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 component 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 $2.25 per week is calculated weekly and
deducted monthly from your account. The fund pays its administration costs from the administration reserve. The Fund’s estimated costs are $2.65 per member per week gross of tax. The Fund claims a tax deduction for the administration costs each year which is also paid into the administration reserve.
|Up to 0.04% pa of your account balance||Up to 0.04% pa is deducted daily from investment returns, before returns are applied to your account. For the 2019/20 financial year, the total annual amount will be charged over a 3 month period (equal to an annualised rate of up to 0.16%) from 1 April 2020 to 30 June 2020. From 1 July 2020 the amount will be charged over an annual period, up to 0.04%.|
|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||See Additional explanation of fees and costs for information about other costs. Refer to section 7 of this PDS for tax details and section 8 for insurance costs.|
|Indirect cost ratio*||Nil||Nil|
^The investment fee is for the Balanced investment option for the 2018/19 financial year and is likely to change from year to year. The investment fee for other options is different.
* If your account balance for a product is less than $6,000 at the end of the financial 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.