BT Lifetime – Personal Super (BT Super)

Additional Information BookletPart 1 – General InformationDated 1 July 2014

Things you should knowThe information in this document forms part of the Product Disclosure Statement (PDS) for BT Lifetime – Personal Super (BT Super) dated 1 July 2014 and is issued by BT Funds Management Limited ABN 63 002 916 458, AFSL 233724 (BTFM, Trustee, our, we or us), the trustee of BT Lifetime Super ABN 83 953 436 008.

This Additional Information Booklet Part 1 – General Information, will be updated from time to time. You should read the latest edition of this document, together with the PDS, before making a decision to invest into BT Super. Visit bt.com.au or call us on 132 135 to obtain the current edition, free of charge.

The information in this Additional Information Booklet Part 1 – General Information is general information only and does not take into account your personal financial situation or needs. You may wish to consult a financial adviser to obtain financial advice tailored to suit your personal circumstances.

The PDS and this Additional Information Booklet Part 1 – General Information can only be used by persons receiving it (electronically or otherwise) in Australia and applications from outside Australia will not be accepted.

An investment in BT Super is not an investment in, deposit with, or any other liability of, Westpac Banking Corporation ABN 33 007 457 141 (Westpac), or any other company in the Westpac Group. It is subject to investment risk, including possible delays in repayment or loss of income and principal invested. Westpac and its related entities do not stand behind or otherwise guarantee the capital value or investment performance of any investment options or any related assets of BT Super. The Unique Superannuation Identifier (USI) for BT Super is BTA0137AU.

Information in the PDS and this Additional Information Booklet Part 1 – General Information is subject to change from time to time and may be updated by us. Updated information, if it is not materially adverse, can be obtained by going to our website at bt.com.au, contacting the financial adviser for your BT Super account or by calling Customer Relations. You can obtain a paper copy of the PDS and any updated information at any time, free of charge, at bt.com.au or by calling us on 132 135.

How super works 3

Choice of fund 3Contributions 3Nominating your beneficiary 5Withdrawals 6 Accessing your super 6

Benefits of investing with BT Lifetime – 8 Personal Super

Build your super balance 8Keeping you informed 11

Risks of super 12

Things you should consider before investing 12Investing involves risks 12Risk categories for the BT Super investment options 14

Fees and costs 15

Additional explanation of fees and costs 17

How super is taxed 22

Tax on contributions 22Tax on withdrawals 23Tax payable on death benefits 25

Other information 26

About the Fund 26Protecting your privacy 26Cooling-off period 28Transacting and unit prices 28Additional information about your super 31Definitions and interpretation 33Our electronic facilities 33Terms and conditions 34Consents 35

Table of contents

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How super works

` The information in this section gives a general overview of how super works and is a brief guide only, based on our interpretation of current laws as at the date of this document. We always recommend you seek professional advice about how the rules might impact you or your beneficiaries. The information in this section can change from time to time. Please refer to the Frequently Asked Questions at bt.com.au for the latest update.

Choice of fundYou can choose your own super fund for Superannuation Guarantee (SG) contributions, if you’re eligible under superannuation law. BT Super accepts SG contributions when you nominate BT Super as your chosen fund with your employer.

If you’d like your SG contributions paid into your BT Super account, all you need to do is complete a Choice of Superannuation Fund form or standard choice form and give this to your employer. There is a Choice of Superannuation Fund form with the application form or on bt.com.au.

You can choose a fund at any time, but you cannot ask your employer to change your fund more than once a year.

If you want to also roll over your other super fund balances, you need to complete a Request to Transfer Form. By consolidating all of your super into one BT Super account you are able to stay in control of your super, reduce paperwork and potentially save on fees.

Before transferring your super balance, you should consider the effect it will have on your benefits, including any insurance cover you may have in the fund you are transferring from.

ContributionsWhat money can be added to your BT Super account?

You can add to your BT Super account in two ways.

` Contributions – money deposited to your super account by you, your employer, your spouse or the Government.

` Rollovers – benefits you transfer from another super fund.

Limits (known as ‘caps’) apply when adding money to your super by way of contributions. It’s important that you do not exceed the contribution caps, otherwise additional tax is payable. We’re required to reject only certain single contributions which exceed the caps. We cannot monitor your overall position. For more information about contribution caps, please refer to the ‘How super is taxed’ section below and the Frequently Asked Questions at bt.com.au.

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How super works (Continued)

The types of money you can add to your BT Super account are detailed in the table below.

Employer contributions Mandated employer and salary sacrifice contributionsIn most cases, the law requires your employer to contribute a percentage of your salary to your super (this is called Superannuation Guarantee (SG). Your employer may be required to pay more contributions under an award or other industrial agreement.If you want your employer to start paying SG into your BT Super account and you’re eligible under superannuation law, simply sign and hand the Choice of Superannuation Fund form to your employer. The form is available with the application form, at bt.com.au, or call us and we’ll send you a copy. You may also be able to organise additional contributions from your before-tax salary (called salary sacrifice) with your employer using this form.Voluntary and other employer contributionsYour employer may make voluntary employer contributions that are in addition to any award or SG requirements.

Personal contributions You can make after-tax contributions to your BT Super account. Please refer to ‘How to add money to BT Super’ in the ‘Benefits of investing with BT Lifetime – Personal Super’ section. In some cases you may be able to claim a tax deduction for these contributions. Please refer to ‘Claiming tax deductions for your personal contributions’ in the ‘How super is taxed’ section.

Spouse contributions and contributions splitting

Your spouse may make contributions to your super, as long as the contribution is paid from an account in the name of your spouse or a joint account where your spouse is an account holder. Your spouse includes:

` your husband or wife via marriage ` a person with whom you’re in a relationship that is registered under certain state or

territory laws, or ` another person who, although not legally married to you, lives with you on a genuine

domestic basis in a relationship as a couple.You can also split certain super contributions with your spouse as allowed under superannuation law – there is currently no fee charged, but we reserve the right to charge a fee for splitting contributions in future. You can make a request by completing a Contributions Splitting application form, available at bt.com.au or by calling us.

Money from other super funds (rollovers)

You can transfer money from your other super funds at any time using our easy rollover service. Please refer to ‘How to add money to BT Super’ in the ‘Benefits of investing with BT Lifetime – Personal Super’ section.

Government contributions

If you’re eligible, the Government may make a co-contribution or low income superannuation contribution into your account. The Australian Taxation Office (ATO) will assess your eligibility and, if applicable, determine the government contribution amount based on information the ATO obtains from your income tax return and other sources, including contributions information we provide.For further information about Government co-contributions and the low income superannuation contribution, including eligibility requirements, please refer to the Frequently Asked Questions at bt.com.au or visit the ATO website at ato.gov.au.

Contributions relating to CGT small business concessions

You may contribute certain proceeds from disposal of qualifying small business assets. Such a contribution must be made no later than the day you’re required to lodge your tax return for the financial year in which the Capital Gains Tax (CGT) event occurred or 30 days after the day you receive the capital proceeds, whichever is later. If the capital proceeds are received and contributed in instalments, each instalment is considered a separate contribution which must be made within the above timeframes.You must advise us when you make the contribution that you’re electing to use the CGT cap for all or part of the contribution by completing and sending us the relevant election form available from the ATO. You should seek professional advice about whether your contributions qualify for the CGT cap.

Contributions from certain personal injury settlements or orders

You may contribute certain payments (personal injury contributions), which are exempt from the contributions caps. The personal injury payment must be in the form of a structured settlement, an order for a personal injury payment or a lump sum workers compensation payment. In addition, two legally qualified medical practitioners must certify that you’re unlikely, as the result of the injury, to ever be gainfully employed in a capacity for which you’re reasonably qualified because of education, training or experience. You will need to seek professional advice about whether your contributions qualify under these rules.Once you are satisfied that the contribution qualifies under the rules, the contribution must be made within 90 days of the payment being received or the structured settlement or order coming into effect, whichever is later. You must notify us at the time of making the contribution by providing a completed ‘Contributions for Personal Injury’ election form (available from the ATO) to advise us that the contribution is a personal injury contribution.

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When can money be added to my super?

Whether contributions can be made to your super depends on your age, and in some cases, your employment status as set out below.

If you’re younger than 65 years

Money can be added to your BT Super account right up until you turn 65, whether you’re working or not.

If you’re aged 65 to 74 Contributions can only be made to your BT Super account if they are employer mandated contributions or you have worked at least 40 hours in any consecutive 30-day period in the current financial year. Spouse contributions can be made on your behalf if you meet this work test and you’re under 70 years of age.To continue making contributions into your BT Super account, you’ll need to send us an employment declaration for each financial year in which you intend to make contributions – you can do this by completing the Eligibility to Contribute form, available from bt.com.au or by calling us.

If you’re 75 years or older

Once you turn 75, money can’t be added to your BT Super account, unless your employer is making mandated contributions on your behalf, or you’re rolling money over from your other super funds – rollovers can be done at any time.

Nominating your beneficiary

Who can you nominate?You can nominate one or more beneficiaries to receive your death benefit (your BT Super account balance plus any insurance benefit payable) as a lump sum in the event of your death.Any beneficiary nominated must be either your Legal Personal Representative (ie the appointed Executor or Administrator of your estate) or a dependant as defined by superannuation law and the Trust Deed at the time of your death. A full list of eligible dependants is included in the Nomination of Beneficiaries form on our website at bt.com.au.Any insurance benefit paid to us will be held in a non-interest bearing account which will not be subject to investment earnings or losses, and will be paid as part of your final death benefit.Option 1 – Binding nominationA binding nomination allows you to instruct us who to pay your benefit to in the event of your death and generally, if valid, we can’t override your instructions.Please be aware of the following.

` You must nominate the proportion of your death benefit each beneficiary is to receive.

` The nomination is valid for three years from the date it is made. You must renew or confirm your nomination within this three-year period otherwise it will become non-binding.

` An invalid binding nomination will be treated as a non-binding nomination by us and will not revoke or replace an existing valid nomination. If your nomination is clearly invalid (completed incorrectly), we may contact you and request that you re-submit a valid nomination.

` If any beneficiary nominated is no longer your dependant or Legal Personal Representative at the date of death, they will not be entitled to receive a share of your benefit.

Option 2 – Non-binding nominationIf you make a non-binding nomination, then we have absolute discretion to decide which of your dependants and/or legal personal representative will receive your benefit after your death. However, we will consider your nomination when determining who to pay your benefit to. We’ll also consider any other matters we decide are relevant, for example, whether you have any other dependants, the financial circumstances and needs of your dependants, and whether your circumstances have changed since you made your nomination. We’ll decide to whom, (from among your Legal Personal Representative and your dependants), and in what proportions to pay your death benefit and in doing so, may not follow your nomination.Option 3 – No NominationIf you don’t make a nomination, we’ll normally pay your death benefit to your Legal Personal Representative. In certain circumstances, for example where you don’t have a Legal Personal Representative, your benefit may be paid to your dependants.

When is a nomination invalid?The following are examples of invalid nominations.

` The nomination is not clear to us (eg it is illegible or the nominated proportions do not total 100%). ` We have actual knowledge that when you made the nomination you did not understand the effect of making it

(eg due to legal incapacity). ` You did not sign the Nomination of Beneficiaries form.

In addition, binding nominations will be invalid if: ` the nomination has not been witnessed or has been witnessed by an ineligible person, or ` the nomination has not been confirmed or amended within a three year period prior to the time of death.

