Fees and taxes

There are no entry or exit fees for establishing or closing an IRIS account.

We do not pay commissions to financial planners and do not charge any ongoing trail commissions, which means that more of your money is working for you.

Fees and costs

Management fees

Management costs can be separated into the following 2 components:

Component 1: Management costs that are deducted directly from your account

We are committed to maintaining IRIS Super Income Stream as a low fee retirement income product.

Management costs cover the ongoing administration and investment management costs of the Fund. It does not include transaction costs, which are described on page 31 of the Product Disclosure Statement.

The Trustee’s management fees are higher than the net management costs charged to members’ accounts. RITC accounts for the difference.

Management costs are calculated for each investment option as listed below based on your account balance at the end of each month and deducted from your account. Your month end account balance will be calculated using the next earning rate declared after the calendar month end.

If your account balance exceeds $250,000, then a reduced fee applies to all of your investment options.

IRIS Investment Option	Management Costs deducted directly from members' accounts
	Total account balance below $250,000 p.a. (%)	Total account balance of $250,000 p.a. and above (%)
Defensive	0.90	0.85
Conservative	0.95	0.90
Growth	1.00	0.95
High Growth	1.10	1.05
Cash	0.40	0.35
Diversified Fixed Interest	0.75	0.70
Property	0.90	0.85
Australian Shares	1.00	0.95
Sustainable Australian Shares	1.15	1.10
International Shares	1.15	1.10

Component 2: Management costs that are deducted from investment earnings before net earnings are applied to your account

These are based on operational expenses that may be incurred during the year by the Fund. The Trust Deed entitles us to recover these expenses from the Fund.

These expenses include audit fees, government taxes & charges, regulatory fees & charges and direct legal charges incurred by the Fund.

Expenses paid by the Fund are detailed in the Annual Financial Statements, which are made available to members. No limit is placed on the amount of ongoing operating expenses that can be paid from the Fund.

The table below shows the estimated expenses as a percentage of the estimated average size of each investment option for the 2011/2012 year.

IRIS Investment Option	Estimated management costs that are deducted from investment earnings (%)
Defensive	0.0323
Conservative	0.0323
Growth	0.0323
High Growth	0.0323
Cash	0.0323
Diversified Fixed Interest	0.0323
Property	0.0323
Australian Shares	0.0323
Sustainable Australian Shares	0.0323
International Shares	0.0323

Transaction costs

Covers costs such as brokerage, government taxes/duties/levies, bank charges and account transaction charges when assets are bought and sold.
Applies when you invest, switch or withdraw (including income payments) all or part of your investment.
Transaction costs are an additional cost to you, are paid to our external investment managers and may change at anytime without notice .

Investment option	Management fee		Transaction cost
Investment option	Total account balance below $250,000 pa	Total account balance of or above $250,000 pa	Buy costs* (when you start investing or switch to a new investment option)	Sell costs* (when you withdraw or switch from an investment option to a new one)
Defensive	0.93%	0.88%	0.09%	0.10%
Conservative	0.98%	0.93%	0.15%	0.15%
Growth	1.03%	0.98%	0.17%	0.17%
High Growth	1.13%	1.08%	0.19%	0.19%
Cash	0.43%	0.38%	0.00%	0.00%
Diversified Fixed Interest	0.78%	0.73%	0.18%	0.19%
Property	0.93%	0.88%	0.15%	0.15%
Australian Shares	1.03%	0.98%	0.15%	0.15%
Sustainable Australian Shares	1.18%	1.13%	0.15%	0.15%
International Shares	1.18%	1.13%	0.25%	0.25%

*The transaction costs above may differ from what is disclosed in the current Product Disclosure Statement (PDS) issued 2 May 2011.

The above transaction costs are current as at 7 December 2011. Please note that transaction costs may change at any time without notice.

Taxation

There is no tax on the investment earnings of your IRIS account.

If you are 60 years of age or over, you do not pay tax on your IRIS Super Income Stream or Term Allocated Pension, whether you receive regular income payments, or if you withdraw lump sum payments.

If you are under 60 years of age your income payments will be subject to income tax (plus Medicare Levy).

For more information about taxation, please read the Product Disclosure Statement and seek independent professional taxation advice.

We will send you information at the end of each financial year to assist you with the preparation of your tax return, including your portion of the fund's taxable income, imputation credits and foreign tax credits, and any amounts of capital profits distributed.

As Trustee, we undertake to notify all IRIS members of any change in fees and charges at least 30 days before the change takes effect. In addition, we may introduce or increase fees at our discretion, including where increased charges are incurred due to Government changes to legislation, increased costs, and significant changes to economic conditions and/or the imposition or increase of processing charges by third parties.