20k QFF Points for joining Australian Super

[33kft]

Super is the most serious topic and investment you will ever make and the only positive I can see is if people genuinely take a look at what Super fund they are in, evaluate their performance (net of fees) and decide to make the move based on performance and asset allocation of the fund.

To be fair, and I believe this has been discussed previously in this thread, AusSuper's product has performed very well with an average return of 10% over the last 5 years and is an industry super fund run for members. For someone in the appropriate position I don't see why you wouldn't pocket a bonus to join a fund that you intended to anyway. I agree that it would be a shame to see a bank or other retail super fund using inducements to lock people into poor performing funds but I do not see that is the case in this instance (and they may not be around for much longer anyway with the upcoming super consolidations).

 

[wannabeinvestmentbanker]

Absolutely agree if you were already going to make the move and you think Australian Super is the optimal fund for you but there are many who are not in a position to effectively evaluate that. I also agree that industry funds have performed well as they have the scale to expand their unlisted investments. Aus Super is by far the largest fund in the country so won't be going anywhere anytime soon I can guarantee that.

My point was more around if you need points, get a new CC and don't be mixing up or de-consolidating your super.

 

[NoName]

Or you could think of it as making an additional superannuation contribution that you weren’t otherwise going to make. And that can only be a good thing from a retirement point of view.

 

[exceladdict]

I would be very careful about participating in anything like this. I personally don't agree that any super fund should be able to make any inducements like this. Super is the most serious topic and investment you will ever make and the only positive I can see is if people genuinely take a look at what Super fund they are in, evaluate their performance (net of fees) and decide to make the move based on performance and asset allocation of the fund. By diverting even up to 350 on a significant balance you've accumulated, you are forgoing compound returns.

IMHO there are far easier ways to get 20,000 points if you're that desperate!

I understand that SMSF operators are unable to, for example, earn points on contributions (such as through B2Bpay) as it would derive a personal benefit. In the current heat of the royal commission, I am unsure if 'inducements' such as this promo will be clamped down on.

 

[burmans]

By diverting even up to 350 on a significant balance you've accumulated, you are forgoing compound returns.

Seriously, at the 6-8% return most super funds are returning it's going to take a while to get anything close to the value this offers. While I agree with the general theory that you need to be making good investment decisions this hardly rates as a bad outcome. If you want to progress from wannabe would suggest you need to be making recommendations with more basis than this.

 

[wannabeinvestmentbanker]

Ouch I'm feeling the burn with that comment.

Yes, perhaps this is an exaggeration but I feel very passionately about Super and financial welfare and to me it just feels a little wrong.

I lament posting the comment as this realistically is a FF forum not a financial advisory one so please disregard my post and continue chasing those points.

 

[RooFlyer]

It was good advice, but not suited to everyone.

As a former investment banker, now on the cusp of retirement, it was a timely perk for something I was looking to do anyway.

 

[JohnK]

My point was more around if you need points, get a new CC and don't be mixing up or de-consolidating your super.

Some have difficulty obtaining further credit.

I'm not in serious need of 20,000 QFF points but I've had $4,000-$5,000 in an AMP account that I was going to move to existing super account as I'm not hapy that AMP has sold superannuation business.

No harm trying out Australian Super.

 

[exceladdict]

Some have difficulty obtaining further credit.

I'm not in serious need of 20,000 QFF points but I've had $4,000-$5,000 in an AMP account that I was going to move to existing super account as I'm not hapy that AMP has sold superannuation business.

No harm trying out Australian Super.

The T&Cs don't specify whether a 'rollover' counts as a 'contribution'. I think there's a good argument that it does, but it's possible the $350 must be a concessional or non-concessional employer or employee contribution. If the T&Cs are made 'simpler and fairer' I would expect this to be refined.

 

[JohnK]

The T&Cs don't specify whether a 'rollover' counts as a 'contribution'. I think there's a good argument that it does, but it's possible the $350 must be a concessional or non-concessional employer or employee contribution. If the T&Cs are made 'simpler and fairer' I would expect this to be refined.

Interesting. I won't reach the $25,000 contribution limit this year so may pay in $350 and claim later even though I have salary sacrifice active?

 

[tifmono]

Does the $350 have to be a cash contribution? Does regular super contribution from employer work?

 

[Old Fella]

I doubt that this offer could possibly meet the Sole Purpose Test of superannuation, as it provides a benefit before your retirement, death or disablement. If ASIC allow this, they make a mockery of the Royal Commission into misconduct in the financial services industry.

 

[blingy90]

Soooo. T&C's mentions to qualify, you only need to deposit $350 "within 6 months" of joining fund.

So join fund before offer expires, then wait until after July to deposit the funds, so hopefully exit fees have been abolished. You'll still have to pay some admin fees until you see the points hit your QF account. Not too sure they will be too happy overdrawing the account with fees until you deposit some funds...

I like this logic.

My only query - would you be charged admin fees before making a deposit??? The only undoing in my eyes of this plan

 

[oz_mark]

AFR is on to it.

