There are no fees when you place a term deposit order.
Take control of your investments with Choiceplus, the option designed for people who want to take a more active role in investing and managing their super or pension.
Choiceplus+ is an investment option that puts you in the driver’s seat when it comes to managing your super or pension. You can invest directly in Australian shares on the S&P/ASX 300 Index, selected exchange traded funds (ETFs), listed investment companies (LICs) or term deposits – you make the decision. What’s more, you can invest in Choiceplus while maintaining your investments in other Hostplus options.
Interested in self-managed super funds (SMSFs)? Choiceplus gives you many benefits of an SMSF without the high costs and administrative burden associated with an SMSF. Importantly, you remain invested in an Australian Prudential Regulation Authority (APRA)–regulated super fund.
+ Not available to Hostplus Transition to Retirement members, or Maritime Contributory Accumulation members who joined before 1 July 2008 and have not waived their Protected Minimum Benefit.
You’ll need to create a Choiceplus transaction account, and transfer money from your other Hostplus investment options into the account. How much money you transfer is up to you, but you’ll need a minimum of $200 in your Choiceplus account at all times. Find more information below about who can invest in Choiceplus.
Once the money is in your account, you can start trading on the Choiceplus online investment platform. You’ll be able to access extensive market information, updates and news to help you research, transact and monitor investments. You’ll be responsible for your investment strategy and will make your own decisions and trades.
With one easy-to-use online investment platform and a central transaction account that’s connected to your existing Hostplus account, Choiceplus can help streamline your investing activities. Thanks to 24/7 access to your investment performance, and consolidated portfolio and tax reporting (see the Choiceplus Product Guide), we can help you feel on top of your admin as well.
The Choiceplus investment platform provides comprehensive company and market information, research, the latest news and access to the end-of-the-day market wrap-up, giving you detailed information that can help you research and monitor your investments.
The Choiceplus platform allows you to make investments in real time. Live share quotes, 20-minute delayed market data, and investment tools, like watchlists and charting, mean that you can make informed decisions when the time is right.
Choiceplus may be suitable for members with the knowledge and confidence to take an active role in managing their super or pension.
Specifically, to be able to invest in Choiceplus, you must:
Choiceplus isn’t available in Hostplus Transition to Retirement (TTR) accounts.
1. If you’re a Hostplus Pension member, the minimum balance may be higher than $2,000, depending on your annual pension payment requirements.
In addition to your Hostplus administration and investment fees and costs, Choiceplus includes a competitive administration fee of $168 a year (approximately $14 per month, deducted from your transaction account).
|Choiceplus investment option|
|Accumulation members||Pension members|
|Administration fees and costs|
$78.00 p.a. (deducted from your Hostplus account) plus 0.0165% of your super account balance per year (trustee fee*).
Plus $30.04 p.a. (deducted from the Fund’s Administration Reserve).
|$234 p.a (deducted from your Hostplus account) plus $54.78 p.a. (deducted from the Fund’s Administration Reserve) plus trustee fee of 0.0165% of your account balance. |
Portfolio administration fee
|$168 p.a. (approximately $14 per month deducted from your transaction account). |
Brokerage fees when you buy or sell shares, ETFs and LICs
Fees are scaled based on the transaction amount:
$0 to $13,000 transaction: $13.00
$13,000.01 to $250,000 transaction: 0.10% of trade value.
Management fees for ETFs and LICs
|You may be charged management fees for ETFs and LICs. Please refer to the relevant disclosure documents for those products.|
Transaction account fee
|Your transaction account within Choiceplus is subject to a fee of 0.10% of your transaction account balance. This fee is not separately deducted from your account balance. It is deducted daily from gross interest earnings before net interest returns are applied to your transaction account. |
Note: Additional fees may apply. The pension administration fee of $4.50 per week is deducted from your account monthly, on the last Friday of the month. The amount charged per annum depends on the number of Fridays in a year.
The fees and costs charged if you invest via the Choiceplus platform relate to Choiceplus and access to Choiceplus investments only, and do not include the fees and costs that relate to investing in those investments. Additional fees and costs will be charged by the issuers of the Choiceplus investments that you decide to invest in.
* For further information about the trustee fee go to section 6 of the Member Guide at hostplus.com.au/pds
How and when paid: calculated daily and deducted monthly from your Choiceplus cash account.
Or call us on 1300 467 875 8am – 8pm (AEST/AEDT), Monday to Friday.
Here’s some additional information about Choiceplus to help you make an informed decision about whether it’s right for you. For more information, see the Choiceplus Product Guide.
To start investing in Choiceplus, you must first have your online super or pension account activated. Visit Member Online to activate your online account.
