Target market determination for Income Account members of Qantas Super’s Gateway Division.
- Trustee of Superannuation Fund: Qantas Superannuation Limited
- Fund Name: Qantas Super
- Australian Business Number (ABN): 41 272 198 829
- Unique Superannuation Identifier (USI): 41272198829401
Qantas Super is a complying, resident regulated superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993 (SIS Act).
1. About Qantas Super Plan
The Qantas Super Plan (the Plan) has been specifically designed for current and former employees of Qantas Airways Limited (the Plan Sponsor) and associated employers and their spouses. The Plan is a non-public offer fund, i.e. it is not open to members of the public. The Plan includes a MySuper product and several defined benefit divisions. A Target Market Determination (TMD) is not required for MySuper products or in respect of defined benefit members.
Employee Members can remain in the Plan after they cease employment with the Plan Sponsor. All members can also access an Income Account when they satisfy the eligibility conditions and can transfer their account to another fund at any time, and if they decide that the Plan’s features are no longer suitable for their objectives, financial situation or needs.
2. About this document
This TMD seeks to offer consumers, distributors and staff an understanding of the class of consumers for which this product has been designed, having regard to the likely objectives, financial situation and needs of the target market.
This document is not to be treated as a full summary of the product’s terms and conditions and is not intended to provide financial advice. Consumers must refer to the Product Disclosure Statement (PDS) and any supplementary documents when deciding about this product.
Product Disclosure Statement to which this target market determination applies
This TMD applies to the relevant Gateway product referred to in the following PDS:
Other documents to which this Target Market Determination applies
This TMD applies to the relevant Gateway product referred to in the following documents:
3. Important dates
- Date from which this TMD is effective: 1 July 2022
- Date on which this TMD was last reviewed: 1 July 2022
- Date on which this TMD will be next reviewed: 1 July 2023
4. Consumers that fall within this target market
The information below summarises the overall class of consumers that fall within the target market for Gateway (Income Account Members).
Gateway (Income Account members) is designed for consumers who:
- Have met a condition of release and are looking to draw down on their superannuation savings through regular payments; or
- Have reached their preservation age and are looking to draw down part of their superannuation savings via a transition to retirement strategy; or
- Are a beneficiary of a death benefit payable in respect of a Qantas Super member who was the spouse of that member; and
- Have a minimum of $30,000 to invest in an Income Account.
Gateway (Income Account members) is not designed for consumers who:
- Have not met a condition of release or reached their preservation age;
- Want to receive superannuation guarantee contributions to their Income Account;
- Are members of the public who do not have a current Qantas Super account; or
- Do not have a minimum of $30,000 to invest in an Income Account; or
- Wish to invest more than the general transfer balance cap into an Income Account; or
- Want to have insurance cover associated with their Income Account.
Product description and key attributes
The key product attributes of the Gateway (Income Account members) product are:
- A range of pre-mixed investment options that have different allocations to growth and defensive assets and different risk profiles and levels of diversification;
- Access to a super to pension retirement bonus for the first Income Account opened by an Income Account Member;
- A member online portal which provides a comprehensive view of the member’s benefits and entitlements; and
- Access to intra-fund advice within the workplace at no extra cost.
Objective, financial situation, and needs
The table below sets out the class of consumers that each investment option within Gateway (Income Account members) has been designed for:
Consistency between target market and the product
This product is likely to be consistent with the likely objectives, financial situation and needs of a class of consumers in the target market. This is based on an analysis of the key terms, features and attributes of the product and a finding that these are consistent with the identified class of consumers.
The Gateway (Income Account members) product:
- Fulfils a need for consumers in the target market;
- Includes features/attributes that are consistent with the objectives, financial situation and needs of the target market,
- Delivers on what was promised; and
- Has previously benefited target market consumers in the past.
Gateway (Income Account members) will be next reviewed on 5 October 2024, unless a review trigger occurs before that time (see section 6 below). During the review Qantas Super will carefully consider whether Gateway (Income Account members) continues to be suitable for consumers in the target market.
5. How this product is to be distributed
As noted above, Qantas Super is a non-public offer superannuation fund. In accordance with the superannuation legislation, members of the public who are not employees of Qantas Airways Limited or an associated employer nor the current or former spouses of such employees, cannot join the Plan.
This product is designed to be distributed through the following means:
- Through the Qantas Super website (for eligible consumers only);
- By external Financial Planners;
- By Qantas Super employees who are Authorised Representatives of Guideway Financial Services Pty Ltd; and
- By Qantas Super phone consultants authorised to provide financial advice by Mercer Financial Advice.
This product should only be distributed under the following circumstances:
- Where the prospective member is a resident within Australia and has met a condition of release or reached their preservation age to access their superannuation savings;
- Where the prospective member is employed by Qantas Airways Limited or an associated employer, or is a former employee with a current Qantas Super account, or is a current Spouse Member; and
- To consumers that fall within the target market.
Adequacy of distribution conditions and restrictions
The Trustee seeks to minimise the risk of the Plan’s Gateway Division being acquired by people for whom it may be less appropriate by retaining the Plan’s non-public offer status. The Trustee considers that because interests in this Plan can only be issued via employer arrangements, it is unlikely that such interests could be inappropriately distributed.
An eligible person may from time to time elect to join the Gateway Division of the Plan following the receipt of personal financial product advice. The risk of inappropriate distribution of this product via this means is considered to be low as advisers are required to consider the personal objectives, financial situation and needs of the person and because the distribution conditions referred to above apply regardless of whether the person has received personal advice.
6. Reviewing this Target Market Determination
We will review this TMD in accordance with the below:
5 October 2021
Next standard review
1 July 2022
Next periodic review
5 October 2024
Review triggers or events
Any event/circumstance which arises that would suggest the TMD is no longer appropriate. This may include (but is not limited to):
- a material change to the design or distribution of the product;
- occurrence of a significant dealing;
- distribution conditions found to be inadequate, such as distribution to consumers that are not employed by Qantas Airways Limited or an associated employer;
- identification of significant detriment to consumers if the TMD was not reviewed;
- external events such as adverse media coverage or regulatory attention;
- significant changes in metrics, including but not limited to, complaints and contact points with Qantas Super in relation to Gateway (Income Account members);
- 50% year-on-year increase in investment option switching from a single option;
- 10% of the target market exiting the product in a quarter;
- persistent member complaints about investment options or product;
- 10 member complaints relating to investment options, product or insurance in a month;
- sale or acquisition of an asset that was/is an important part of the investment holdings of a particular investment option; or
- a change has occurred that effects the objectives of the target market.
For the avoidance of doubt, less substantial changes such as the like-for-like replacement of an investment manager is not considered a major change that would require a review of this determination.
Where a review trigger has occurred and Qantas Super becomes aware that a review trigger has occurred, or an event/circumstance has occurred that would reasonably suggest that the TMD is no longer appropriate, this TMD will be reviewed within 10 business days.
7. Reporting and monitoring this target market determination
We will collect the following information from stakeholders in relation to this TMD.
Qantas Super Gateway (Gateway) is a division of the Qantas Superannuation Plan ABN 41 272 198 829, RSE R1005486 (Qantas Super). The trustee of Qantas Super is Qantas Superannuation Limited ABN 47 003 806 960, AFSL 288330, RSE licence L0002257 (QSL, we, us, our or Trustee).
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