How do I make a nomination?To nominate a beneficiary, complete the Nominated Beneficiaries section of your application form.You can make a new nomination, and amend, confirm or revoke an existing nomination by completing the Nomination of Beneficiaries form available on our website at bt.com.au.

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Accessing your superAs super is a long term investment, strict rules apply around how and when you can access your money. Your super can be accessed when you:

` reach age 651

` resign from your employer on or after age 601

` permanently retire on or after your preservation age1 (between age 55 and 60 depending on your date of birth)

` start a transition to retirement (or non commutable) pension after you reach your preservation age1 (between age 55 and 60 depending on your date of birth)

` become permanently incapacitated

` become temporarily incapacitated (only to allow the payment of income protection insurance benefits received by the Fund)

` are diagnosed with a terminal medical condition

` die

` have been given a release authority by the ATO to pay an amount

` qualify on compassionate grounds as defined in superannuation law1

` satisfy severe financial hardship conditions2

` have held a temporary resident visa which has expired and you’ve permanently departed Australia2.

Generally, you can transfer your super account balance to another complying super fund at any time. Super funds are usually required to transfer a member’s benefit to another fund if requested by the member. However, in some cases you may be delayed from doing so.

You may ask for information before requesting a rollover or transfer of your benefits. Information you might need to know includes information about fees and costs that may apply to the rollover, and the effect of the rollover on your existing entitlements in the fund. If you do not ask for any information, we’ll assume that you do not require it.

1_ These conditions of release are not available if you’re a current or former holder of a temporary visa, unless you are a permanent resident of Australia, or citizen of Australia or New Zealand.

2_ Super funds are, under certain circumstances, required to transfer a temporary resident’s super to the ATO following their departure from Australia. Temporary residents can subsequently access their benefit from the ATO. Relying on relief provided by the Australian Securities and Investments Commission, the Trustee is not obliged to notify or give an exit statement to a member who was a temporary resident where we transfer their super to the ATO following their departure from Australia.

WithdrawalsSuper is designed so that you cannot access it until you retire or meet another condition of release. In return for tax concessions, the Government has placed restrictions on when you can access your super benefits. These restrictions are known as the preservation rules.

You can only withdraw money from your BT Super account if you’re eligible to withdraw under the preservation rules.

Before you make any withdrawal request you should check any tax or social security limitations and implications that may apply. You can find out more by visiting fahcsia.gov.au, ato.gov.au, or by speaking with your financial adviser.

How super works (Continued)

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When and how much you can withdraw

Generally, you can only withdraw money from your BT Super account if you’re 65 or over, retire after reaching your preservation age (between 55 and 60, depending on your date of birth), or in other limited circumstances.

If you’re eligible, you can make one-off withdrawals at any time. There are generally no minimum or maximum amounts you must withdraw each financial year provided your account balance does not fall below the minimum account balance of $1,200, and you can leave your money in your BT Super account as long as you like.

If you have permanently emigrated to New Zealand, you may be eligible to transfer your superannuation to a Kiwi saver account under the Trans-Tasman portability scheme. Please note, however, we don’t currently accept transfers from Kiwi saver accounts. For more information, including details about eligibility requirements for withdrawing from super, preserved super benefits and how to work out your preservation age, please refer to ‘Eligibility rules for accessing super’ in the Frequently Asked Questions at bt.com.au.

Partial rollovers and cash payments

If you’re invested in more than one investment option, you can elect which investment option(s) your withdrawal should come from. If you do not tell us, your partial withdrawal will be pro-rated across all your investment options at the time the request is processed.

If you do not tell us which preservation components to include in a partial rollover, the amount withdrawn will be pro-rated across your preservation components.

You can’t choose the taxation components which make up the partial withdrawal. We’ll also assume any amount you request to withdraw is gross of applicable fees and taxes. You must keep a minimum of $1,200 in your account if you make a partial withdrawal.

How your withdrawal is calculated

Your withdrawal amount is calculated by multiplying the number of units to be withdrawn by the withdrawal price. If you request a specific dollar amount, the number of units withdrawn will be determined by dividing the dollar amount by the withdrawal price. See ‘Transacting and unit prices’ and ‘How we calculate unit prices’ in the ‘Other information’ section.

Your withdrawal amount will be reduced by any applicable fees, charges and taxes, including fees incurred as a result of any special payment method requested, which will be charged to you by redeeming units from your account. Withdrawals are paid in Australian dollars and can only be paid to a bank account in your name or a joint bank account of which you’re one of the account holders.

Please refer to the ‘How super is taxed’ section for further information about tax payable on cash withdrawals and the ‘Fees and costs’ section for information about transaction fees.

If you have insurance and a claim is made, the benefit paid will comprise your super balance and your insurance benefit (if any) paid to us by the Insurer.

If you’re making regular contributions through the regular contribution plan via direct debit, we’ll treat a full withdrawal as a request to terminate your BT Super account and will stop your direct debits. You should contact your employer to stop any contributions made via a direct credit or payroll deduction arrangement.

If we receive an invalid withdrawal request, you will not receive the withdrawal price issued on that day. Please refer to ‘Invalid transaction requests’ in the ‘Other information’ section for details.

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Benefits of investing with BT Lifetime – Personal Super

Build your super balanceBuilding your super balance is important at any age, and there are a number of ways to do it. Here are a few simple options and ideas you might like to think about to ensure your balance is maximised at retirement.

When can money be added to your BT Super account?

Money can be added to your BT Super account right up until you turn 65, whether you’re working or not. Once you turn 65, you can continue to add money as long as you have worked at least 40 hours in any consecutive 30-day period in the current financial year. Once you turn 75, you generally can’t add money to your BT Super account, except for your employer’s SG, award or certified agreement contributions on your behalf or you’re rolling money over from other super funds – this can be done anytime.

Please refer to the Frequently Asked Questions at bt.com.au for more details about when money can be contributed to your super account.

You should consider giving us your Tax File Number

Due to Government legislation, we’re unable to accept any contributions, other than employer contributions, if you have not provided us with your Tax File Number (TFN).

We have also determined that we will not accept any contributions (including employer contributions) made to your BT Super account by you or on your behalf unless you have provided your TFN to us – therefore you must provide your TFN on your application form before we will accept contributions into your BT Super account. Please read the ‘Tax File Number’ section in ‘Other information’ for further information about quoting your TFN.

How much do I have to add to my BT Super account?

The following minimum requirements apply to your BT Super account.

Transaction type Minimum amount

Initial contribution to set-up your account $3,000 (or $2,000 if you also set-up a regular contribution plan).

Additional contributions (including rollovers from other super funds, one-off contributions and regular contributions)

No minimum.

Ongoing account balance (must be maintained at all times) $1,200

If you make a partial withdrawal or rollover, the transaction must not take your balance below this amount.

Switches or withdrawals No minimum – provided your ongoing account balance is at least $1,200.

For details about what type of contributions can be made to your BT Super account, please refer to ‘What money can be added to your BT Super account?’ in the ‘How super works’ section.

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How to add money to BT Super

Make regular or one-off contributions*

Option 1: Pay with Bpay®

You, your employer or your spouse can make an additional contribution to your BT Super account using the following Bpay Codes. ` Personal contribution 858910 ` Employer contribution 858837

` Spouse contribution 858845

Your Customer Reference Number for the Bpay transaction combines the code for the investment option you wish to invest in with your Investor Number (exclude the ‘C’). Once completed, a receipt number will be issued.

For example, assume your Investor Number is C12345678 and you want to invest in the BT Cash investment option. Your Customer Reference Number for this transaction would be 1201 12345678.

Please refer to the table on the next page for the Bpay codes for all investment options.

Option 2: Pay by cheque

You, your employer or your spouse can make contributions to your BT Super account by cheque.

Complete the Additional Contribution form at bt.com.au and attach a cheque made payable to:

BTFG – LSF – <member name>

Include your details (ie name, Investor Number, phone number, type of contribution) and payer signature with the cheque.

Then send it to:

BT Lifetime – Personal Super GPO Box 2675 Sydney NSW 2001

Option 3: Direct Debit

To have one-off or regular contributions made to your BT Super account directly from your own, your spouse’s or your employer’s bank account, complete the Direct Debit Request section of the application form, or complete an Additional Contributions form at bt.com.au.

Regular contributions will automatically increase in line with the Consumer Price Index (CPI) each year (up to a maximum of 15% in any year) on the anniversary of the date you joined, unless you notify us that you do not want automatic increases.

If applicable, you can change, cancel or suspend your regular contribution plan at any time without penalty. Regular contributions are deducted on or around the 19th of each month. If you wish to make a change, you need to provide us with at least seven business days notice before the next scheduled direct debit to ensure changes are effective that month. Requests received after that day may be effective from the following month.

We reserve the right to cancel your regular contribution plan if two or more consecutive debits are returned unpaid by your nominated bank/financial institution.

Roll over your other super funds to BT Super

Option 1: Online at bt.com.au

You’ll find BT’s Easy Rollover Tool on our website.

This tool is designed to make rolling over your other super fund(s) as easy as possible.

Option 2: Complete the Request to Transfer form

You’ll find the form with the application form on our website at bt.com.au. Complete it and send it to us.

* Legislative changes may place restrictions on the use of these facilities by employers. Visit the ATO website at ato.gov.au for more information on ways employers can make contributions and the data and payment standards.

® Registered to Bpay Pty Ltd ABN 69 079 137 518.

Warning: before moving your money, you should check with your other super fund(s) about whether you’ll incur any withdrawal / exit fees and whether there may be a loss of insurance cover or other benefits you may have. If you need assistance completing your rollover request, please call us on 132 135 and we’ll be happy to help.

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Benefits of investing with BT Lifetime – Personal Super (Continued)

Bpay codes for your investment options

Investment option Bpay code Investment option Bpay code

BT Cash 1201 BT Future Goals 1209

BT Conservative Outlook 1203 BT Partner Australian Shares Core 1 1245

BT Multi-manager Conservative 1231 BT Partner Australian Shares Growth 1 1247

Macquarie Conservative 1225 BT Partner Australian Shares Value 1 1243

BT Australasian Bond 1207 MLC Growth 1221

BT Global Bond 1208 Colonial First State Australian Shares 1227

BT Multi-manager Balanced 1233 BT Multi-manager High Growth 1237

BT Balanced Returns 1202 BT Partner International Shares Growth 1 1241

BT Property Securities 1204 BT Partner International Shares Value 1 1239

BlackRock Balanced 1223 BT International Shares 1206

BT Multi-manager Growth 1235 BT Technology 1219

BT Australian Share 1205 Aberdeen Actively Hedged International Equities

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Keeping you informed

How we keep in touch

When you join

You’ll receive: ` a letter and statement confirming details of your new

BT Super account ` details of how to access BT Online

` PIN to access the BT Link phone service (see below).

If you leave

If you make a withdrawal and you’re under age 60, you’ll receive a Superannuation Lump Sum Payment Summary. You should retain this document and include it with your income tax return. If you roll over some of your money to another super fund, you’ll receive a Rollover Benefits Statement.

Regular communications

You’ll receive a number of regular communications from us. ` Annual statement – detailing your BT Super account

balance, fees and transactions for the year, beneficiary details and insurance information.

` Annual report for BT Super – available online, detailing the management of BT Super and the performance of the investment options.

` Confirmation of certain transactions on your BT Super account, including contributions and rollovers into your BT Super account, changes to your account details and withdrawals.

Sign up to receive SMS transaction confirmations

We can SMS your Australian mobile phone to confirm your transaction has been processed, when you make a one-off contribution or withdrawal, or update your address.

