ in the Long
form PDS for more information or call ASG to
discuss your options.
SEP • T
o receive a partial or pro rata Scholarship
Benefit, you need to have met the eligibility
criteria on page 11.
• If you can’t keep contributing because of
serious financial hardship, please contact
us. Under certain circumstances and at our
discretion, we may let you suspend your
payments until your situation improves.
Assistance from our Contingency Fund does
not apply to the SEP.
Can I request that my contributions are
suspended for a period?
TEFContributions can be suspended while a payment
from the Contingency Fund is made for a total
of 12 months over the life of the membership.
Conditions apply. Please contact ASG to discuss
your options.
SEPContributions can be suspended for a total
of 12 months over the life of the membership.
Conditions apply. Please contact ASG to discuss
your options.
14
Which post-secondary courses are approved by
ASG for payment of the Scholarship Benefit?
Students completing full-time post-secondary courses
recognised by state or federal education departments
will qualify for the Scholarship Benefit. Courses must
be a minimum of one year’s duration.
Scholarship Benefits are payable for up to three years
for TEF and up to six years for the SEP.
Please note apprenticeships, traineeships or part-time
studies are not approved post-secondary courses of
study and are not eligible for a Scholarship Benefit.
What if my child decides not to commence
post-secondary study?
TEF • If your child’s plans change and they will no
longer be enrolling in post-secondary studies,
you can cancel your membership and request
the surrender value of your contributions (i.e.
Member Benefit).
• H
owever, your Scholarship Benefit will no longer
be available and all unpaid Scholarship Benefits
will be distributed among other eligible children
in the fund.
SEP • F
or SEP members with a post-secondary
option, if you surrender after your child’s 17th
birthday (normally Year 11 or 12) and prior to
the formation of the SEP scholarship pool, the
surrender value will be the balance in your
Member Account (including accumulated
earnings).
• If you surrender after your child’s 17th birthday,
and after the formation of the SEP scholarship
pool, you will forfeit your accumulated earnings.
What if my child decides to defer their
post-secondary studies?
If your child decides to defer their post-secondary studies,
they will have two years following secondary school to
commence post-secondary study. You must advise us if
your child is deferring their post-secondary studies.
Can I increase my contributions?
TEFNo. The contribution schedule is set at enrolment
and you are required to make contributions in
accordance with that schedule.
SEPYes. However, where you increase your total
contributions by more than 125 per cent of the
total contribution amount you paid in the program
year prior, there may be tax implications.
(See page 13 ‘Maturity Benefit’ and the Taxation
Statement on page 21 of the Long form PDS
for more information on this).
What about the impacts of inflation?
Education costs may increase more rapidly than
the investment earnings of TEF and SEP. To allow
for this, regular contributions increase at eight per cent
per annum and compound on each anniversary of the
commencement date.
What if my child dies?
In the unfortunate circumstances of the death of your
child, you have two options:
Can I switch between the benefit options within
TEF (TEF Table A or Table B) or SEP (primary,
secondary and post-secondary options)?
TEFNo. To select a different benefit option you
would need to enrol in a new product.
SEPYes, you can switch between primary,
secondary or post-secondary options
provided the following criteria are met:
• P
rimary option: the child was under two years
old at enrolment; the child has not begun
an eligible primary course; the member has
completed five years of contributions.
• S
econdary option: the child was under
eight years old at enrolment; the child has not
begun an eligible secondary course; primary
benefits have not been paid to the member.
• P
ost-secondary option: the child was under
10 years old at enrolment; the child has not
begun an eligible post-secondary course;
primary or secondary benefits have not been
paid to the member.
• At your request, your net contributions
will be returned to you.
• You can opt to transfer the enrolment
to another child of a similar age.
What happens if ASG becomes insolvent?
If ASG becomes insolvent, members will not be
required to contribute more than $2 each. All ASG
debts and claims would be paid out in accordance
with the Corporations Act 2001, subject to the Life
Insurance Act 1995.
15
Privacy statement
Member Direct Debit Request Service Agreement
The Australian Scholarships Group provides financial
and educational products and membership services.
We collect, hold and use information in providing these
products and services as well as for our promotional,
direct marketing, publicity, research and profiling
activities. ASG does so in accordance with its
Privacy Policy and the Australian Privacy Principles.
Our commitment to you
This document outlines our service commitment
to you, in respect of the Direct Debit Request (DDR)
arrangements made between Australian Scholarships
Group Friendly Society Limited Debit User ID 002857
and you. It sets out your rights, our commitment to you,
and your responsibilities to us together with where you
should go for assistance.
