From 1 April 2020 a new fee will apply to your super (accumulation) account. This fee is being introduced to offset the impacts of the Federal Government’s Protecting Your Super changes, which came into effect on 1 July 2019.
How the new fee will be charged
The new Administration fee – Protecting Your Super is calculated based on the value of your account balance. The fee is variable, up to a maximum of 0.04% per year of your account balance. The fee will be deducted from investment returns daily, before returns are added to your account. This fee is in addition to the administration fee of $2.25 per week and investment fees.*
For the 2019/20 financial year, the total annual amount will be
charged over a 3-month period from 1 April 2020 to 30 June 2020. From 1 July
2020 the amount will be charged over the financial year.
For example, if you have an account balance of $50,000, you’ll be charged up to $20 between 1 April 2020 and 30 June 2020 and up to $20 per year from 1 July 2020 onwards.
The new fee does not apply to Choice Income or Transition to Retirement Income accounts.
You don't need to do anything
The fee will automatically apply to your account from 1 April 2020. It will be shown on your 2019/20 Annual Statement.
Find out more about the changes
How the new fee compares
|Current amount||Amount after 1 April 2020||How and when paid|
|Type of Fee|
||0.60%||Deducted from before-tax investment returns on 30 June each year (earlier if you close your account), before the returns are applied to your account.|
The administration fee of $2.25 per week is calculated weekly and deducted monthly from your account.
|Administration fee - Protecting Your Super*||Nil||Up to 0.04% pa of your account balance||The Administration fee – protecting your super is deducted daily from investment returns, before the returns are applied to your account.^|
|Buy sell spread||Nil||Nil|
|Advice fees relating to all members investing in a particular MySuper product or investment option.||$0-$295||$0-$295||This is the cost for over-the-phone advice. For face-to-face advice, a higher fee applies which may be deducted directly from your account.|
|Other fees and costs||Go to australiansuper.com/RefFees for information on insurance fees, family law fees and contribution splitting fees.|
|Indirect cost ratio*||Nil||Nil|
^For the 2019/20 financial year, the total annual amount will be charged over a 3-month period from 1 April 2020 to 30 June 2020. From 1 July 2020 the amount will be charged over an annual period.
* From 1 July 2019, if your account balance for a product oﬀered by the superannuation entity is less than $6,000 at the end of the entity’s income year, the total combined amount of administration fees, investment fees and indirect costs charged to you is capped at 3% of the account balance. Any amount charged in excess of that cap must be refunded.