There are no additional charges for this service – visit bt.com.au/sms to sign up and read the Terms and Conditions of this service. You can also register by calling us on 132 135, or completing the relevant section of the application form or a transaction request form.

Easy access to your account information

BT Online at bt.com.au

To log in, enter your Investor Number and 8-character password. You can then: ` view your account balance and insurance details ` view your account transaction history ` switch between investment options ` make additional contributions to your super ` monitor the performance of your investment options ` view the latest BT Benefits offers and discounts that

you have access to as a BT Super member ` update your contact details, and ` update your TFN.

By phone on 132 135

BT Link – an automated phone service available 24 hours a day, seven days a week provides you with useful account information. Access BT Link by calling 132 135 and entering your Investor Number and 4-digit PIN.

Alternatively, you can call Customer Relations for assistance, Monday to Friday 8.00am to 6.30pm (Sydney time) on 132 135 or email customer.relations@btfinancialgroup.com.

Electronic notifications and updated information

Where we’re permitted to by law, important information about your investment in BT Super may be made available at bt.com.au or sent to an email address that you nominate. It is therefore important that you nominate a current and active email address and notify us immediately if it changes.

For more details about information that we may provide electronically, please refer to the Terms and Conditions in the ‘Other information’ section.

How to obtain additional information

You can find the following information about BT Super and how to manage your account at bt.com.au. ` Frequently Asked Questions providing more details about BT Super and super rules in general. ` Fund fact sheets containing detailed information about your investment options. ` Up-to-date unit price, management fee and performance information for your investment options. ` Forms to help you manage your super and insurance.

If you require any additional information, such as a copy of the Trust Deed for BT Super, to help you to make an informed decision about investing, you can email us at customer.relations@btfinancialgroup.com or call 132 135.

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Risks of super

` All investing involves a trade-off between risk and return. The key is to understand risk and work with it.

Things you should consider before investing

Your investment style

Some things you should consider before making an investment choice are the length of time your money will be invested, the amount of money you’re investing, your attitude to risk, the level of risk you’re comfortable with, the level of earnings you’re expecting from your investments and other investments you may already have.

An aggressive investor has a higher proportion of higher risk investments. Growth assets, such as international and Australian shares and property, are viewed as higher risk. A conservative investor has a higher proportion of lower risk investments. Conservative assets, such as cash and fixed interest are viewed as lower risk.

The relationship between risk and return

Investment risk refers to the likelihood that your investment can rise or fall over a given period, which is called ‘volatility’. Investment return is the amount of earnings of a particular investment over time. Investment returns can be positive or negative – ie the value of an investment can rise or fall. Generally, the higher the level of risk you’re prepared to accept, the higher the potential returns or losses.

Diversification

One of the best ways to help manage risk is to diversify your portfolio. Diversification means spreading your investment across different investments, for example spreading your investment across a number of asset classes (such as shares, property, fixed interest and cash), industry sectors or regions. This helps reduce risk because the impact of poorly performing investments can be offset by the benefit from investments that are performing well. So by diversifying your portfolio, you can help reduce extremes in performance and reduce risk.

You can select investment options that:

` spread your investment across a number of assets classes such as shares, property, fixed interest and cash

` invest in a particular asset class

` are spread across a range of investment managers.

Investment timeframe

History shows that the impact of extreme price movements experienced in higher risk investments can be reduced by investing over longer periods (five years or more). Investing in high risk assets for the short term may expose you to significant gain or loss but the likelihood of losses when invested in high risk assets reduces with every additional year of investment.

Investors investing in cash for the long term potentially expose themselves to investing too conservatively and their investment being devalued by inflation.

Consequently, your investment timeframe is an important factor in determining your investment style.

Investing involves risksThere will always be the risk of fluctuations in the value of an investment. Investment risk can be managed and even minimised but it cannot be completely eliminated. It is important to understand that not all risks are foreseeable and there is always a chance you could receive back less than you invested.

The future performance of an investment option is not guaranteed and past performance is not a guide to future performance. You may lose money no matter which investment option you invest in.

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Some common types of investment risks are outlined in the table below.

Risk type Description

Security specific risk An investment in, or exposure to, a company or managed fund may be affected by unexpected changes in that company’s or managed fund’s operations (eg due to quality of management, or use of technology) or its business environment.

Market risk Markets are affected by a multitude of factors including economic and regulatory conditions, market sentiment, political events, and environmental and technology issues. These could have a negative effect on the returns of all investments in that market and this may affect investments differently at various times.

Currency risk If an investment is held in international assets, a rise in the Australian dollar relative to other currencies may negatively impact investment values or returns.

Interest rate risk Changes in interest rates can have a negative impact, either directly or indirectly, on investment value or returns of all types of assets.

Derivatives and gearing risk

Underlying funds may use derivatives and gearing (borrowing). The value of derivatives is linked to the value of the underlying assets and can be highly volatile. Potential gains and losses from derivative transactions can be substantial.

Alternative investments risk

Underlying funds may invest in ‘alternative investments’. Alternative investments is a category that includes a range of sophisticated investments, including hedge funds, venture capital, private equity, leveraged and management buyouts, commodities and futures trading funds. Like shares, property, fixed interest and cash, alternative investments are subject to certain risks that may include periods of large market falls, high volatility or reduced liquidity (ie the ability to sell investments immediately). Certain alternative investments carry significant risk. In addition, losses may arise due to other factors, including poor judgement, misconduct or fraud. Some investment strategies are reliant on key individuals. Some alternative investments may be based in countries where the level of regulatory supervision is lower than in Australia.

Credit risk There is a risk of loss arising from the failure of a debtor or other party to a contract to meet their obligations. This potentially arises with various investments including derivatives, and fixed interest and mortgage securities.

Liquidity risk This is the risk that an investment may not be easily converted into cash with little or no loss of capital and minimum delay either because there are not enough buyers in the market for the particular investment or due to disruptions in the marketplace. Securities in small companies in particular may become less liquid from time to time, and especially in falling markets.

Legal and regulatory risk, including taxation

Changes are frequently made to superannuation law, which may affect your ability to access your investments. Changes can also occur in the taxation of super, which may affect the value of your investment.

Product risk To maintain the quality and diversity of BT Super, changes may be made to BT Super including its features, fees or investment options at any time. For information about changes that may be made to the investment options, please refer to ‘Changes to investment managers and investment options’ in the Additional Information Booklet Part 2 – Investment.

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Risk categories for the BT Super investment optionsWe have allocated the BT Super investment options into five risk categories, according to their risk characteristics. The risk category for each investment option is set out in the Additional Information Booklet Part 2 – Investment under ‘Investment option choices’ and ‘Investment option profiles’. The table below contains a brief description of the investor risk profile for each risk category.

Low risk and potential return High risk and potential return

Stable Conservative Moderate Dynamic Aggressive

Minimum suggested investment timeframe

Up to 1 year 3 years + 5 years + 5 years + 7 years +

For investors who do not like risk and/or need to access their funds in the near future.

For investors who are looking for some growth but are mostly concerned about protecting their capital.

For investors who are looking for good long-term returns while minimising large ups-and-downs in the short term.

For investors who are prepared to take more risk in exchange for potentially higher earnings on their investments over the longer term. Dynamic investors are comfortable with volatility and the possibility of negative returns.

For investors who are willing to take more risk in search of greater returns. Aggressive investors are comfortable with volatility and the possibility of negative returns and aim to invest over a long period.

Risks of super (Continued)

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Fees and costs

DID YOU KNOW?Small differences in both investment performance and fees and costs can have a substantial impact

on your long term returns.

For example, total annual fees and costs of 2% of your account balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example, reduce it from $100,000 to $80,000).

You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs.

You may be able to negotiate to pay lower administration fees. Ask the fund or your financial adviser.

TO FIND OUT MOREIf you would like to find out more, or see the impact of the fees based on your own circumstances,

the Australian Securities and Investments Commission (ASIC) website (www.moneysmart.gov.au) has a superannuation fee calculator to help you check out different fee options.

This document shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the assets of BT Super as a whole.

Other fees, such as activity fees, advice fees for personal advice and insurance fees, may also be charged, but these will depend on the nature of the activity, advice or insurance chosen by you.

Taxes, insurance fees and other costs relating to insurance are set out in another part of this document.

You should read all the information about fees and other costs because it is important to understand their impact on your investment.

The fees and other costs for particular investment options offered by BT Super are set out in the Additional Information Booklet Part 2 – Investment under the heading ‘Investment option choices’.

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Fees and costs (Continued)

BT Lifetime – Personal Super

Type of fee Amount How and when paidInvestment fee Issuer fee 1.03% – 2.15% pa of the

investment option’s asset value, depending on your investment optionPlusPerformance fee estimate 0 – 0.03%1 pa of the investment option’s asset value, depending on your investment option

Deducted from the assets of the investment option, and reflected in the unit price, on a daily basis.

Performance fee deducted from the assets of the investment option and reflected in the unit price on a daily basis when investment performance targets are met.

Administration fee NilBuy-sell spread Estimated to be 0 – 0.60%2 of the amount

invested in or withdrawn from the investment option, depending on your investment option

Cost of the buy/sell will generally be incurred when you invest and withdraw from an investment option.

Switching fee NilExit fee NilAdvice fee relating to all members investing in a particular investment option

Nil

Other fees and costs3 Member advice fee, if you agree a fee with your financial adviser

Plus

Insurance fees (consisting of an Insurance plan fee of $5.35 per month and Insurance premiums), if you have insurance cover in BT Super

The member advice fee and insurance fees are deducted from your account balance on the date the fee or cost is incurred.

The Insurance plan fee is deducted from your account balance on the last day of each month by deducting units in your investment options on a pro rata basis.

Indirect cost ratio Expense Recoveries estimate of 0.10% – 0.36% pa of the investment option’s asset value, depending on your investment optionPlusRegulatory Change Expense Recovery of up to 0.10% pa of the investment option’s asset value

Deducted from the assets of your Investment Option(s), and reflected in the unit price, on a daily basis.

1_ The performance fee is an estimate based on a historical fee as at 30 June 2013. The performance fee may be higher if certain investment performance targets are achieved in the future.

2_ Estimates based on the latest available figures at 31 March 2014. Buy/sell spreads may change from time to time.3_ Additional fees may apply. Please refer to the ‘Additional explanation of fees and costs’ section for more information.

To understand all the fees and costs payable by you when selecting a particular investment option, refer to the Additional Information Booklet Part 2 – Investment and our website bt.com.au, which will provide details of any changes to fees and costs.

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Additional explanation of fees and costs

Tax and GST

Unless otherwise stated, the fees quoted in this section are inclusive of Goods and Services Tax (GST) and net of any applicable Reduced Input Tax Credits (RITC). For more information about tax and super, refer to the “How super is taxed’ section of the PDS.

Advice fee

An advice fee is an optional fee that may be paid from your BT Super account to your financial adviser for personal financial advice relating to your BT Super account. An advice fee only applies if you and your financial adviser agree to this fee being deducted from your account and a completed BT Advice Fee form is sent to us. Details of any advice fees will be set out in the Financial Services Guide (FSG), Statement of Advice (SOA) and, if applicable, your annual Fee Disclosure Statements, which your financial adviser is required to provide to you.

You and your financial adviser may agree on an advice fee for a specified time period or on an ongoing basis. You can cancel an ongoing advice fee at any time by notifying us in writing.

If you agree to pay an ongoing advice fee, every two years your financial adviser is required to give you the opportunity to review and decide whether to renew the arrangement. Your financial adviser must notify us if your advice fee arrangement ceases. We will not automatically cease the arrangement after the two year period.