For more details on our privacy processes and to view
our Privacy Policy, please visit www.asg.com.au/privacy
Complaints handling
ASG is committed to excellence with regard to
the products and services we provide, and we make
every effort to ensure we respond to the concerns
of members as speedily and efficiently as possible.
If you have a complaint, please read your
documentation thoroughly as the answer to your
question may be there. Alternatively, you can contact
ASG and we will endeavour to respond to your
complaint as quickly as possible.
You also have the right to take your complaint to
the external complaints resolution body, the Financial
Ombudsman Service (FOS). External complaints
concerning privacy matters should be referred to
the Office of the Australian Information Commissioner.
Contact details for FOS and the Office of the Australian
Information Commissioner are as follows:
Financial Ombudsman Service
GPO Box 3, Melbourne, Victoria, 3001
Telephone: 1300 780 808
Facsimile: 03 9613 6399
Email: [email protected]
Website: www.fos.org.au
The Office of the Australian Information Commissioner
Complaints Handling Section
GPO Box 5218, Sydney NSW 2001
Telephone: 1300 363 992
Website: www.oaic.gov.au
Cooling off period
If you change your mind within 14 days of receiving
confirmation of enrolment, please notify ASG in writing
and we will fully refund all monies paid.
16
Initial terms of the arrangement
In terms of the Direct Debit Request arrangements
made between us and signed by you, we undertake
to periodically debit your nominated account with the
agreed amount for payment of contributions.
Drawing arrangements
• The first and subsequent drawings under this direct
debit arrangement will occur on the first working day
of the month.
• If any drawing falls due on a non-business day, it will
be debited to your account on the next business
day following the scheduled drawing date. If you are
unsure when a drawing date will take place, you may
contact ASG on 03 9276 7777.
• We will give you at least 14 days’ notice (in writing)
when other changes to the initial terms of the
arrangement are made. The notice will state what the
changes to the initial terms are.
• In accordance with the information contained in the
Product Disclosure Statement and introductory letter
accompanying your membership certificates, your
contributions will automatically increase by eight per
cent on the anniversary of your commencement date.
• If you wish to discuss any changes to the initial terms,
please contact ASG on 03 9276 7777.
Your rights
Changes to the arrangement
If you want to make changes to the drawing arrangements,
contact us five days prior to the scheduled drawing date.
These changes may include:
• deferring the drawing; or
• stopping an individual debit; or
• suspending the DDR; or
• cancelling the DDR completely.
Enquiries
Your commitment to us
Direct all enquiries to ASG, rather than to your financial
institution, and these should be made at least five business
days prior to the next scheduled drawing date. All
communication addressed to us should include your
membership number.
It is your responsibility to ensure that:
All personal member information held by us will be
kept confidential except for information provided to
our financial institution to initiate the drawing from your
nominated account, or in connection with a claim made
on it relating to an alleged incorrect or wrongful debit.
(Refer to the Privacy Statement on page 16.)
• on the drawing date there is sufficient cleared funds in
the nominated account; and
Disputes
• If you believe that a drawing has been initiated
incorrectly, we encourage you to take the matter up
directly with us by contacting ASG on 03 9276 7777.
• If our investigations show that your account has been
incorrectly debited, we will arrange for the financial
institution to adjust your account accordingly. We
will also notify you in writing of the amount by which
your account has been adjusted. If, following our
investigations we believe on reasonable grounds
that your account has been correctly debited, we will
respond to your query by providing you with reasons
and copies of any evidence for this finding.
If we cannot resolve the matter, you can still refer it to
your financial institution, which will obtain details from
you of the disputed payment and may lodge a claim
on your behalf. Your financial institution should respond
to you with an answer to your claim:
• within seven business days (for claims lodged
within 12 months of the disputed drawing); or
• your nominated account can accept direct debits as
debiting through the Bulk Electronic Clearing System
(BECS) is not available on all accounts (your financial
institution can confirm this); and
• you have checked your account details provided in the
Direct Debit Request against a recent statement issued
by your financial institution; and
• you advise us if the nominated account is transferred
or closed.
If your drawing is returned or dishonoured by your
financial institution, ASG will send you a letter advising that
the drawing has been unsuccessful. This will also result in
your following month’s contribution to collect any arrears
for the dishonoured contribution. If the second attempt
to direct debit your account also dishonours, your direct
debit arrangement will be cancelled and from this point on,
you will be sent quarterly accounts in the mail to be paid
by cheque.
If any provision of this Direct Debit Request Service
Agreement (DDRSA) is found to be illegal, void or
unenforceable for unfairness or any other reason (for
example, if a court or other tribunal or authority declares
it so), the remaining provisions of this DDRSA will
continue to apply to the extent possible as if the void or
unenforceable provision had never existed.
