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Fee terms

By law, super funds have to use specific terms to describe fees and costs. Those terms are explained below.

  • Administration fee

    This fee relates to the administration or operation of a super fund and includes costs incurred by the trustee of the fund that:

    a) relate to the administration or operation of the fund; and

    b) are not otherwise charged as an investment fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

  • Investment fee

    This fee relates to the investment of the assets of a super fund and includes:

    a) fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and

    b) costs incurred by the trustee of the fund that:

    i. relate to the investment of assets of the fund; and

    ii. are not otherwise charged as an administration fee, a buy-sell spread, switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

  • Buy-sell spread fee

    This fee recovers transaction costs incurred by the trustee of a super fund in relation to the sale and purchase of fund assets.

  • Switching fee

    This fee recovers the costs of switching all or part of a member's interest in a super fund from one class of beneficial interest in the fund to another (e.g. when you switch from one investment option to another).

  • Exit fee

    This fee recovers the costs of disposing of all or part of members' interests in a super fund.

  • Activity fee

    A fee is an activity fee if:

    a) the fee relates to costs incurred by the trustee of a super fund that are directly related to an activity of the trustee:

    i. that is engaged in at the request, or with the consent, of a member; or

    ii. that relates to a member and is required by law; and

    b) those costs are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee, an exit fee, an advice fee or an insurance fee.

  • Advice fee

    A fee is an advice fee if:

    a) the fee relates directly to costs incurred by the trustee of a super fund because of the provision of financial product advice to a member by:

    i. a trustee of the fund; or

    ii. another person acting as an employee of, or under an arrangement with, a trustee of the fund; and

    b) those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an insurance fee. 

  • Insurance fee

    A fee is an insurance fee if:

    a) the fee relates directly to either or both of the following:

    i. insurance premiums paid by the trustee of a super fund in relation to a member or members of the fund;

    ii. costs incurred by the trustee of a super fund in relation to the provision of insurance for a member or members of the fund; and

    b) the fee does not relate to any part of a premium paid or cost incurred in relation to a life policy or a contract of insurance that relates to a benefit to the member that is based on the performance of an investment rather than the realisation of a risk; and

    c) the premiums and costs to which the fee relates are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an advice fee.   

  • Indirect cost ratio

    The indirect cost ratio (ICR) for a MySuper product or an investment option offered by a super fund, is the ratio of the total of the indirect costs for the MySuper product or investment option, to the total average net assets of the super fund attributed to the MySuper product or investment option.

    Note: A dollar based fee deducted directly from a member's account is not included in the indirect cost ratio.

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