The advice fee is in addition to the fees disclosed in the Fees and costs table in this section.

The following table sets out the advice fee options you and your financial adviser may agree on for your account.

Details of any advice fees and fee rebates will appear on your annual statement.

Type of advice fee Amount How and when paidOne-off advice feeThis is charged as a one-off fixed dollar fee.

The amount agreed by you and your financial adviser.The total maximum advice fee that can be charged in any 12 month period1 is $5,000 or 2.5% (GST inclusive) of your account balance when an advice fee payment is deducted from your account, whichever is lower.

Deducted from your investment, by way of deduction of units, as a fixed dollar amount as at the date we receive your request.

Ongoing advice feeThis is a regular fee which can be paid to your adviser as either a fixed dollar fee or percentage of your account balance. An ongoing percentage based advice fee cannot be paid on any amount(s) you borrow to contribute to your BT Super account.

Deducted at the end of each month from your investment, by way of deduction of units, as either:

` a fixed dollar amount, or ` an amount based on a percentage

of your account balance at the end of the month

as agreed with your financial adviser. Advice fee rebateIf you commence an ongoing advice fee arrangement with your financial adviser, you will receive a fee rebate to your account representing the refund of ongoing commission amounts included in the management costs of your investment options.

0.00 – 0.60% pa Calculated based on the asset value of your investment option(s) at the end of the month and generally credited as additional units proportionally to the end of that month.

1_ The 12 month period is based on the 12 months up to and including the month for which the advice fee payment is to be deducted.

Example – one-off advice fee

If your account balance is $50,000 and you have agreed a one-off advice fee of $500, you will pay $500 as a one-off advice fee to your financial adviser.

Example – ongoing advice fee

If your account balance is $50,000 at the end of the month and you have agreed an ongoing advice fee of 2% pa you will pay $83.33 [(2% × $50,000)/12] in advice fees for the month to your financial adviser.

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1_ Fee for the 2014/2015 financial year. Increases at 1 July each year in line with inflation (as measured by CPI).

Fees and costs (Continued)

Example – advice fee rebate

Based on an end of month account balance of $50,000 in the BT Balanced Returns investment option, at the end of month you would receive an advice fee rebate of $25 [(0.60% × $50,000)/12].

Insurance fees

Insurance premiums

This is the fee charged by the Insurer to cover the cost of insurance available through BT Super. Insurance premiums are paid directly to the Insurer. Please see the Additional Information Booklet Part 3 – Insurance for more details. If you’re a member of BT Super prior to 1 July 2013, commissions (up to 17.93%) may be payable to your Financial Adviser, subject to existing arrangements in place between your Financial Adviser and us. This may impact the rates disclosed in the Additional Information Booklet Part 3 – Insurance, and the cost of your insurance cover. Please call BT Customer Relations for rates applicable to you.

Insurer payments

The Insurer may pay BT Financial Group (ABN 38 087 480 331), as administrator of BT Super, an amount, up to the rates specified below, as a fee for services and reimbursement for expenses incurred in relation to the insurance arrangements for BT Super.

Death & TPD Insurance 24.98% of premiums

Additionally, the Insurer may pay companies within the BT Financial Group or other related companies, a fixed dollar payment per annum, an amount which currently represents up to 2% of total premiums as a fee for services and for expenses incurred in relation to the insurance arrangements for BT personal and corporate super funds. For example, for an annual premium of $100, this would equate to $2.00 payable by the Insurer to companies within the BT Financial Group. These insurer payments are not additional fees or charges payable by you. The payments are retained by us or another related entity and may change over time.

Insurance plan fee

An insurance plan fee of $5.351 is payable in addition to the insurance premium and is deducted on the last day of each month by the withdrawal of units from your investment.

The deduction of units from your investment will be pro-rated across all of your investment options. The number of units deducted from your investment options to meet each insurance premium and fee will be calculated by dividing the dollar amount to be withdrawn from each investment option by the relevant investment option withdrawal price on the last day of the month.

Transaction costs

When we buy or sell investments for account holders we incur transaction costs. These transaction costs include brokerage and costs incurred when buying and selling units in underlying investment funds. Parts of these costs are met by the buy/sell spread. This fee is retained by the underlying investment managers of the relevant investment option (it is not a fee paid to us) and is an additional cost to you when you make an additional investment, withdraw or change investment options.

The maximum buy/sell spread is currently 0.60% of the net value of the investment option’s assets and is represented by the difference between the investment option’s contribution price and the withdrawal price. There is no buy/sell spread for the BT Cash investment option.

For example, if you invest $10,000 in an investment option with a buy/sell spread of 0.60%, you’ll generally incur a cost of $30 when you invest in the investment option and $30 when you withdraw.

We may vary the buy/sell spread for any investment option from time to time. Notice will not ordinarily be provided. However, the updated information will be available on our website bt.com.au.

Performance fees – BT Multi-manager investment options

In the fees and costs table above, the Investment fee includes estimated performance fees for certain underlying investments of various investment options. Performance fees may be paid to some of the underlying investment managers of the investment options when they meet specific investment performance targets.

An investment manager will only receive a performance fee when the investment return for its portfolio outperforms either the benchmark or a specific hurdle return. A performance hurdle may typically be a specified return above an applicable benchmark index. Usually, any prior underperformance must be made good before the investment manager can qualify for a performance fee.

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Any performance fee charged in an underlying investment will be incorporated in its unit price. Performance fees therefore affect the return on an investment option’s underlying investments.

The impact of performance fees on the investment option will be based on the extent by which the investment manager exceeds the performance target, multiplied by the performance fee rate, as applied to the amount of the investment option’s investment exposure (see example below). The performance fee rate in an underlying investment of an investment option may be up to 30% of outperformance over the performance target. There is no guarantee that an investment manager will earn a performance fee and the actual fees paid are likely to vary each year.

At the date of this document, the underlying investment managers of the following investment options may be paid performance fees.

` BT Multi-manager Conservative

` BT Multi-manager Balanced

` BT Multi-manager Growth

` BT Multi-manager High Growth

Example

Assume an underlying investment manager of an investment option who may be paid a performance fee of 20% per year, meets its investment performance target by outperforming the relevant benchmark in a given year by 3% (with no previous negative performance to be made up) and the investment option has 6% of its assets invested with that investment manager.

This outperformance of 3% will result in a performance fee payable to the underlying investment manager of 0.60% (ie 20% × 3%). As only 6% of the investment option’s assets are invested with this underlying investment manager (and assuming no other underlying investment managers of the investment option may be paid a performance fee), the performance fee applicable to this investment option for the given year will be 0.036% (ie 0.60% × 6%).

Therefore, for every $50,000 you have invested in the investment option, you would effectively pay a performance fee of $18 ($50,000 × 0.036%) for that year.

Performance fee – Macquarie Conservative investment option

The investment option does not charge a performance fee but may invest in underlying funds (including other funds managed by Macquarie) that charge performance fees. Such a performance fee

will be borne by the investment option and reflected in the investment option’s unit price. Performance fees for underlying funds will generally not exceed 25% of the outperformance of the underlying fund over its benchmark. It is not possible to reliably estimate what the performance fee of an underlying investment will be for the following reasons.

` The underlying fund and the amount invested in those underlying funds may vary.

` The methodology employed by each underlying fund or manager in calculating the performance fee may differ.

` The investment manager cannot accurately forecast what the performance of the underlying funds will be in any given period or provide a forecast of what the performance fee will be.

Performance fee - MLC Growth investment option

A performance fee may be charged. The performance fee will generally fall between 0-0.1% pa however, in cases of exceptional performance, fees may be outside this range. This will only apply when the investment manager’s returns exceed a specified level.

Investment manager payments

We may receive a payment back from the investment manager of underlying investment options, called an investment manager payment. Any such payments are generally based on the total amount invested in the underlying unit trust via BT Super.

At the date of this document, we may receive an investment manager payment of up to 42% of the fees paid to the investment manager of underlying investment options, where that investment manager is external to the BT Financial Group. This represents an investment manager payment of up to 0.41% per year of the funds invested via BT Super. The amount of these payments may increase during the life of the PDS. These payments are not additional to the fees payable by you.

These payments are retained by us or another member of BT Financial Group.

Rebates/waivers for interfunding arrangements

From time to time the investment options may invest in other funds that we, or a related entity, manage (related fund). Our current policy is:

` no contribution fee is payable to the related fund ` issuer fees are either not collected by the related

fund, or if they are, they are rebated in full to the investing fund, and

` certain expense recoveries are fully rebated to the investing fund, but the related fund may incur those expenses up to the related fund’s own limit in its constitution (if any).

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Incidental fees and costs

These are additional costs to you, but apply in only certain circumstances as described below.

Type of fee or cost Amount How and when paidDirect debit contribution charge

Maximum charge of 12 cents per payment

We’ll recover this charge that we incur for direct debit contributions made by you, your spouse or your employer. The maximum charge may change without notice We currently don’t charge this fee and you’ll be notified of any fees that may be charged.

Bank/Government charges

Variable, as charged by the relevant financial institution

If money is debited from your bank account, the financial institution concerned may impose a fee/charge. This will be deducted from your bank account in addition to the amount withdrawn. Cheque deposits made to BT Super that are drawn on a foreign account will incur any transaction fees/charges imposed on currency. Standard Government charges and duties may also apply to investments and withdrawals.

Dishonour fee $17.851 per dishonoured payment

Charged at the time of dishonour by withdrawing units from your investment if there is insufficient money in your bank account to make a contribution. We currently don’t charge this fee and you’ll be notified of any fees that may be charged.

1_ Fee for the 2014/2015 financial year. Increases at 1 July each year in line with inflation (as measured by CPI).

Changes to fees

The governing rules of BT Super allow us to alter any of the fees and costs at our discretion and without your consent (up to any specified maximum that applies). However, we will notify you at least 30 days before any increase in fees or costs. The maximum fees and costs allowed under the Trust Deed are set out below. Details of current fees and costs as well as notification of any pending increases, including changes to underlying managed fund fees and costs, are available on our website bt.com.au (please refer to ‘Electronic notifications and updated information’ in the ‘Terms and conditions’ in the ‘Other information’ section for more details about electronic notification). You should refer to our website in conjunction with the PDS and this document to determine the fees and costs that will apply to your investment in BT Super before making an investment decision.

Maximum fees

The Trust Deed provides for the following maximum fees.

Type of fee Maximum feeIssuer fee 2.50% for BT Partner and Multi-manager investment options

1.50% for all other BT managed investment options1

Switching fee 5% of each switchDishonour fee $17.852 per transactionInsurance Plan fee $5.352 per month

1_ Investment fee as shown in the table above is before any GST and any RITCs.2_ Fee for the 2014/2015 financial year. Increases at 1 July each year in line with inflation (as measured by CPI).

Regulatory Change Expense Recovery

Recent regulatory reforms have required us to undertake a significant program of work to implement the reforms. In addition, we’re being charged a levy to help fund government costs for supervising the superannuation industry; which we’re entitled to recover. To help cover the significant cost of implementing these reforms and the levies, the Fund’s Indirect Cost Ratio will increase by up to 0.10% for cost recoveries only and are expected to apply until reform implementation is completed in 2017. The amount charged will be reduced by any tax benefit you are entitled to receive.

Fees and costs (Continued)

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1_ We currently don’t charge this fee, and you’ll be notified of any fees that may be charged.