• within 30 business days (for claims lodged more
than 12 months after the disputed drawing).
• You will receive a refund of the drawing amount if
we cannot substantiate the reason for the drawing.
Note: Your financial institution will ask you to contact us to resolve your
disputed drawing prior to involving them.
17
THIS PAGE HAS INTENTIONALLY BEEN LEFT BLANK
Application form
AUSTRALIAN SCHOLARSHIPS GROUP
Friendly Society Limited
ABN 21 087 648 879 AFSL No. 236665
REGISTERED OFFICE:
23-35 HANOVER STREET OAKLEIGH VIC 3166
PH: 03 9276 7777 FAX: 03 9563 2780
NEW MEMBER (TICK)
EXISTING MEMBER (TICK)
MR/MRS/MS/MISS
1.
THE EDUCATION FUND (RULE 60) AND
FAMILY PROTECTION (RULE 32) AND CONTINGENCY
(RULE 39) - TEF
2.
SUPPLEMENTARY EDUCATION PROGRAM (RULE 61)
AND FAMILY PROTECTION FUND (RULE 32) - SEP
MEMBERSHIP NUMBER
SURNAME-MEMBERS
GIVEN NAMES
D.O.B.
GENDER
1
2
(FIRST NAMED MEMBER IS THE PRIME MEMBER)
RESIDENTIAL ADDRESS (Required)
POSTCODE PHONE: (H)
1
2
EMAIL ADDRESS
PHONE: (W)
MOBILE:
EMAIL ADDRESS
PHONE: (W)
MOBILE:
POSTAL ADDRESS (If different from residential address)
SUBURB
STATE
OCCUPATION
RELATIONSHIP TO
CHILD/CHILDREN
CODE
Program/Option
Method (tick)
DDR
1
POSTCODE
Frequency (tick)
ACCOUNT
L/S
M
Q
H/Y
Y
Account
holder/s’
initials/s
Use
existing
DDR
1. TEF
2
2. SEP
SURNAME OF CHILDREN
GIVEN NAMES
D.O.B.
AGE N.B. GENDER
1
2
3
4
I/We declare that all information supplied in this Application Form is true and correct. I/We agree that this application and the terms and conditions set out
in this Short form PDS shall be the basis of the contract for my/our membership in our nominated fund(s), which shall at all times be subject to ASG’s Constitution.
I/We have received and sighted the Short form PDS and any Supplementary PDS for The Education Fund and the Supplementary Education Program
either directly from an ASG Counsellor or via electronic means.
I/We note that the information I/we have provided will be used in accordance with the Privacy Statement on page 15 of this Short form PDS and the Privacy Policy of
ASG. I/We note and agree that this includes the use of my/our information for direct marketing, promotional and research purposes.
I/We choose to opt-out of this direct marketing consent by marking the following box.
APPLICATIONS FOR
CHILD 1
CHILD 2
CHILD 3
APPLICANTS’ SIGNATURES
CHILD 4
1 TEF – TABLE A OR B
X
X
2 SEP
(PRIMARY BENEFIT ELECTION)
- INITIAL WEEKLY AMOUNT
X
X
2 SEP
(SECONDARY BENEFIT ELECTION)
- INITIAL WEEKLY AMOUNT
X
X
2 SEP
(POST-SECONDARY BENEFIT ELECTION)
- INITIAL WEEKLY AMOUNT
X
X
IMPORTANT: This application is tendered in accordance with, and is subject to, the terms
and conditions set out in this Short form PDS, which should be considered by applicants prior to
signing this Application Form. Application for benefits may only proceed on the Application Form
attached to the Short form PDS for The Education Fund and Supplementary Education Program
dated 1 February 2015. If I/we have obtained and/or completed a copy of the Application Form
via electronic means it has been accompanied by the Short form PDS.
DATE:
WITNESS:
QUOTE FOR CERTIFICATE (circle one)
1
2
3
4
5
6
N/A
HOW DID YOU HEAR ABOUT ASG? (New Member Only)
1
Friend
COUNSELLOR’S NAME AND NUMBER
2
Family
3
Internet
4
Work
5
Magazine
6
Newspaper
7
Radio
8
ASG Staff
9
Other
Community Group
Opp ID No:
Australian Scholarships Group
Friendly Society Limited
ABN 21 087 648 879
AFSL 236665
Postal address:
23-35 Hanover Street Oakleigh VIC 3166
Phone: 03 9276 7777
Fax: 03 9563 2780
Email: [email protected]
Website: www.asg.com.au