What Is A Product Disclosure Statement (PDS)?

A product disclosure statement (PDS) is a document that sets out important information about a financial product, like super.

In Australia, it's the law for a business recommending or offering a financial product to provide a PDS for the product to potential clients. The financial product provider must make sure that it covers sufficient key information about the product in a way that's generally easy to understand. This helps potential clients make an informed decision about whether to purchase the product.

What is the purpose of a PDS?

A PDS for a superannuation product is like a guidebook that explains important things about the product like how it works, benefits and risks, how super is invested and taxed, fees and costs, insurance covers (if available) and more. It can help you understand what you're getting into and avoid unexpected surprises by covering important information including how your money can be invested with the product, fees and costs for the product, and what you can do if you have any complaints. It can also help you compare different products.

Why is it important to read the PDS?

It might not be very exciting, but reading the PDS is important because it contains key information about the product that you should know to help you choose the right super fund for you. Without reading the PDS, you might end up with a fund that doesn't meet your goals, or costs more than you expected.

Also, remember that a PDS contains general information only so you should also speak with a financial adviser about your personal circumstances before making a decision to purchase the product.

What can I find in a super product PDS?

Benefits of investing with the super product

What are the great things about the product? This will set out a summary of the product’s significant features and the benefits it provides.

Risks of super

Like with all investments, you should consider the potential risks of super and significant risks of the particular product.

How we invest your money

Expect to see information about different investment options offered within the product.

Fees and costs

Here you’ll find a detailed breakdown of any fees and costs for the product, including administration fees and costs, investment fees and costs, transaction costs and others.

Tax information

This is a summary of significant tax information to help you understand how super is generally taxed.

Complaints handing procedure

Find out the process for making complaints about the super product, so you know how to get help if you need it.

Note: Information above is not exhaustive. A PDS will contain other important information. You should carefully read and consider all information in the relevant PDS before making a decision. A PDS can be made up of multiple documents.

General

Government co-contributions

If your annual earnings are below $60,400 for the 2024-2025 financial year, and you make an after-tax contribution to your super, the government can add up to $500* to your super in a financial year.

Shares and your super

Learn more about shares and why they can play an important part in your super. This article explains how Rest may use shares to help grow your super faster.