Fees relating to Family Law Act requirements

We do not currently charge fees for ‘splitting’ super accounts, providing information or meeting other Family Law Act requirements. We may decide to impose reasonable fees, and pass on any expenses we incur, in the future. These may include, but are not limited to, fees for providing information to an eligible person and implementing the splitting of, or the application of a payment flag on your BT Super account. If your BT Super account becomes affected by the requirements of the Family Law Act or related legislation, you’ll be notified of any fees and expenses that may be charged.

Defined fees

A fee is an activity fee1 if:

a) the fee relates to costs incurred by the trustee of the superannuation entity that are directly related to an activity of the trustee:

i) that is engaged in at the request, or with the consent, of a member; or

ii) that relates to a member and is required by law; and

b) those costs are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee, an exit fee, an advice fee or an insurance fee.

An administration fee is a fee that relates to the administration or operation of the superannuation entity and includes costs incurred by the trustee of the entity that:

a) relate to the administration or operation of the entity; and

b) are not otherwise charged as an investment fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

A fee is an advice fee if:

a) the fee relates directly to costs incurred by the trustee of the superannuation entity because of the provision of financial product advice to a member by:

i) a trustee of the entity; or

ii) another person acting as an employee of, or under an arrangement with, the trustee of the entity; and

b) those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an insurance fee.

A buy-sell spread is a fee to recover transaction costs incurred by the trustee of the superannuation entity in relation to the sale and purchase of assets of the entity.

An exit fee1 is a fee to recover the costs of disposing of all or part of members’ interests in the superannuation entity.

The indirect cost ratio (ICR), for a MySuper product or an investment option offered by a superannuation entity, is the ratio of the total of the indirect costs for the MySuper product or investment option, to the total average net assets of the superannuation entity attributed to the MySuper product or investment option.

Note: A dollar-based fee deducted directly from a member’s account is not included in the indirect cost ratio.

A fee is an insurance fee if:

a) the fee relates directly to either or both of the following:

i) insurance premiums paid by the trustee of a superannuation entity in relation to a member or members of the entity;

ii) costs incurred by the trustee of a superannuation entity in relation to the provision of insurance for a member or members of the entity; and

b) the fee does not relate to any part of a premium paid or cost incurred in relation to a life policyor a contract of insurance that relates to a benefit to the member that is based on the performance of an investment rather than the realisation of a risk; and

c) the premiums and costs to which the fee relates are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an advice fee.

An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes:

a) fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and

b) costs incurred by the trustee of the entity that:

i) relate to the investment of assets of the entity; and

ii) are not otherwise charged as an administration fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

A switching fee1 is a fee to recover the costs of switching all or part of a member’s interest in the superannuation entity from one class of beneficial interest in the entity to another.

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` The information in this section gives a general overview of the taxation of super. As tax is complex, we always recommend you seek independent professional advice about how the rules might impact you or your beneficiaries. The information and rates in this section can change from time to time. Please refer to the Frequently Asked Questions at bt.com.au or the ATO website ato.gov.au for the latest update. Superannuation can be subject to tax on contributions, earning and withdrawals.

How super is taxed

Tax on contributionsContributions are generally subject to two types of taxation.

1. Contributions tax

Some, but not all, contributions are taxed, generally at a rate of 15% (provided you have supplied your Tax File Number (TFN)).

Contributions tax is deducted from:

` Employer contributions, including SG, Award, salary sacrifice and voluntary employer contributions

` Personal after-tax contributions for which you claim a personal tax deduction

` Untaxed amounts of super benefits rolled over from untaxed super funds (usually public sector funds).

Contributions tax is not deducted from:

` Personal after-tax contributions which you do not claim a tax deduction for

` Spouse contributions

` Rollovers, except where the rollover contains an untaxed element

` Government contributions

` A personal injury payment in the form of a structured settlement, an order for a personal injury payment or lump sum workers compensation payment.

` Contributions made from certain amounts arising from the disposal of qualifying small business assets that are assessed under the CGT cap

` Contributions as a result of the redemption of eligible credit card points.

2. High income earners 15% additional tax (Division 293 tax)

If you are classified as a high income earner, you may need to pay an additional 15% tax (Division 293 tax) on some or all of your contributions. Currently you are considered to be a high income earner if your ‘income’ is $300,000 or greater in a financial year. The definition of ‘income’ for the purposes of this measure includes contributions which have had contributions tax applied to them, unless those contributions are in excess concessional contributions. If you are liable for this tax the ATO will notify you after the end of the financial year.  Further information on this Division 293 tax is available on the ATO website at ato.gov.au.

Important note: You must provide your Tax File Number (TFN) before investing in BT Super. We will not accept contributions into your BT Super account if you have not provided your TFN.

Excess contributions tax – additional tax on contributions that exceed a contributions cap

If you exceed the contribution caps additional tax applies to the excess amount as follows:

` your total excess concessional contributions are taxed at your marginal tax rate, less a 15% credit for the tax already paid by the fund

` excess non-concessional contributions are taxed at the top marginal rate of tax plus Medicare Levy.

Please be aware that excess concessional contributions also count towards your non-concessional contributions cap so it may be possible for both rates of tax to apply to the same contribution.

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Please note: It’s your responsibility to ensure contributions to super are within your contributions caps. We are only required to reject certain single contributions which exceed the overall cap (as set out in the Frequently Asked Questions at bt.com.au). We cannot monitor your overall position. If the total of all relevant contributions made for you to any super fund exceeds your contributions cap(s), you may have to pay excess contributions tax.

In certain circumstances you may be able to accept an Australian Taxation Office (ATO) offer to have part or all of your excess contributions refunded to you. Before requesting a refund, we suggest you obtain professional advice based on your own circumstances. For further information on the refund of excess contributions refer to ato.gov.au.

Claiming tax deductions for your personal contributions

You must meet a number of conditions to be eligible to claim a tax deduction for your personal contributions to super. Your eligibility can be affected by your age, sources of income, and the level of any salary sacrifice and certain other employer contributions made for you. You must notify us in an ATO approved format and within certain timeframes (explained below if you wish to claim a tax deduction for some or all of your personal contributions to BT Super. You can do this by completing a Notice of intent to claim or vary a deduction for personal super contributions available on bt.com.au.

Before you can claim a deduction in your tax return we need to accept your notice, and you need to receive an acknowledgement of your notice from us. The applicable contributions tax will be deducted from your account once your notice is accepted. Your personal contributions will be treated as non-concessional contributions until you submit a completed Notice of intent to claim or vary a deduction for personal super contributions.

It’s important to send us a Notice of intent to claim or vary a deduction for personal super contributions before the following situations.

` You lodge your tax return for the financial year in which the contribution you intend to claim a tax deduction for was made.

` 30 June of the financial year following the financial year that in which the contribution was made (eg by 30 June 2015 for contributions made in the 2013/2014 financial year).

` You close your account or cease to be a member of BT Super.

` We no longer hold the contribution, for example if a partial rollover or cash withdrawal has been made (you can only provide a notice for the proportion of your personal contributions that remain in BT Super).

` We begin to pay an income stream (eg a pension) to you using any amount of your super.

` You apply to split a contribution with your spouse.

You may vary an earlier notice in certain circumstances but only to reduce the amount you intend to claim as a tax deduction (including to nil). To vary an earlier notice, complete a new Notice of intent to claim or vary a deduction for personal super contributions available at bt.com.au. It’s important to note that a variation must generally be lodged within the same timeframe as a deduction notice itself. We’re unable to accept a variation to an earlier notice after any of the above events has occurred.

We suggest you obtain independent professional tax advice if you’re considering claiming a deduction for your personal contributions.

Tax on withdrawals

Rolling over your super to another fund

There is no lump sum tax payable when you transfer (rollover) all or part of your BT Super account to another fund, or if you use your balance to purchase a pension.

Taking a cash or lump sum benefit

The tax payable on a lump sum cash withdrawal depends on your age at the time of the withdrawal and the components of the amount being withdrawn as shown in the table.

Age Taxable component Tax-free component

Under preservation age

Generally a rate of 20% plus Medicare Levy

Nil

Preservation age to age 59

Up to the low rate cap1: NilAbove the low rate cap1: generally a rate of 15% plus Medicare Levy

Nil

60 or over Tax free Nil

1_ $185,000 for 2014/2015. This amount is indexed to Average Weekly Ordinary Time Earnings (AWOTE) and rounded down to the nearest $5,000 each year.

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How super is taxed (Continued)

If you’re under age 60 and we do not hold a valid TFN for you, we are required to deduct tax on the taxable component of a lump sum benefit paid to you at the highest marginal tax rate plus the Medicare Levy.

Different rules and rates may apply for temporary residents taking a lump sum cash amount. Please refer to ‘Temporary Residents’ in the Frequently Asked Questions at bt.com.au and the ATO website ato.gov.au for further information.

Tax-free component

Your tax-free component may consist of the following:

` Personal after-tax contributions for which you did not claim a tax deduction.

` Spouse contributions.

` Government co-contributions.

` Tax-free components rolled over from other funds.

` Any tax-free amount crystallised as at 1 July 2007 (or at certain trigger events for some pensions).

` CGT exempt component.

Your tax-free component is a fixed dollar amount which will only increase with new after-tax contributions and rollovers containing any of the above elements.

Taxable component

This is the remainder of your balance, after your tax-free component has been subtracted.

Taking a partial cash withdrawal or rollover

If you make a partial cash withdrawal or rollover, we’ll apply the proportion of tax-free and taxable amounts in your total account balance at the time, to the amount being withdrawn.

You can’t choose the components which make up your partial withdrawal.

Taking a cash lump sum as a result of disability (permanent incapacity)

If your benefit is a disability superannuation benefit, the tax-free component may be increased by an amount calculated under tax law, potentially reducing the overall amount of tax you’ll pay.

A disability superannuation benefit is a benefit paid to you if you suffer from ill-health (whether physical or mental) and two legally qualified medical practitioners certify that, because of the ill-health, it is unlikely you can ever be gainfully employed in a capacity for which you’re reasonably qualified because of education, experience or training.

Taking a cash lump sum as a result of a terminal medical condition

A super lump sum payment is exempt from tax if you suffer from a terminal medical condition. You’ll be viewed as suffering from a terminal medical condition if two registered medical practitioners certify that you suffer from an illness, or have incurred an injury that is likely to result in your death within a period of 12 months (the certification period). One of the certifying practitioners must be a specialist practising in an area related to the injury or illness.

If you satisfy this condition of release, all benefits which have accrued up to this time become unrestricted non-preserved. This condition of release also covers the certification period, meaning any further benefits accrued within the 12-month certification period will also be treated as unrestricted non-preserved benefits.

What if you received a cash lump sum under another condition of release?

If you received a super lump sum payment after 1 July 2007 under another condition of release and you have a terminal medical condition, you may be entitled to a refund of the tax withheld.

You’ll need a medical certificate stating that you had a terminal medical condition (as outlined above):

` at the time the payment was made, or

` within 90 days of receiving the payment.

If you apply for a refund after 21 July of the following financial year in which you received the payment, you will need to apply for a refund from the ATO. More information can be found on their website at ato.gov.au.

If you have more than one BT Super account, you should be aware that the Government may require us to look at all your accounts when calculating the tax payable on lump sum cash withdrawals and the tax components of rollovers. You should discuss your overall position with your financial adviser.

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Tax payable on death benefits

Death benefits paid as a lump sum

Death benefits paid as a lump sum to your dependants (for tax purposes) are tax free. A dependant for tax purposes includes your spouse or former spouse, your children under 18, a person who was wholly or substantially financially dependent on you at the time of your death and a person with whom you were in an interdependency relationship at the time of your death.

