The Government’s Protecting Your Super legislation appears to have come at a significant cost to some superannuation funds, with AustralianSuper estimating it at over $3.6 million.
AustralianSuper controversially introduced a levy to cover those costs and, answering questions on notice from the House of Representatives Standing Committee on Economics, the fund said those extra costs had totalled $3,674,932 on a cost-recovery basis alone.
What is more, the largest portion of those additional costs came in the form of administration.
Breaking down the costs, it said the non-insurance cost had been $944.496, with the insurance costs being $1,043,210 and the administration fee being $1,687,326.
AustralianSuper chief executive, Ian Silk had in November told the committee that the levy was designed as a cost-recovery exercise and would not provide any additional revenue to the trustee.
The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members.
Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award.
A research firm has given UniSuper a glowing review, praising its strong leadership and “compact team”, as well as its “creditable governance” structure.
Assistant Treasurer Stephen Jones has defended the government’s plan to modestly cut tax concessions for Australia’s wealthiest superannuation accounts, saying it is a “fairer outcome”.
That's a drop in the bucket. AusSuper would be making $3.6m profit every fortnight, given their current FUM.
That's sure to drive Timmy Wilson bonkers!
Hey Steve - Aus Super is an industry fund - all " profit " goes back to members !