About crediting rates

Put simply, crediting rates are the returns from your super investment. Crediting rates tell you how your super has performed. They are the earnings (expressed as a percentage) after deducted tax and investment expenses.

For example, for the financial year ending 30 June 2011, our default option Growth (Cbus Choice) had a crediting rate of 8.7%.

Crediting rates go up and down during the year, reflecting movements in investment markets.

Cbus calculates crediting rates monthly. However, earnings are credited to your account only once a year, on June 30. Although earnings are applied to your account yearly, they are calculated from the day contributions are received.

How crediting rates are calculated

The Fund’s custodian, the National Australia Bank, provides Cbus with a valuation of each option’s investments every week and month end. Monthly declared crediting rates, along with interim weekly month-to-date crediting rates are determined for each option on the basis of these valuations, together with an assessment of the tax payable on the option’s earnings and an estimate of the option’s investment costs.

Some of Cbus' investments are valued less frequently, such as quarterly or annually (for example some properties). At year end, the resulting increase or decrease in value is factored into the June monthly crediting rate and the annual crediting rate.

When do we release the crediting rates?

Monthly crediting rates are available by around the 20th of each month on the Cbus website in the investment performance section.

The final yearly (financial year) crediting rates are declared by the Trustee and applied to member accounts in September (for the prior year ending 30 June). The annual crediting rate for each option will be shown separately in Cbus News, the Annual Report and on the Cbus website.

Crediting rates and switching investment options

If you have changed your investment option or have withdrawn money during the year, accumulated monthly crediting rates and an interim month-to-date rate are used to determine your account balance at the time the transaction is processed. These rates are applied for the period from 1 July or since you last switched options (whichever is most recent).

An example of how switching rates are calculated

If you want more information about crediting rates, please contact the Service Centre on 1300 361 784.