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.
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
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 !