Your spouse includes:

` your husband or wife via marriage, or

` a person with whom you’re in a relationship that is registered under certain state or territory laws, or

` another person who, although not legally married to you, lives with you on a genuine domestic basis in a relationship as a couple.

An interdependency relationship is a close personal relationship between two people who live together, where one or both of them provide for the financial and domestic support and personal care of the other. An interdependency relationship may still exist if there is a close personal relationship but the other requirements are not satisfied because of some physical, intellectual or psychiatric disability.

Death benefits paid as a lump sum to a non- dependant for tax purposes will be taxed as follows.

Tax-free component Tax free

Taxable component Taxed at 15% plus the Medicare Levy

Taxable component (untaxed element)

Taxed at 30% plus the Medicare Levy

An untaxed element will arise where the lump sum death benefit contains insurance proceeds. The amount of the untaxed element is calculated using a statutory formula. Tax on the untaxed element will only be payable; however, where the lump sum death benefit is paid to a non-dependant for tax purposes.

Death benefits paid as a lump sum to your estate are taxed within the estate depending on whether the beneficiaries are your dependants or non-dependants for tax purposes. The Medicare Levy is not payable by the estate.

Death benefit – Refund of contributions tax (Anti-detriment amount)

An additional payment may be made on request only, to broadly compensate for contributions tax charged on certain contributions made to your account. This is known as an anti-detriment payment and only applies if your account balance is paid as a lump sum to your spouse, former spouse or child, either directly or through your estate. The additional payment is conditional on the Fund being eligible for, and able to use, the associate tax deduction in the tax year that the anti-detriment payment is made.

Anti-detriment payments are only processed for BT Super on request.

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Other information

About the FundThe Trust Deed for the Fund, of which BT Super is a part, (Trust Deed), sets out our duties as trustee and your rights and obligations as a member.

The Trust Deed, together with legislation including the Superannuation (Industry) Supervision Act 1993 (SIS Act), the Corporations Act 2001, relief and guidelines issued by the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority together with the general law, sets out the framework under which BT Super operates. You’re bound by the provisions of the Trust Deed. As a trustee, we must comply with all the obligations set out in the Trust Deed. We’re also subject to duties under the law, including duties to act in the best interests of the members, act honestly, exercise care and diligence and treat members fairly.

The Trust Deed also limits our liabilities in relation to the Fund. We’re indemnified from the Fund for liabilities we incur in respect of the Fund, unless the liability arises from fraud, negligent act, default, omission, a breach of trust or duty in certain circumstances or is a result of certain penalties being applied under superannuation law.

You may obtain a copy of the Trust Deed at no additional charge by visiting bt.com.au or contacting BT Customer Relations on 132 135.

Assets of the Fund

We keep the assets of the Fund separate from our own assets, as required by law. As such, regardless of whether we enter into financial difficulties, the assets of the Fund are not available to our creditors or us.

However, the assets of the Fund are subject to our rights of indemnity and any unpaid taxes and expense recoveries.

In addition, the assets of any investment options are available to meet the liabilities of another investment option in the unlikely event that the assets of that investment option are unable to meet its liabilities. Given the investment restrictions that are in place, we do not believe that this event is likely to occur.

Related party transactions and conflicts of interests

We may invest in other funds of which we, or a related entity, are trustee or manager, and may appoint any of our related bodies corporate to provide services or perform functions in relation to BT Super. We may also enter into financial or other transactions with related bodies corporate in relation to BT Super.

A related body corporate is entitled to earn fees, profits, reimbursement of expenses or other benefits in relation to any such appointment or transaction and to retain them for its own account. Such arrangements will be based on arm’s length commercial terms.

In the course of managing BT Super, we may face conflicts in respect of our duties owed to BT Super, other funds under our trusteeship and our own interests. We have policies and procedures in place to ensure we manage these conflicts through either controlling, avoiding or disclosing the conflict. We’ll resolve such conflicts of interest fairly and reasonably between members and others in accordance with the law, ASIC and APRA policy and our own policies.

Protecting your privacyBy participating in BT Super, you consent to us and any other person who is at any time a member of the Westpac Group, which includes BT Financial Group, collecting, using, disclosing and handling your personal information in the manner set out in this section.

Privacy Statement

Why we collect your personal information

We collect personal information, including sensitive information (eg health information), from you to process your application, provide you with your product or service, and manage your product or service. We may also use your information to comply with legislative or regulatory requirements in any jurisdiction, prevent fraud, crime or other activity that may cause harm in relation to our products or services, and help us run our business. We may also use your information to tell you about products or services we think may interest you.

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If you do not provide all the information we request, we may need to reject your application, or we may no longer be able to provide a product or service to you.

How we collect your personal information

We may collect your personal information from many places including your application form, correspondence with you or your financial adviser, our telephone calls with you, you using the BT website or emailing us. We may also collect your information from other members of the Westpac Group*, or from a service provider engaged to do something for us or another member of the Westpac Group.

Disclosing your personal information

We may disclose your personal information to other members of the Westpac Group, anyone we engage to do something on our behalf such as a service provider, and other organisations that assist us with our business. We may also disclose your personal information to any person who acts on your behalf in relation to your investment, such as your financial adviser.

We may disclose your personal information to an entity which is located outside Australia. Details of the countries where the overseas recipients are likely to be located are in the BT Privacy Policy.

As a provider of financial services, we have obligations to disclose some personal information to government agencies and regulators in Australia, and in some cases offshore. We are not able to ensure that foreign government agencies or regulators will comply with Australian privacy laws, although they may have their own privacy laws. By using our products or services, you consent to these disclosures.

Health information

If you’re being provided with, or if you apply for, life insurance through BT Super, we may be required to collect information regarding your and your family’s medical history (health information) so that BT Super’s Insurer may assess your eligibility for insurance. In turn, the Insurer may pass this information to their reinsurers, the Insurer’s contractors or third party service providers to assist them in assessing your eligibility for cover.

BT Super’s Insurer and their reinsurer are required to keep this information confidential but may use the information collected to assess any claim that you make and may pass this information on to any other party that assists them in assessing your claim. We’ll only use health information we collect for these insurance purposes or directly related purposes.

If you do not provide this information, your application for insurance or any insurance claim may not be able to be processed.

Other important information

We are required or authorised to collect personal information from you by certain laws. Details of these laws are in the BT Privacy Policy.

The BT Privacy Policy is available at bt.com.au or by calling 132 135. It covers:

` how you can access the personal information we hold about you and ask for it to be corrected;

` how you may make a complaint about a breach of the Privacy Act 1988 (Cth), or a registered privacy code, and how we will deal with your complaint; and

` how we collect, hold, use and disclose your personal information in more detail.

The BT Privacy Policy will be updated from time to time.

Information about your nominated beneficiaries and other individuals

You agree to ensure that any person you nominate as your beneficiary is made aware:

` you have nominated them as your beneficiary;

` we and other members of the Westpac Group hold their personal information;

` we and other members of the Westpac Group will use their personal information in determining to whom and in what proportion your super benefits will be paid upon your death and, to the extent that such information is not provided, we may not be able to pay your death benefits according to your wishes;

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Other information (Continued)

` we and other members of the Westpac Group may disclose their personal information to each other and to third parties (including your Financial Adviser) that assist us in the administration of the Fund or when required or permitted by law to disclose their personal information; and

` they may contact us and request access to their personal information using the details provided above.

Where you have provided information about another individual, you must make them aware of that fact and the contents of this privacy statement.

* “Westpac Group” means Westpac Banking Corporation and its related bodies corporate.

We and members of the Westpac Group will use and disclose your personal information to contact you or send you information about other products and services offered by the Westpac Group or its preferred suppliers. If you do not wish to receive marketing communications from us please call us on 132 135.

Cooling-off periodYou’re entitled to a 14-day cooling-off period to ensure your investment in BT Super meets your expectations.

The 14-day cooling-off period commences on the earlier of:

` the date you receive confirmation of your application, or

` the end of the fifth business day after the day you’re issued with an interest in BT Super.

Your cooling-off period ceases to apply when you exercise your rights or powers under BT Super, such as when you transact on your account.

If you decide that you do not wish to invest in BT Super during the cooling-off period, we’ll transfer your money to another super fund, Retirement Savings Account (RSA) or Approved Deposit Fund (ADF) of your choice and/or (in limited circumstances) return it to the original source to the extent that it includes an unrestricted non-preserved component rolled over to BT Super.

If you do not tell us where to transfer your super, we may transfer your money to an eligible rollover fund we select. Please refer to the ‘Eligible Rollover Fund’ section for more information.

No withdrawal fees will apply and any advice fees that were deducted from your account will be refunded, less the amount of any fee rebates you received. However, we’ll make adjustments to reflect any unit price movements (either up or down) in your investment and may also deduct any tax and duty, as well as reasonable administrative and transaction costs. As a result, the amount transferred out of BT Super may be less than the amount invested.

You may exercise your cooling-off right by sending a letter to us or email coolingoff@btfinancialgroup.com. Your letter or email should include your personal details (eg full name, address), your Investor Number and the date of your initial application.

Transacting and unit prices

Processing matters

When a contribution, withdrawal or switch request together with all necessary information is received before the daily cut-off time of 4.00pm (Sydney time) on a business day, it will be processed using the relevant contribution or withdrawal price (as applicable) issued for the relevant investment option(s) for the business day we received the contribution, withdrawal or switch request together with all necessary information. If the contribution, withdrawal or switch request together with all necessary information is received after the daily cut-off time, it will be processed using the entry or exit price for the next business day.

If an investment switch is made, it is processed as a withdrawal from one investment option and an investment into the other investment option.

We aim to process contributions, withdrawals and switches as soon as reasonably practicable and ordinarily within five business days of receipt. Because units are issued or redeemed based on prices described above, there can be an effect on underlying performance, either positive or negative, depending on market movements between the business day for which the contribution or withdrawal price is used and the date of processing.

Suspensions and delays on applications, switches and withdrawals

If you’re rolling over multiple amounts to BT Super, we can only process your application once the minimum investment amount is met – this will be the effective date of your investment. The minimum investment balance is set out in the ‘How much do I have to add to my BT Super account?’ section.

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In certain circumstances allowed under superannuation law and the Trust Deed (for example, where it would prejudice the interests of the other members of BT Super), we may delay, suspend or not process your application, switch or withdrawal request.

For example, we may delay or suspend switches or withdrawals from your BT Super account if:

` There are delays by investment managers or other product issuers responsible for processing transactions for underlying investments. For example, if the investment manager for an underlying fund delays issuing unit prices or suspends transactions, this may delay the processing of your request.

` We cannot realise sufficient assets to satisfy your payment due to circumstances outside our control – for example, restricted or suspended trading on a stock exchange.

` A switch or withdrawal would adversely affect the interests of, or if we do not consider it in the best interests of, members in the relevant investment options as a whole.

The delays or suspensions of payment could be for weeks, months or even years. We are not responsible for any losses caused by these delays.

Contributions made using Bpay

For applications/contributions made by Bpay, we won’t issue units until after we receive the money from your nominated financial institution (where we receive this before the cut-off time). This generally means there will be a further delay between the day we receive your application/contribution form and the day on which units are issued.

Availability of unit prices

Contribution and withdrawal prices for each business day will usually be posted on bt.com.au by the end of the next business day.

In certain circumstances, we reserve the right to delay or suspend unit prices, apply a special price or not process future application, switch or withdrawal requests.