AustralianSuper attracts flak as Qantas Frequent Flyer offer comes under fire

AustralianSuper, the nation's largest retirement fund with more than $120 billion under management, is under fire for offering 20,000 Qantas Frequent Flyer points as an inducement to become a scheme member.

Financial advisers in Sydney and Melbourne claim the offer is in breach of the "sole purpose" test that ensures a fund is maintained to provide benefits to members for retirement, or for beneficiaries if a member dies.

 

[Dr Ralph]

AFR is on to it.

AustralianSuper attracts flak as Qantas Frequent Flyer offer comes under fire

Can't read the entire article because it's behind a paywall. But I can see enough to start to think of this clause that I highlighted in #5:

'If for any reason this offer is not capable of running as planned, AustralianSuper reserves the right in its sole discretion to cancel, terminate, modify or suspend this offer.'

In post #5 I identified my concerned re this clause.

UPDATE: Managed to get to the article via a another method. Here's the text if anyone is interested:

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'AustralianSuper, the nation's largest retirement fund with more than $120 billion under management, is under fire for offering 20,000 Qantas Frequent Flyer points as an inducement to become a scheme member.

Financial advisers in Sydney and Melbourne claim the offer is in breach of the "sole purpose" test that ensures a fund is maintained to provide benefits to members for retirement, or for beneficiaries if a member dies.

"These bonus points will have no benefit to the member's accumulation, asset allocation, investment performance or insurance options," a Melbourne-based adviser, who did not wish to be named, said.

Angus Kidman, editor-in-chief at Finder, said: "It's difficult to put a set value on 20,000 Qantas points, but you get more value using them for flights and upgrades than for products and gift cards. If you're not getting at least $20 in value for every $1000 you redeem, you're wasting your points." Quentin Jones

Advisers are also attacking details that claim the "offer is not intended to influence a person in making a decision in relation to a particular financial product".

Financial advisers claim "it is very much an incentive", has nothing to do with retirement savings and could distract from a fund's long-term performance and fees.

A spokesman for AustralianSuper dismissed the claims.

"We considered these matters thoroughly before proceeding. We obtained legal advice to confirm we were complying with our legal obligations," he said. "We are satisfied that it is in our members' best interests and that the Qantas initiative does not contravene the sole purpose test or other regulatory obligations."

The only other super fund to offer air miles is Virgin Money Super, which has about $500 million under management, and offers 1 Velocity Point for every $5 contribution, according to finder.com.au, which monitors financial rates and products.

BT Super, which is part of the Westpac Group, allows scheme members to turn Westpac Altitude Rewards points into super contributions.

The AustralianSuper offer is to new members who contribute a minimum of $350 within six months of joining.

The offer, which is only available to Qantas Frequent Flyer members, could include additional fees and charges.

Twenty-thousand points will buy a $100 David Jones gift card, which is worth 16,530 points, or a $321 economy return flight from Sydney to Melbourne, which is worth about 16,000 points, according to Finder.

By comparison, a Qantas Premier Platinum card earns 100,000 points and a Premier Titanium 150,000 points.

Angus Kidman, editor-in-chief at Finder, said: "It's difficult to put a set value on 20,000 Qantas points, but you get more value using them for flights and upgrades than for products and gift cards. If you're not getting at least $20 in value for every $1000 you redeem, you're wasting your points."

Sections 10 to 14 of the offer's small-print terms and conditions remind those considering the offer to "understand their personal financial objectives" and refers them to the scheme's product particulars.

The partnering with the nation's flagship carrier comes as large numbers of new and existing scheme members with bank-owned and AMP retail funds review their managers after damning findings by the Hayne royal commission.

Large sums of money poured out of bank-owned superannuation funds and into industry funds in response to revelations of misbehaviour at the banking royal commission.

AustralianSuper said it received more than $1 billion from new customers in both July and August last year – double the amount compared to the same time in 2017.

AustralianSuper last year overtook AMP as the country's biggest superannuation scheme.

As of last June, AustralianSuper had $120 billion in assets, against $118 billion for AMP, which released its full-year profit results on Thursday.

AustralianSuper lawyers have included an exhaustive exemption clause with the frequent flyer offer: "If for any reason this offer is not capable of running as planned, AustralianSuper reserves the right in its sole discretion to cancel, terminate, modify or suspend this offer.'

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Note sure that I would use the phrase 'exhaustive exemption clause' but I did call it a 'Nice escape clause that I couldn't have drafted better myself' in #7.

 

[Saurs82]

Anyone have any insight yet as to if a rollover would count yet?

 

[lang_13]

Just noticed 20k points have come through. Currently $2 down on $350 deposit. Will look at rolling into main fund shortly.

 

[motef]

20k points just appeared in QFF account today

Administration fee of $6 and interest earned of 71c on my $350

 

[Saurs82]

20k points just appeared in QFF account today

Administration fee of $6 and interest earned of 71c on my $350

What date did you transfer the $350 over?

 

[jaseb]

I received my 20k points today. The $350 deposit cleared to the AusSuper account on 2nd Feb