Welcome to Expand

What is happening?

We’re transferring your account and investments to Expand.

• Super and pension accounts will transfer from one super fund to another.
• Investment (IDPS) accounts will be updated with new features, benefits and fee structure, and will transfer to a new technology platform.

Why is this happening?

We’re always looking for how to provide the most up to date product offerings, service and experiences. When MLC became part of the Insignia Financial Group in 2021, we had multiple similar products which needed consolidation. It was determined that Expand is the most appropriate product to use going forward. Expand uses technology that we own and invest in so we can continually improve the client and adviser experience.

When is this happening?

Your current account will close on Friday 29 March 2024 and your new account will open on Saturday 30 March 2024. You’ll have access to your new account from Tuesday 2 April 2024. See the Communications section for more information about what you’ll be sent.

What products are impacted?

What product is my account being transferred to?

Will I receive a new account number?

Yes, after the transfer, you’ll receive an Expand welcome pack which will include your new account number and information on how to register for online access (this is optional). If you’ve elected to receive electronic communications, you will receive an email about registering for online access shortly after the transfer.

For super accounts, the welcome pack will include:

• information on how you can contribute to your new account
• updated Unique Superannuation Identifier USI information, and
• a new Choice of Fund form to provide your employer.

Will my fees change?

With this transfer, over 99% of accounts will receive a reduction or no change to the cost of their administration fees.

As fees are specific to each account, you should refer to the letter called ‘Your account is moving to Expand’ which should arrive in late January/early February 2024 (this is also available on MLC Investor Online in the Reports and Statements section). This letter outlines the fees that will apply to your Expand account.

Will there be a transaction suspension?

Yes, to ensure the successful transfer of your account, transactions will be temporarily suspended. This flyer shows the last day we can accept your requests for certain transactions in the lead up to the transfer. We anticipate you, or your adviser, will be able to resume transacting on Expand from 2 April 2024.

Are there any capital gains tax implications?

No, due to the methods used to complete the transfers no capital gains tax will be realised on your investments. The transfer will be completed without selling any of your investments.

Is there any impact to my adviser service fees?

For investment accounts, your adviser service fee will continue after the transfer as per your agreement.

For super and pension accounts, the intention is to transfer your advice fee to your new account. In some circumstances, the adviser service fee needs to be reconfirmed to ensure you are consenting to the fee being deducted by the new trustee. If this applies to you, you’ll receive a separate advice fee consent request form soon. This will either come from your financial adviser or us.

Any ongoing or fixed term advice fee will be confirmed in your Expand welcome pack.

Will assets be sold down?

No, all investment holdings will be transferred to the new account, this includes your Cash Account, managed investments, listed investments, term deposits (TDs), and cash and investments in a separately managed account (SMA).

Can my employer continue to contribute to my account?

Yes, payments using the Unique Superannuation Identifier (USI) and account number for your current account will be redirected to Expand to give you time to provide your employer with your new account details. Your welcome pack will include updated USI information and a new Choice of Fund form to let your employer know how to contribute to your new super account.

If your employer is currently making contributions using electronic funds transfer (EFT), you’ll receive updated details after the move.

How can I claim a tax deduction for personal contributions made during the financial year? Do I need to claim these prior to the transfer?

You’ll receive a notice of intent to claim a tax deduction after 1 July 2024. This will cover any personal contributions made to your current account and/or your Expand account. You don’t need to claim these prior to the transfer. Completing the notice is subject to the normal qualifying criteria unaffected by the migration.

Similarly, if you wish to withdraw or amend a notice already submitted for the financial year, you’ll be able to do so after the transfer is complete.

What will happen with existing direct debits?

Existing direct debits will be transferred to Expand and will continue.

Any direct debits that are due to be processed during the transaction suspension period (27 March to 2 April 2024) will be processed on your Expand account from 3 April 2024.

What will happen to death benefit nominations?

Your death benefit nomination will transfer to your Expand account and will be confirmed in your Expand welcome pack.

The trustee for Expand will use your nomination (if valid) to pay the benefit according to your wishes. If you made a non-binding nomination, your nomination and personal circumstances will be considered before confirming where to pay your benefit in the event of your death.

What will happen to pension payments?

There’ll be no change to your ongoing pension payment dates and no interruption to any scheduled pension payments because of the transfer.

To ensure no delay to payments due to the transfer and the public holidays during this period, any regular pension payments due between 23 March and 3 April 2024 will be brought forward and made by us on or around 22 March 2024. Pension payments due after 3 April 2024 will be paid from your Expand account.

Do I need to inform Services Australia/Centrelink of the changes?

