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.
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
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 !