Retirement
AustralianSuper hits customers with ‘Protecting Your Super’ fee
The nation’s largest superannuation fund will introduce a new fee for MySuper members starting from April 2020 to offset the impact of the Protecting Your Super changes.
AustralianSuper hits customers with ‘Protecting Your Super’ fee
The nation’s largest superannuation fund will introduce a new fee for MySuper members starting from April 2020 to offset the impact of the Protecting Your Super changes.
In a statement, AustralianSuper announced that members will pay an “administration fee - protecting your super” fee, which is a variable fee based on the member’s balance up to 0.04 per cent.
Based on the example provided, members with an account balance of $50,000 will be charged up to $20 between 1 April 2002 and 30 June 2002.
The new fee is in addition to the funds existing administration fee of $2.25 per week as well as an investment fee of 0.60 per cent.
The federal government’s Protecting Your Super package came into effect from 1 July 2019 and is designed to stop Australians’ super savings from unnecessary erosion by fees and insurance costs.
“This reduces the funds available to cover administration costs, products and services for all members. The new fee will be used to cover this gap in the most sustainable way,” AustralianSuper said.
The aim of the new law was to stop balances under $6,000 that are inactive from being eroded by unnecessary fees.
Under the new laws, balances under $6,000 will have an annual cap of 3 per cent a year, as well as exit fees being banned.
Super accounts with insurance and are inactive for 16 months will have their insurance cancelled.
“Balances of less than $6,000 at the end of the financial year that have paid more than 3 per cent pa in combined administration fees, investment fees and indirect costs, any amount above 3 per cent pa will be refunded,” AustralianSuper said.
nestegg recently reported that AustralianSuper balanced account was the fifth best-performing fund for 2019 and has been the second-best fund over the last decade.
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