Invalid transaction requests

A transaction request may be invalid for a variety of reasons, such as not having the correct signatures, being below the set minimums or the request is incomplete. Where documentation is invalid, we’ll aim to contact you, generally within seven business days and the transaction will not be processed until valid documentation is received. The unit price that

will apply to the transaction will depend on when we receive the corrected documentation (the usual rules about cut-off times apply).

If we’re unable to process a transaction because the instruction form is invalid, the request will not be processed. Any application or contribution monies will be placed into a holding account. Any interest earned in the holding account is not payable to a member but may be retained by us for our benefit or paid into the Fund.

We’ll normally hold the unallocated monies for a maximum of one month before returning them if valid documentation is not received. However, if it is not reasonably practicable for us to return the money within one month, we’ll return it by the end of such longer period as is reasonable in the circumstances.

Contributions or other application money is returned by cheque to the originator of the payment. We have the right to reject any valid application or contributions we receive.

Restrictions on withdrawals

We are only required to transfer or rollover your benefits after receiving all relevant information as set out in the Superannuation Industry (Supervision) Regulations (SIS Regulations). Ordinarily, if you haven’t made an investment selection we must transfer or rollover your benefits within 30 days of receiving all relevant information that is necessary to process your request. However, if you hold in your account managed investment(s) and/or term deposit(s) that are illiquid or suspended – or become illiquid or suspended – it may take longer to transfer your full benefits. For more information, please refer to the ‘Illiquid Assets’ section below.

Any investment options we consider to be ‘illiquid’ from time to time are listed on our website at bt.com.au or available from your financial adviser. This is updated by us from time to time.

Generally, investments may be illiquid because:

` we need to receive the monies from the underlying investment manager

` the investment has withdrawal restrictions, or

` the investments are subject to market liquidity constraints.

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Illiquid assets

If you request us to transfer or roll over the whole amount (or a partial amount) of your account, you:

` waive your right to require us to roll over or transfer the requested amount within 30 days of receiving all information prescribed by the SIS Regulations (including all information that is necessary to process your request) in respect of the investment options we consider to be illiquid

` agree to access the list of investments that we consider to be illiquid from time to time, from our website at bt.com.au and acknowledge that these investments are illiquid for the reasons referred to in the ‘Restrictions on withdrawals’ section above

` acknowledge that the maximum period in which your requested transfer must be effected is as set out on the website at bt.com.au, and

` agree that you understand, and accept, that a period longer than the 30 days mentioned above is required (possibly in respect of the whole of the requested transfer amount) due to the illiquid nature of the investment.

Information about the investment options

You acknowledge that if we continue to follow an instruction by you to invest your account in accordance with a particular investment option, at the time of an additional acquisition of an interest in the underlying fund, you may not have received:

` the current PDS for the relevant fund, or

` information about material changes and significant events that affect the relevant fund (that the underlying fund trustee is required to give a person who acquired an interest in the underlying fund directly, unless an exception applies).

Anti-Money Laundering and Counter Terrorism Financing

The Australian Government enacted the Anti-Money Laundering and Counter Terrorism Financing Act 2006 (AML/CTF Act) in December 2006. The purpose of the AML/CTF Act is the regulation of financial services and transactions in a way that will help detect and prevent money laundering and terrorism financing. To meet our regulatory and compliance obligations under the AML/CTF Act, we will be increasing the levels of control and monitoring we perform. This might include:

` extra identification checks, and

` blocking or suspending suspicious transactions and seeking further information.

We also have confidential reporting obligations under the AML/CTF Act.

How we calculate unit prices

Each investment option has its own unit prices, which is the monetary value of one unit. There are two types of unit prices – contribution and withdrawal prices.

Unit prices are normally calculated every business day for the preceding business day by dividing the net value of the investment option (refer below) by the total number of units on issue for that investment option.

The asset values will usually be based on closing prices or, where appropriate, other price quotes, most recently available to us at the time we make the calculation. The contribution and withdrawal unit prices may include an allowance for transaction costs (buy/sell spreads) that would be incurred if the unit’s share of the assets were purchased or sold.

Details of unit prices for all investment options are available on our website at bt.com.au or by contacting Customer Relations on 132 135.

We can change the way in which we calculate unit prices. Information regarding any such change will be available on our website at bt.com.au or by contacting Customer Relations. Notice will not ordinarily be provided. We can delay or suspend release of prices, or apply a special price, due to volatile market conditions and under other circumstances that the Trustee deems reasonable.

Net value of an investment option

The net value of an investment option is the value of all investments and cash held by the investment option less amounts owing or payable in respect of the investment option, including any provision that is considered necessary. For example, provision might be made for possible future losses on an investment that is considered to be overvalued or cannot be fairly determined. A full description of the valuation method is given in the Trust Deed.

The net value of an investment option may include an asset known as Deferred Tax Asset (DTA). A DTA arises when, for tax purposes, a loss is available to offset a future gain (ie to reduce the amount of gain that might otherwise be taxable). Our policy is to recognise DTAs in BT Super as a separate asset of the relevant investment option. Like any other asset in an investment option, the value of a DTA is reflected in the unit price for that investment option, through the calculation of the net asset value.

Other information (Continued)

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The value of a DTA can change over time based on the likelihood of being able to offset the losses against future gains and the time at which they can be used. Accordingly, changes in the value of a DTA may cause unit prices to change, as is the case with a change in the value of any other asset in the investment option.

The level of a DTA recorded in the unit price of an investment option may be ‘capped’, taking into account the probability that accumulated losses are able to be offset against future gains. The Joint ASIC and APRA Unit Pricing Guide to Good Practice, and BT policy require that a DTA only be recognised in the net asset value and unit price of an investment option to the extent that the deferred tax benefit is expected to be realisable in the future. It may be necessary to reduce the level of a DTA to ensure that the value of the investment option (and the unit price) is not overstated.

To the extent that it becomes appropriate not to recognise any value in respect of certain DTAs that had, up to that time, been recognised, we or a related party may (but are not obliged to) pay an amount to BT Super to substitute for the written down value of the DTAs. This would be achieved using our own funds or those of a related party. If this occurs, we or the related party would be entitled to recover the amount it paid to BT Super if the relevant DTAs are subsequently recognised.

Additional information about your super

Consolidating your BT super accounts

To ensure your super is managed in an efficient and cost effective way we are required to conduct annual checks to identify whether you have multiple superannuation accounts within the BT Lifetime Super Fund (of which BT Super is a part).

If we find that you have more than one account we may automatically consolidate your accounts into a single account. We will only do this if we believe that combining your accounts is in your best interests and is likely to result in cost savings and other benefits.

Eligible Rollover Fund (ERF)

The Eligible Rollover Fund (ERF) currently selected for BT Super is:

SuperTrace Eligible Rollover Fund Locked Bag 5429 Parramatta NSW 2124 supertrace.com.au

If your investment is transferred to SuperTrace:

` you’ll cease to be a member in BT Super and any insurance cover provided will also cease

` you’ll need to contact SuperTrace on 1300 788 750 to claim your investment back or deal with your investment

` you will not be able to make contributions to the ERF

` you will not have investment choice, the trustee of the ERF will nominate the investment strategy that will apply

` the ERF will normally ensure your benefits will not be eroded by administration fees and costs. However other fees may apply. Please refer to the ERF’s disclosure document for more information.

Currently, your investment may be transferred to the ERF in the following circumstances.

` If you become a lost member, ie we have not received a contribution or rollover for you within the last 12 months and one or two pieces of written communication has been returned unclaimed, unless during the last two years we have verified that your address is correct or you have elected to be permanently excluded from being a lost member. (It is important that you inform us of any changes to your address details so that you’re not transferred to the ERF. Trustees of regulated super funds report details of lost members to the ATO, who maintain a lost members register. Persons may search the register to ascertain if they have benefits which are lost.)

` If your investment balance falls below $1,200 you may be requested to make an additional investment to increase your balance over $1,200. If you do not increase your investment, it may be transferred to the ERF.

` If you request to transfer your benefit to another fund and we cannot process your request due to insufficient information, or the other fund returns the money to us as they are unable to process the request.

` In any other circumstances permitted under super law.

` If circumstances discussed in the ‘Cooling-off period’ section apply.

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Other information (Continued)

Unclaimed money

In some circumstances, if an amount is payable to you and we’re unable to ensure that you have received it, we may be obliged to pay the amount to the ATO on your behalf.

We may also be required to transfer an account balance to the ATO if you become a lost member.

If your account balance is transferred, you’ll be able to reclaim it from the ATO.

Please visit the ATO website at ato.gov.au for further information.

Temporary residents

A temporary resident is a holder of a temporary visa under the Migration Act 1958.

From 1 April 2009, if you are, or were, a temporary resident and are not an Australian citizen, New Zealand citizen or permanent resident, or a holder of a retirement visa (Subclass 405 or 410), you can generally only access your preserved super benefits if you become permanently incapacitated, have a terminal medical condition, or have departed Australia permanently and your visa has ceased, or your beneficiaries may access your benefits if you die. You may also be able to access your benefit if you satisfied another condition of release under superannuation law before 1 April 2009.

The Australian Government also requires us to pay temporary residents’ unclaimed super to the ATO after at least six months have passed since the later of:

` the date a temporary resident’s visa ceased to be in effect, and

` the date a temporary resident permanently left Australia.

Applications to claim your benefit can be made using the ATO Departing Australia Superannuation Payment (‘DASP’) online application system. To access this system and full information regarding DASP procedures and current tax rates visit ato.gov.au.

Tax File Number

Before providing your TFN to the Trustee, the Trustee is required to tell you that:

` the Trustee is authorised to collect your TFN under the Superannuation Industry (Supervision) Act 1993, from a range of sources including yourself, your employer or the ATO. You can, however, notify us in writing not to record your TFN

` it is not an offence not to provide your TFN; however, if you do not supply it you will not be able to make personal contributions to your account, and you may have to pay more tax than you would otherwise pay on your contributions to your account, and payments you receive from us. Furthermore, without your TFN it may be more difficult for us to locate your benefit

` your TFN will be used for legal purposes only, including finding or identifying your super benefits in the superannuation fund, calculating tax on super payments and providing information to the ATO. These purposes may change in the future

` if you provide your TFN, it may be provided to another super plan or retirement savings account provider that receives any transferred benefits in the future (unless you notify us in writing not to forward your TFN) and may also be given to the ATO

` Apart from the above uses, your TFN will be kept confidential.

We won’t accept any contributions made by you or received on your behalf if you have not provided us with your TFN (see ‘Build your super balance’ in the ‘Benefits of investing with BT Lifetime – Personal Super section).

Family law

Provisions of the Family Law Act 1975 (the Act) deal with the treatment of super on relationship or marriage breakdown with a spouse1. The Act provides that a member’s super benefit may be split with the member’s spouse or former spouse on relationship or marriage breakdown. Alternatively, a payment flag may be imposed on the member’s super benefit. However, in Western Australia, these rules only apply on the breakdown of a marriage and not to the breakdown of other relationships.

1_ Your spouse includes: – your husband or wife via marriage, or – a person with whom you’re in a relationship that is

registered under certain state or territory laws, or – another person who, although not legally married to

you, lives with you on a genuine domestic basis in a relationship as a couple.

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For us to commence any payment split or impose a payment flag on your account, we must have been served with either:

` a super agreement made in accordance with the Act, or

` an Order of the Family Court of Australia, that specifies how your benefit is to be split with your spouse or former spouse or that a payment flag must be applied to your account. The Act also specifies that we must be provided with certain evidence of marriage or relationship breakdown if you serve a super agreement on us. You and/or your spouse or former spouse may arrange for the required documents to be provided to us.