No, we’ll notify Services Australia (SA, managed by Centrelink) approximately one month prior to the transfer, and confirm once the transfer has been successfully completed. When we notify SA we’ll confirm the transfer is a continuation of the original pension and remind SA to update their reference material to inform their customer service staff of the change and correct process to follow.

What will happen to death benefit nominations?

Your benefit nomination will transfer to your Expand account and will be confirmed in your Expand welcome pack.

The trustee for Expand will use your nomination (if valid) to pay the benefit according to your wishes. If you made a non-binding nomination, your nomination and personal circumstances will be considered before confirming where to pay your benefit in the event of your death.

Are there any differences for Growth pensions (also known as Term Allocated Pensions)?

While the Government has indicated that it’s looking to resolve the following matter, you may wish to consult your financial adviser to confirm your personal circumstances and any actions required.

A transfer of this nature results in an increase to your transfer balance amount (the amount recorded by the ATO that counts toward the transfer balance cap). Possible impacts include:

• You may be required to commute (transfer) part of another pension back to an accumulation phase or do a lump sum withdrawal for the amount over the transfer balance cap.
• You might not be able to put as much money into the pension phase in the future compared to your current transfer balance amount (for example, death benefit amounts).
• Indexation of your transfer balance cap will be slightly lower going forward.

What will happen to regular withdrawals?

There’ll be no change to ongoing regular withdrawal payment dates and no interruption to any scheduled payments because of the transfer.

To ensure no delay to payments due to the transfer and the public holidays during this period, any regular withdrawal payments due between 23 March and 3 April 2024 will be brought forward and made by us on or around 22 March 2024. Regular withdrawal payments due after 3 April 2024 will be paid from your Expand account.

Will I receive two tax statements for FY 2023/24?

Yes, you’ll receive an annual tax statement from your current account for the part year and an annual tax statement from your Expand account for the remainder of the financial year. Both statements will be issued in late 2024 - these are generally sent around September/October.

Will my existing margin lending be transferred?

Yes, your margin lending will continue in your Expand account.

If you have a NAB margin loan on your account, there’ll be some changes to how it works with the transfer to Expand.

• You’ll not see the margin loan balance on your Expand statement, and
• You’ll not be able to have the margin loan interest automatically deducted from your Expand Cash Account. If this applies to you, it will be necessary to establish an alternative payment method and you’ll be contacted by NAB after the transfer.

What communications will I receive regarding this transfer?

You may receive more than one communication from us if you have multiple accounts.

How do I get access to Expand Online and/or the Expand mobile app?

If you’d like to register for online access for your Expand account, you’ll receive details about Expand Online and the Expand mobile app registration in your welcome pack. Online access to your new account will be available from 2 April 2024.

Will I need a new username and password?

Yes, you’ll need to register for Expand Online and/or the Expand mobile app and this will require a new username (your email address) and password. You only need to register once, this login will be used for both the website and the app. If you have more than one account you’ll be able to access them through the one login.

Will I still log in to MLC Investor Online?

If you currently have MLC Investor Online access for your existing account, this will remain available for a short time following the transfer. Your Expand Online login will provide access to the past seven years of statements for your reference. This will reduce the need for you to log in to MLC Investor Online after the move.

Any current online access you have will not transfer to Expand Online, you’ll need to register with your new Expand account number.

Will there be changes to my MLC Limited retail insurance?

No, Expand has recently added MLC Limited to the extensive range of retail insurance providers offered on the Expand products.

Policies will be transferred without a change in cover or increase in premium.

What retail insurance is available in Expand?

Individual retail insurance that can be integrated with your super account, offered by:

• AIA Australia Limited (ABN 79 004 837 861)
• MLC Limited (ABN 90 000 000 402)
• TAL Australia Limited (ABN 70 050 109 450)
• Zurich Australia Limited (ABN 92 000 010 195).

What will happen to existing group insurance in my super account?

For super accounts with group insurance, this cover will transfer to TAL Australia Limited (ABN 70 050 109 450). For more information, please refer to the letter called ‘Your account is moving to Expand’ (this is also available on MLC Investor Online in the Reports and Statements section). If you have any questions, please contact us.

What will happen to existing group insurance in my investment account?

For investment accounts with group insurance, this cover will remain with MLC Limited (ABN 90 000 000 402). For more information, please refer to the letter called ‘Your account is moving to Expand’ (this is also available on MLC Investor Online in the Reports and Statements section). For more information, please refer to the letter sent about the move.

Is group insurance available in Expand?

Yes, group insurance is available through Expand Essential and Expand Extra Super accounts. The insurance is provided by TAL Australia Limited (ABN 70 050 109 450). To find out more, refer to the Product Disclosure Statement and Insurance Guide for Expand Essential and Expand Extra Super and Pension.