While in your online account, you can register for Choiceplus by clicking on ‘Investments’ and then ‘Choiceplus’. You’ll then be able to select your level of access:
Once you’ve registered for Choiceplus you’ll be asked to transfer funds into your transaction account from your current Hostplus investment options and invest at least $200.
Like any investment, Choiceplus carries its own level of investment and market risk. When choosing to invest, you should be aware of the risks involved and be comfortable with the strategy you’re putting in place. Here are a few considerations for you to think through before investing in Choiceplus:
The following requirements apply to investing in Choiceplus:
As long as these requirements are fulfilled, you can invest as much of your remaining Hostplus account balance in Choiceplus as you’d like. However, the following restrictions apply:
You cannot automatically direct future contributions into Choiceplus. However, you can make a transfer request. This allows you to transfer funds from other Hostplus investment options into your Choiceplus transaction account at any time.
Your transaction account is the hub of your Choiceplus investment option. It operates like an online bank account, and you can use it to buy shares, ETFs, LICs and term deposits, or to transfer money into or out of your other Hostplus investment options.
You must hold a minimum of $200 in your Choiceplus transaction account at all times. You’ll also need to ensure you have enough money available in your transaction account to invest.
Funds in your transaction account are invested in a Hostplus cash account with ME Bank. ME Bank is 100% Australian-owned and is an APRA–regulated bank.
The balance of your transaction account consists of the following four components.
|Balance type||Description||Example balance|
|Actual cash||The physical cash that is currently in your account. This is the amount that interest is calculated on daily.||$190,000|
|Accrued interest (net of tax)||The accrued interest for the current month (less an allowance for tax) that is yet to be paid into your account.||$40|
|Income due but not received (IDBNR)||Known income from dividends or distributions that is yet to be received into your account.||$60|
|Unsettled trades||This includes the proceeds of completed sales and funds for completed purchases that have yet to be settled.||$10,000|
In addition, cash in your transaction account is categorised as ‘available cash’ and ‘reserved cash’.
Available cash is the amount of cash in your transaction account that’s available to invest. Reserved cash is made up of:
Using the example balances in the above table, your available cash would be calculated as follows:
|Balance type||Example balance|
|Accrued interest (net of tax)||-$40|
|Income due but not received (IDBNR)||-$60|
Cash transfer requests that have been received before 4pm AEST will be available two business days later.
You must maintain at least $200 at all times in your transaction account. The platform will automatically manage this minimum from any interest or dividend income you receive, or from the proceeds of any share, ETF or LIC transaction.
If, however, your account does fall below $200, we’ll contact you to top up your account. If you haven’t topped up your account after 30 days and you hold any shares, ETFs, LICs or term deposits, we’ll attempt to contact you again. If you do not take any action to bring your transaction account up to at least $200, we’ll take the following steps to bring your minimum balance up to $200 by 12pm of the last business day of the following week.
The steps, in order, we’ll take are as follows:
The interest rate payable on your transaction account balance is subject to change and the current applicable rate is available on the Choiceplus platform. As at 1 April 2023, the interest rate payable is 4.40%. Interest on your transaction account is accrued daily and is credited to your account monthly. It’s credited in arrears and net of any applicable tax.
Choiceplus offers a selection of three-month, six-month and 12-month term deposits from ME Bank.
There are no fees when you place a term deposit order.
Provided you keep a minimum balance of $2,000 invested in one or more of Hostplus’ other investment options and $200 in your Choiceplus transaction account, you can invest as much of your remaining Hostplus account balance in term deposits as you like (up to a maximum of $5 million).
The minimum amount you can invest in a term deposit is $1,000. The maximum amount you can invest in a single term deposit is $5 million.
Your interest will be credited to your transaction account at the date of maturity.
Investments in term deposits are placed on a Friday (or the next business day if the Friday falls on a public holiday). You can request investment in a term deposit at any point during the week before 11.59pm AEST/AEDT on a Thursday. If your request is received after this time, it will take effect from the following Friday.
If you want to cancel a term deposit, you have until 11.59pm AEST/AEDT on the Thursday after you place the term deposit order to cancel your request without incurring any penalties.
Applications to redeem a term deposit before it matures will only be granted in limited circumstances. These are:
If you meet one of the above criteria and you or your beneficiaries redeem your term deposit before the maturity date, the interest rate will be reduced as follows:
Choiceplus allows you to specify reinvestment preferences on a term deposit at the time you place the initial order, or at any time during the term up to two days before the day of maturity.
The reinvestment options are:
On the day of maturity, the principal plus net interest will be deposited into your transaction account and a new order will be created based on your reinvestment preferences.
The term deposits available through Choiceplus are not covered by the Financial Claims Scheme guarantee, as they are not held in separate trust for each individual member.
