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Funds that increased fees point to PYS package
While most superannuation funds have decreased administration and investment fees over the last two years, the funds that have increased fees for members have cited the Government’s Protecting Your Super (PYS) package.
Super Review looked at some of the largest superannuation funds and found 10 of the funds had decreased their fees over the last two years, two had decreased and increased various parts of their fees, three had increased fees, and one had not changed their fees in over a decade.
Just this year nine funds that decreased their fees or part of the fees, with most citing the move from scale benefits and mergers.
AustralianSuper, Rest, and Cbus all increased their fees this year.
AustralianSuper said it increased its fees on 1 April, 2020, as a result of PYS changes. Its members would now pay a 0.04% per annum administration fee that was deducted daily from investment returns before returns were applied, on top of the $2.25 weekly admin fee.
Similarly, in February 2020, Cbus said it increased its admin fee from $1.50 per week to $2 per week and increased its operating costs from 0.15% per year to 0.19% per year due to Government regulations and improvements to products and services. However, it noted that this was the first time it had changed its fees in 10 years.
Rest changed its fee structure in September 2020 to “improve its products and services for members”. However, while the administration fee would increase most investment fees were reduced on 30 June, meaning some members would have their annual fees reduced.
From 1 October 2020, BT reduced its percentage-based standard administration fee from 0.45% to 0.28% per year on its BT Lifestage Investment Option and Choice investment options, and increased the dollar-based standard administration fee from $6.50 to $9.00 per month.
If the balance was more than $17,647, the member would pay a lower standard administration fee and total fees and costs will be less, but those with a smaller balance would pay a higher standard administration fee and total fees and costs would increase.
Hesta told Super Review it had not changed its fees in 10 years.
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