AustralianSuper regularly reviews the products and services we offer, including how much they cost members, to ensure they are competitive, equitable and sustainable, and comply with all regulations.
Following a recent review, we changed and simplified our fee structure for the Member Direct investment option from 1 April 2023.
What’s changed?
We’ve removed the Cash account fee charged as a percentage of the balance held in the Cash account and introduced a new flat dollar Portfolio administration fee for the Cash Account option.
We’ve also reduced the Portfolio administration fee on the Term Deposits option and the Shares, ETFs and LICs option, as well as reduced Brokerage fees for all trade amounts.
Investment fees and costs
The tables below compare the previous (up to 31 March 2023) Investment fees and costs for our Member Direct investment option and the new fees and costs you pay from 1 April 2023:
| Option | Up to 31 March 2023 | |
|---|---|---|
| (Assets you can invest in using this option) | Cash account fee | Portfolio administration fee |
| Cash Account (Cash only) | 0.12% pa of your Cash account balance | Nil |
| Term Deposits (Cash and Term Deposits) | $150 pa | |
| Shares, ETFs & LICs (Cash and Term Deposits and ASX 300 shares, ETFs & LICs) | $395 pa | |
| Option | From 1 April 2023 | |
|---|---|---|
| (Assets you can invest in using this option) | Cash account fee | Portfolio administration fee |
| Cash Account (Cash only) | Nil – no longer charged | $30 pa |
| Term Deposits (Cash and Term Deposits) | $120 pa | |
| Shares, ETFs & LICs (Cash and Term Deposits and ASX 300 shares, ETFs & LICs) | $180 pa | |
Your Portfolio administration fee is determined by the option you select and not by the type of assets you hold. If you no longer hold the core asset type, you can reduce this fee by selecting a different option at any time via the platform.
There is no change to how and when fees are paid. The Portfolio administration fee will continue to be deducted directly from your Member Direct Cash account in arrears on the first business day of the following month based on the number of days in the month.
Brokerage fees
The tables below compare the previous (up to 31 March 2023) Brokerage fees for our Member Direct investment option with the new Brokerage fees from 1 April 2023:
| Up to 31 March 2023 | |
|---|---|
| Trade bracket amount | Brokerage fee (including GST less RITC) |
| $0 to $5,000 | $15.38 |
| $5,001 to $10,000 | 0.3075% |
| $10,001 to $30,000 | 0.2050% |
| $30,001 to $50,000 | 0.1640% |
| $50,001+ | 0.1230% |
Different Brokerage fee rates apply starting with a flat fee for the first $5,000 of each trade. Scaled cumulative Brokerage fee rates apply to amounts above this.
| From 1 April 2023 | |
|---|---|
| Trade amount | Brokerage fee (including GST less RITC) |
| $0 to $13,000 | $13 |
| $13,001+ | 0.10% |
You will be charged either a flat brokerage fee of $13 or 0.10% of the trade amount, whichever is greater.
There is no change to how and when fees are paid. Brokerage fees will continue to be deducted directly from your Member Direct Cash account when your share, ETF and LIC trades are settled.
The Fund will continue to claim a Reduced Input Tax Credit (RITC) of 75% on the GST component of any Brokerage fees and will pass the benefit on to you in the form of a lower Brokerage fee deducted from your account (reflected in amounts shown in the above tables).
How you’re impacted
If you’ve already joined Member Direct, the impact of the fee changes by option are set out below.
Cash Account option
The Cash account fee of 0.12% pa of your Cash account balance has been removed and a new Portfolio administration fee of $30 pa on the Cash Account option now applies. This means that if you are currently in the Cash Account option and you hold a balance of less than $25,000, your fees may have increased by up to $30 pa.
However, if you are currently in the Cash Account option and you hold a balance of $25,000 or more, then your fees either stayed the same (balance of $25,000) or decreased from 1 April 2023 (balances above $25,000) as a result of these changes.
If you are in the Cash Account option, we recommend that you refer to the relevant Product Disclosure Statement and Member Direct investment option guide, review your own situation, including the impact of fees on your investment returns, and decide what’s best for you.
Term Deposits option and Shares, ETFs and LICs option
If you are currently in the Term Deposits option or the Shares, ETFs and LICs option, then your overall fees for the Member Direct investment option decreased from 1 April 2023 as a result of these changes.
What you need to do
If you’re a member of AustralianSuper but have not joined Member Direct and wish to take advantage of these changes you can join by logging into your account and choosing the Member Direct investment option.
If you’ve already joined Member Direct you don’t need to do anything if you’re happy with the value you’re getting from your Member Direct investment option. If you wish to change the option you have selected, or you wish to cancel your Member Direct account, simply log into Member Direct and make the change in your account settings.