The Financial Claims Scheme only applies to super fund members if the trustee holds bank deposits with an approved authorised deposit-taking institution (ADI) on separate trust, which it treats as different ‘account holders’. Hostplus pools together all the term deposits placed each week for each term deposit issuer to minimise the cost to members.
You can invest in any shares included in the S&P/ASX 300 Index.
The S&P/ASX 300 Index incorporates the largest 300 companies on the Australian Stock Exchange (by market capitalisation). Through the S&P/ASX 300 Index you can invest directly in well-known Australian companies and some less well-known or niche companies over a range of industries.
You can invest up to 80% of your Hostplus account balance in ETFs, shares, and LICs, and a maximum of 20% of your account balance in a single share.
If your holding reaches above 20% for a single share or 80% of your total balance in shares, ETFs, and LICs, you will not be required to liquidate any position to keep within these rules. However, you may not be able to purchase other shares, ETFs, or LICs until your holding is below 80% of your total account balance.
If your holding exceeds 20% for a single share (i.e., due to market movement), you will not be restricted from purchasing additional securities as long as your total balance in shares, ETFs, and LICs does not exceed 80%. However, you will be restricted in purchasing any additional shares in the company that is in excess of the investment limit.
The minimum buy order you can place for shares is $1,500. You cannot buy and sell the same share on the same day.
The following rules apply to shareholder actions:
You cannot currently transfer shares you already personally own into your Choiceplus account.
When you place your buy order, you can select whether you want your order to be valid for the day or for 30 days. This is called the ‘expiration period’.
If you choose ‘good for the day’, Hostplus will attempt to execute your order on the day the order was requested. If all, or part, of your order is unable to be executed on that day, your order (or part of your order) will expire.
If you choose ‘good for 30 days’, Hostplus will attempt to execute your order within 30 calendar days from the date of your order request. If all, or part of, your order is unable to be executed within that period, your order (or part of your order) will expire.
For all limit and market orders which are not fully executed in the same trading day, normal brokerage will be charged for the total portion executed each day.
Yes, you can cancel or change trades that have not been fully executed.
An ETF will generally hold similar securities and weightings to the index, so it can closely replicate its performance. Market participants tend to ensure ETFs trade at prices that are closely aligned to the net asset value of the underlying securities in the portfolio.
Similar to share trading, ETFs can be bought and sold at any time during the trading day.
You can choose from a selection of Australian and international ETFs.
The ETFs on Choiceplus have been selected by Hostplus based on recommendations from Lonsec, a specialist investment research house and the leading provider of quality managed fund and ETF research in the Australian market. The minimum buy order you can place for shares is $1,500, including brokerage. You cannot buy and sell the same share on the same day.
You can invest up to 80% of your Hostplus account balance in ETFs, shares, and LICs, and a maximum of 20% or 50% of your account balance in a single ETF. Refer to the list of ETFs for the applicable limits for each ETF.
If your holding reaches above the applicable investment limit of 20% or 50% for a single ETF, or 80% of your total balance in shares, ETFs, and LICs, you will not be required to liquidate any position to keep within these rules. However, you may not be able to purchase other shares, ETFs, or LICs until your holding is below 80% of your total account balance.
If your holding exceeds the applicable investment limit of 20% or 50% for a single ETF (i.e., due to market movement), you will not be restricted from purchasing additional securities as long as your total balance in shares, ETFs, and LICs does not exceed 80%. However, you will be restricted in purchasing any additional units in the ETF that is in excess of the investment limit.
The minimum buy order you can place for ETF is $1,500. You cannot buy and sell the same ETF on the same day.
Yes, you can cancel or change trades that have not been fully executed.
LICs are listed managed investments that are traded like shares. They enable an investor to invest in a diverse and professionally managed portfolio of assets, which can include shares, property and interest-bearing deposits.
Like shares, LICs can be bought and sold at any time during the trading day.
You can invest in a range of LICs. The LICs offered on Choiceplus have been selected by Hostplus based on recommendations from specialist investment research.
You can invest up to 80% of your Hostplus account balance in ETFs, shares, and LICs, and a maximum of 20% or 50% of your account balance in a single LIC. Refer to the list of LICs for the applicable limits for each LIC.
If your holding reaches above the applicable investment limit of 20% or 50% for a single LIC, or 80% of your total balance in shares, ETFs, and LICs, you will not be required to liquidate any position to keep within these rules. However, you may not be able to purchase other shares, ETFs, or LICs until your holding is below 80% of your total account balance.
If your holding exceeds the applicable investment limit of 20% or 50% for a single LIC (i.e., due to market movement), you will not be restricted from purchasing additional securities as long as your total balance in shares, ETFs, and LICs does not exceed 80%. However, you will be restricted in purchasing any additional units in the LIC that is in excess of the investment limit.