Documents must be sent to: Family Law and Superannuation Officer Legal Department BT Funds Management Limited Level 20, 275 Kent Street, Sydney NSW 2000

All documents provided to us should be originals or a certified copy.

Information about your super benefit

If we’re required to affect a payment split on your benefit, the value of your account will reduce by the amount that is paid to, or for the benefit of, your spouse or former spouse. Where an eligible person under the Act wishes to negotiate a super agreement with you (which may be before or during a relationship, or after relationship breakdown) or facilitate the preparation of an order of the Family Court, they may apply to us to receive information about your benefit. Where the application is made in accordance with the requirements of the Act, we’re obliged to provide the requested information and will not be permitted to inform you about the application.

Professional advice

The Act involves many complex requirements in relation to splitting a super benefit. It is recommended that, if you believe your BT Super benefit will be affected by the Act, you should consult your legal adviser, financial adviser and/or accountant

Definitions and interpretation‘business day’ – a day on which banks are open for business in Sydney other than a Saturday, Sunday or public holiday.

‘investment options’ – the investment option(s) offered in BT Lifetime – Personal Super.

‘we’, ‘our’ or ‘us’ – include references to the trustee of BT Lifetime – Personal Super.

All references to dollar amounts and unit prices in this PDS are in Australian dollars, references to GST are references to GST payable in Australia, and references to time are references to Sydney time, unless stated otherwise.

Our electronic facilities

BT Link and BT Online

By participating in the Fund you may use BT’s electronic transaction facilities, BT Link and BT Online. The following conditions apply in relation to these facilities.

` A confidential personal identification number (PIN) and/or password will allow you to transact and you remain responsible for their confidentiality.

` Your PIN and/or password may be issued to you electronically.

` Access will be given to any person who uses your PIN or password or complies with any other of our security procedures, which we may put in place from time to time. Any action by that person will be taken to be by you.

` Any action or request taken or given to the Trustee cannot be countermanded.

` We may vary these conditions at any time. After giving you notice in writing (or other electronic communication for BT Online users).

` We may suspend or cancel your ability to transact electronically at any time without notice.

` You must tell us immediately if you lose your PIN or password or think an unauthorised person has knowledge of it.

Confirmation of transaction – standing facility

When the facility becomes available, unless you have notified us otherwise, you’ll be taken to have agreed to using BT Online as a means of obtaining confirmation of all transactions you perform.

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Other information (Continued)

Indemnity

You release and indemnify us and any other member of Westpac Group severally from and against all liability which may be suffered by you or brought against us or any other member of the Westpac Group in respect of:

` any act or omission of your authorised representative, whether authorised by you or not, and

` your use, or purported use, of BT Link or BT Online.

Terms and conditions

Agree and acknowledge

By participating as a member of BT Super, you:

` consent to us or a related party (including the administrator) receiving payment or profit as set out in the PDS and this Additional Information Booklet

` consent to telephone conversations being recorded and listened to for training purposes or to provide security for transactions

` agree that if we make an incorrect payment to you, we’re entitled to deduct the amount incorrectly paid from any holding you may have with us or a related body corporate

` agree to be bound by the provisions of the PDS and Part 1, 2 and 3 of the Additional Information Booklets, any replacement PDS or Additional Information Booklets and the provisions of the Trust Deed and the policy document issued by the Insurer (all as amended from time to time) to the extent they are intended to be binding on you

` consent to us passing information in relation to your investment to your financial adviser

` acknowledge that if you have applied to receive a spouse contribution, you consent to future spouse contributions being made into your super account and will notify us if the relevant person ceases to be your spouse

` agree to notify the Trustee immediately if your employment status changes

` consent to your employer making contributions to your account

` acknowledge that if we reasonably believe a signature on a document, such as a withdrawal request, to be genuine we are entitled to rely on that signature and will not be liable for any loss you may suffer if it is later found that the signature was fraudulent

` acknowledge that if we reasonably believe an email or facsimile communication we receive from you, your financial adviser or representative is genuine, we are entitled to rely on that email or facsimile communication and will not be liable for any loss you may suffer if it is later found the email or facsimile communication was fraudulent

` consent to us continuing to act as Trustee not withstanding a conflict of interest arising from circumstances referred to in ‘Related party transactions and conflicts of interest’ section or any other circumstances

` acknowledge that information, reports and other communication to you may be delivered electronically by email or other electronic means

` agree that any email sent to coolingoff@btfinancialgroup.com including the details required to withdraw your investment will be taken to be by you and, further, acknowledge that we may act on those instructions and will not be liable for any loss you may suffer if it is later found that the email was fraudulent

` acknowledge that we may reject any application or contribution we receive for whatever reason

` acknowledge that there may be changes to the investment options, or other changes within BT Super (including the addition and deletion of investment options) and in the case of significant changes, will be notified electronically or via the manner described in ‘Keeping you informed’

` acknowledge that you’re eligible to contribute to BT Super under superannuation law

` agree that any taxes or fees deducted will be pro-rated over your existing investment option holdings

` acknowledge that where no investment option(s) is specified in a request for an additional contribution or withdrawal, you consent to the transaction being processed to your investment option(s) holdings at the time, and

` acknowledge that if you provide your TFN on the application form for BT Super, you have read the information in the ‘Tax File Number’ section.

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Electronic notifications and updated information

You agree to receive all information required or permitted to be given to you under SIS and the Corporations Act, including ongoing disclosure, product disclosure statements and supplementary product disclosure statements (or the equivalent information) in respect of underlying investment funds (Information):

` where it is or may become permissible under the Corporations Act, via your financial adviser in writing or notice by email or other electronic communication (including online), or

` directly:

— by email (including emails containing a hypertext link), or

— by other electronic communication (including by accessing bt.com.au).

If you’re:

` a new investor, by making an application to become an investor in BT Super or participating as a member of the Fund, or

` an existing investor, by giving the Trustee an investment direction or switching request, or by you (or someone on your behalf) making further contributions, you agree that information can be provided to you in any of these ways.

You agree that changes to fees and costs, including fees and costs of underlying funds, may be accessed by you on our website at bt.com.au and that you should only make an investment decision after accessing that information.

By making contributions and otherwise participating in BT Super, you acknowledge and agree that you will receive all information relating to BT Super on our website at bt.com.au (or other electronic medium we may determine and that you will actually access the information) including information relating to the underlying investment options generally, product disclosure statements and supplementary disclosure statements for BT Super and those investment options, their investment strategies and objectives, any material adverse change or significant event notice affecting those investment options, details relating to insurance, privacy and illiquid investment options, and any other information we have agreed to provide or you request, or we must, or are able to, provide you under disclosure law.

Taxation

Various restrictions and taxes will apply to the contributions made by or for you in certain circumstances, as set out in the ‘Accessing your super’ in the ‘Benefits of investing with BT Lifetime – Personal Super’ section and ‘How super is taxed’ section.

In relation to superannuation tax laws, it is a condition of your participation in BT Super, including the Trustee’s acceptance of contributions or instructions by or for you relating to your participation in BT Super, that:

` the Trustee may rely on any information given to it by or for you, including information in relation to your contributions of your TFN (Tax Information)

` the Trustee is not required to inform you of your capacity to contribute to BT Super or the consequences (including adverse consequences) to you, if you:

— make or do not make contributions to BT Super

— do not provide Tax Information

— provide incomplete Tax Information, and

— you will comply with any other conditions which are notified to you by the Trustee which the Trustee reasonably believes are necessary or desirable for compliance with superannuation tax laws.

Direct Debit Request Service Agreement

By completing the Direct Debit Request that forms part of the application form or additional contribution form, you’ll be providing us with the ability to debit your nominated account and transfer the amount you request to your investment. This agreement sets out the terms on which you authorise us to deduct any amounts that become payable to an investment with us from your account with your financial institution.

Debit arrangements

` For initial applications made by completing a Direct Debit Request, we will debit the amount(s) nominated from your account generally within two days of receiving a valid application.

` For subsequent investments, when we receive a valid instruction either by phone, letter or over the internet, we’ll debit your account generally within two days of receiving the instructions (provided we have previously received a valid Direct Debit Request).

` A valid instruction will be an instruction given by you or from a person nominated by you to provide such instructions.

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Your responsibilities

It is your responsibility to:

` ensure that your financial institution allows direct debits on your nominated account

` ensure that your nominated account details are correct, and if uncertain, check with your financial institution before completing the Direct Debit Request

` ensure that sufficient cleared funds are available in your nominated account by the due date to permit payments under the Direct Debit Request

` ensure that the authorisation given to draw on your nominated account is identical to the account signing instructions held by your financial institution where the nominated account is based

` advise us if your nominated account is transferred or closed or your nominated account details change

` arrange with us a suitable alternate payment method if the drawing arrangements are cancelled either by you or your financial institution.

Your rights

` You may cancel, alter, defer or suspend your Direct Debit Request, or stop or suspend an individual debit from taking place, by calling Customer Relations. In some cases we will require your written confirmation.

` You must notify us at least seven business days before the next scheduled debit to ensure changes are effective that month. Notification received after that time may result in your changes taking effect in the following month. You may also be able to stop an individual debit by contacting your own financial institution. You may be liable for financial institution charges if you do this; the financial institution should have information on these.

` If you have questions or concerns about your Direct Debit Request, such as where you consider that a drawing has been initiated incorrectly, you should take the matter up directly with us by calling Customer Relations. Alternatively you can email us or write to the Complaints Officer at GPO Box 2675, Sydney NSW 2001. We’ll let you know that we have received your complaint and a Complaints Officer will try to resolve your complaint within 30 days. If you’re still not satisfied you can refer the matter to the Financial Ombudsman Service (FOS) by calling 1300 780 808.

Our commitment to you

` We’ll only change the amount of the payment under the Direct Debit Request on receipt of a valid instruction.

` We’ll only vary the terms of this agreement after giving you 30 days’ notice in writing.

` We reserve the right to cancel your drawing arrangements if two or more consecutive drawings are returned unpaid by your nominated financial institution. Standard government fees, duties and bank charges (including dishonour fees and conversion costs) may apply to investments. These are paid by you.

If your direct debit is returned unpaid, we may charge you a dishonour fee (as set out in the ‘Fees and costs’ section), in addition to our bank’s dishonour fee. You should advise us of an alternative payment method.

We’ll keep all your records and information related to your nominated bank account at the financial institution private and confidential, except where you have made a claim relating to a debit you claim has been made incorrectly, or wrongfully, in which case Westpac Banking Corporation ABN 33 007 457 141 (as our sponsor in the Bulk Electronic Clearing System) may require us to provide this information to them in connection with your claim to the extent necessary to resolve your claim.

ConsentsThe following parties have consented to the PDS and this document containing, and accept responsibility for the accuracy of, the statements referable to them in this document (and where applicable the use of their logo) in the form and context in which they appear and have not withdrawn their consent before the date of the PDS and this document.

Investment managers

` Aberdeen Asset Management

` Advance Asset Management Limited

` BlackRock Investment Management (Australia) Limited

` BT Investment Management (Institutional) Limited

` Colonial First State Investments Limited

` Macquarie Investment Management Limited

` MLC Investments Limited

Insurer

` AIA Australia Limited

Other information (Continued)

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Like to know more?If you have any questions or would like more information about BT Lifetime – Personal Super or a copy of any material that is incorporated into the PDS by reference, you can contact us in the following ways.

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BT Financial Group GPO Box 2675 Sydney NSW 2001

customer.relations@btfinancialgroup.com

bt.com.au