The minimum buy order you can place for LIC is $1,500. You cannot buy and sell the same LIC on the same day.
Yes, you can cancel or change LIC orders that have not been fully executed.
Your dividends will be automatically paid into your transaction account as cash.
Alternatively, you can participate in a dividend reinvestment plan (DRP) if it is offered by the issuing company. This means that your dividends are automatically reinvested to buy more shares. Note, however, that not all companies offer dividend reinvestment. If you’ve applied a default DRP preference to your account and this is not offered by an individual company, the dividend will be paid as cash into your transaction account.
The Choiceplus investment option can carry capital losses forward, which may provide you with tax benefits. A capital loss occurs when an asset loses value in between buying and selling it. Although capital gains must be realised and taxed each year, capital losses can be carried forward to be offset against future gains.
Choiceplus allows you to carry forward any realised capital losses in relation to the sale of shares, ETFs and LICs to be offset against future gains. These are included in the calculation of the current year’s net capital gain (or loss) calculations.
Different investments are taxed differently:
In addition, you may be required to pay capital gains tax (CGT). Capital gains (or losses) refer to the difference in the value of an asset when you buy and sell it. Your CGT is determined by adding the total of all your capital gains for the year then deducting your total capital losses, including any net realised capital losses that have been carried forward from the previous year.
The tax rate on income in a superannuation fund is 15%, so capital gains on investments within your super (e.g. direct shares, ETFs and LICs) are taxed at 15% for assets that have been held for 365 days or less. There’s a one-third discount on CGT for assets that have been held for over 365 days, which means that any gains will be taxed at 10%. Pension accounts pay income tax at 0%, so capital gains are not taxed.
Hostplus will calculate the net CGT liability daily, using a year-to-date position. This will accrue within your portfolio valuation. A physical deduction or refund for CGT will be made each quarter, and will occur within seven days of the following dates:
The quarterly CGT provision will take into account any gains or losses since the previous period and will recalculate the financial-year-to-date CGT asset or liability. This may result in a credit or debit to your transaction account.
Hostplus will also calculate any unrealised CGT liability or benefit daily, which will be included in your portfolio valuation. This calculation will include any unutilised realised capital losses.
Shares can provide tax benefits to shareholders in the form of franking credits, which are also known as imputation credits. Franking credits are attached to dividends and apply to the amount of tax a company has paid on its profits. Australian companies pay tax at a rate of 30%, which is the maximum franking credit investors can receive.
Super funds pay a maximum tax rate of 15% on income from investments, although pension accounts are not subject to tax. Any dividends that have been taxed at a rate higher than 15% will return a franking credit to you. The franking credit is equivalent to the difference between the superannuation fund tax rate and the tax rate paid by the company.
Franking credits are credited back to your account and can help to improve net investment returns. They’ll either be added to your transaction account or reinvested, if you have selected that option.
The following examples show how franked dividends can provide a tax benefit.
Example 1: An unfranked dividend of $70
Step 1. Calculate dividend income
Step 2. Multiply taxable income by 15% to calculate tax (withheld)/refund due
Step 3. Deduct tax withheld from total dividend income to calculate net dividend income
Example 2: A fully franked dividend of $70
1. Calculate dividend income
2. Add fully franked divided income to franking credit to calculate taxable income
3. Multiply taxable income by 15% and deduct franking credit to calculate tax (withheld)/refund due
4. Add tax (withheld)/refund to total dividend income to calculate net dividend income
Example 3: A partially franked dividend of $70
1. Calculate dividend income
2. Add fully franked dividend income and unfranked dividend income to calculate total dividend income
3. Add franking credit to total dividend income to calculate taxable income
4. Multiply taxable income by 15% then deduct franking credit to calculate tax (withheld)/refund due
5. Add tax (withheld)/refund due to total dividend income to calculate net dividend income
The Choiceplus online platform includes:
Your account includes access to a standard suite of news and market summary information from Morningstar. This includes access to key fundamental analysis ratios for local and global companies, including revenue, earnings, dividends, return on assets, income, profitability and valuations.
You can set up watchlists to keep track of companies, ETFs and LICs you’re interested in buying, or those you already hold in your portfolio. The watchlist details 20-minute delayed information such as prices, daily highs and lows, volume traded, and changes from the previous day. You can also buy and sell shares from watchlists.
As your portfolio valuation information is based on the closing price from the previous day, it’s a good idea to set up a watchlist for stocks you already own so you can track the intra-day performance of your portfolio.
You’ll receive alerts and emails via the Choiceplus online platform advising you of any corporate actions you need to be aware of, as well as dividend payments that are relevant to your investments.
You’ll also receive alerts for listed investments that are on your watchlist.
The following reports can be downloaded from the Choiceplus platform: